Multibagger defence stock Apollo Micro Systems jumps 5%, rises 27% in one month

Apollo Micro Systems has emerged as a stellar performer in recent months, with its shares continuing to build on gains, rising another 5% in today’s trade (September 29) to a day’s high of ₹340 apiece, even as sentiment in the broader market remains fragile.

The expanding order book, strategic partnerships, and improving financials have attracted Dalal Street investors to add the stock to their portfolios.

So far in September, the shares have gained another 27%, building on a stellar 51% rally in August, bringing the two-month cumulative gain to 105% and marking them as one of the biggest performers in the defence space.

What’s fueling the stock’s remarkable surge?

In recent developments, the company, on September 18, signed MoUs with Sibersentinel Technologies and Zoom Technologies (India) to jointly design, develop, and deploy advanced cybersecurity solutions for government agencies, statutory bodies, financial institutions, and other critical infrastructure sectors, combining Apollo’s defence-grade electronics expertise with its partners’ cybersecurity capabilities.

In defence manufacturing, Apollo Strategic Technologies Private Limited (ASTPL), a subsidiary, entered into an MoU with Dynamic Engineering and Design Inc. (USA) for technology transfer, co-development, and potential licensed production of rocket motors for BM-21 Grad ER and Non-ER rockets, supporting the Make in India initiative.

Apollo has already developed the 122mm rocket warhead in-house and plans to start trials and full-scale production by mid-2026, positioning itself as one of the few private Indian companies capable of offering a fully in-house developed rocket system.

Additionally, the company was approved as the production agency for the Multi-Influence Ground Mine (MIGM) “Vighna” and has entered into an agreement with DRDO for the transfer of technology for the Omni-Directional multi-EFP warhead for the NASM-SR missile.

These strategic partnerships and approvals strengthen Apollo’s technological self-reliance, expand its defence capabilities, and reinforce its position in high-demand sectors both domestically and globally.

Apollo Micro Systems shares deliver over 200% return in less than 5 months

The latest rally has propelled the stock to a gain of 216% in less than five months and nearly 2,723% over the last five years. The rally, which began in May, has continued without any major pullbacks, with the stock closing in the green in four of those months.

For Q1FY26, the company reported its highest-ever quarterly net profit (consolidated) of ₹18.51 crore, up 115% from ₹8.43 crore in the same quarter last year, driven by improved operational efficiency.

Its consolidated revenue from operations grew 47.25% YoY to ₹134 crore, while at the operating level, the company posted an EBITDA of ₹41 crore, a significant jump from ₹22 crore in Q1FY25.

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