Defence Stock Apollo Micro Systems Jumps 4% On MoU Update

Shares of Apollo Micro Systems rose nearly 4% on Thursday after its defence arm signed a major deal with a U.S. partner to co-develop rocket motors. The stock touched ₹294 on the BSE, extending a rally that has already made it one of the year’s top defence performers.

What Happened?

Apollo Strategic Technologies Pvt Ltd, a subsidiary of Apollo Defence Industries, signed a Memorandum of Understanding (MoU) with Dynamic Engineering and Design Inc. (USA).

The agreement covers:

Technology transfer
Co-development and production of rocket motors for BM-21 Grad extended-range rockets.

The announcement was made at the DSEI London Defence Expo, one of the world’s biggest arms fairs.
The deal puts Apollo on track to become one of the few Indian private players able to deliver a complete 122mm rocket system — warheads plus rocket motors — by mid-2026.

For India, it fits perfectly with the government’s Make in India – Defence strategy, which aims to cut dependence on imports and strengthen local capability.

Company Performance

Apollo Micro Systems has been a market star in 2025:

Stock is up over 150% this year.
52-week range: ₹88 (low) to ₹320 (high).
Q1 FY26 results showed a net profit jump of 119% year-on-year to ₹18.5 crore, while revenue grew 46% to ₹133.5 crore.
Order book: ₹735 crore in June 2025, with management aiming to triple it by March 2026.

Apollo Micro Systems — MoU & Stock Snapshot

DSEI London announcement • Defence (Propulsion) • Make in India

Updated: Sept 11, 2025

Stock Move (Intraday)	▲ ~4% to ~₹294 (BSE)
52-Week Range	₹88 (Low) – ₹321 (High)
MoU Partners	Apollo Strategic Technologies (subsidiary) & Dynamic Engineering & Design Inc. (USA)
Scope	Tech transfer, co-development & licensed production of rocket motors for BM-21 Grad (ER & non-ER)
Strategic Fit	Indigenisation of propulsion • Potential full 122mm rocket system capability by mid-2026

Key Financials (Q1 FY26)

Revenue
₹133.6 cr (+46% YoY)

Net Profit
₹18.5 cr (+119% YoY)

Order Book
~₹735 cr (Jun ’25)

Figures rounded; intended for quick reference. Cross-check with company filings/press releases.

Execution Timeline (Indicative)

Now: MoU signed at DSEI London → tech transfer framework
Next 6–9 months: Co-dev & pilot production planning
By mid-2026: Target domestic production of licensed rocket motors (subject to approvals)

Why It Matters

• Advances Make-in-India in defence propulsion
• Potential export opportunities after localisation
• Enhances credibility in the global defence supply chain

Watch-outs / Risks

• Dependence on regulatory & defence procurement approvals
• Execution risk (transfer-of-technology & scaling timelines)
• Valuation sensitivity after sharp YTD rally

Disclaimer: Informational only; not investment advice. Please do your own research or consult a SEBI-registered advisor.

Market experts see the MoU as a strategic win. It opens doors for:

Domestic manufacturing of propulsion systems
Export opportunities
Stronger credibility in global defence markets

Still, analysts warn that much will depend on execution timelines and defence contract approvals in India.

Apollo Micro Systems’ MoU with a U.S. defence firm has energized investors, boosting the stock nearly 4% in a day. With strong earnings growth, a swelling order book, and a clear place in India’s self-reliance plan, the company is positioning itself as a rising star in the defence sector.