Apollo Micro Systems share price skyrocketed nearly 18% intraday on Wednesday after the company secured a massive Rs 113.81 crore export order for an advanced avionics system. The Hyderabad-based smallcap defence stock has seen a sharp 57% surge in the past month alone, catching the attention of both retail investors and institutional buyers. Backed by robust financials and a promising order book, Apollo Micro Systems seems to be riding the defence boom in India.
Let’s dive into what’s driving this stellar momentum, recent developments, and what it means for investors in the long run.
₹114 Cr Avionics Order: A Strategic Win
The trigger for this surge is a new export order worth USD 13.3 million (₹113.81 crore) for the development of an advanced avionics system for both civil and military aircraft applications. The sensitive nature of this defence-related engagement is bound by a Non-Disclosure Agreement (NDA), restricting detailed disclosures.
Such high-value export orders not only boost revenue visibility but also enhance the company’s credibility in the global defence electronics space—a segment with rising demand and high entry barriers.
This project could open doors for further international collaborations, given the growing push for indigenisation and Make in India initiatives in defence.
Also Read: Bharat Dynamics Stock in Focus as Govt Plans ₹3,000 Cr Invar Missile Mega Order
Explosive Price Rally: 57% Gain in One Month
Apollo Micro Systems closed at ₹177.31, up by 13% on NSE, forming ₹183.40—a fresh 52-week high. Over 6 crore shares changed hands, indicating strong buying interest.
Here’s a quick performance snapshot:
-
1-Month Gain: 57%
-
1-Year Gain: 65%
-
2-Year Return: 414%
-
3-Year Return: 1440%
-
5-Year Return: 2013%
With these kinds of multi-bagger returns, Apollo has clearly become a market favourite in the defence and aerospace sector.
The stock is currently trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signaling a strong bullish trend.
Solid Q4 FY25 Results Support Rally
In Q4 FY25, Apollo Micro Systems reported:
-
Net Profit: ₹14 crore (up 8% YoY)
-
Revenue: ₹161.7 crore (up 19% YoY)
Compared to ₹135.4 crore in Q4 FY24, this sharp jump in operational revenues reflects strong order execution and demand. The consistent profitability and expanding topline make it a fundamentally strong pick in the smallcap defence space.
With India’s increasing budgetary allocation to defence and aerospace tech, mid-sized firms like Apollo are well-placed to benefit from both domestic and export-led demand.
Defence Sector Outlook: A Multi-Year Growth Story
India’s defence sector is undergoing a transformation. From being import-dependent, the country is now pushing self-reliance under “Atmanirbhar Bharat.” According to SIPRI, India was the largest arms importer globally between 2019 and 2023, but the tide is slowly turning.
Apollo Micro Systems, with expertise across aerospace, infrastructure, defence electronics, and transportation, fits perfectly into this transformation. The company offers a range of smart systems, from rugged computers to embedded systems used in missiles, drones, and aircraft.
With rising defence exports and government backing, Apollo stands to gain further in this high-growth, high-barrier sector.
Also Read: Prostarm Info Systems IPO
Final Thoughts: Should You Buy Apollo Micro Systems Now?
For those eyeing smallcap opportunities with long-term growth potential, Apollo Micro Systems presents a strong case. Backed by a robust order book, improving financials, and tailwinds in the defence sector, the stock remains in an upward trajectory.
However, investors should also note the volatility typical of smallcaps. While the momentum is strong, consider phased entries or wait for dips to accumulate. Keep a close watch on further order wins, especially export-based ones, which can significantly re-rate the stock.
Track Apollo’s upcoming quarterly results, management commentary, and new contracts—these will likely be strong triggers for the next leg of rally.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
