Apollo Micro Systems designs and manufactures defence and aerospace electronics and weapon-system systems, and is scaling into explosives through IDL Explosives while closing the Rs. 1,550 crore Premier Explosives acquisition. The Q2 print will speak to whether consolidated EBITDA margin — 21.4% in Q1 FY27 against 26.3% a year ago — stabilises, and whether large-ticket MIGM and QRSAM orders move closer to conversion.
| Results date | October 24, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 251.3 Cr (+88.1% YoY) |
| Previous quarter PAT | Rs. 25.2 Cr (+42.6% YoY) |
| Previous quarter EBITDA margin | 21.4% (down 920 bps YoY) |
| Market cap | Rs. 15,941.62 Cr |
| CMP | Rs. 429.0 |
The board of Apollo Micro Systems meets on October 24, 2026, to consider the Q2 and H1 FY 2026-2027 financial results.
A conference call to discuss H1/Q2 performance is scheduled for October 26, 2026, at 11:11 AM IST and will run 60 minutes. Management will be represented by MD Karunakar Reddy Baddam, WTD Krishna Sai Kumar Addepalli, and CFO Sudarshan.
The board fixed September 23, 2026 as the record date for the FY26 dividend, with the amount subject to AGM approval. The dividend declaration was subsequently approved at the September 30, 2026 AGM with 99.9996% of votes in favour.
The Q2 FY27 print is the second data point on management's restated FY27 revenue growth guidance of 40%–45% (consolidated and standalone), and with the Q2FY26 consolidated base at Rs. 225.3 Cr on a 26.3% EBITDA margin, the margin narrative rather than revenue is the likely test this quarter. Consolidated revenue grew 88.1% YoY in Q1 FY27 on IDL consolidation while standalone grew 16.7%, so the standalone-versus-consolidated growth gap against the guided trajectory is a key swing factor. The order book stood at Rs. 1,704 Cr as of August 8, 2026 — standalone Rs. 1,224 Cr and IDL Rs. 480 Cr — plus Rs. 808.38 Million of new orders announced August 17, 2026, forming the execution base. Apollo's large-ticket items had not converted within the quarter: the MIGM purchase order (~Rs. 1,000 Cr annually for Apollo, from a Rs. 3,500 Cr budget) is anticipated by December or January, and the QRSAM BEL order is expected 'soon' with Apollo content of over Rs. 1 crore per missile. Finance cost is a live watch item: the repo was hiked 25 bps to 5.50% on October 7, 2026 — the first increase since February 2023 — for a company carrying Rs. 532.4 Cr of total borrowings, 359 working-capital days and negative FY26 operating cash flow of Rs. 129.8 Cr, with ~Rs. 500 Cr of the ~Rs. 3,300 Cr raise earmarked for working-capital debt as the intended offset. On the Premier Explosives acquisition, the pre-offer advertisement was filed with BSE on October 8, 2026, with the transaction expected to conclude by December 2026. The upcoming call is also expected to cover IDL's path to being 'fully positive from the next financial year', Unit 3 full production before March 2027, and promoter-pledge progress against the zero-by-FY26 commitment.
Revenue vs FY27 guidance
EBITDA margin trajectory and deferred guidance
MIGM and QRSAM order conversion
Premier Explosives acquisition execution
IDL profitability, promoter pledge and balance-sheet items
Consolidated EBITDA margin fell 920 bps YoY to 21.4% in Q1 FY27, with management confirming 'there will definitely be a margin dilution' from IDL consolidation, offset by standalone margin gains as systems enter production. Management has twice deferred consolidated EBITDA margin guidance but expects margins are likely to improve, with explosive-segment margin guidance committed from Q3 FY27.
The MIGM purchase order is anticipated by December or January of FY27, from a Rs. 3,500 crores budget with Apollo expecting 70% — about Rs. 1,000 crores annually over roughly 3 years. For QRSAM, the BEL order is expected 'soon' with bidding and negotiation complete; the first phase is worth Rs. 11,000–12,000 crores for 1,000 units, with Apollo's content valued at over Rs. 1 crore per missile.
Management restated FY27 revenue growth guidance to 40%–45% (consolidated and standalone) at the Q1 FY27 call on August 8, 2026, down from the earlier 45–50% CAGR framing. FY26 standalone growth of 36% had fallen short of the 45–50% guidance by 8–9% due to delays in customer approvals, which management characterised as timing-related rather than structural.
Apollo is acquiring a 41.33% promoter stake in Premier Explosives for approximately Rs. 1,550 crores in an all-cash transaction, with CCI holding on September 22, 2026 that it is not a notifiable combination. The open offer for up to 26% at Rs. 698/share follows SEBI's terms of tendering within 12 working days of CCI approval, and the transaction is expected to conclude by December 2026.
IDL delivered positive EBITDA in Q4 FY26 and was PAT positive in Q1 FY27 with low profitability, after adding an Rs. 4 crores loss in Q3 FY26 over 45 days of ownership. Management has said IDL will be 'fully positive from the next financial year' (FY28), with Coal India order recovery expected after the temporary ban was removed.