Apollo Micro Systems earnings: Highest ever revenue, net profit in FY25; stock falls 

Apollo Micro Systems shares slipped over 10% in early deals today after the defence firm said it reported its highest ever revenue and net profit in FY25. Revenue surged to Rs 562 crore, up 51% YoY in the last fiscal compared to Rs 372 crore in FY24. Net profit rose 81% to Rs 56 crore in FY25 over Rs 31 crore in FY24. 

Apollo Micro Systems shares lost 10.25% to Rs 135.20 against the previous close of Rs 150.65 on BSE. Market cap of the firm fell to Rs 4,330 crore. 

In the last quarter, consolidated net profit climbed 8% to Rs 13.96 crore, while net sales climbed 19% to Rs 161.77 crore compared to Q4 of March 2024.

On a sequential basis, the company's net profit fell 23%, whereas net sales rose 9% from Q3 FY25 to Q4 FY25. 

The profit before tax (PBT) for Q4 FY25 stood at Rs 22 crore, marking a year-over-year increase of 21%. However, it saw a decline of 16% when compared to the previous quarter. Meanwhile, the EBITDA for the quarter, excluding other income, reached Rs 35.99 crore. This represents a 25% increase year-over-year, although it experienced a 5% decrease from the last quarter. The EBITDA margin was recorded at 22%, which is lower than the 26% from Q3 FY25, but still an improvement over the 21% from Q4 FY24.

 In the last fiscal, PBT rose significantly by 87.23% year-on-year to Rs 82.55 crore for FY25 over FY24. Additionally, EBITDA (excluding other income) increased by 54% to Rs 129.21 crore in FY25. The EBITDA margin remained relatively stable at 23% for FY25.

As of March 31, 2025, Apollo Micro Systems had a consolidated net cash inflow from operating activities of Rs 11.27 crore, a notable turnaround from a net cash outflow of Rs 78.49 crore on March 31, 2024.

Baddam Karunakar Reddy, managing director, Apollo Micro Systems said, "Looking ahead, we expect revenue to grow at a CAGR of 45% to 50% over the next two years, driven solely by the core business, excluding any contribution from the recent acquisition. This growth is underpinned by a healthy order book and multiple products entering the production phase. Operating margins are projected to improve in the first half of FY26 due to favorable operating leverage and product mix. However, ongoing and planned capital investments are expected to moderate margin expansion in the latter half of FY26 and into FY27. Recent geopolitical developments, particularly the India-Pakistan conflict, have further accelerated demand for indigenous defence solutions. Several of our systems were successfully tested and demonstrated during this period, generating significant interest and engagement across the defence value chain."