Apollo Micro Systems reported an 8% rise in net profit and a 19% jump in revenue year-on-year (YoY) for Q4 FY25. But compared to the previous quarter, profits fell 23%, while revenue still climbed 9%.
For the quarter ending March 2025, the company posted a net profit of ₹22 crore before tax—up 21% YoY, but down 16% quarter-on-quarter (QoQ).
EBITDA (excluding other income) came in at ₹35.99 crore, 25% higher than last year, though 5% lower than the previous quarter. The Q4 EBITDA margin stood at 22%, slightly better than the 21% a year ago but below Q3’s 26%.
What does this mean for you?
Apollo Micro Systems may not make headlines like the big IT giants, but its performance matters—especially if you’re investing in India’s defence future. With strong earnings and rising demand for indigenous tech, it’s clear this company is becoming a serious player.
The full-year numbers prove that. In FY25, Apollo Micro Systems clocked a massive 81% rise in net profit to ₹56.36 crore. Revenue also soared 51% to ₹562.07 crore. Profit before tax jumped nearly 87%, while EBITDA rose 54% to ₹129.21 crore. Their margins stayed steady at 23%.
But here’s the kicker: net cash from operating activities flipped from a ₹78.49 crore outflow last year to an ₹11.27 crore inflow this year. That’s not just accounting fluff—that’s real progress.
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So, what’s driving this growth?
The company is riding a wave of defence spending and demand for homegrown systems. “We expect revenue to grow at a CAGR of 45% to 50% over the next two years,” said MD Baddam Karunakar Reddy. Importantly, this growth excludes gains from their latest acquisition.
Why so confident? A strong order book, multiple new products entering production, and a national defence push fueled by geopolitical tensions—including India’s conflict with Pakistan—are all playing a part.
“Several of our systems were successfully tested during this time,” said Reddy, hinting at behind-the-scenes activity that’s now catching investor attention.
What’s next?
Margins may dip slightly due to planned capital investments, but operating leverage and a better product mix should keep things healthy in the near term.
This is a classic “slow and steady, but don’t blink” story. Apollo Micro Systems isn’t flashy—but in a world increasingly shaped by tech-fueled defence, they’re building real muscle.
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