Apollo Micro Systems (APOLLO) Q2 26/27 earnings summary

Executive summary

• Record Q2 and H1 FY27 results; consolidated H1 revenue, EBITDA and PAT reached highs, with a September 30 order book of INR 1,765 crore.

• Strategic developments included CCI approval for the Premier Explosives transaction, semi-active laser homing technology transfer, ShauryAstra Defence Systems and commissioning of IDL’s Bolkunda silo unit.

Financial highlights

• Consolidated Q2 revenue was ₹38,814.95 lakh, up 72% YoY and 54% QoQ; EBITDA excluding other income rose 88% YoY to INR 111 crore and PAT was ₹4,615.34 lakh.

• Consolidated H1 revenue was ₹63,944.26 lakh, up 78% YoY; EBITDA excluding other income rose 65% to INR 165 crore and PAT was ₹7,136.94 lakh.

• Standalone Q2 revenue was ₹30,628.82 lakh, up 36% YoY; EBITDA excluding other income rose 82% YoY to INR 108 crore and PAT was ₹4,772.96 lakh.

• Standalone H1 revenue was ₹46,218.26 lakh, up 29% YoY; EBITDA excluding other income rose 56% to INR 156 crore and PAT was ₹7,556.35 lakh.

Outlook and guidance

• Management reiterated 35%-45% growth guidance and projected the order book above INR 2,000 crore by March, excluding MIGM.

• MIGM RFQ was expected in November and a purchase order by February, no later than March; trials were complete, with production to follow critical trials for the first lot.

• Exports are expected from next FY as Unit 3 ramps; its expanded facility was described as nearly 12x current capacity.

• Annual positive operating cash flow is expected from FY29 as production orders become the mainstay and support advances and more regular cash generation.