Apollo Micro Systems Q2 Net Profit Jumps 54% YoY to ₹46.2 Crore as Margins Reach 23.6%

Key numbers

P/E TTM	110.4xSector 50.6x
Market Cap	₹13,390 CrMid Cap
1Yr Price Change	25.6%Outperformance
RSI	40.1Neutral Zone

Key highlights

• Consolidated revenue from operations surged 72.4% year-on-year to ₹388 crore in Q2 FY27
• Net profit increased 54.0% YoY to ₹46.2 crore, while growing 83.3% on a sequential basis
• Operating margins expanded to 23.6% from 19.0% in the year-ago period
• Adjusted profit for the quarter grew 112.9% compared to the same period last year
• Company completed the acquisition of 100% stake in IDL Explosives Limited for ₹107 crore
• A new associate company, Shauryastra Defence Systems Private Limited, was incorporated on August 21, 2026

Operational Growth and Margin Expansion

Apollo Micro Systems demonstrated significant operational scaling during the quarter ended September 30, 2026. Revenue from operations reached ₹388 crore, a 72.4% increase over the ₹225 crore reported in the same period last year. This growth was accompanied by a sharp expansion in operating margins, which climbed to 23.6% from 19.0% YoY and 14.9% in the preceding quarter.

The company reported a total income of ₹392 crore, inclusive of ₹3.5 crore in other income. Profit before tax stood at ₹92.5 crore, reflecting improved efficiency in managing its electromechanical components and systems business.

Consolidated Portfolio and Strategic Moves

• The company operates in a single primary segment: electromechanical components and allied services.
• Completed the acquisition of 100% stake in IDL Explosives Limited on November 15, 2025, for a total consideration of ₹10,700 lakhs.
• A new associate firm, Shauryastra Defence Systems Private Limited, was incorporated in August 2026 with a 34% stake.
• Management noted that several subsidiaries have reported positive results and earned profits during the current quarter.
• The purchase price allocation for the IDL Explosives acquisition was preliminary as of September 30, 2026.

Valuation and Sector Positioning

In the broader aerospace and defence industry context, Apollo Micro Systems currently trades at a TTM P/E of 110.37x, which remains above the sector average of 50.57x. Despite a 10.15% decline in the stock price over the last week, the company has maintained a positive one-year return of 25.6%. The company's momentum score of 55.1 classifies it as an expensive performer in the current market environment.

With a market capitalization of ₹13,390 crore and a promoter holding of 49.98%, the company continues to focus on its bidding pipeline, which was previously estimated at approximately ₹14,000 crore over a four-year horizon as of April 2026.

Management Outlook

The management is confident of meeting all obligations in the ordinary course of business. Accordingly, the financial results have been prepared on a going concern basis and no adjustments are considered necessary.

What to watch next

• Achievement of FY27 revenue growth guidance of 40% to 45% as previously targeted
• Finalization of purchase price allocation for the IDL Explosives acquisition by year-end
• Progress on the ₹14,000 crore four-year bidding pipeline
• Targeting a year-end order book of ₹3,500–4,000 crore by March 2027

“The Group operates in only one segment, namely electromechanical components and systems and allied components and services. Hence segmental reporting as per Ind AS 108 is not presented.”

Apollo Micro Systems · financial snapshot

Share price	₹374.75
Market capitalisation	₹13,390.02 Cr
Revenue (annual)	₹904.32 Cr
Net profit (annual)	₹112.92 Cr
Revenue (latest quarter)	₹251.29 Cr-14.31% vs previous quarter
Net profit (latest quarter)	₹26.91 Cr-28.46% vs previous quarter
P/E (TTM)	110.37×Sector 50.57×
Promoter holding	49.98%0.00% QoQ
FII holding	5.95%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.