Apollo Micro Systems Ltd. (AMS) has emerged as one of the standout performers in 2025. The defence-focused company’s share price has surged 158% over the last six months and gained nearly 60% in just the past month. On a yearly basis, investors have reaped a remarkable 192% return, making AMS one of the top multibagger stocks of the year.
As of now, the company commands a market capitalisation of nearly ₹10,000 crore, with its stock trading close to a 52-week high of ₹321, compared to a low of just ₹87.99.
Key Triggers Behind the Rally
- Defence Expo MoU Strengthens Growth Outlook
A major catalyst for the rally came when AMS’s subsidiary, Apollo Strategic Technologies, signed an MoU with Dynamic Engineering & Design Inc. (USA) at the DSEI London expo.
The collaboration focuses on technology transfer and co-development of rocket motors for multi-barrel rocket systems. This strategic move supports India’s ‘Make in India’ and Atmanirbhar Bharat initiatives, positioning the company as a critical player in indigenous defence manufacturing.
- Defence Approvals and New Contracts
The company has received multiple approvals and contracts in recent months:
- Cleared as the production agency for the Multi-Influence Ground Mine (MIGM – Vighana) under DRDO’s DcPP program.
- Signed a technology transfer agreement with DRDO for developing advanced warheads in the NASM-SR missile.
- Emerged as the lowest bidder for defence projects worth ₹25.12 crore.
These achievements underscore AMS’s expanding role in India’s defence ecosystem.
- Strong Export Orders and Expanding Order Book
Apollo Micro Systems has successfully entered the export market. Earlier in 2025, it secured its first overseas order worth $13.4 million (₹114 crore).
On the domestic front, its order book grew from ₹500 crore in 2024 to ₹735 crore by June 2025, offering healthy revenue visibility for upcoming quarters.
- Robust Q1 FY26 Financial Performance
The company’s operational strength is also reflected in its latest financial results:
- Revenue: ₹133.6 crore (up 46% YoY)
- EBITDA: ₹40.9 crore (up 83% YoY)
- PAT: ₹17.7 crore (more than doubled YoY)
- EBITDA Margin: Improved from 9% to 13%
The significant improvement in margins highlights operational efficiency and better project execution.
Investor Outlook
Apollo Micro Systems’ meteoric rise in 2025 is being driven by a combination of defence sector tailwinds, global expansion, and stellar earnings growth. With the government’s push for indigenous defence manufacturing and rising global opportunities, the company appears well-positioned for sustained growth.
That said, after a 158% six-month rally, valuations are no longer cheap. Investors may need to weigh near-term volatility against the long-term growth story.
✅ Bottom Line: Apollo Micro Systems has transformed into a multibagger defence stock, backed by strong fundamentals, robust order flows, and strategic global partnerships. Its continued success will likely depend on timely execution of defence contracts, expansion into exports, and maintaining financial discipline.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.