The stock has gained over 76% year-to-date, supported by strong Q1 results and broader defense sector momentum.
Apollo Microsystems’ stock gained as much as 3.9% on Thursday after the company bagged defense orders worth ₹25.12 crores.
According to a press release dated August 21, Apollo Microsystems was declared the lowest bidder for orders from the Defence Research and Development Organisation (DRDO) and other defence public sector undertakings.
Additional details of the order were not mentioned in the press release.
Defense Stocks Gain Momentum
India’s defense stocks have seen strong gains this year due to the Indian government’s increased spending in the sector. India’s annual defense production reached a record high of ₹1,50,590 crore in FY 2024-25, while exports also increased to a record ₹23,622 crore during the same period.
Earlier this month, the Defence Acquisition Council (DAC) approved capital acquisition proposals worth around ₹67,000 crore to bolster the operational capabilities of the Indian Armed Forces, including the Army, Navy, and Air Force.
HAL confirmed receiving a defense order worth ₹62,000 crore from the Indian government after the Cabinet Committee on Security cleared an order to purchase 97 light combat aircraft (LCA Mk-1A).
The Nifty India Defense Index has gained 18.5% so far this year.
Q1 Earnings Surge
The electronic components manufacturer posted robust Q1FY26 financial numbers last month, with profit after tax more than doubling to ₹19.43 crore, while revenue from operations surged 46% to ₹133.58 crore.
In May, the company completed an all-cash acquisition of IDL Explosives for ₹107 crore. IDL Explosives manufactures and supplies packaged and bulk explosives for mining and infrastructure projects.
Apollo Microsystems develops indigenous solutions, such as vehicle-mounted counter-swarm drone systems (VMCSDS), for the Indian Army, along with customized commercial off-the-shelf (COTS) systems for defense, railways, space, and homeland security.
Overall, the stock has gained over 76% this year.
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