Multibagger defence stock: Multibagger defence stock Apollo Micro Systems gained 3% in intra-day deals on Tuesday, December 2 after the firm received a major regulatory boost after being granted an Industrial Explosives and Manufacturing License by the Department for Promotion of Industry and Internal Trade (DPIIT).
The approval marks a significant milestone for the Hyderabad-based defence and engineering technologies company and strengthens its eligibility for upcoming Ministry of Defence (MoD) contracts.
The company notified the exchanges on December 1, 2025, that the newly granted license authorises it to manufacture several strategic defence-grade products, including Unmanned Aerial Systems (UAS), Inertial Navigation Systems (INS), and advanced radar equipment. Apollo Micro Systems said the approval is a prerequisite for participating in both present and future manufacturing opportunities with the MoD.
License Enables Manufacturing of UAS, INS and Radar Systems
The DPIIT license covers three major categories of defence equipment: Unmanned Helicopters (UAS), Inertial Navigation Systems, and integrated Radar Systems. According to the filing, the approval will remain valid for 15 years from the date of issue, providing long-term regulatory clarity for the company’s defence expansion plans.
Apollo Micro Systems noted that it is already developing multiple UAS platforms and is working closely with domestic and international partners to build logistics-focused UAVs as well as offensive and attack-class unmanned systems. The company expects these systems to move into field trials over the next two quarters.
On the navigation front, the firm received authorization to develop and manufacture high-precision INS technologies, including MEMS-based units, Fiber Optic Gyro (FOG) systems and Ring Laser Gyro (RLG) solutions. These technologies are critical for modern drones, missiles and aircraft. The company said it is currently sourcing specialised test and calibration equipment to support this phase of development.
The license also allows the production and integration of complete radar systems-including transmit-receive modules, signal processors, antennas and associated subsystems-an area with strong demand in both domestic and global defence markets.
In its filing, the company emphasized the significance of this milestone, stating: “The license is prerequisite for the present and upcoming manufacturing opportunities with the Ministry of Defence.”
Strategic Boost to Defence Manufacturing Ambitions
The approval is expected to significantly enhance Apollo Micro Systems’ presence in India’s rapidly expanding defence manufacturing ecosystem. With the government pushing for deeper indigenisation under the ‘Atmanirbhar Bharat’ initiative, companies equipped to build high-technology defence equipment are gaining prominence.
The company’s growing portfolio aligns with high-priority segments-UAVs, navigation systems and radars-which have seen strong procurement interest from the armed forces over the past few years.
Given the long validity of the new license and ongoing collaborations with international partners, Apollo Micro Systems is poised to accelerate product development and strengthen its order pipeline.
Apollo Micro Systems Stock Performance
The defense stock rose as much as 3% to its day’s high of ₹276.35. It is still 22% away from its 52-week high of rs 354.65, hit in September 2025. Meanwhile, it has soared 199%, almost tripling investor wealth from its 52-week low of ₹92.50, hit in December 2024.
In the last 1 year as well the stock has given multibagger returns, rallying 169% while it added 38% in past 6 months. However, recently, it has been under pressure, down 7% in last 3 months and 1.5% in last 1 month.