Apollo Micro Systems Q1 results 2026: Defence stock Apollo Micro Systems is likely to remain in focus during Monday’s trading session after the company reported a strong set of financial results for the quarter ended June 30, 2026.
The company reported a 43% year-on-year increase in net profit to ₹25.2 crore for Q1 FY27, while revenue from operations surged 88% to ₹251.3 crore.
Apollo Micro Systems shares closed at ₹403 apiece on Friday, down 0.43%, ahead of the company’s quarterly results announcement.
Apollo Micro Systems Q1 FY27 Results
Apollo Micro Systems delivered what it described as its best-ever first-quarter performance, supported by strong execution and sustained demand from the defence sector.
According to the company’s regulatory filing, revenue from operations increased to ₹251.3 crore in Q1 FY27, compared with ₹134 crore in the corresponding quarter of the previous financial year.
That represents an 88% year-on-year growth in quarterly revenue.
Net profit rose to ₹25.2 crore, compared with ₹17.6 crore in Q1 FY26, marking a 43% YoY increase.
Apollo Micro Systems Q1 Results: Key Numbers
| Particular | Q1 FY27 | Q1 FY26 | YoY Change |
|---|---|---|---|
| Revenue | ₹251.3 crore | ₹134 crore | +88% |
| Net Profit | ₹25.2 crore | ₹17.6 crore | +43% |
| EBITDA | ₹48 crore | ₹41 crore | +18% |
| EBITDA Margin | 21.4% | 30.6% | -9.2 pp |
While revenue and profit recorded strong growth, the company’s EBITDA margin declined to 21.4% from 30.6% in the year-ago quarter.
This margin contraction will likely remain an important factor for investors to track alongside the company’s strong revenue growth.
Apollo Micro Systems EBITDA Rises 18%
Apollo Micro Systems’ EBITDA increased 18% year-on-year to ₹48 crore from ₹41 crore in Q1 FY26.
The company said this was its highest-ever EBITDA for a June quarter.
However, EBITDA growth was significantly slower than revenue growth, resulting in pressure on operating margins.
The decline in EBITDA margin from 30.6% to 21.4% indicates that investors may focus on whether the company can improve profitability and operating efficiency as its order execution accelerates.
Management Commentary
Baddam Karunakar Reddy, Managing Director of Apollo Micro Systems, said the company’s first-quarter performance reflected strong execution and resilience.
He highlighted the opportunity presented by India’s evolving defence requirements and said the company would continue strengthening its capabilities and contribution to national defence preparedness.
The management’s comments come at a time when defence spending and indigenisation remain major themes for Indian defence companies.
Why Apollo Micro Systems Stock Could Be in Focus on Monday
Apollo Micro Systems could attract investor attention on Monday for several reasons.
First, the company delivered 88% revenue growth and 43% profit growth in the June quarter.
Second, the company recorded its highest-ever Q1 EBITDA, indicating continued business momentum.
Third, India’s focus on defence manufacturing, indigenous procurement and higher defence expenditure continues to provide a favourable long-term backdrop for companies operating in the sector.
However, investors may also monitor the sharp decline in EBITDA margin.
The key question for the market will be whether Apollo Micro Systems can sustain its strong revenue growth while gradually recovering operating margins.
Defence Sector Outlook
The broader defence sector continues to benefit from increased government spending, domestic procurement and efforts to reduce dependence on imports.
Higher defence expenditure by major economies, including India, the US, China, Russia, the UK and France, is also supporting long-term demand across the global defence ecosystem.
Geopolitical tensions and supply-chain disruptions have further highlighted the importance of domestic manufacturing capabilities for critical defence equipment and components.
For Indian defence companies, the government’s push towards Make in India and defence indigenisation remains an important potential growth driver.
Apollo Micro Systems Share Price
Apollo Micro Systems shares ended Friday’s trading session at ₹403, declining 0.43%.
With the Q1 FY27 results now announced, investors will closely watch the stock’s reaction when trading resumes on Monday.
The market’s response could depend on how investors balance the company’s strong revenue and profit growth against the decline in EBITDA margin.
What Investors Should Watch
For Apollo Micro Systems, investors may track:
- Revenue growth and order execution
- New defence orders and order-book growth
- EBITDA margin recovery
- Profitability and cash-flow generation
- Capacity expansion
- Government defence spending
- Export opportunities
- Valuation compared with other listed defence companies
Bottom Line
Apollo Micro Systems Q1 FY27 results delivered strong top-line and bottom-line growth, with revenue rising 88% and net profit increasing 43% year-on-year.
However, the 9.2-percentage-point decline in EBITDA margin remains a key area to monitor.
The combination of strong defence-sector demand and Apollo Micro Systems’ execution momentum could keep the stock firmly on investors’ radar when Indian markets reopen on Monday.
Disclaimer: This article is for educational and informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult a qualified financial adviser before making investment decisions.
