APOLLONSEApollo Micro Systems LimitedMediumNeutral
Announced Thu, 12 Feb · 12:23 IST

Apollo Micro Systems Limited has informed the Exchange about Transcript

Mgmt Guided Margin ImprovementOrder Pipeline DisclosedMgmt Evaded Key QuestionInvestor Communications View source PDF

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Apollo Micro Systems reported its highest-ever quarterly revenue of INR225 crore in Q2 FY26, up 69% QoQ, with EBITDA of INR59 crore (up 45%) and PAT of INR30 crore (up 70%). H1 FY26 revenue rose 42% to INR359 crore with EBITDA margin expanding 600 bps to 28% and PAT margin improving 330 bps to 13.3%. Management reiterated 45-50% revenue CAGR guidance for FY26-FY27 from the core business, supported by an order book of ~INR800 crore and big-ticket opportunities including the MIGM program (INR4,000 crore for BDL+Apollo combined), QRSAM, ALWT, and EHWT. Key updates include 8x capacity expansion with Unit 3 fully operational by June 2026 (INR250 crore capex), completion of 100% acquisition of Ideal Explosives (IDL) for INR107 crore with consolidation starting Q3 FY26, and target to fully clear promoter pledge within six months. Management also discussed export opportunities (~INR100 crore in development) and strategic partnerships, while acknowledging IDL is currently loss-making at the EBITDA level with a turnaround expected by Q2 FY27.

Likely market impact

Strong execution and robust order pipeline visibility should support continued stock momentum, though the company remains in a high-growth, high-capex phase with margin variations expected quarter-to-quarter. The IDL acquisition, Unit 3 expansion, and pending big-ticket defense orders represent significant upside catalysts, but investors should monitor receivables reduction (INR360 crore currently) and IDL turnaround timelines for confirmation of the growth story.