Apollo Micro Systems Surges on Strong Defence Earnings

APOLLO has emerged as one of the standout performers in the defence sector following its impressive Q2 FY27 financial results. The stock surged 9.68% to close at ₹454.15 on November 11, 2026, after gaining as much as 10.5% during the trading session. What's driving the momentum? • Strong revenue growth: Consolidated revenue increased 72.3% YoY to ₹388.15 crore, compared with ₹225.26 crore in Q2 FY26. • Profit growth: Net profit rose 53.7% to ₹46.15 crore against ₹30.03 crore in the corresponding quarter last year. • Improved operating performance: EBITDA increased 87.9% to ₹111.18 crore, with margins improving to approximately 28.6%. • Record order book: The company reported an all-time high order book of ₹1,765 crore as of September 30, 2026. Professional opinion: Apollo Micro Systems is benefiting from strong defence-sector demand, improving execution and a growing order book. Its capabilities in defence electronics, electronic warfare and weapon systems provide meaningful long-term growth opportunities. However, the stock has already delivered substantial returns over the longer term, and its valuation leaves limited room for execution-related disappointments. Sustaining margins, converting its order book into revenue and maintaining cash-flow discipline will be crucial. The company's fundamentals are encouraging, but investors should avoid chasing sharp price movements without considering valuation and risk.