Apollo Micro Systems Ltd (NSE: APOLLO) has become one of the most closely watched defense technology stocks in India. With India’s rapid focus on defense modernization, indigenous manufacturing, and growing government contracts, Apollo Micro Systems has emerged as a promising small-cap player.
As of October 16, 2025, the stock trades around ₹293.70, reflecting strong investor interest after new defense orders worth ₹39.27 crore were announced. Over the past year, the stock has surged from ₹88 to ₹355, showcasing remarkable momentum in the Indian defense and aerospace segment.
About Apollo Micro Systems Ltd
Founded in Hyderabad, Apollo Micro Systems Ltd designs and manufactures electronic and electro-mechanical systems for aerospace, defense, and space applications. The company offers:
- Missile interface units
- Onboard computers
- Ground systems
- Integrated defense electronics
Its clients include DRDO, Bharat Electronics, ISRO, and Indian Navy.
With India emphasizing Atmanirbhar Bharat in defense, Apollo is well-positioned to benefit from increased domestic procurement and exports.
Fundamental Analysis
Revenue & Profit Trends
Apollo Micro Systems delivered its best-ever results in FY2025:
| Particulars | FY2024 | FY2025 | Growth |
|---|---|---|---|
| Revenue (₹ Cr) | 372 | 562 | +51% |
| Net Profit (₹ Cr) | 31 | 57 | +81% |
| EPS (₹) | 1.03 | 1.87 | +81% |
The company also reported strong Q1 FY2026 results — net profit up 110% YoY to ₹18 crore on revenue of ₹134 crore.
Valuation Metrics
| Metric | FY2025 |
|---|---|
| P/E Ratio | ~157x |
| ROE | 10% |
| ROCE | 15% |
| Dividend Payout | 13% |
The stock currently trades at a high valuation due to growth expectations, though profitability and return ratios are improving steadily.
Balance Sheet Strength
Apollo’s total assets stood at ₹1,262 crore in FY2025, supported by a growing equity base. Borrowings increased to ₹295 crore, reflecting expansion.
However, the company’s cash conversion cycle of 450 days indicates working capital intensity — typical for defense contracts.
Shareholding Pattern (as of June 2025)
| Category | Share (%) |
|---|---|
| Promoters | 55.4% |
| Retail & Public | 39.8% |
| FIIs & DIIs | 4.8% |
Retail participation remains high, showing strong investor faith in the company’s long-term potential.
Past Stock Performance
Apollo Micro Systems has rewarded long-term investors handsomely:
- 1-Year Return: +230%
- 3-Year Return: +520%
- 5-Year Return: +850%
The stock’s volatility mirrors its small-cap nature but reflects growing institutional interest and recurring defense orders.
Apollo Micro Systems Share Price Target 2025–2050
| Year | Minimum (₹) | Average (₹) | Maximum (₹) |
|---|---|---|---|
| 2025 | 240 | 310 | 375 |
| 2026 | 270 | 345 | 420 |
| 2027 | 315 | 390 | 460 |
| 2028 | 365 | 455 | 525 |
| 2029 | 410 | 510 | 590 |
| 2030 | 460 | 575 | 750 |
| 2035 | 890 | 1,250 | 1,750 |
| 2040 | 1,650 | 2,450 | 3,200 |
| 2045 | 2,800 | 3,950 | 5,100 |
| 2050 | 4,500 | 6,200 | 8,400 |
Apollo Micro Systems Share Price Target & Prediction 2025, 2026, 2027, 2028, 2029, 2030, 2035, 2040, 2045, and 2050
Apollo Micro Systems Share Price Target 2025
With new defense orders and a ₹735 crore order book, revenue visibility is strong. The average target of ₹310 reflects moderate upside from current levels, factoring in near-term volatility.
Apollo Micro Systems Share Price Target 2026
Operational efficiency and execution of high-margin defense projects could drive earnings growth. Analysts project ₹345–₹420 as fair value, supported by steady EPS expansion.
Apollo Micro Systems Share Price Target 2027
By this year, Apollo could benefit from new government defense contracts and export opportunities. The company’s diversification into electronics and space components may boost valuation.
Apollo Micro Systems Share Price Target 2028–2029
Assuming consistent 30–35% CAGR in revenue, Apollo may cross the ₹500 mark. Growth in private defense production and Make-in-India initiatives will be crucial.
Apollo Micro Systems Share Price Target 2030
A strong growth cycle could push the stock towards ₹575–₹750, assuming sustained margins and reduced leverage.
Apollo Micro Systems Share Price Target 2035–2050
(Long-Term Projections)
If Apollo continues compounding at 20–25% annually with expanding global defense orders, the stock could reach multi-thousand levels. However, these are theoretical extrapolations and depend on future macroeconomic and policy stability.
Growth Drivers
- Expanding Indian Defense Budget — Rising allocations favor indigenous defense firms.
- Strong Order Book — ₹735 crore as of June 2025 ensures earnings visibility.
- Technological Edge — Expertise in embedded electronics and systems integration.
- Government Policies — “Make in India” and defense indigenization push.
- Export Opportunities — Increasing global demand for affordable defense tech.
- R&D and Innovation Focus — Expanding in aerospace and missile system electronics.
Expert Views
- Market Analysts: Many experts expect continued upside in the medium term due to strong earnings visibility.
- Brokerage Reports: Some houses forecast targets between ₹310–₹375 for FY2026.
- Investor Sentiment: Positive due to robust growth outlook, though valuations remain rich.
Risks & Challenges
- High working capital and debt levels
- Order execution delays in defense projects
- Dependence on government contracts
- Valuation risk if growth slows
- Geopolitical or regulatory risks affecting defense exports
Investment Suitability
Apollo Micro Systems suits:
- Long-term investors seeking exposure to the defense sector
- Moderate to high-risk investors comfortable with small-cap volatility
- Investors with a 5–10 year horizon who believe in India’s defense manufacturing growth
Short-term traders should be cautious due to high P/E and short-term fluctuations.
FAQs
1. What will be Apollo Micro Systems’ share price in 2030?
Based on growth trends, the stock could range between ₹460–₹750 by 2030.
2. Can Apollo Micro Systems reach ₹500 by 2028?
Yes, if revenue growth sustains above 30% CAGR, ₹500 is achievable around 2028–2029.
3. Is Apollo Micro Systems good for long-term investment?
For investors focused on India’s defense sector and willing to hold long-term, Apollo Micro Systems offers strong growth potential, albeit with volatility risks.
Conclusion
Apollo Micro Systems stands out as a fast-growing defense electronics company in India. With a robust order pipeline, expanding profit margins, and government policy support, its long-term outlook remains promising.
However, investors should remain cautious about valuation and execution challenges. For those with patience and risk appetite, Apollo Micro Systems could be a multi-decade compounder in India’s defense story.
Sources: Apollo Micro Systems, NSE Filings, BSE Announcements.
