Hyderabad-based Apollo Micro Systems reveals a 43% rise in net profit and an 88% spike in revenue in its Q1 FY27 results, driven by improved execution and rising defence sector demand, despite margin compression.
Apollo Micro Systems drew attention on Monday after the defence and aerospace company reported a sharp rise in first-quarter profit and revenue, even as its shares eased in early trade. Business Today reported that the stock was under pressure after the company disclosed results for the quarter ended June 2026, with the market taking note of both the growth in earnings and the softer margin profile.
The Hyderabad-based group said net profit climbed 43% to ₹25.2 crore in Q1 FY27 from ₹17.6 crore a year earlier, while operating revenue rose 88% to ₹251.3 crore from ₹134 crore, according to the company’s results. EBITDA increased 18% to ₹48 crore, which Apollo Micro Systems described as its highest quarterly figure for the June period, although the EBITDA margin slipped to 21.4% from 30.6% a year earlier.
Managing director Baddam Karunakar Reddy said the quarter reflected improved execution, resilience in difficult conditions and a continued focus on key priorities. He said the company needed to sustain the pace of performance while sharpening its capabilities to match changing defence requirements. Earlier quarterly disclosures compiled by Kotak Neo showed revenue of ₹134.46 crore and net profit of ₹25.29 crore in Q1 FY26, underlining how steep the year-on-year expansion has been.
The latest results also come against a stronger backdrop for Apollo Micro Systems. Business Standard reported that in the March 2026 quarter, consolidated net profit rose to ₹37.62 crore and sales reached ₹293.26 crore, while full-year sales for FY26 crossed ₹904 crore. Separate industry commentary cited an order book of about ₹1,430 crore and said future growth could be supported by work from the Defence Research and Development Organisation, system integrators and export opportunities as global defence spending rises, even as supply-chain strains and geopolitical tensions continue to weigh on the sector.
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