Apollo Micro Systems shares jump following strong second quarter results and record order book

Apollo Micro Systems shares jumped nearly 10% on Monday, 26 October, after the defence electronics company reported strong growth in revenue, earnings and profit for the second quarter and first half of fiscal year 2027.

Q2 Financial Growth

Revenue for the second quarter reached 388.15 crore rupees, showing a 72.3% increase from the same period a year earlier. Earnings before interest, taxes, depreciation and amortisation rose 87.8% to 111.18 crore rupees. Profit after tax grew 53.7% to 46.15 crore rupees. For the first half of the fiscal year, revenue grew 78.2% to 639.44 crore rupees, while profit after tax increased 49.6% to 71.37 crore rupees. The company also reported a record consolidated order book of 1,765 crore rupees as of 30 September.

New Facility and Expansion

Baddam Karunakar Reddy, Managing Director of Apollo Micro Systems, stated that the strong performance reflects good execution and a focus on key priorities. Meanwhile, group company IDL Explosives commissioned a bulk explosives silo unit near Asansol in West Bengal on 22 October. The 8.4-acre Bolkunda Silo Unit has a 9,000 metric tonne capacity and will supply site-mixed bulk explosives to Eastern Coalfields, Central Coalfields and other regional customers. Apollo Micro Systems also recently formed a new associate entity named ShauryAstra Defence Systems to expand its presence in the defence sector.

Stock Performance and Technical Levels

Trading on the Bombay Stock Exchange saw the stock open at 390.70 rupees, hitting an intraday high of 410 rupees and a low of 389.05 rupees. Shares are up nearly 44% year-to-date. Ruchit Jain of Motilal Oswal Financial Services noted that 440 rupees serves as immediate resistance, while 360 rupees is the support level. Gaurav Arora of SAHI added that the stock trades in a sideways range and needs a decisive close above 430 rupees to test higher levels.

Context

Defence electronics companies in India often see strong order pipelines as the country works to boost domestic manufacturing and modernise military equipment. Strong financial results and large order books typically attract increased investor interest, which can drive share prices higher in the short term. Market analysts closely monitor technical support and resistance levels to gauge whether a stock's recent price jump will turn into a longer-term trend.