Apollo Micro Systems Ltd Company Fundamental Analysis

APOLLO Apollo Micro Systems Ltd is an Indian defence and aerospace technology company that designs and manufactures electronic systems, embedded solutions, electro-mechanical systems and equipment used in defence applications. Its business is aligned with India’s focus on indigenous defence manufacturing and higher domestic procurement. The company is also expanding into defence energetics and explosives through acquisitions, including IDL Explosives, which could diversify its revenue base beyond electronics. The latest Q2 FY27 results show strong growth. Consolidated revenue from operations increased approximately 72.3% year-on-year to ₹388.15 crore, while net profit rose around 53.7% to ₹46.15 crore. EBITDA grew approximately 87.8% to ₹111.18 crore, with the EBITDA margin improving to about 28.6%. For H1 FY27, revenue reached ₹639.44 crore and net profit ₹71.37 crore. The company also reported a record order book of approximately ₹1,765 crore as of September 30, 2026, providing visibility for future execution, although order-book conversion depends on timely delivery and customer acceptance. Valuation remains the key concern. Recent market data puts the company’s market capitalisation around ₹13,390 crore and trailing P/E near 119x, though these figures fluctuate with the share price and earnings updates. FY26 operating cash flow was negative at approximately ₹130 crore despite reported profit, indicating that working-capital requirements deserve close monitoring. The latest consolidated review also flags financial stress at certain subsidiaries, including negative net worth and cash losses. Overall, Apollo Micro Systems has strong growth momentum, but its high valuation and cash-flow risks mean earnings delivery will be crucial to justify the market’s expectations.