Apollo Micro Systems Ltd.Best-ever quarter, Rs. 1,550 crore Premier Explosives buy anchors missile value chain

Apollo Micro Systems posted its best June quarter on record, with standalone revenue up 17% YoY to Rs. 156 crore and PAT up 43% to a record Rs. 28 crore, at all-time-high margins of 31% EBITDA and 18% PAT.

Consolidated revenue, boosted by the Ideal Explosives subsidiary, grew 88% YoY to Rs. 251 crore. The quarter's headline event was a definitive agreement to acquire a 41.33% promoter stake in Premier Explosives for roughly Rs. 1,550 crore, giving Apollo backward integration into propellants and explosives across the entire missile and guided-weapon value chain. The company also handed over its indigenous Safety and Detonation Device to the Navy, won a Make-II sanction for its SAVIOR autonomous underwater vessel, and was named the Air Force's prime development agency for the IPREC precision-bomb program.

Management reaffirmed its standing 40-45% revenue growth guidance for FY27 but declined to guide on EBITDA margins or give firm timelines on several large pending orders -- including QRSAM, MIGM and Akash-NG -- citing the defense sector's long, milestone-based procurement cycles. Ideal Explosives, the loss-making bulk-explosives unit, turned PAT-positive this quarter but remains thin-margin, with a full turnaround expected only from FY28.