Apollo Micro Systems has announced a major capital expenditure expansion plan worth ₹300 crore for a new defence project in Hyderabad. The Telangana government has allocated more than five acres of land to the company for this initiative, according to an exchange filing made on Monday, 19 January 2026.
Details of the Expansion Plan
The company plans to develop an integrated facility on the allotted land in Hyderabad. This facility will focus on manufacturing, assembly, integration, and testing of weapon system platforms. The investment of ₹300 crore comes on top of the ₹27.58 crore land acquisition cost.
Apollo Micro Systems acquired more than five acres of land at an allotment price of ₹12,000 per square metre. The total land area covers 22,988 square meters at TSIIC, Hardware Park Phase II in Hyderabad. This project represents a significant expansion of the company's existing weapon integration facilities in the city.
Purpose and Scope of the New Facility
The new facility will manufacture various weapon system platforms. These include grad rockets, anti-submarine warfare rockets, anti-tank mines, artillery munitions, and other similar weapon systems. The company aims to establish a state-of-the-art manufacturing center dedicated to these products.
Karunakar Reddy, Managing Director of Apollo Micro Systems, expressed enthusiasm about the project. He stated that this strategic investment will expand their total facility to approximately 10.68 acres within a single campus. The new facility will adjoin their existing Unit 3, creating a larger integrated manufacturing hub.
Background and Strategic Importance
Apollo Micro Systems signed a Memorandum of Understanding with the Telangana government during the Telangana Rising Global Summit 2025. The summit took place in Hyderabad on 8 December last year. This agreement paved the way for the current land allotment and expansion plan.
The company emphasizes that this project reflects its commitment to enhancing indigenous manufacturing capabilities. It also aims to foster technological innovation and meet the growing demand in the defence sector. This expansion aligns with national priorities for self-reliance in defence production.
Stock Performance and Market Context
Apollo Micro Systems' stock has delivered impressive returns to investors over the years. According to Bombay Stock Exchange data, the stock has given returns of over 1600% in the past five-year period. In the past one year, it has provided returns of around 82%.
However, the stock experienced some recent volatility. It ended Monday's trading session at ₹239.35, down ₹6.5 or 2.64% from the previous close. Over the past month, the company's stock has fallen nearly 1%. It has shown a similar downward trend over the last three months.
Despite these short-term fluctuations, Apollo Micro Systems remains a notable player in the defence sector. The company's expansion plans signal confidence in future growth prospects. Investors often watch such capital expenditure announcements closely for indications of corporate strategy and potential value creation.
Disclaimer: This information is for educational purposes only. Market conditions can change rapidly. Investors should consult certified experts before making any investment decisions. Individual circumstances may vary, and past performance does not guarantee future results.
