Defence stock Apollo Micro Systems is in the spotlight today as its share price soared over 16% in intra-day trade, touching a fresh 52-week high of Rs 239.40. The rally came even as broader markets were under pressure, with investors pinning hopes on a defence order pipeline and fresh contracts from key government agencies.
Apollo Micro Systems fresh orders
The latest rally in the share price of Apollo Micro Systems came after the company announced new orders worth Rs 25.12 crore from the Defence Research and Development Organisation (DRDO) and other defence public sector undertakings (PSUs).
The development triggered strong buying, pushing the stock well past its previous high of Rs 221.40, last seen in June.
Why are defence stocks in focus?
The rally in Apollo Micro Systems is also part of a broader trend.
If one analyses the trend across the Defence sector stocks, several factors have been responsible for the surge in government orders. The sector has been in focus on account of export deals and an increased push for locally developed technologies.
The company, based in Hyderabad, has been at the centre of this transition, placing it as a key supplier of mission-critical defence and aerospace systems.
Apollo Micro System export orders and earnings
Earlier this month in July, the company bagged its first export order worth $13.37 million (Rs 113.8 crore).
Looking at the financial performance of the company in the April–June quarter (Q1FY26), Apollo Micro System’s revenue surged 46% year-on-year to Rs 133.6 crore. Furthermore, the EBITDA margins expanded to a record 31%.
In addition to this, the operating profit nearly doubled. This surge was driven by its strong order book and execution capability.
Apollo Micro System order book and capex plans
Apollo Micro Systems‘ order book currently stands at Rs 735 crore. The company is also completing a Rs 149 crore capex at Electronic City.
Apollo Micro System share price
So far in August, Apollo Micro share price has rallied nearly 35%, and over the last six months, it has more than doubled, rising 102%.