Defence Licence Pushes Apollo Micro Shares Higher By Nearly 25% In A Week

Shares of Apollo Micro Systems Limited jumped nearly 25% over the past week after the company secured a key licence to manufacture and proof test defence weapon systems. At 2:15 pm, Apollo Micro Systems Limited shares were trading at ₹285.20 a piece on the National Stock Exchange (NSE), a weekly gain of nearly 25%.

The recent surge adds to strong momentum in the stock, where it is up nearly 46% over the past month and has gained over 140% over the past one year.

What Drove The Rally?

The rally comes alongside sustained buying in defence counters and follows a regulatory clearance from the Department for Promotion of Industry and Internal Trade (DPIIT).

The licence, issued on 10 April 2026, falls under Section 43(1) of the Arms Act, 1959. It carries lifetime validity. It also permits the company to produce up to 1,000 units per category annually. The approval allows Apollo Micro Systems to widen its role in defence manufacturing at its Hyderabad facilities.

Wide Range Of Systems Approved

The company can manufacture systems across two categories of arms with calibre above 12.7 mm. Category I includes:

• Guided weapons across land, air and naval platforms

• Anti-tank guided missiles, including wire-guided and fire-and-forget variants

• Torpedoes and underwater mines

• Countermeasure systems such as chaffs, flares and decoys

Category II includes:

• Aerial bombs, including precision-guided variants

• Rockets for ground, air and naval use

• Loitering munitions with surveillance and strike capability

Manufacturing will be carried out at two units in Hyderabad, Telangana.

Subsidiary Adds Explosives Capability

The development is backed by the capabilities of IDL Explosives Limited, a step-down subsidiary of the company. IDL Explosives brings experience in defence-grade explosives, propellants, pyrotechnics and detonators.

Its work includes solid propellants for missiles and rockets, explosive compositions for warheads, and initiating systems. The company said combining IDL’s energetics expertise with its own strengths in guidance electronics and sensor integration will enable end-to-end manufacturing of weapon systems.

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Management Flags Gradual Scale-Up

Managing Director B Karunakar Reddy said the licence marks a step forward in expanding the company’s defence footprint. He said the firm will focus on building manufacturing infrastructure and ensuring compliance before scaling up production.

Apollo Micro Systems operates as a defence technology and equipment manufacturer with capabilities spanning design, development and lifecycle support.

Sources:

Zee Business

Business Standard