Shares of Apollo Micro Systems have been on a massive rally, jumping nearly 22% in the last three trading sessions after the company posted strong fourth-quarter results for FY26. The sharp rise has grabbed investors’ attention as the defence stock touched fresh record highs amid heavy buying interest.
The Hyderabad-based defence and aerospace company reported a strong performance for the March quarter, with revenue from operations rising more than 81% year-on-year to ₹293.26 crore. Net profit also surged sharply by over 160% to around ₹37 crore compared to the same period last year. EBITDA growth and margin expansion further boosted investor confidence.
The company’s full-year FY26 performance was equally impressive. Revenue crossed ₹900 crore for the first time, while annual profit jumped over 90%. Apollo Micro Systems also said its order book stood at ₹1,432 crore as of March 31, 2026, supported by fresh defence and industrial orders.
Another key reason behind the rally is the company’s growing focus on defence manufacturing and expansion plans. Apollo Micro Systems recently received a license for UAV manufacturing and also completed strategic acquisitions through its subsidiary. The company additionally announced its first export order, which has strengthened optimism around future growth.
Brokerages and market experts believe the company’s strong execution, improving margins, and rising defence opportunities are supporting the bullish sentiment. However, after the recent sharp rally, some analysts also caution that the stock may witness volatility at higher levels as traders book profits.
Despite concerns about near-term valuation, long-term investors continue to remain positive on defence stocks due to rising government spending and strong order pipelines across the sector. Apollo Micro Systems has also delivered multibagger returns over the last few years, making it one of the closely watched defence counters in the market.