Broker’s Call: Apollo Micro Systems (Buy)

Choice Institutional Equities

Target: ₹525

Apollo delivered a record Q2FY27 performance, with consolidated revenue/EBITDA/PAT growing 72 per cent/88 per cent/54 per cent year on year, respectively.

However, consolidated order-book increased marginally to ₹1,765 crore,making conversion of the strong order pipeline into confirmed orders a key monitorable for sustaining near-term growth.

The MIGM programme remains the key near-term trigger, with user trials completed and an order targeted by February 2027, as per the management.

Apollo’s position as the sole supplier of key electronic subsystems and sensors provides significant upside potential upon order award.

Opportunities across Pinaka, QRSAM and heavyweight torpedoes could support order inflows over the next few quarters. The management indicated that the order-book could exceed ₹2,000 crore by FY27-end, excluding MIGM, while reiterating revenue growth guidance of 35-45 per cent.

We view this guidance as achievable only with timely conversion of the identified pipeline and a smooth ramp-up of expanded manufacturing capacity.

We remain constructive on Apollo’s transition towards an integrated weapons-system player. The proposed acquisition of Premier Explosives and Shauryastra’s focus on complete weapon systems offer long-term growth potential and broaden its presence across the missile value chain.

We raise our target price to ₹525, valuing the stock at 50x average FY28E-FY29E EPS, and upgrade our rating to Buy from Reduce.

Published on October 26, 2026