Defence Stock Exhibits Resilience Amid Market Turmoil
Apollo Micro Systems Posts Strong Growth Amid Market Downturn
On March 4, Apollo Micro Systems' shares rose by 1.5% despite a decline in the stock market. The small-cap defence company, specializing in mission-critical defence electronics and electromechanical systems, attracted attention after securing several significant orders.
Apollo Micro Systems received contracts valued at ₹150.03 million (Rs. 15 crore) from the Defence Research & Development Organisation (DRDO) and ₹434.96 million (₹43.50 crore) from Defence Public Sector Undertakings (DPSUs). The company also secured orders worth ₹139.55 million (₹13.96 crore) from private firms and ₹8.72 million (₹0.87 crore) from government departments, where it maintains the L1 status.
These contracts involve the provision of sophisticated defence and technology systems, including homing systems for heavy torpedoes, fire control systems, and launchers for strategic missile programs. The company will also supply avionic LRUs for missile platforms and cybersecurity solutions for intelligence agencies.
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The agreements reinforce Apollo Micro Systems' robust position within India's defence sector and enhance its order backlog. As of December 31, 2025, the company boasts an order backlog of ₹1,305 crore, indicating consistent demand for its solutions in the defence and aerospace sectors.
Apollo Micro Systems collaborates closely with prominent entities, including DRDO, Bharat Dynamics Limited, Solar Industries, L&T, ISRO, BrahMos Aerospace, Indian Oil, Bharat Electronics, Adani Group, Tata Advanced Systems, HAL, AMD, and the National Informatics Centre.
The company's financial performance has been impressive, with revenue rising from Rs. 148 crore in Q3 FY25 to Rs. 252 crore in Q3 FY26, representing an increase of 70.27%. Net profit also rose by 27.78%, increasing from Rs. 18 crore in Q3 FY25 to Rs. 23 crore in Q3 FY26.
Investor Takeaway
Investors should consider Apollo Micro Systems as a potential beneficiary of the defence sector's growth.
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