Apollo Micro Systems Surges 9% Intraday As Investors Cheer Defence Stock After Earnings

Mumbai, May 18: Shares of Apollo Micro Systems surged as much as 9% on Monday after the defence and aerospace electronics company reported strong March quarter earnings, driven by robust revenue growth and improved profitability.

The stock climbed as much as 9% during intraday trade, even as markets remained volatile amid rising crude oil prices and weak global cues.

Apollo Micro Systems reported a consolidated net profit of ₹38 crore for the March quarter, sharply higher from ₹14 crore in the corresponding period last year, marking a rise of over 170% year-on-year. Revenue jumped over 80% to ₹293.2 crore, reflecting strong execution across defence and aerospace projects.

The company’s EBITDA also witnessedstrong growth during the quarter, but operating margins just showed an uptick. Investors appeared encouraged by the sharp improvement in earnings momentum as well as the company’s growing presence in India’s defence manufacturing ecosystem.

The stock rose 5.58% to close at Rs 311. Source: NSE

Apollo Micro Systems specialises in defence electronics and electro-mechanical solutions, with exposure to radar systems, avionics, missile systems, underwater weapon platforms and electronic warfare applications. The company has been benefiting from rising government spending on defencemodernisation and increasing localisation initiatives under India’s “Make in India” programme.

The results reinforced optimism around the company’s order execution capabilities and long-term growth prospects. Expanding opportunities across defence, aerospace and homeland security segments were key positives.

The stock has rallied 127.94% over one year versus Nifty Total MKT declining 1.73% during the same period. Source: NSE

Investor sentiment towards defence-related stocks has remained strong over the past year amid expectations of sustained policy support and higher defence capital expenditure. Companies linked to indigenous defence manufacturing have seen significant investor interest as India pushes to reduce dependence on imports for strategic equipment.

The rally in Apollo Micro Systems shares also came despite weakness in broader equities caused by escalating geopolitical tensions in the Middle East. Rising crude oil prices and a weakening rupee weighed on benchmark indices during the session, thoughdefence stocks remained relatively resilient compared with other sectors, their index slipping just 0.5%.

Apollo Micro Systems could continue to benefit from rising demand for advanced electronic systems and increased participation by private players in defence procurement programmes. The company’s improving operational scale and margin profile are also expected to support earnings growth in the coming quarters.

Investors are now expected to closely track fresh order wins, execution timelines and margin trends for further direction on the stock. The strong quarterly performance has strengthened confidence that Apollo Micro Systems remains well positioned to capitalise on India’s expanding defence manufacturing opportunity.

Source:

• https://www.nseindia.com/get-quote/equity/APOLLO/Apollo-Micro-Systems-Limited