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Shares of Apollo Micro Systems rose on Monday after the company reported strong Q2 results. Its net profit jumped 53.3% to ₹46 crore, up from ₹30 crore a year ago.
By the numbers:
- Operating profit (EBITDA) rose 88.1% to ₹111 crore, up from ₹59 crore.
- Its EBITDA margin improved to 28.6% from 26%, meaning it earned more profit from its operations for every ₹100 of revenue.
Meanwhile, its working capital cycle improved slightly to 353 days from 359 days, meaning it is taking a little less time to turn money tied up in the business into cash.
The reason: Apollo is expanding beyond defence electronics into missile technology and complete weapon systems, using technology transferred by DRDO.
The company has maintained its 40-45% growth target, with exports offering further growth opportunities. It is also building new manufacturing facilities and expanding into naval mines and explosives to tap more of the defence market.
The big picture: India’s defence exports have jumped 56-fold, from ₹686 crore in FY14 to ₹38,424 crore in FY26, with equipment now reaching over 80 countries. Private companies account for nearly 45% of these exports.
The government aims to take this further, targeting ₹3 lakh crore in annual defence production and ₹50,000 crore in exports by 2029. This push could create more opportunities for companies like Apollo Micro Systems.
PIB
