Apollo Micro Sys Q1 FY27 Results (NSE: APOLLO)
Signal: Margin pressure
The read
The trajectory remains one of rapid defence execution, with revenue growth accelerating to 88.1% YoY from 47.3% in Q1FY26 and a ₹1,704 crore order book, but Q1FY27 marks a sharp margin reset: EBITDA margin fell 920bps YoY to 21.4% after expansion in the prior two quarters, while PAT growth of 42.6% lagged revenue and equity dilution limited EPS conversion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹251.3 Cr | 88.1% | -14.3% |
| EBIT | ₹46.1 Cr | 26.6% | |
| Net profit | ₹25.2 Cr | 42.6% | |
| EPS | ₹0.8 | N/A | |
| EBIT margin | 21.4% |
P&L walk
Consolidated revenue increased 88.1% YoY to ₹251.3 crore, but EBITDA grew 31.3% to ₹53.7 crore and margin fell 920bps to 21.4%; lower finance cost partly supported PBT, while PAT grew 42.6% to ₹25.2 crore and diluted EPS rose less than PAT because the equity base increased over 11%.
Segments
No segment table is disclosed; standalone PAT of ₹28 crore exceeded consolidated PAT of ₹25.2 crore, implying a ₹2 crore dilution at the group level despite consolidated revenue growth of 88.1% YoY.
Key positives
- Consolidated revenue reached ₹251.3 crore, up 88.1% YoY and the highest Q1 revenue disclosed, accelerating from +47.3% YoY in Q1FY26.
- Order book stood at ₹1,704 crore as of 8 August 2026, providing visibility against Q1FY27 revenue of ₹251.3 crore.
- EBITDA ex Other Income grew 31.3% YoY to ₹53.7 crore despite finance cost declining 10.8% YoY to ₹10.7 crore.
- Standalone PAT rose 43% YoY to ₹28 crore, indicating strong parent-level earnings growth.
Key concerns
- EBITDA margin contracted 920bps YoY to 21.4% from 30.6%, with expenses excluding depreciation, amortization and finance cost rising 113.4% versus revenue growth of 88.1%.
- PAT growth of 42.6% to ₹25.2 crore materially lagged revenue growth of 88.1%, reducing operating-to-bottom-line conversion.
- Diluted EPS rose only from ₹0.6 to ₹0.8 while the weighted-average equity base increased by over 11% to 37,15,99,512 shares.
- Consolidated revenue of ₹251.3 crore grew 88.1% YoY, while standalone revenue of ₹156 crore grew only 17%, indicating that the group growth rate is concentrated outside the parent entity.
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