Q2 FY27 · NSE: APOLLO

Apollo Micro Systems

Results filed 24 October 2026 · Market cap ₹14,818 crore · PE 106.9

GrowthPresentation only

Revenue: +72.3%; on a year ago
EBITDA: +87.8%; on a year ago
Profit to shareholders: +55.7%; on a year ago
EBITDA margin: 28.6%; +7.3 pts on last quarter

Apollo Micro Systems posted strong Q2 FY27 consolidated performance, with revenue increasing 72.3% YoY to Rs 3,881.5 Mn and EBITDA margins expanding to 28.6%, supported by an order book of Rs 17,650 Mn. The company is actively diversifying and scaling through inorganic acquisitions in energetics as well as Make-II prototype awards for precision smart bombs and autonomous vessels. Nevertheless, balance sheet health remains constrained by high working capital intensity of 353 days and historically negative cash generation from operations.

Apollo Micro Systems Limited, Q2 FY27₹ crore, consolidated

	Q2 FY27	Q1 FY27	vs previous quarter	Q2 FY26	vs a year ago
Revenue	388	251	+54.5%	225	+72.3%
Operating profit (EBIT)	104	46.13	+124.5%	54.44	+90.2%
Operating margin	26.7%	18.4%	+833 bps	24.2%	+252 bps
Other income	3.54	2.25	+57.3%	1.3	+172.3%
Exceptional items	0	0	–	0	–
Profit before exceptional items and tax	92.48	37.67	+145.5%	43.15	+114.3%
Profit to shareholders	48.43	26.91	+80.0%	31.11	+55.7%
Earnings per share (₹)	1.32	0.75	+76.0%	0.93	n.m.

Source: Apollo Micro Systems Limited’s filing to NSE, 24 October 2026. Operating profit is revenue less every expense except interest, so it leaves out other income and exceptional items. n.m.: not meaningful, because the earlier figure was zero or negative, or the latest one is a loss, or, for earnings per share, because the number of shares changed.

These notes are from the presentation and press release. The concall transcript isn’t filed yet; the notes are rewritten when it is.

What stood out

Strong consolidated revenue and operating profit growth driven by core and acquired verticals
Source
Consolidated Q2 FY27 revenue rose 72.3% YoY to Rs 3,881.5 Mn and EBITDA grew 87.8% YoY to Rs 1,111.8 Mn; order book stood at Rs 17,650 Mn as of September 30, 2026 (Earnings Presentation, slides 6, 8)
Transition from Tier-1 electronic subsystem supplier to platform OEM with Make-II sanction orders
Source
Awarded Make-II Prototype Sanction Orders (PSO) for a 500 Kg Smart Bomb by the IAF and SAVIOR-ASW semi-submersible autonomous vessel by the Indian Navy (Earnings Presentation, slides 34, 36)
Persistent balance sheet drag from extreme working capital intensity
Source
Working capital days stood at 353 days in H1 FY27 (vs 359 days in FY26), following FY26 operating cash flow of negative Rs 1,297.6 Mn (Earnings Presentation, slides 4, 11, 14)

Guidance

No guidance given.

Tailwinds

Substantial growth in consolidated top line and operating profit margins
Source
Q2 FY27 consolidated revenue reached Rs 3,881.5 Mn (+72.3% YoY) with EBITDA margin expanding to 28.6% from 26.3% in Q2 FY26 (Earnings Presentation, slide 8)
Strong multi-year order visibility
Source
Order book stood at Rs 17,650 Mn as on 30th September 2026 (Earnings Presentation, slide 6)
Policy tailwinds and increased domestic defence capital allocation
Source
Around 75% of the FY27 capital acquisition budget (total Rs 2,19,306 crore) reserved for domestic defence industry (Earnings Presentation, slides 68, 73)

