The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, has cleared capital acquisition proposals worth approximately Rs 52,000 crore, with Hyderabad-based Apollo Micro Systems Ltd emerging as a key beneficiary. The approvals, announced on Friday, include programmes directly aligned with the company's product portfolio and development-cum-production partnerships.
DAC Approvals and Apollo's Role
For the Indian Navy, the DAC approved the procurement of the Multi-Influence Ground Mine (MIGM). Apollo Micro Systems is the DRDO-approved production agency under the Development-cum-Production Partner (DcPP) framework, having received technology transfer for MIGM-Vighana in August 2025. For the Indian Army, several approved systems overlap with Apollo's capabilities, including the Man Portable Anti-Tank Guided Missile (MPATGM), Very Short Range Air Defence System (V-SHORADS), the AKASH TARANG anti-UAV Electronic Warfare System, Jet-Based Kamikaze Drones, and the Medium Range Surface-to-Air Missile (MRSAM). Many of these fall under Apollo's DPIIT lifetime arms manufacturing licence granted in April 2026, covering missiles, ATGMs, torpedoes, and loitering munitions.
Market Reaction and Financial Performance
Apollo Micro Systems shares gained 5.32% in early trade on Friday to Rs 463 on the NSE, extending a rally that began in late June following reports that key client Bharat Electronics Ltd (BEL) is close to a Rs 30,000 crore Quick Reaction Surface-to-Air Missile (QRSAM) order. Apollo supplies the Integrated Avionics Unit and Actuator for the QRSAM programme. The DAC clearance comes on the back of Apollo's strongest financial year on record. FY26 revenue rose 60.9% to Rs 904 crore, Q4 profit surged 168.7%, and the consolidated order book hit an all-time high of Rs 1,432 crore — roughly 1.6x trailing revenue. Management has guided 45-50% revenue CAGR through FY27 with EBITDA margins expanding to 26-28%.
Pipeline and Growth Prospects
While the Acceptance of Necessity (AoN) is an in-principle approval and formal contracts typically follow 12-18 months later, the clearance materially de-risks Apollo's medium-term pipeline. Analysts estimate MIGM alone could translate into a Rs 2,000 crore lifetime opportunity, with QRSAM-related subsystem supply adding another Rs 800-1,000 crore. The board meets on July 6 to consider a preferential fundraising, likely providing growth capital as order flows accelerate.
