Apollo Micro Systems Limited, a Hyderabad-based defence electronics and systems manufacturer, is expanding its production capacity eightfold with the commissioning of a new integrated manufacturing complex in Hyderabad. The expansion, involving a total investment of INR 2.5 billion, marks a major step in the company’s transition from subsystem production to full-fledged weapons manufacturing.
Phase 1 of the new Unit 3 facility has already begun partial production, while civil construction for Phase 2 is in progress. Full-scale production is expected by June 2026. The site will house complete in-house testing infrastructure for electromagnetic and environmental systems, reducing reliance on Defence Research and Development Organisation (DRDO) facilities.
“Once our facility is ready, we can do all the testing in-house. Around INR 600 million is being spent only on test equipment,” said Addepalli Sai Krishna Kumar, Whole-time Director (Operations).
Managing Director Baddam Karunakar Reddy said the new facility will significantly expand Apollo’s ability to serve domestic and export markets. “If you compare the present facility and once Unit 3 is ready, we are enhancing our capacity eight times. Once operational, we are also going to sign MoUs with some overseas companies. Good growth will be there once we start Unit 3,” he stated.
The company reported a consolidated revenue of INR 3.59 billion for the first half of FY26, up 42 percent from the previous six months, supported by steady execution of its order book. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 81 percent to INR 1 billion, while profit after tax nearly doubled to INR 480 million. Apollo maintained its revenue growth guidance of 45–50 percent for FY26 and FY27, driven by the core business excluding acquisitions.
Apollo recently completed the INR 1.07 billion acquisition of Ideal Explosives Limited (IDL), which is being modernised to produce high-energy explosives and artillery filling lines. “We are moving towards manufacturing critical high-energy explosives and creating multiple filling lines for artillery and weapons. You will hear a lot of developments from IDL in the coming months,” said Reddy. The subsidiary, currently loss-making, is targeted for a turnaround by the second quarter of FY27.
As of 30 September 2025, Apollo’s order book stood at approximately INR 8 billion, with new development and production orders added since then. The company is actively engaged in several key defence programmes including BrahMos, Quick Reaction Surface-to-Air Missile (QRSAM), Extended Heavyweight Torpedo (EHWT), and Advanced Light Weight Torpedo (ALWT) projects. It is also developing a mechatronic fuse for grenades under a DRDO technology transfer, expected to enter production within a year.
Apollo has a presence in all major indigenous missile programmes and supplies over 60 percent of the subsystems for DRDO-led projects. “We have evolved from being a subsystem and systems manufacturer to establishing ourselves as a full-fledged weapons manufacturer, a significant milestone in our journey of growth and technological excellence,” said Reddy.
The company is also enhancing its radio frequency (RF) and sonar capabilities, adding senior engineers to develop seeker electronics and underwater homing systems for torpedoes and anti-submarine warfare equipment. Apollo is among the few private Indian firms developing torpedo homing and decoy technologies in-house.
On the export front, Apollo has executed an INR 1.13 billion order from the United Kingdom and is expecting further projects from Saudi Arabia and European clients, subject to Ministry of Defence clearance. “Once our facility is ready, overseas companies want to come and audit our facility and have a memorandum of understanding with us,” said Reddy.
Founded in 1985, Apollo Micro Systems Limited designs and manufactures electronic systems and integrated solutions for defence, space, and homeland security. Its facilities are located in and around Hyderabad, including Unit 1 (corporate headquarters and R&D centre), Unit 2 (systems assembly and integration), Unit 3 (new defence manufacturing complex), and the recently acquired IDL Explosives unit at Rudraram Industrial Area. The company’s key clients include DRDO, Bharat Dynamics Limited, Bharat Electronics Limited, and the Indian Navy.
