Apollo Micro Systems reported record quarterly revenue of ₹388.15 crore for Q2 FY27, up 72.3% year on year, while consolidated net profit rose 53.7% to ₹46.15 crore. EBITDA expanded to ₹111.18 crore and the order book reached ₹1,765 crore. The defence-electronics company’s shares gained sharply on October 26 as investors assessed faster growth alongside rising finance and depreciation costs.
Apollo Micro Systems delivered its highest-ever second-quarter revenue and profit in the three months ended September 30, 2026. The Hyderabad-based defence and aerospace electronics company also reported a larger order book, providing visibility for future execution while highlighting the working-capital and delivery demands that accompany rapid expansion.
What Happened
Consolidated revenue from operations increased 72.3% year on year to ₹388.15 crore in Q2 FY27 from ₹225.26 crore. Consolidated net profit rose 53.7% to ₹46.15 crore from ₹30.03 crore, according to the company’s exchange-filed investor material.
EBITDA, excluding other income, climbed 87.8% to ₹111.18 crore. The EBITDA margin improved to 28.6% from 26.3% a year earlier. Profit before tax more than doubled to ₹92.48 crore, although finance costs increased to ₹14.63 crore and depreciation rose to ₹7.60 crore.
For the first half of FY27, revenue grew 78.2% to ₹639.44 crore, EBITDA increased 64.7% to ₹164.91 crore and net profit rose 49.6% to ₹71.37 crore. Apollo Micro Systems said its consolidated order book stood at ₹1,765 crore on September 30.
Why It Matters
The results show faster demand for the company’s defence, aerospace and electronic-control products. Revenue growth outpaced profit growth, however, and the consolidated net-profit margin eased to 11.9% from 13.3%. Investors therefore need to track whether higher scale continues to improve operating efficiency after finance costs, depreciation and taxes.
The order book is about 4.5 times the latest quarterly revenue. That supports future revenue visibility, but it is not the same as recognised sales: conversion depends on customer schedules, regulatory clearances, supply chains and successful project execution.
Market Impact
Apollo Micro Systems shares rose nearly 9% on October 26 and touched an intraday high of ₹410 on the NSE after the weekend results. The move demonstrates a positive market reaction on the day, but it does not prove that the results alone caused every part of the price change.
Industry Context
Indian defence-electronics companies are moving beyond components into integrated systems, seekers, command-and-control products and other higher-value platforms. Apollo Micro Systems has highlighted recent technology-transfer initiatives and capacity expansion as part of that shift.
BusinessNews1 recently reported a related strategic move in the sector when Zen Technologies agreed to acquire a controlling stake in battlefield-management specialist Cogknit. Both developments point to growing investment in locally designed defence technology, although their business models and execution risks differ.
What To Watch Next
- How quickly the ₹1,765-crore order book converts into reported revenue and cash collections.
- Whether the consolidated net-profit margin stabilises after the Q2 decline.
- Movement in finance costs, depreciation and working-capital requirements as capacity expands.
- Updates on new facilities, technology transfers and larger defence-system programmes.
Frequently Asked Questions
What was Apollo Micro Systems’ Q2 FY27 revenue?
Consolidated revenue from operations was ₹388.15 crore in the September 2026 quarter, up 72.3% from ₹225.26 crore a year earlier. Total consolidated income, which includes other income, was ₹391.69 crore. The company described the quarter as its strongest second-quarter performance to date.
How much profit did Apollo Micro Systems report?
Consolidated net profit rose 53.7% year on year to ₹46.15 crore from ₹30.03 crore. Profit grew more slowly than revenue, and the net-profit margin declined to 11.9% from 13.3%, making margin quality an important indicator for subsequent quarters.
What is Apollo Micro Systems’ order book?
The company reported a consolidated order book of ₹1,765 crore as of September 30, 2026. An order book represents contracted or awarded work awaiting execution; it is not immediately recognised revenue and may be delivered over multiple periods subject to customer schedules and project milestones.
Why did Apollo Micro Systems shares rise?
The stock gained nearly 9% intraday on October 26 after the company disclosed strong revenue, profit and order-book figures. The timing indicates a positive response to the results, but share prices also reflect broader markets, liquidity and investor expectations, so a single cause cannot be established conclusively.
