Apollo Micro Systems Shares Rally 10% on Record Q2 Performance

Apollo Micro Systems’ Growth Story Gets a Boost from Record Quarter

Revenue, profit and margins strengthened in Q2, while the order book reached a new high.

Revenue growth came with stronger margins

Apollo Micro Systems’ consolidated revenue from operations rose 72% year on year to ₹388 crore in Q2FY27, from ₹225 crore a year earlier. Net profit increased 54% to ₹46 crore, compared with ₹30 crore in the corresponding quarter. EBITDA climbed 88% to ₹111 crore from ₹59 crore.

The margin trend adds another dimension to the results. EBITDA margin expanded to 28.6% from 26.3% in the year-ago quarter. EBITDA grew faster than revenue, indicating improved operating profitability during the period. Whether that improvement can be sustained will matter alongside the pace of sales growth.

First-half figures point to broad-based momentum

The company’s performance extended beyond the September quarter. For H1FY27, revenue increased 78.2% year on year to ₹639.4 crore, while profit after tax rose 49.6% to ₹71.4 crore. EBITDA was up 64.7% to ₹164.9 crore.

These figures suggest the quarter was part of a stronger six-month run rather than an isolated increase in activity. However, the different growth rates across revenue, EBITDA and profit make it useful for investors to track how operating costs, margins and cash generation develop in subsequent periods. The reported numbers alone do not establish whether the recent pace will continue.

Record order book raises the importance of execution

Apollo Micro Systems said its consolidated order book reached an all-time high of ₹1,765 crore as of September 30, 2026. A sizeable order book can provide visibility into potential future work, but it is not the same as recognised revenue. The company still needs to execute orders and convert them into sales and, ultimately, cash.

That distinction is central to assessing the results. Research head Vinit Bolinjkar recommended a “Hold,” citing the order book, faster growth and stronger margins, while also flagging order conversion, cash generation and the financial health of subsidiaries as areas requiring improvement. He noted that the share price had already reacted sharply and that its valuation reflected substantial growth expectations.

A sharp share-price response sets a higher bar

Apollo Micro Systems shares opened at ₹390 and reached an intraday high of ₹410 on the NSE. At 9:48 a.m., they were up 6% at ₹397, even as the Nifty 50 was down 0.63%. Trading was active, with nearly 11 million shares worth ₹429.22 crore changing hands by that time.

The market response reflects investor attention to the results, but a strong session does not settle questions about future returns. Technical analyst Virat Jagad identified support around ₹365–375 and resistance at ₹440–445, describing momentum as neutral. Those levels are a market view, not a guarantee; the operating evidence investors will need to assess includes order execution, profitability and cash generation.

Key Highlights

• Q2FY27 revenue rose 72% year on year to ₹388 crore.
• Net profit increased 54% to ₹46 crore, while EBITDA climbed 88% to ₹111 crore.
• EBITDA margin widened to 28.6% from 26.3%.
• The order book reached a record ₹1,765 crore at September 30, 2026.
• Analyst concerns include order conversion, cash generation and subsidiary financial health.

Investor Note: The results show strong growth and improved margins, but the investment case also depends on converting the record order book into sustainable revenue and cash flows. Investors should weigh those execution risks against the expectations already reflected in the share price.