Apollo Micro Systems Share Price Surge Over 4% After Defence Aircraft Manufacturing Licence

Tuesday, December 2, 2025: Apollo‍‌‍‍‌‍‌‍‍‌ Micro Systems shares gained more than 4% on Tuesday, after the company received a licence for manufacturing equipment for defence aircraft. The licence covering the production of unmanned helicopters and unmanned aerial systems, a segment which is getting lots of attention amid India’s push for self-reliance in defence manufacturing, drove the stock rally early on Tuesday.

What the Licence Covers: UAS, Radar & Navigation Equipment

The license granted by the government is not only for UAVs but also for allied defence equipment, such as inertial navigation systems (INS) and radar equipment. In its filing, the company said that the licence, issued by the DPIIT, is for 15 years, thus giving the company a long time to explore the defence market with the MoD.

Strategic Importance Amid India’s Push for Indigenous Defence Manufacturing

Apollo Micro Systems has emerged as a major private-sector player in the defence and aerospace sector, helping India’s transition to indigenous defence manufacturing. The new licence strengthens its strategic position and could make it a preferred supplier for Ministry of Defence projects involving UAVs, navigation systems, and radar technologies. This approval is expected to open the door to substantial orders in these segments over the coming years.

In the past few quarters, there has been an increase in demand by the Indian military for UAVs and navigation radar systems. The country imports a critical portion of the defence equipment, and this update is in line with the government’s push for indigenous defence production. 

Market Reaction & What to Watch Next

As of 3:30 PM IST on December 2, Apollo Micro Systems Ltd share price (NSE: APOLLO) closed at ₹280.00, up 4.36% or ₹11.70 for the day. Earlier at 2:25 PM, the stock was trading at ₹279.70. During the session, it opened at ₹267.40 and moved within a range of ₹265.00 to ₹281.50. The company currently commands a market capitalisation of ₹9,930 crore, with a P/E ratio of 113.03 and a dividend yield of 0.089%. Apollo Micro Systems has touched a 52-week high of ₹354.70 and a 52-week low of ₹92.55, with a quarterly dividend payout of ₹0.062.

It will be interesting to see how the company builds out its manufacturing facilities, the pace at which it secures orders, and how efficiently it navigates the regulatory/defence-procurement machinery over time. All these factors should be on the watchlist of investors for at least the next few quarters. 

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