Defence Stock Sees 100% Surge in Under Two Months: A Potential Multibagger Investment?

Apollo Micro Systems Continues to Scale Record Highs on Strong Growth Prospects

The Indian markets have been range-bound in recent times, but one stock that has defied this trend is Apollo Micro Systems. The company's shares have been on a tear, driven by its robust growth prospects and impressive returns. On Thursday, the stock touched a new record high of ₹377.70 apiece, marking its third consecutive all-time high.

This continued rally in the defence stock is a testament to investors' optimism about the company's growth prospects and its strategic transition from a component supplier to a full-fledged system integrator. Apollo Micro Systems' expanding role, robust order pipeline, and improving margin trajectory have kept analysts bullish on the stock.

The Stock's Recovery

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The stock has rebounded 110% from its March lows, marking one of the strongest recoveries in recent years. The rally came after the stock remained under pressure between September 2025 and March 2026, during which it had lost nearly 42% of its value. However, the stock recovered all of its six-month losses in April alone by surging 63%, marking its biggest monthly gain since June 2023.

The momentum has further extended into the current month, with the stock gaining another 21% so far, pushing its year-to-date returns to 32%. This is significantly outperforming the Nifty Midcap 100, which has risen a modest 1.5% during the same period.

Strong Financial Performance

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Apollo Micro Systems reported a healthy set of numbers for the March quarter, with consolidated revenue from operations rising to ₹293.26 crore from ₹161.77 crore in the corresponding quarter last year, registering a sharp 81.3% year-on-year growth. Profit after tax (PAT) surged to ₹36.79 crore from ₹13.96 crore, marking a robust 163.5% YoY jump.

For the full financial year FY26, the defence company reported consolidated revenue from operations of ₹904.32 crore, compared to ₹562.07 crore in FY25, reflecting a strong 60.9% annual growth. On the bottom line, net profit jumped to ₹107.38 crore from ₹56.36 crore, registering a strong 90.5% year-on-year increase.

Following the results, domestic brokerage firm Choice Institutional Equities revised its FY27E and FY28E EPS estimates upward by 27.5% and 19.5%, respectively. The brokerage now expects revenue, EBITDA, and PAT to expand at a CAGR of 52.9%, 52.9%, and 54.6%, respectively, over FY27–FY29E. However, the brokerage downgraded its rating on the stock to 'Add' from 'Buy' following the recent sharp rally in the shares, although it still expects the stock to reach the ₹365 level.