Headwinds

Prolonged working capital cycle locking up operational liquidity
Source
Consolidated working capital days remained very high at 353 days in H1 FY27, with FY26 inventory days at 413 days (Earnings Presentation, slides 4, 11)
Heavy tax incidence impacting net margins
Source
Consolidated tax expense for Q2 FY27 stood at Rs 463.2 Mn on PBT of Rs 924.8 Mn (an effective tax rate of ~50.1%), dampening PAT margin to 11.9% (Earnings Presentation, slide 8)
Historical negative operating cash flows and rising borrowings
Source
FY26 cash flow from operating activities was negative Rs 1,297.6 Mn, while total borrowings expanded to Rs 5,432.6 Mn from Rs 3,353.5 Mn in FY25 (Earnings Presentation, slides 13, 14)

New businesses and products

acquisition · In progress / Near-term strategy implementation

Backward and forward integration via Premier Explosives Ltd and IDL Explosives Ltd

Expected benefit: Securing in-house propellants, explosives, pyrotechnics, and critical chemicals to improve margins and support ammunition platform manufacturing
Risks: Integration risk, capital intensity, and explosive handling safety regulations
Timeline: Near term strategy underway

Source

Earnings Presentation, slides 23, 28, 29, 30

new product · Prototype Sanction Order awarded by Indian Air Force in July 2026

500 Kg Smart Bomb Make-II Programme

Expected benefit: Establishes company as prime OEM candidate in precision guided munitions with assured procurement pathway upon successful trials
Risks: Trial outcomes and execution delays
Timeline: Awarded July 2026; trials pending

Source

Earnings Presentation, slide 36

new product · Make-II Prototype Sanction Order awarded by the Indian Navy

SAVIOR-ASW Semi-Submersible Autonomous Underwater Vessel

Expected benefit: Expands presence into autonomous naval warfare, surveillance, reconnaissance, and area denial platforms
Risks: Technical trial failure or development delays
Timeline: Under development

Source

Earnings Presentation, slide 34

new product · DAC approval accorded on July 3, 2026; entering production phase

Multi-Influence Ground Mines (MIGM) - Vighana

Expected benefit: Approved DcPP production agency for indigenous naval ground mines executed completely in-house
Risks: Ramp-up timelines and delivery schedules
Timeline: Entering production phase

Source

Earnings Presentation, slide 31

partnership · Transfer of Technology under process with DRDO-CHESS and DRDO-IRDE

Laser Directed Energy Weapon System (DEW) Subsystems

Expected benefit: Enables design and manufacturing of critical DEW subsystems for counter-UAV and counter-missile systems
Risks: Execution of LAToT agreement and regulatory approvals pending
Timeline: Under development

Source

Earnings Presentation, slide 40

Things to check

10% more shares than a year ago: growth funded partly by new capital
Revenue up over 60%: check for an acquisition or a weak year-ago quarter
Persistently elongated working capital cycle
Source
Consolidated working capital days stood at 353 days in H1 FY27 and 359 days in FY26, driven by 413 inventory days and 143 receivable days in FY26 (Earnings Presentation, slides 4, 11)
Severe cash drain from operations funded via debt and equity dilution
Source
FY26 operating cash flow was negative Rs 1,297.6 Mn, with borrowings rising to Rs 5,432.6 Mn from Rs 3,353.5 Mn and equity share capital expanding from Rs 306.5 Mn to Rs 357.3 Mn (Earnings Presentation, slides 13, 14)
Abnormally high effective tax provision
Source
Q2 FY27 tax provision was Rs 463.2 Mn on PBT of Rs 924.8 Mn (~50.1% effective rate) with no explanatory reconciliation in the presentation (Earnings Presentation, slide 8)

How the call went

Not yet: there’s no transcript.

Numbers against the story

The presentation highlights record revenue, robust margin expansion, and a major strategic leap toward becoming an OEM in missiles, naval mines, and autonomous platforms. However, the reported balance sheet and cash flow statements reveal continued severe working capital tie-ups (353 days in H1 FY27) and a history of negative cash flows from operations (-Rs 1,297.6 Mn in FY26), demonstrating that rapid top-line growth is accompanied by significant cash absorption and reliant on external debt/capital raising.

Sources

Investor presentation · filed 24-Oct-2026
Figures: the company’s results filing with NSE, linked under the table.

Notes written by gemini-3.8-flash from the documents above on 1 November 2026. They summarise what the company said and can contain mistakes: check the source passage before relying on a point. Not investment advice.