Recent global events, especially the India-Pakistan situation, have increased the need for defence solutions made in India. Many of the systems of Apollo Micro Systems were tested successfully during this time, creating a lot of interest within the defense industry.
Apollo Micro Systems, a company working in the defence sector, recently shared its financial results for the fourth quarter of the financial year 2024-2025. While the company showed good growth, its share price dropped by almost 8% in Friday’s trading session. Here's a closer look at their performance and what's next.
For the entire financial year 2024-2025, Apollo Micro Systems performed very well. Their total income grew by over 51%, and their EBITDA, which shows their operational earnings, increased by 54%. The company also achieved a strong EBITDA margin of 23.50%. Most notably, their net profit for the full year jumped by more than 81%, matching their own expectations.
For the period between January and March 2025 (Q4 FY25), Apollo Micro Systems reported a profit of ₹13.96 crore. This is an 8% increase compared to the same period last year.
The company's total income from operations in Q4 FY25 reached ₹161.77 crore, which is a healthy 19% increase from the same time last year. It also saw a 9% increase compared to the previous quarter.
Looking at how efficiently the company is running (EBITDA), it grew by 25% compared to last year, reaching ₹35.99 crore. However, it decreased by 5% compared to the previous quarter. The profit margin (EBITDA margin) did improve slightly to 22% from 21% a year ago.
The company's main business will grow by 45% to 50% each year for the next two years. This growth is expected because they have a good number of confirmed orders, and many of their products are now moving into the production stage.
The company's operating profits are likely to get better in the first half of the next financial year (April to September 2025) because of better efficiency and product mix. However, the company is planning new investments, which might slightly slow down profit margin growth in the latter half of the next financial year and into FY27.
The company's Board of Directors will meet on Wednesday, May 28, 2025, to discuss recommending a final dividend for their shareholders for the financial year 2025. This recommendation will then need approval from the shareholders at their annual general meeting.
Despite the recent dip, shares have recorded a gain of 17% in the past month. Since January 2025, the stock has gained 15%. Looking at the longer period, the Apollo Micro Systems share price has provided remarkable returns, increasing by 309% in two years and an astounding 1,585% over the last five years.
Over the last six months, it has surged by 52%, and in the past year, it has risen by 25%.
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Apollo Micro Systems has showcased fundamental growth in FY25, driven by increased revenue and profit. The company anticipates significant future growth from its core defence business, backed by a solid order book and geopolitical demand.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: May 27, 2025, 1:40 PM IST
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