Apollo Micro System hits 5% Upper circuit after receiving orders worth ₹421 Cr

Synopsis: This defence stock hits a 5% upper circuit following the news of the company bagging orders worth Rs 421 crore through its subsidiary, IDL Explosives Ltd, which has been awarded a RC worth Rs 419.40 crore for the supply of bulk explosives to subsidiaries of Coal India Ltd.

The shares of this company, which is a pioneering Indian defence company with a legacy of over 40 years in delivering advanced technologies for national security and has evolved  from a component-level partner into a full-spectrum defence solutions provider, had its shares in momentum following the bagging of an order from a subsidiary of Coal India Ltd.. 

With the market cap of Rs 9,105 crore, the shares of Apollo Micro Systems Ltd had hit their intraday high at Rs 272.70, gaining about 5 per cent compared to their previous day’s closing price of Rs 259.75. The shares are trading at a PE of 114, whereas their industry PE is at 61.4.

Apollo Micro Systems has received a major order inflow through its step-down subsidiary, IDL Explosives Limited, which has been awarded a running contract worth Rs 419.40 crore for the supply of bulk explosives to subsidiaries of Coal India Limited, besides an export order of Rs 1.50 crore pertaining to cartridge explosives. The total cumulative order value stands at approximately Rs 420.90 crore, adding meaningful scale to the company’s order book and strengthening revenue visibility.

Among these, the running contract with subsidiaries of Coal India assumes operational significance for ensuring recurring supplies and steady execution rather than a one-time order. Coal India entities are large, stable PSU customers, which, in turn, significantly reduces counterparty risk and supports consistent capacity utilisation for IDL Explosives. The export order, while smaller in size, provides incremental diversification and underlines the company’s capability to service international markets besides domestic demand.

In terms of strategy, this order is encouraging for Apollo Micro Systems, as it increases their presence in contracts that may not be from related parties as well as those that are PSU-supported, which would improve their credibility and visibility for long-term growth. With business value received from Coal India-related entities to the extent of about Rs 421 crores, their position in the mining and explosives business would improve, along with their chances of winning larger contracts for export within the domestic or international markets.

The revenue from operations for the company stands at Rs 225 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 161 crores, up by about 40 per cent YoY. Similarly, the net profit stood at Rs 30 crore in Q2 FY26, up from Rs 16 crore in Q2 FY25, giving almost an 88% return YoY. The company’s order book stands at Rs 7,850 crore.

This list of esteemed ‘marquee’ clients is what makes the extensive integration of Apollo Micro Systems into the Indian Defence, PSU, and strategic markets apparent, including clients from the MoD, the DRDO labs, the Indian military, and the leading Defence PSUs, along with the private companies like Adani, Tata Advanced Systems, and the L&T group. 

The presence of leading international tech partners such as AMD and Xilinx, and other companies like ISRO, HAL, BEL, and IndianOil, confirms the authenticity of Apollo Micro Systems’ reputation as a verified supplier of mission-critical electronics and electronics-based systems, to name a few.

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