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DAC approval delays for underwater mine order
View Risks →Apollo Micro Systems Limited — Q3 FY26
Apollo Micro Systems delivered a record Q3 with revenue surging 70% YoY to ₹252 crore, driven by robust order book execution and transition of multiple products into production.
bullish
high
Financial stats pending filing verification
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Apollo Micro Systems delivered a record Q3 with revenue surging 70% YoY to ₹252 crore, driven by robust order book execution and transition of multiple products into production. EBITDA rose 33% to ₹50 crore, while PAT grew 25% to ₹23 crore. The 9-month revenue hit ₹611 crore, up 53% YoY, with EBITDA up 61% and PAT up 67%. Management reiterated a 45-50% CAGR revenue growth target over 3 years, backed by a ₹1,300 crore order book (including ₹500 crore from IDL). Key catalysts include the upcoming DAC approval for a ₹2,500 crore underwater mine order and QRSAM production orders. Risks include delays in DAC approvals and margin dilution from IDL consolidation, though standalone PAT margins are targeted at 15%.
अपोलो माइक्रो सिस्टम्स ने तीसरी तिमाही में शानदार प्रदर्शन किया। कंपनी की कमाई पिछले साल की तुलना में 70% बढ़कर 252 करोड़ रुपये हो गई। इसकी वजह ऑर्डरों का अच्छा निष्पादन और कई उत्पादों का बड़े पैमाने पर उत्पादन शुरू होना है। कंपनी का मुनाफा (EBITDA) 33% बढ़कर 50 करोड़ और शुद्ध मुनाफा (PAT) 25% बढ़कर 23 करोड़ रुपये हुआ। नौ महीने में कुल कमाई 611 करोड़ रुपये पहुंच गई। कंपनी का कहना है कि अगले तीन साल में उसकी कमाई हर साल 45-50% बढ़ेगी। इसके पास 1,300 करोड़ रुपये के ऑर्डर हैं। आगे और बड़े ऑर्डर मिलने की उम्मीद है। हालांकि, कुछ ऑर्डर में देरी और मुनाफे पर दबाव का जोखिम भी है।
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Read Transcript →Quarter Snapshot
Order Book (Consolidated)
₹1,300 crore
+62.5% YoY
Includes ₹800 crore standalone and ₹500 crore from IDL explosives subsidiary.
Underwater Mine Order (Expected)
₹2,500 crore
New
Awaiting DAC approval; management expects order this fiscal year.
IDL Revenue Contribution (45 days)
₹50.8 crore
New
IDL contributed for 45 days post-acquisition on Nov 16, 2025.
R&D Spend as % of Revenue
6-8%
Flat
Historical R&D spend; expected to increase going forward.
What Changed vs Last Quarter
NEW
Standalone PAT margin target of 15%
Internal target for standalone PAT margin; consolidated may see slight dilution from IDL.
NEW
IDL EBITDA breakeven this quarter, PAT positive from Q1 FY27
IDL expected to turn EBITDA positive in Q4 FY26 and PAT positive from next fiscal.
NEW
Acquisition of at least one company before FY26 end
Three companies in pipeline; due diligence ongoing for one or two acquisitions.
UPDATED
Revenue CAGR of 45-50% over next 3 years
Organic growth target excluding acquisitions, underpinned by strong order book and production ramp-up.
DROPPED
Unit 3 full production by Q1 FY27
Phase 1 civil structure complete; partial production started; full-fledged production by end of FY26 or Q1 FY27.
DROPPED
Production revenue mix to reach 40-45%
Current 25-35% production share expected to increase as large projects materialize.
DROPPED
IDL turnaround by Q2 FY27
Ideal Explosives expected to become profitable by Q2 next financial year.
NEW RISK
DAC approval delays for underwater mine order
The ₹2,500 crore order is pending DAC approval; any delay could impact revenue visibility.
NEW RISK
Margin dilution from IDL consolidation
IDL reported a loss of ₹4 crore in 45 days; management expects EBITDA breakeven only by Q4, with PAT positive from next year.
NEW RISK
Shareholder rejection of related party transaction resolution
Resolution for corporate guarantees to subsidiaries was defeated by institutional shareholders, potentially impacting subsidiary support.
NEW RISK
High COGS levels due to R&D-heavy project mix
Material costs remain around 70% of revenue; improvement expected only when large-scale production orders kick in.
RISK GONE
Large order delays
MIGM and QRSAM orders may slip beyond March; management expects by Q1 FY27 at latest.
RISK GONE
IDL integration and capex
IDL is currently loss-making; significant overhaul and capex needed, timeline uncertain.
RISK GONE
Foreign OEM competition
Government may allow 100% foreign subsidiaries as Indian vendors, potentially increasing competition.
RISK GONE
Working capital pressure
Receivables at ₹360 crore (close to Q1+Q2 revenue); management expects reduction by year-end.
Fast read
Guidance and risk preview
Organic growth target excluding acquisitions, underpinned by strong order book and production ramp-up.
The ₹2,500 crore order is pending DAC approval; any delay could impact revenue visibility.
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