Apollo Micro Systems Ltd (NSE: APOLLO) Q2 2026 Earnings Call dated Nov. 05, 2025
Corporate Participants:
Sudarshan Chiluveru — Chief Financial Officer
Analysts:
Mr. Mohit Lohia — Vice President
Nilabja Dey — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to The Apollo Microsystems Q2 FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on the Touchstone phone. I now hand the content over to Mr. Mohit Lohia from ICICI Securities. Thank you. And over to you, sir.
Mr. Mohit Lohia — Vice President
Yeah. Hi. Good morning everyone. Thank you for joining us today for quarter two and H1FY26 standing call of Apollo Microsystems Ltd. First of all, I would like to thank management for providing us the opportunity to host this call. From the management side we have Mr. Badham Karnakar Reddy, Managing Director, Mr. Adapami Saif Rish Kumar, All Time Director, Operations Mr. Sudarshan Chiluveru, Chief Financial Officer of the company. So without further delay, I would now hand over the call to management for the opening remarks. Thank you. And over to you, sir.
Sudarshan Chiluveru — Chief Financial Officer
Thank you so much. Good morning everyone. Happy Guru Purnima to all of you. Thank you for being with us today. It’s always a privilege to engage with our valued investors and provide updates on our performance strategy and future outlook. I am pleased to share that we have delivered our highest ever quarterly revenue and pack marked by consistent execution, operational discipline and a strong commitment to indigenization and the make in India initiative.
I trust you have had the opportunity to review our financial results. Letter to shareholders and press release and investor presentation. This marks our second interaction for the fiscal year 2023. Let me first take you through our consolidated performance for half yearly and second quarter ended September 30th to. 2025 H1FY26 marked another period of strong growth and operational excellence as we continue to build on the remarkable momentum achieved in FY25. Revenue grew by 42% semi annually to 359 crores, up from 250 crores in H2FY25, which is almost in line with the kind of a guidance that we have been giving. Supported by steady execution of our healthy order book and the seamless ramp up of several products into serial production, EBITDA stood at 100 crores reflecting a robust 81% semiannual increase. EBITDA margin also expanded by 600 basis points to 28% in H1FY26 compared to 22% in H2FY25, underscoring our sustained focus on the productivity improvement and cost optimization. Profit after tax rose sharply by 97% year on year basis to 48 crores as against 24 crores in H2FY25. The PAT margin improved by 330 basis points reaching 13.3% in H1FY26, driven by enhanced operational efficiency and a more favorable product mix. In Q2 FY26 we delivered another outstanding performance. Continuing on the momentum From a landmark FY25 revenue surged by 69% quarter on quarter basis to 225 crores up from 134 crores in Q1 FY26, a result of our robust order book execution and successful transition of multiple products into the production case. Our EBITDA rose sharply by 45% reaching 59 crores in Q2FY26 PAT registered a 70% quarter on quarter increase to 30 crores compared to 18 crores in the previous quarter. These results underscore our continued operational excellence and reaffirm the strength of our growth trajectory into FY26 and beyond. We are pleased to begin with two significant milestones that marked our continued growth and global progress. First, updating on the corporate actions and the CapEx side unit three phase one civil structure is complete. Phase two civil structure you know has already started and partial production in the phase one has already started and the full fledged production you know will be starting from, you know, end of this financial year or probably by Q1 next financial year. As far as the acquisition point of view is concerned, we have already paid 107 crores for acquiring 100% equity of Ideal Explosives Limited which we have already informed to all our investors. Looking ahead, we expect the revenue to. To grow at CAGR of 45 to 50% over FY26 and FY27, driven solely by the core business, excluding any contributions from the recent acquisition. This growth is underpinned by a healthy order book and multiple products entering the production phase one after the other. We have evolved from being a subsystem and systems manufacturer to establishing ourselves as a full fledged weapons manufacturer. A significant milestone in our journey of growth and technological Excellence. Building on 40 years of technological excellence, we are poised to evolve into a multidisciplinary defense system powerhouse to drive next generation innovation. Our vision is bold build on strong fundamentals and an unwavering commitment to creating value for our stakeholders. Thank you for your continued trust and support. We now look forward to addressing your questions.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question and answer. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may Press Star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Jade from. Please go ahead.
Nilabja Dey
Okay. Good morning and congratulations on an excellent set of numbers. I think you are on your trajectory of the maintaining the guidance, sir. Actually my fundamental question like in case I go through your presentations very carefully. You have a strong dependence on the domestic sector. Everything but how you are thinking of managing or catching up the whole defense pain happening specifically say in Europe. And what about the strategic tie up? Because some of your competitions are already doing the same.
They are connecting with some that Europe’s key difference manufacturing companies. So because there is domestic cyclicality of these orders are. We know how difficult sometimes it become. Can you throw some likes how you are going to tackle that exports and time strategic tie ups and building more international print. Thank you.
Sudarshan Chiluveru
Thank you so much you know and for you know keenly understanding you know what we are doing. So primarily, you know, we have been out and out you know technology development company in the core technology development rather than a system integration company or a lead integration company, you know, right from the beginning actually offline we have been working for last 40 years with DRDO programs primarily and as we have already told you several times that we have presence in every indigenous missile program of DRDO last few years.
As you rightly pointed out. Last few years we have started, you know, trying to look forward to making a complete, you know, system or a platform by ourselves. So our journey on this particular direction has started a bit late compared to other lead integrators who are actually getting a tie up to other companies and doing a system integrating. A little bit late, but carried by a huge technological experience that we have. And right from a system and a subsystem level, we have recently started entering strategic tires with different companies which we have recently also announced that we have entered in partnership with an American company for developing a rocket motor where the complete grad rocket is being developed by us. We already have few interests coming up in our different countries. We also have been communicating with you that we have certain technologies which are already matured in the naval domain, which we are talking to different companies from different countries. We have submitted our proposals. We also submitted the request to MODI to give us a clearance for export of such technologies. These being a very sensitive systems, it will take some time, but the interest is very long and multiple due diligence are already taken up by these, you know, service companies from different countries, particularly from Middle east and from the European region. And going forward you will see that, you know, we will be able to clinch a big ticket projects for these technologies. And I wish you to appreciate the point that this will be a hundred percent indigenous technologies rather than just being a lead integration system export.
Nilabja Dey
Great, sir, thank you.
Sudarshan Chiluveru
Our participation is there. Domestic projects, no number of programs. Our participation is there. With our present facility we are not able to take up even foreign orders, you know, like I think you know.