Apollo Microsystems’ Rises On Impressive Q1: SEBI RA Sees 20% Upside Potential

Profit after tax more than doubled to ₹19.43 crore, while revenue from operations surged 46% in Q1.

Electronic components manufacturer Apollo Microsystems posted robust Q1FY26 financial numbers on Monday, triggering a 7% gain in the stock price.

Profit after tax more than doubled to ₹19.43 crore, while revenue from operations surged 46% to ₹133.58 crore.

Apollo Microsystems’ shares closed 4.25% higher at 179.20 on Monday.

Retail sentiment on Stocktwits turned ‘bullish’ from ‘bearish’ a week ago. It was the top trending stock on the platform.

According to SEBI-registered analyst Pradeep Carpenter, the stock is showing signs of a bullish reversal on the technical charts.  

The stock is forming a falling wedge pattern on the daily chart, which is typically a precursor to an upward breakout. A decisive move above ₹190, backed by strong volume, could confirm trend continuation and open the path toward ₹205 and ₹220, he said.

The moving average convergence/divergence (MACD) is reversing from its bottom and nearing a bullish crossover, while the relative strength index (RSI) is trending higher from 50, signaling an improvement in momentum.

On the downside, ₹174 - ₹176 serves as a key support zone, Carpenter said. A closing below ₹172 would negate the bullish outlook and warrant caution.

He set a target price range between ₹205 and ₹220 in a period of two to four months.

Fundamentally, Apollo is well-positioned to benefit from India’s rising defense capital expenditure and policy tailwinds for domestic manufacturing, the analyst said.

The company’s growing export footprint in avionics, combined with the strategic acquisition of IDL Explosives, brings vertical integration and cross-selling opportunities.

Apollo Micro Systems is shaping up as a formidable force in India’s defence technology landscape, supported by a growing order book, efficient execution, and niche defence capabilities, noted SEBI RA Vishal Trehan.

It develops indigenous solutions, such as vehicle-mounted counter-swarm drone systems (VMCSDS), for the Indian Army, along with customized commercial off-the-shelf (COTS) systems for defense, railways, space, and homeland security.

Recent geopolitical tensions have accelerated demand, with several of its technologies successfully tested and validated, the analyst added.

The company expects revenue to grow at a 45 - 50% CAGR over the next two years, driven organically through core operations and a strong order pipeline.

Year-to-date, the stock has gained 55.03%.

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