Apollo Micro Systems results : Apollo Micro Systems results for FY25 and Q4 have shown remarkable growth, highlighting the company’s transition from a component supplier to a Tier-1 defence OEM.

Apollo Micro Systems (AMS) has reported a solid set of numbers for Q4FY25 and FY25, marking its transition from a Tier-2 component supplier to a Tier-1 Defence OEM. Backed by strong order execution, high-value defence programs, and capex-driven expansion, AMS is now entering its monetization phase with enhanced visibility.

Apollo Micro Systems results Q4FY25 Financial Performance (YoY)

• Revenue: ₹161.8 Cr (▲ +19%)
• EBITDA: ₹36.0 Cr (▲ +25%)
• EBITDA Margin: 22% (vs 21%)
• PAT: ₹14.0 Cr (▲ +8%)
• EPS: ₹0.50 (vs ₹0.48)

Key Insights:

• Steady YoY growth driven by faster execution.
• Operating margins stable, showcasing efficiency.
• Profitability uptick despite higher R&D expenses.

FY25 Full-Year Performance (YoY)

• Revenue: ₹562.1 Cr (▲ +51%)
• EBITDA: ₹129.2 Cr (▲ +54%)
• EBITDA Margin: 23% (flat YoY)
• PAT: ₹56.4 Cr (▲ +81%)
• PAT Margin: 10% (vs 8%)
• EPS: ₹1.9 (vs ₹1.2)

Apollo Micro Systems results

• Strong topline performance as key defence programs move to production.
• Margins remained resilient despite scale-up.
• Net profit nearly doubled, indicating efficient operational leverage.

Operational Highlights

• Defence Programs: Execution ramping up for 150+ programs.
• High-Value Verticals:
  • Missile Systems: Akash, Rudram, Astra
  • Naval Systems: Torpedoes, Underwater Mines, Decoys
  • Electronic Warfare & Secure Communication
• R&D Spend: 6% of revenue
• Attrition: 0% in FY25 – a testament to talent retention
• OCF: ₹11.3 Cr (vs ₹-78.5 Cr in FY24)

Apollo Micro Systems Strategic Expansion & Capex Plans

IDL Explosives Acquisition

• Deal Size: ₹107 Cr (all-cash)
• Purpose: Entry into ammunition + vertical integration
• Synergies: Enables full-stack defence manufacturing

Manufacturing Infrastructure

• Unit-III: 3.5 lakh sq ft in Hardware Park-II, Hyderabad
  • Phase-1 Ops: Sept CY25
  • Phase-2 Ops: Q4FY26
• Unit-I: R&D hub
• Unit-II & III: Focus on scaled-up production

Capex Commitment:

• ₹250 Cr earmarked
  • Phase-1: ₹150 Cr
  • Phase-2: ₹100 Cr

Fundraising & Balance Sheet Snapshot

• Fundraise Approved: ₹816 Cr (for WC, R&D, subsidiaries, infra)
• Networth: ₹607.5 Cr
• Gross Debt: ₹335.4 Cr
• Inventory: ₹600.6 Cr (linked to ramp-up)
• Receivables: ₹238.3 Cr

Growth Outlook & Management Commentary

FY26–FY27 Guidance:

• Revenue CAGR: 45–50% (excluding IDL)
• Drivers:
  • Project monetization from prototypes
  • Strong order pipeline
  • Increased government capex (e.g. ₹40,000 Cr under Operation Sindoor)

Strategic Commentary:

• AMS is positioned as a high-tech indigenous defence solutions provider.
• Strong alignment with “Make in India” and Atmanirbhar Bharat initiatives.

Risks to Monitor

• Working Capital Cycle: Remains stretched due to large project billing
• Revenue Lumpiness: Project-based execution may result in non-linear topline
• EPS Dilution: Due to upcoming equity fundraising

Investor Takeaways – Why Apollo is Worth Watching

• 81% PAT growth in FY25 – among the highest in its space.
• EBITDA > ₹125 Cr – solid operating performance
• Moving from prototype phase to execution – stronger operating leverage
• Transition from Tier-2 to Tier-1 Defence OEM – long-term rerating potential

📌 Apollo is now in its monetization phase – the groundwork laid in earlier years is now bearing fruit.

Industry Comparison

Note:

Apollo’s revenue now exceeds that of Data Patterns, with comparable margins. With its capex-backed expansion and IDL synergy, it is on track to narrow the PAT gap.

Final Words

Apollo Micro Systems has successfully reached an inflection point, with strong revenue growth, scalable infrastructure, and order visibility. While short-term liquidity and dilution concerns exist, the long-term strategic positioning as a full-stack Defence OEM makes it a compelling story for investors focused on India’s defence manufacturing narrative.

📌 For detailed stock updates and sector outlook, bookmark our Defence Sector page.

Disclaimer: The projections of potential returns are based on current market conditions and company performance. Actual results may vary due to various factors, including market dynamics, economic conditions, and changes in the competitive landscape. Investors should conduct their own research and consult with financial advisors before making investment decisions.

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