Shares of Apollo Micro Systems Limited, a notable multibagger in the defence sector, surged to their 5% upper circuit limit on Friday, December 19, closing at ₹237.85. This rally was fueled by positive sentiment across Indian equity markets and a significant strategic announcement from the company.
Strategic License for High-Energy Explosives
In a regulatory filing on December 18, Apollo Micro Systems informed the stock exchanges of a major development. Its step-down subsidiary, IDL Explosives Limited, has been granted a crucial Industrial License under the Industries (Development and Regulation) Act, 1951.
This license authorizes the manufacturing of high-energy defence explosives: HMX (Octogen) and Trinitrotoluene (TNT). The approval is valid for a substantial period of 15 years from the date of issuance and marks a pivotal expansion of the group's capabilities in the specialized defence and industrial explosives segment.
Manufacturing Capacity and Location
The license permits IDL Explosives to produce 50 metric tonnes per annum (MTPA) of HMX and 500 MTPA of TNT. The manufacturing operations will be established across multiple plots located in San Sunaparbat, Odisha.
Boosting Atmanirbhar Bharat in Defence
This development is a strong step towards vertical integration for Apollo Micro Systems in defence technologies. It enables the company to meet captive demand for critical inputs while also tapping into external market opportunities.
HMX and TNT are vital materials used in defence, aerospace, and various industrial applications. Domestic production of these explosives aligns perfectly with the Indian government's Atmanirbhar Bharat (Self-Reliant India) initiative, aiming to reduce import dependence in strategic sectors.
Karunakar Reddy Baddam, Managing Director of Apollo Micro Systems Limited, stated, "This represents a significant strategic milestone for Apollo Micro Systems, allowing us to meet the needs of both industrial and defence explosives. This license is more than a regulatory approval; it validates our technical expertise, operational excellence, and adherence to the highest safety and quality standards."
Stock Performance: A Multibagger Journey
Apollo Micro Systems has delivered exceptional returns to its long-term investors. The small-cap stock has been a phenomenal multibagger, skyrocketing by 1,770% over the past five years.
In the shorter term, the defence stock has rallied 136% in the last one year and added 25% in the past six months. However, it has faced recent pressure, declining 31% in the last three months and 15% over the past month.
The stock's 52-week high stands at ₹354.65 (hit in September 2025), and its 52-week low is ₹92.50 (recorded in December 2024). The positive market reaction to the new license indicates renewed investor confidence in the company's growth trajectory within the indigenous defence manufacturing ecosystem.
