Apollo Micro Systems Q2 profit rises 53.7% as revenue jumps 72%
By Siddharth VermaBusiness Correspondent, Peepals Bharat
Representative image: ranjatm / Pixabay
Defence electronics maker Apollo Micro Systems reported Q2 FY27 revenue of Rs 388.15 crore, up 72.3%, and profit of Rs 46.15 crore, up 53.7%; shares rose on October 26, 2026.
What Happened
Apollo Micro Systems, an Indian maker of electronic and electro-mechanical systems for defence and aerospace, reported its best quarter so far for July to September 2026, the second quarter of the 2026-27 financial year (Q2 FY27). Consolidated revenue rose 72.3% from a year earlier to Rs 388.15 crore, and net profit rose 53.7% to Rs 46.15 crore, according to the company's results. Its shares rose about 10% to 12% in trading on Monday, October 26, 2026, after the numbers were published.
Key Facts
- Consolidated revenue for Q2 FY27: Rs 388.15 crore, up 72.3% year on year.
- Consolidated net profit: Rs 46.15 crore, up 53.7% year on year.
- EBITDA, or operating profit before interest, tax, depreciation and amortisation: Rs 111.18 crore, up 87.8%, with a margin of 28.6%, according to the company's presentation.
- First half of FY27 (April to September 2026): revenue of Rs 639.44 crore and profit of Rs 71.37 crore.
- Order book: about Rs 1,765 crore, according to reports.
- Standalone revenue, from the parent company alone, grew by a smaller 36%, showing that subsidiaries contributed much of the growth.
- Shares rose about 10% to 12% on October 26, 2026.
Why It Matters
Apollo Micro Systems is a mid-sized Indian defence electronics company, and its results are a signal of how far the government's push to buy defence equipment from Indian industry is reaching beyond the largest companies to smaller suppliers. On the same day its shares rose, the Defence Acquisition Council cleared proposals worth about Rs 2.12 lakh crore, with about 82% to be sourced from Indian industry, which shows the scale of the demand that domestic defence suppliers are competing for.
The quality of the growth deserves a closer look. Consolidated revenue, which includes subsidiaries, rose 72%, while the parent company's own revenue grew 36%. That means newer businesses inside the group contributed a large share of the increase. One report noted that the subsidiary IDL Explosives posted a loss in the first half, and that the statutory auditor flagged negative net worth and cash losses at certain subsidiaries. Investors and lenders will watch whether those units turn profitable as they grow.
The margin numbers are another highlight. An EBITDA margin of 28.6% means that, for every Rs 100 of revenue, the company kept about Rs 28.6 as operating profit before interest, taxes and depreciation.
The order book of about Rs 1,765 crore, which is the value of orders received but not yet delivered, gives some visibility of future revenue. Defence orders often arrive in large, irregular batches, so results can vary from quarter to quarter.
For workers and suppliers, a growing defence electronics company means jobs in design, assembly and testing, and work for smaller component suppliers.
| Measure | Q2 FY27 | Change from a year earlier |
|---|---|---|
| Revenue (consolidated) | Rs 388.15 crore | Up 72.3% |
| Net profit | Rs 46.15 crore | Up 53.7% |
| EBITDA | Rs 111.18 crore | Up 87.8% |
| EBITDA margin | 28.6% | not stated |
| Order book | About Rs 1,765 crore | not stated |
Impact
Short-term: The strong quarter lifted the share price and puts attention on whether the company can keep up growth in the second half of the year.
Long-term: If defence spending with Indian suppliers keeps rising, mid-sized firms like Apollo Micro Systems could grow into larger players. The performance of its subsidiaries will be important to watch.
Who is affected: Shareholders, employees and suppliers of Apollo Micro Systems, the armed forces and defence companies it supplies, and other small and mid-sized Indian defence manufacturers.
Key Takeaway
Apollo Micro Systems posted record Q2 FY27 results, with revenue up 72.3% to Rs 388.15 crore and profit up 53.7% to Rs 46.15 crore, helped by subsidiaries and strong defence demand.
Questions and Answers
What were Apollo Micro Systems' Q2 FY27 results?
For July to September 2026, consolidated revenue rose 72.3% to Rs 388.15 crore and net profit rose 53.7% to Rs 46.15 crore, according to the company's results.
How big is Apollo Micro Systems' order book?
The order book stood at about Rs 1,765 crore, according to reports on the results.
How did Apollo Micro Systems shares react to the Q2 results?
The shares rose about 10% to 12% on October 26, 2026, the trading day after the results. This is not a recommendation to buy or sell.
Were there any concerns in the Apollo Micro Systems results?
Standalone revenue grew only 36%, so much of the growth came from subsidiaries. One report said the auditor flagged negative net worth and cash losses at certain subsidiaries, and that IDL Explosives posted a first-half loss.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Siddharth Verma, Business CorrespondentCovers Business and more for Peepals Bharat. All stories by Siddharth Verma
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Siddharth Verma is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
