The defence sector has once again taken center stage on Dalal Street, with Apollo Micro Systems (AMS) delivering a staggering 70% jump in just one month. From hitting fresh 52-week highs above ₹300 to winning new strategic defence orders, the Hyderabad-based company has quickly become one of the hottest stocks in the market.
But with this meteoric rise, the big question investors are asking is: Should you still buy Apollo Micro Systems now, or wait for a correction?
Apollo Micro Systems Share Price Performance
Over the past month, AMS stock has gained close to 74%, outpacing peers in the defence space such as Hindustan Aeronautics Ltd (HAL) and Bharat Dynamics Ltd (BDL). In fact, in the last six months alone, the stock has more than doubled, giving it the tag of one of the best-performing defence stocks in India.
On September 3, 2025, shares touched a fresh 52-week high of ₹301.75, before settling just below that mark.
What’s Driving the Rally?
1. DRDO Collaborations
Apollo Micro Systems recently bagged approvals and technology transfer deals with the Defence Research and Development Organisation (DRDO). These include:
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Production for Multi-Influence Ground Mine (MIGM – Vighana)
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Tech transfer for the Omni-Directional Multi-EFP warhead for NASM-SR missiles
These high-profile defence tie-ups have strengthened investor confidence in AMS’s long-term growth trajectory.
2. Strong Financial Results
In Q1 FY26, the company reported:
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46% YoY revenue growth (₹1,335.8 million)
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110%+ jump in net profit
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EBITDA up 83%, with margins expanding to 31%
Such strong earnings have reinforced the belief that AMS is well-positioned to capture a bigger slice of India’s defence modernization push.
3. Expanding Order Book & First Export Win
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Current order book: ₹735 crore (up from ₹500 crore last year)
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Management has guided towards a 3x increase by March 2026
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Secured its first export order worth $13.4 million (~₹114 crore), opening doors to global markets
Should You Buy Apollo Micro Systems Now?
Analysts remain divided:
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Bullish camp: They highlight that AMS is riding India’s defence manufacturing boom and expanding its order book aggressively. For long-term investors, this may be a multi-year growth story.
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Cautious camp: With the stock up over 70% in just one month, short-term traders may want to wait for a pullback towards ₹220–₹250 before entering.
Technically, the stock has broken out above key resistance levels, but momentum indicators also point to an overbought zone.
Final Takeaway
Apollo Micro Systems has emerged as a defence sector outperformer, fueled by DRDO partnerships, strong earnings, and an expanding order book. While the long-term story looks promising, fresh investors may consider waiting for dips to get a more favorable risk-reward entry.
For those already holding the stock, maintaining a disciplined stop-loss strategy could be wise amid the high volatility.
⚠️ Disclaimer
This story is for educational purposes only. The views and recommendations mentioned are those of individual analysts or brokerage firms, not ours. We strongly advise investors to consult certified financial experts before making any investment decisions.
📌 FAQ Section
Q1: Why is Apollo Micro Systems share price rising so fast?
Apollo Micro Systems’ stock has surged due to strong quarterly results, DRDO tie-ups, an expanding order book, and its first major export order. These factors have boosted investor confidence in the company’s long-term growth.
Q2: What is Apollo Micro Systems’ order book size right now?
As of June 2025, the company’s order book stands at ₹735 crore, with management aiming to triple it by March 2026.
Q3: Is Apollo Micro Systems a good stock to buy now?
Analysts believe the long-term story is promising, but since the stock is already up over 70% in a month, short-term traders may want to wait for a pullback before entering.
Q4: What are Apollo Micro Systems’ key strengths?
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DRDO-approved defence projects
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Robust financial growth (46% YoY revenue, 110%+ profit growth in Q1 FY26)
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First export order worth ~$13.4 million
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Expanding global opportunities in defence manufacturing
Q5: What are the risks of investing in Apollo Micro Systems?
Risks include high valuations after the recent rally, sector dependence on government defence spending, and execution challenges for new projects.
