Apollo Micro Systems: Defence Stock Soars 130% YTD, Brokerage Maintains Buy Rating Amid Strong Q2 Results

Apollo Micro Systems shares have demonstrated exceptional performance in 2025, delivering multibagger returns and doubling investor capital on a year-to-date (YTD) basis with a 130% surge. The stock previously touched an all-time high of Rs 354.70 on September 17, 2025, representing a 195% YTD increase at that point. Over the past year, the defence stock has seen a remarkable 196% rise. While currently trading over 20% below its peak, it remains above key long-term moving averages (5-day, 100-day, and 200-day), though below shorter-term ones (20-day and 50-day).

Q2 FY25-26 Performance:

The company announced strong financial results for the second quarter of fiscal year 2025-26. Net profit more than doubled year-on-year (YoY) to Rs 33 crore, up from Rs 15.9 crore in the same quarter last year. Revenue from operations also saw a significant increase of 40% YoY, reaching Rs 225 crore for the September 2025 quarter.

Brokerage Outlook:

Following these positive results, brokerage firm Centurm has reiterated its 'buy' rating for Apollo Micro Systems. Their report highlights a bullish technical setup, including a breakout from a falling wedge pattern on the daily chart, supported by buy crossovers in momentum indicators and oscillators. Centurm has set a target price of Rs 320 for the stock, indicating a positive outlook.

Historical Performance & Corporate Actions:

Historically, Apollo Micro Systems has rewarded investors handsomely, providing over 1100% returns in three years and approximately 2350% in five years. The company also executed a 10-for-1 stock split in May 2023, making its shares more accessible.

Impact:

This combination of stellar stock performance, robust financial results, and a strong brokerage recommendation is likely to bolster investor confidence. The news could attract further buying interest, potentially driving the stock towards its target price. It also reinforces the positive sentiment surrounding Indian defence stocks, which have been a focus for government policy and investment.

Difficult Terms Explained:

• Multibagger : A stock whose share price increases multiple times its initial investment value.
• YTD (Year-to-Date) : The period from the beginning of the current calendar year up to the current date.
• Moving Averages : Technical indicators calculated by averaging a stock's price over a specific period (e.g., 5-day, 20-day, 100-day, 200-day). They are used to identify trends and potential support/resistance levels.
• Falling Wedge Pattern : A chart pattern that signals a potential upward price reversal. It is characterized by converging trendlines with the upper line sloping down more steeply than the lower line.
• Buy Crossover : A technical signal generated when a faster-moving average or indicator crosses above a slower one, suggesting a potential uptrend.
• Net Profit : The profit remaining after all expenses, taxes, and interest have been deducted from the total revenue.
• Revenue from Operations : The income generated from the primary business activities of a company.
• Brokerage Firm : A financial services company that facilitates the buying and selling of securities on behalf of clients.
• Buy Rating : An investment recommendation from a brokerage firm suggesting that investors should purchase a particular stock.
• Target Price : An analyst's projection of a stock's future price, typically used in buy/sell recommendations.
• Stock Split : A corporate action where a company divides its existing shares into multiple new shares, increasing the total number of shares outstanding but reducing the price per share. This is often done to make shares more affordable and liquid.