Any current/future capex/capital investment/strategic investment?

Significant capex planned for IDL Explosives to produce defense-grade explosives, propellants, and warhead explosives for backward, forward, and vertical integration. Expansion of manufacturing facilities: Phase 3 at Hardware Park partly commissioned with INR150 crore outlay; civil works started on additional 2.5 acres; recently allotted another 5 acres by Telangana government with planned INR100-150 crore investment. Implementation of automation and Industry 4.0 standards across factories to enhance machinery utilization and manpower monitoring. Approximately INR100 crore already alloca

Future growth expectations in sales/revenue/volumes?

Apollo Micro Systems aims for a 35% to 40% CAGR growth in sales/revenue over the coming years, building on a 30%-35% CAGR in the last 2-3 years. The company targets 45%-50% organic growth on a standalone basis. With the consolidation of IDL Explosives and other planned acquisitions, further growth acceleration is expected from FY 2027 onwards. The outstanding order book of INR1,300 crores is actively being executed, with fresh orders in the pipeline. Large-scale production orders, such as for underwater mines (INR2,500 crores expected), are anticipated and will further boost revenue. Expansio

Future growth expectations in earnings/operating earnings/profits/EPS?

Apollo Micro Systems is targeting a 45%-50% CAGR revenue growth over the next three years, continuing its strong growth trajectory. On standalone basis, the company aims for a 15% PAT margin; consolidated margins may see a slight dip initially due to IDL Explosives integration but are expected to improve YoY. Significant margin improvement is expected starting Q1 FY '27 as IDL Explosives business turns EBITDA and PAT positive. Large-scale production orders are anticipated to drive cost efficiencies and margin expansion. The company's order book of around INR1,300 crores (including INR500 crore

Current/ Expected Orderbook/ Pending Orders?

As of December 31, 2025, the consolidated order book stands at approximately INR 1,305 crores. Of this, IDL Explosives contributes about INR 500 crores, with the remaining INR 800 crores from standalone operations. Major portions of the current order book are planned to be executed within the current financial year, with fresh short-term orders continuing to come in. Execution for the remaining orders is expected mainly in the next financial year, supported by a healthy incoming order funnel. Specific large orders discussed: - A DAC-approved underwater mines order valued around INR 2,500 cr

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Apollo Micro Systems LtdQ4 FY27Aerospace & Defense

Apollo Micro Systems Ltd Q4 FY27 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹384P/E: 117.8Market Cap: ₹10.5K CrSector: Aerospace & Defense

Management growth scorecard

Revenue

Category 1

Margin

Category 2

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 1

→Apollo Micro Systems aims for a 35% to 40% CAGR growth in sales/revenue over the coming years, building on a 30%-35% CAGR in the last 2-3 years.
→The company targets 45%-50% organic growth on a standalone basis.
→With the consolidation of IDL Explosives and other planned acquisitions, further growth acceleration is expected from FY 2027 onwards.
→The outstanding order book of INR1,300 crores is actively being executed, with fresh orders in the pipeline.
→Large-scale production orders, such as for underwater mines (INR2,500 crores expected), are anticipated and will further boost revenue.
→Expansion into full-fledged weapons manufacturing and new facilities (up to 12x capacity increase) will support volume growth.
→The company plans to provide consolidated growth guidance starting Q1 FY 2027.

Margin guidance

Category 2

→Apollo Micro Systems is targeting a 45%-50% CAGR revenue growth over the next three years, continuing its strong growth trajectory.
→On standalone basis, the company aims for a 15% PAT margin; consolidated margins may see a slight dip initially due to IDL Explosives integration but are expected to improve YoY.
→Significant margin improvement is expected starting Q1 FY '27 as IDL Explosives business turns EBITDA and PAT positive.
→Large-scale production orders are anticipated to drive cost efficiencies and margin expansion.
→The company's order book of around INR1,300 crores (including INR500 crores from IDL Explosives) ensures steady execution and revenue visibility.
→Investments in R&D are increasing, projected around 9%-10% going forward, supporting innovation-led growth.
→Automation and Industry 4.0 implementations aim to improve operational efficiencies and cost competitiveness.

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Fundraise plans

Yes

- For acquisitions, Apollo Micro Systems will fund primarily through internal accruals; no immediate plans to raise new funds externally. - Currently, acquisitions such as the one by ADIPL will be funded by internal accruals as per the management's response. - Regarding equity dilution, the company has not planned immediate equity dilution but will inform shareholders if such plans arise in the future. - The company has mobilized funds through a preferential issue and bank financing as needed, indicating access to funding but no explicit current fundraising announced. - Corporate guarantees and financial support to subsidiaries require shareholder approval, which is planned to be pursued thoughtfully to manage costs. In summary, Apollo Micro Systems is currently using internal funds for acquisitions with no immediate fundraising through debt or equity but may consider equity dilution in the future if needed.

Order book

Yes

→As of December 31, 2025, the consolidated order book stands at approximately INR 1,305 crores.
→Of this, IDL Explosives contributes about INR 500 crores, with the remaining INR 800 crores from standalone operations.
→Major portions of the current order book are planned to be executed within the current financial year, with fresh short-term orders continuing to come in.
→Execution for the remaining orders is expected mainly in the next financial year, supported by a healthy incoming order funnel.
→Specific large orders discussed:
→ - A DAC-approved underwater mines order valued around INR 2,500 crores.
→ - QRSAM subsystem-level orders expected to be finalized before March 2026.
→IDL Explosives is gearing up for commercial production and large-cap weapon system orders anticipated from the next financial year.

Capex plans

Yes

→Significant capex planned for IDL Explosives to produce defense-grade explosives, propellants, and warhead explosives for backward, forward, and vertical integration.
→Expansion of manufacturing facilities: Phase 3 at Hardware Park partly commissioned with INR150 crore outlay; civil works started on additional 2.5 acres; recently allotted another 5 acres by Telangana government with planned INR100-150 crore investment.
→Implementation of automation and Industry 4.0 standards across factories to enhance machinery utilization and manpower monitoring.
→Approximately INR100 crore already allocated for R&D with plans to increase R&D spend to 9%-10% of revenues in coming years.
→Strategic acquisitions underway—due diligence ongoing for three companies, with expectation to close at least one before financial year-end, focusing on areas with no or limited existing presence.
→Order for large-scale weapon systems and defense explosives expected next financial year, requiring further capacity buildup.

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