Apollo Micro Systems Limited

Apollo Micro Systems is an Indian defence-electronics company designing and assembling electronic and electromechanical systems. Its revenue spans missile hardware, seeker electronics, launcher controls, avionics modules, and signal-processing systems. Q1 FY27 revenue rose 88% year-on-year to ₹251 crore, while profit increased 43%, supporting operating leverage and improving margins. Revenue growth reached 60.9%, and profit growth was 100.2%, with margins improving; however, 11.2% ROE remains constrained by 41.53 debt-to-equity leverage. Elevated leverage can amplify financial costs and limits the quality of reported returns. At 128.2x earnings, the stock appears rich and trades at a substantial premium to its growth rate. Positive defence demand supports the outlook, but execution, cash conversion, and leverage remain key open questions.