Apollo Micro Systems Ltd. (NSE: APOLLO), a Hyderabad-based defense and aerospace technology firm, has recently reported its highest-ever revenue and profit figures for the fiscal year 2024–25, underscoring its robust growth trajectory and strategic positioning in India’s defense sector.
🚀 Latest Financial Highlights (FY2024–25)
Annual Revenue: ₹562 crore, marking a 51% year-on-year increase from ₹372 crore in FY24.
Net Profit: ₹56 crore, an 81% rise compared to ₹31 crore in FY24.
EBITDA: ₹132 crore, reflecting a 54% year-on-year growth, with an EBITDA margin of 23.5%.
In Q4 FY25, the company reported a consolidated net profit of ₹13.96 crore, up 8% from the same quarter the previous year. Revenue for the quarter stood at ₹161.77 crore, a 19% increase year-on-year.
💰 Dividend Outlook
Apollo Micro Systems has scheduled a board meeting on May 28, 2025, to consider the recommendation of a final dividend for FY2024–25. In the previous fiscal year, the company declared a dividend of ₹0.05 per share, translating to a dividend yield of approximately 0.04%.
📈 Analyst Target Price & Forecast
12-Month Price Target: ₹156 per share, suggesting a potential upside of about 1.17% from the current market price.
Revenue Growth Forecast: Analysts project a revenue growth of 43.5% for FY2025–26.
Profit Growth Estimate: An estimated profit growth of 75% is anticipated for FY2025–26.
🔭 Strategic Growth Initiatives
Apollo Micro Systems is actively investing in expanding its manufacturing capabilities and technological advancements. The company is focusing on indigenous development of electronic solutions for defense applications, aligning with India’s push for self-reliance in defense technologies.
Additionally, the company’s subsidiary, Apollo Defence Industries Private Limited, is specializing in the design and manufacturing of RF and microwave components, modules, and sub-systems, further strengthening its position in the defense sector.
📊 Stock Performance & Market Sentiment
Over the past five years, Apollo Micro Systems’ stock has delivered a remarkable return of approximately 1,550%, significantly outperforming the broader market indices.
Despite this impressive performance, the stock experienced a decline of over 10% recently, following the announcement of its Q4 FY25 results. This dip is attributed to profit-booking by investors after the substantial rally.
⚠️ Key Considerations
Promoter Shareholding: Approximately 48% of the promoter’s holdings are pledged, which may raise concerns about financial flexibility.
Dividend Yield: The company’s dividend yield remains modest, reflecting its strategy to reinvest earnings for growth.
Debt Levels: Apollo Micro Systems has a net debt position of ₹1.72 billion, indicating a leveraged balance sheet.
🧭 Conclusion
Apollo Micro Systems’ robust financial performance and strategic initiatives position it well for continued growth in India’s defense sector. While the company’s stock has delivered substantial returns, investors should consider factors such as promoter share pledging and debt levels when evaluating investment decisions.
Disclaimer: Investing in penny stocks involves significant risk due to their volatility and lower liquidity. It’s essential to conduct thorough research or consult with a financial advisor before making investment decisions