Shares of Apollo Micro Systems, a Hyderabad-based defence and engineering technologies company, witnessed a notable uptick in trading on Tuesday, December 2. The multibagger stock climbed as much as 3% during intra-day deals following a significant regulatory breakthrough that strengthens its position in India's defence manufacturing sector.
Major Regulatory Milestone for Defence Manufacturing
The company informed the stock exchanges on December 1, 2025, that it has been granted a crucial Industrial Explosives and Manufacturing License by the Department for Promotion of Industry and Internal Trade (DPIIT). This approval is not just a procedural formality but a strategic enabler. The license is a mandatory prerequisite for the company to participate in both current and future manufacturing opportunities with the Ministry of Defence (MoD).
This newly acquired authorization permits Apollo Micro Systems to manufacture several high-tech, defence-grade products. The three major categories covered under the license are:
- Unmanned Aerial Systems (UAS), including unmanned helicopters.
- Inertial Navigation Systems (INS).
- Complete, integrated Radar Systems.
The regulatory clearance provides long-term stability, as it will remain valid for an impressive 15 years from the date of issue.
Strategic Expansion into High-Demand Defence Segments
Apollo Micro Systems is not starting from scratch. The company revealed it is already developing multiple UAS platforms. It is collaborating with domestic and international partners to create logistics-focused UAVs as well as offensive and attack-class unmanned systems. Field trials for these systems are anticipated within the next two quarters.
On the navigation front, the license empowers the firm to develop and manufacture high-precision INS technologies. This includes advanced solutions like MEMS-based units, Fiber Optic Gyro (FOG) systems, and Ring Laser Gyro (RLG) solutions. These are critical components for modern drones, missiles, and aircraft. The company is currently procuring specialised test and calibration equipment to support this development phase.
Furthermore, the approval opens the door for the production and integration of full radar systems. This encompasses transmit-receive modules, signal processors, antennas, and associated subsystems—a segment witnessing robust demand in both Indian and global defence markets.
Boosting 'Atmanirbhar Bharat' and Stock Performance
This development is a significant boost to Apollo Micro Systems' ambitions within India's rapidly indigenising defence ecosystem. The government's push for self-reliance under the 'Atmanirbhar Bharat' initiative creates a favourable environment for companies capable of manufacturing high-technology defence equipment.
The company's focus aligns perfectly with high-priority areas where the armed forces have shown consistent procurement interest. With the long-validity license and ongoing international partnerships, Apollo Micro Systems is well-positioned to accelerate product development and secure a stronger order pipeline from the MoD.
Reflecting the market's optimism, the defence stock rose to an intra-day high of ₹276.35, marking a 3% gain. While the stock is currently about 22% below its 52-week high of ₹354.65 reached in September 2025, its long-term performance remains stellar. The share price has delivered multibagger returns, soaring nearly 199% from its 52-week low of ₹92.50 hit in December 2024. It has rallied 169% in the past year and gained 38% in the last six months, despite recent pressure showing a 7% decline over three months.
