Apollo Micro Systems Soars on New Orders

A significant order book addition from DRDO and PSUs fuels a remarkable rally in the defense stock.

New Delhi, August 22, 2025: Apollo Micro Systems, a key player in the Indian defense electronics sector. The stock was observed to have skyrocketed by a significant 15%, reaching a new 52-week high, following the announcement that it had been declared the lowest bidder for new orders from the Defence Research and Development Organisation (DRDO) and various Defense Public Sector Undertakings (PSUs).

The company, which specializes in the design, development, and supply of electronic and electro-mechanical solutions for the aerospace and defense sectors, confirmed in a regulatory filing that it had been awarded orders totaling ₹25.12 crores. This achievement is a testament to the company’s competitive pricing and its strong positioning within the strategic defense market. The precise nature of the contracts or their execution timeline was not disclosed, but the win has been perceived by the market as a strong indicator of the company’s robust pipeline and operational capabilities.

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This recent development is being viewed as a continuation of a positive trend for the company. It was noted that the stock has been gaining momentum in recent months, with its performance being bolstered by a strong Q1FY26 earnings report where a substantial increase in profit and revenue was recorded. The company’s recent strategic acquisition of IDL Explosives Ltd. in an all-cash deal has also been favorably received, signifying an expansion into related business segments.

The remarkable rally in the stock’s price is also a reflection of the broader positive sentiment surrounding the defense sector in India. The government’s increased focus on ‘Make in India’ and a push for indigenous defense production have created a favorable environment for companies like Apollo Micro Systems. This has been supported by a record high in India’s annual defense production and exports, underscoring the sector’s growth trajectory.

As the company awaits the final confirmation of the contracts, investor confidence has been significantly boosted. The stock’s performance on the exchange, marked by the new 52-week high, has been a clear signal of the market’s optimism regarding its future prospects. The company’s management has also projected a positive growth outlook, with revenue expected to see a compound annual growth rate (CAGR) of 45%-50% over the next two years, further solidifying its position as a promising investment in the defense space.