Apollo Micro Systems Share Price Retreats Following Record Quarterly Performance
Shares of Apollo Micro Systems, a prominent multibagger defence stock, experienced a notable pullback during Tuesday's trading session as investors opted to secure profits. This decline occurred despite the company announcing its highest-ever quarterly profit for the third quarter and the first nine months of the financial year 2025-26.
Stock Movement and Trading Details
The Apollo Micro Systems share price opened higher at ₹253.60, compared to its previous closing price of ₹250.15, and quickly surged to an intraday peak of ₹256. However, the upward momentum proved short-lived. By the end of the session, the stock had retreated, closing at ₹243.25, marking a decline of 2.7% from the last close. At 12:35 PM, the share was trading at ₹244.50, reflecting a 2.26% drop.
Detailed Analysis of Q3 FY26 Financial Results
After market hours on Monday, Apollo Micro Systems released its financial results for the third quarter. The company reported a profit after tax (PAT) of ₹22.88 crore, representing a significant 25% increase from the ₹18.24 crore recorded in the same quarter of the previous fiscal year. It is important to note that this figure was lower than the ₹30.03 crore PAT posted in the preceding quarter of FY26.
In a more impressive development, the company's revenue from operations soared by 70% year-on-year to a record ₹252 crore. This remarkable growth was primarily driven by the robust execution of its order book and the successful transition of several high-value systems into full-scale production.
The company's operational performance also showed strength, with EBITDA (excluding other income) growing by 33% to ₹50.4 crore, up from ₹38 crore in Q3 of the previous fiscal year. Apollo Micro Systems attributed its sustained success to continuous investments in indigenous technologies and strong alignment with national defence priorities, such as the Atmanirbhar Bharat initiative, reinforcing its position as a trusted partner within India's evolving defence ecosystem.
Management Commentary and Forward-Looking Guidance
Looking ahead, Apollo Micro Systems has provided an optimistic growth forecast. The company expects its revenue to grow at a compound annual growth rate (CAGR) of 45% to 50% over the next three years. This projection is based solely on the performance of its core business and excludes any potential contributions from recent acquisitions. The anticipated growth is supported by a healthy order book and multiple products entering the production phase.
Baddam Karunakar Reddy, Managing Director of Apollo Micro Systems, commented on the company's strategic direction. "We are also pleased to announce an additional acquisition by ADIPL, which is expected to be completed before the end of this financial year. This acquisition will significantly enhance our organic growth and overall strength," he stated.
Historical Performance and Current Market Context
Amid a broader surge in defence sector stocks, Apollo Micro Systems delivered an exceptional 133% return to investors in 2025, marking its second-best annual performance since its listing in 2018. The company's best annual gains were recorded in 2023, when its share price skyrocketed by an impressive 290%.
According to data from Trendlyne, 2025 also represented the fifth consecutive year of positive returns for the stock. However, the current calendar year, 2026, has begun on a more subdued note for this multibagger. On a year-to-date basis, the Apollo Micro Systems share price is down by 11.40%, indicating a period of consolidation or profit-taking following its previous strong rallies.
Disclaimer: This article is intended for educational purposes only. The views and recommendations expressed herein are those of individual analysts or broking firms and do not represent the opinions of Mint. Investors are strongly advised to consult with certified financial experts before making any investment decisions.
