Defence Stock Surges Over 15% Following Strong Q4 Earnings, Analysts Maintain Bullish Stance with ₹365 Price Target
Apollo Micro Systems Shares Surge 16% in Two Days Following Better-Than-Expected Q1 Performance
Apollo Micro Systems, a leading defence company, has seen its shares soar nearly 10% on Tuesday, ending the session at ₹340 apiece. This gain builds on a 6% surge in the previous session, resulting in a cumulative two-day increase of 16%. The stock's performance significantly outpaces the broader market, as it continues to ride the wave of positive developments.
The company's financial performance for the March quarter has been nothing short of impressive. Net profit surged to ₹36.79 crore, a robust 163.5% year-on-year jump from ₹13.96 crore in the corresponding quarter last year. Consolidated revenue from operations rose to ₹293.26 crore, marking a strong growth of 81.3% YoY, from ₹161.77 crore in the same quarter last year.
| Quarter | Net Profit (₹ crore) | Consolidated Revenue (₹ crore) | YoY Growth (%) |
|---|---|---|---|
| FY26 Q1 | 36.79 | 293.26 | 163.5% |
| FY25 Q1 | 13.96 | 161.77 | - |
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The company's full financial year FY26 performance also reflects a strong growth story. Consolidated revenue from operations stood at ₹904.32 crore, compared to ₹562.07 crore in FY25, representing a strong annual growth of 60.9%.
Domestic brokerage firm Choice Institutional Equities has maintained its positive stance on the stock, citing the company's strategic transition from a component supplier to a full-fledged system integrator as a key driver of growth. The brokerage expects the momentum to continue, with revenue, EBITDA, and PAT expected to expand at a CAGR of 52.9%, 52.9%, and 54.6%, respectively, over FY27–FY29E.
| Financial Metric | FY27E | FY28E | CAGR (FY27–FY29E) |
|---|---|---|---|
| Revenue | 19.5% | 52.9% | |
| EBITDA | 19.5% | 52.9% | |
| PAT | 54.6% |
The company's shares have been in focus amid multiple positive developments, helping the stock recover a large portion of its earlier losses. The stock has rallied sharply following the results, and Choice Institutional Equities expects it to reach the ₹365 level.
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Investor Takeaway
Investors should consider Apollo Micro Systems for potential long-term growth.
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