Apollo Micro Systems Limited — Investor Presentation 2026

May 18, 2026

AMS

apollo microsystems

Date: 18th May 2026

BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001 Scrip Code: 540879	National Stock Exchange of India Ltd., Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051 Symbol: APOLLO

Sub: Investor Presentation for the Quarter ended 31st March 2026

Ref: Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Dear Sir/Madam,

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are herewith enclosing a copy of investor presentation for the quarter ended 31st March 2026.

The copy of the disclosure is available on the website of the Company i.e. https://apollo-micro.com/financial-reporting.html?tab=financial-presentations#tabs-section

This is for your information and records.

Thanking You.

Yours faithfully,

For Apollo Micro Systems Limited

BADDAM Digitally signed by
BADDAM KARUNAKAR
KARUNAKAR REDDY
Date: 2026.05.18
18:47:49 +05'30'
REDDY Karunakar Reddy Baddam
Managing Director
DIN: 00790139

Apollo Micro Systems Limited

Regd Office. Plot No.128/A, Road No.12, IDA-Mallapur, Uppal Mandal, Hyderabad-500076, Telangana, India

Tel No:040-27167000-099, Fax No: 040-27150820

Mail: cs@apollo-micro.com, www.apollo-micro.com

CIN:L72200TG1997PLC026556

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APOLLO MICRO SYSTEMS LTD

We Commit, We Deliver

FROM CONCEPT TO MASS PRODUCTION

EARNINGS PRESENTATION- Q4 FY26 & FY26

BSE: 540879

MIS

NSE: APOLLO

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FULLY INTEGRATED DEFENCE COMPANY

INTEGRATED VALUE CHAIN

EXPLOSIVES

Commodity and Strategic Explosives

SUB-SYSTEMS/ SYSTEMS

Critical and ruggedized systems and Subsystems

PLATFORMS

WEAPONS

Torpedoes, Decoys, Loitering Munitions etc

WEAPONS INTEGRATION

Including and not limited to missiles, rockets, underwater mines

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED

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DIVERSIFIED PORTFOLIO

MISSILES

DRONES

ROCKETS

UNDERWATER WEAPONS

VEHICLE MOUNTED COUNTER DRONE SYSTEMS

AERIAL BOMBS

EXPLOSIVES

DIRECT ENERGY WEAPONS

AMMUNITIONS

Earnings Presentation May 2026

APOLLO MICRO SYSTEMS LIMITED

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DIVERSIFIED PROGRAMMES

BRAHMOS NG
GUIDED PINAKA
KUSHA
MAREECH
VARUNASTRA
NASM

AKASH NG
ARIDHAMAN
TAL
VSHORAD
ALWT
RUSTOM

PINAKA
QRSAM
TARA
EHWT
AGNI
PRALAY

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED

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LICENSE AWARDED BY GOI

• The License authorizes us to manufacture, assemble, integrate, proof-test high strategic value weapons systems and ammunitions namely Missiles, ATGMs, Torpedoes, Underwater Mines, SAM, Chaffs, Flares, Decoys, Aerial Bombs, Rockets, Loitering Munitions.

OEM SUPPLIER OF WEADONS

6

MULTI INFLUENCE GROUND MINES

• We are the approved production agency for Multi-Influence Ground Mine (MIGM) – Vighana, under DcPP by DRDO.
• Earlier only United States, Russia, China, and Italy were present now with this achievement, India joins the league of technologically advanced nations in undersea warfare capabilities.
• Naval mines are an invisible enemy which allows any maritime nation to defend itself, regardless of its naval capability. They deter and push underwater and surface navy to move away from the shoreline towards the open sea.
• MIGM is designed to enhance the Indian Navy's capabilities against modern stealth ships and submarines.

FIRST INDIGENIZED MINE

"A mine is a terrible thing that waits. It waits and waits till it destroys/damages a naval vessel or is destroyed by the naval mine hunters."

Earnings Presentation May 2026 | APOLLO MULTILATERAL

FIRST

INDIGENIZED

LIMPET MINES

• A Limpet Mine is a type of Naval mine that is usually manually placed by a diver on the upside of a ship's hull.
• These mines are manually attached to the target by magnets.
• These man-portable and multiple variations are developed for different missions by us.
• We have successfully completed the Combat Trials for the Indian Navy.

8

MOORED MINES

• The Moored Mine is deployed where water is too deep for bottom mines and normally uses a combination of acoustic, magnetic and pressure sensors or even more sophisticated optical shadows or electro potential sensors.
• The Moored Mines have a weight attached to them which keep them anchored to a certain point. Moored mines remain at a particular depth and thus can target different types of vessels such as submarines and surface shins.

FIRST INDIGENIZED MINE

"A mine is a terrible thing that waits. It waits and waits till it destroys/damages a naval vessel or is destroyed by the naval mine hunters."

REAL WORLD CASE- STRAIT OF HORMUZ

MIGM

MOORED MINES

Iran is believed to have had a pre-war stockpile of 5,000-6,000 mines.

