Apollo Micro Systems Reports Strong FY26 Performance; Choice Institutional Equities maintained a positive outlook

For the full financial year FY26, consolidated revenue from operations stood at ₹904.32 crore, reflecting a strong annual growth of 60.9% over ₹562.07 crore reported in FY25.

Following the earnings announcement, Apollo Micro Systems shares extended their recent rally, ending Tuesday’s trading session nearly 10% higher at ₹340 apiece. The stock has gained approximately 16% over the last two trading sessions, significantly outperforming broader market indices.

The company’s stock has remained in focus amid multiple positive business developments and improving investor sentiment. Shares have rebounded sharply since April, rising nearly 87% cumulatively over the last two months after recovering from earlier correction-led weakness.

Domestic brokerage Choice Institutional Equities maintained a positive outlook on the company, highlighting that the March quarter performance exceeded estimates and reflected steady operational execution.

According to the brokerage, Apollo Micro Systems’ strategic evolution from a component supplier to a full-fledged system integrator is expected to strengthen margins and improve value-chain control over the medium term.

The brokerage further noted that the company’s expanding role in the defence ecosystem, robust order pipeline, and improving margin trajectory reinforce confidence in its long-term growth potential. It revised its FY27E and FY28E EPS estimates upward by 27.5% and 19.5%, respectively, and expects revenue, EBITDA, and PAT to grow at a CAGR of 52.9%, 52.9%, and 54.6%, respectively, over FY27–FY29E.

While revising its rating to ‘Add’ from ‘Buy’ following the sharp rally in the stock, the brokerage maintained a target price of ₹365 per share.

Despite near-term volatility, Apollo Micro Systems continues to deliver strong long-term shareholder returns, with the stock rising nearly 940% over the last three years and over 3,100% during the past five years.

Disclaimer: This article is for informational purposes only and does not constitute financial advice.