Synopsis: A small cap defence company secured DRDO approval for two key Transfers of Technology (ToT) in Directed Energy Weapon (DEW) systems and more.
A defence stock where the company engages in the business of electronic and electro mechanical solutions saw its stock surge by upto 5 percent as the company gets DRDO’s nod for two Transfers of Technology (ToT) enhancing its portfolio. With a market cap of Rs 8,921 Cr Apollo Micro Systems saw its stock hit an intraday high of Rs 249 which is 5 percent higher than the previous close of Rs 237.
What’s the News?
On Monday Apollo Micro Systems Limited announced that the company has secured DRDO approval for two key Transfers of Technology (ToT) in Directed Energy Weapon (DEW) systems, enhancing India’s defence indigenisation and Make in India initiatives.
The first ToT from DRDO- CHESS Hyderabad, covers a Multi Channel 10 kW Laser DEW system, while the second, from DRDO- IRDE Dehradun, involves an Electro Optical Tracking System with advanced EO sensors.
These technologies strengthen Apollo’s capabilities in laser based engagement and electro optical tracking solutions, enabling the company to design, manufacture, and support critical DEW subsystems. The move complements Apollo’s anti drone systems and marks a strategic milestone amid evolving aerial and drone threats.
As of the latest quarter’s presentation the company mentioned that they have also been awarded several other ToTs by DRDO, which includes Warheads for Ulpgm- V2, Exploder Mechanism for Naval Warheads, ESAD based Fuze for Mini Depth Charge among several others. Talking about the order book of the the company it stands at Rs 7,850 Cr as of September 2025.
Business & Financial Overview
Founded in 1985 and based in Hyderabad, Apollo Micro Systems specializes in the supply of advanced electronics and electro mechanical components. The company is a key player in the design, development, and R&D of high precision systems used across defense and aerospace applications, including missile systems electronics, underwater missile technologies, avionics, naval ship systems, and submarine electronics.
In the latest quarter the company saw a YoY revenue growth of 40 percent, going from Rs 161 Cr in Q2FY25 to Rs 225 Cr in Q2FY26, while the QoQ went up by 68 percent from Rs 134 Cr in Q1FY25.
The YoY Net Profits growth is at 106 percent, going from Rs 16 Cr in Q2FY25 to Rs 33 Cr in Q2FY26, while the QoQ growth stood at 73 percent from Rs 19 Cr in Q1FY25.
The company’s stock has given a 113 percent compounded return in the past 3 years and the 3 year profit CAGR stands at 58 percent. Another point to highlight is that as of November 2025 the promoters increased their stake by more than 2 percent in the company.
-Adithya Menon
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