Disclaimer: AMS weapons have not been supplied in Iran- USA war. The picture is intended solely to demonstrate the capabilities and applications of the weapons for investor understanding.

10

Farragut Presentation May 2025 | APOLLO MICRO SYSTEMS LIMITED

KAMIKAZE BOAT

These are submersible boat that lies in, wait underwater, then pops up to the surface to ram into targets.

These small vessels are launched from multiple directions at high speeds, which can saturate surveillance and defensive systems.

The purpose of the submersible is area denial and deterrence.

ANTI SUBMARINE WARFARE ROCKETS

• Because of the specialized nature of submarines, a distinct military strategy called anti-submarine warfare, or ASW, was created to counter them. Its primary objective is to defend ships and allied assets by identifying, locating, and eliminating enemy submarines, using sonar, aircraft, dedicated submarines, and formidable weaponry.
• One of the most effective armaments used are anti-submarine rockets, which is known as a "Standoff" weapon. A Stand Off weapon is built to hit targets from a distance, allowing the launch platform the ability to evade the targets' defenses.
• Because of the threat submarines pose, several of the most powerful navy destroyers in the world are armed with anti-submarine rockets.

Earliest Known Action Man 2015 | WORLD MICRO SYSTEMS LIMITED

AERIAL BOMBS

• These Aerial Bombs are fitted onto Unmanned Areal Vehicles (Loitering Munitions) that are designed to provide unprecedented levels of flexibility and precision in modern warfare and will be delivered to inflict damage to the targets.
• The Aerial Bombs can be used as Anti-personal / Anti-tank / Anti-Bunker.
• Nine Variants of Aerial Drop Bombs developed for dropping from aerial platforms like drones.

MEDIUM RANGE ROCKETS

• Its compact form factor ensures compatibility with vehicle-mounted launch systems while maintaining the required aerodynamic stability, structural integrity, and operational effectiveness for counter-drone missions.
• Ground to Air Launch developed for attacking Drones/ Swarm of Drones.

Earnings Presentation May 2025 | APOLLO MICROSISTENS LIMITED

GRAD ROCKET

SHOOT & MOVE

The BM-21 Grad Rockets (122 mm Global Standard) remain among the most widely demanded unguided rockets in the global defence market.

• Successfully developed the 122mm rocket warhead inhouse.
• Integrate indigenously developed warheads with domestically produced rocket motors.
• Remains in Service across dozens of countries, valued for its simplicity, reliability and overwhelming firepower.
• The rocket motor is the primary propulsion system of a rocket and comprises the propellant, casing, nozzle, and ignition system. It is the most critical subsystem in determining the range, stability, thrust, and accuracy of artillery rockets.

WEAPONS/SYSTEMS

• The existing portfolio includes complete weapon systems that have either achieved qualification or are in advanced stages of the qualification process.

• In the Under Water Mines we are the only company in INDIA with complete offerings of Shallow Water, Deep Water and Limpet Under Water Mine.

• These weapons systems have been indigenously developed and produced entirely in-house.

• Considering indigenized missile programmes, including those undertaken by DRDO, we have emerged as Market Leader in the supply of mission critical electronics, electromechanical and mechanical systems for missile application.

UNMANNED (UAV) AERIAL SYSTEMS

We hold a license to manufacture Unmanned Helicopters Unmanned Aerial Systems (UAS).

We are collaborating with several domestic and international partners for the development of logistics and delivery UAV systems as well as offensive/attack-class unmanned systems.

Large Payload capable Aerial Bombs dispensing UAS.

Long Endurance High Altitude UAS ability to work in GPS denied environment.

LATEST TECHNOLOGIES

DIRECTED ENERGY WEAPONS (DEW)

DEW SYSTEMS

As the name suggests, they use high-powered lasers to inflict damage on targets. Compared to traditional weapons, which mainly rely on physical impact and kinetic energy, DEW uses directed energy to heat up and destroy or damage the target. It has diverse military applications, offering rapid and precision strikes against threats such as UAVs, missiles, and small vehicles. The most important aspect of DEW is that it can be used in all warfighting environments. These technologies will enable Apollo Micro Systems to design, manufacture, and support critical DEW subsystems for defence applications, enhancing indigenous capability in advanced weapon systems.

Transfer of Technology for Multi-Channel 10 kW Laser Directed Energy Weapon System from DRDO-CHESS, Hyderabad, subject to execution of a Licensed Agreement for Transfer of Technology (LAToT) and fulfillment of regulatory requirements.

Transfer of Technology for EO Tracking System with EO Sensors for DEW from DRDO-IRDE, Dehradun.

VEHICLE MOUNTED COUNTER DRONE SYSTEMS

(VMCDS)

• Under Make II Category.
• It is currently in the development stage.
• From First quarter of next financial year the trials will be initiated.

SYSTEMS/SUB-SYSTEMS

INDIGENIZED BY US

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
21

ARMAMENT SYSTEMS

• The Exchange of the MoU at Swavalamban 2025, the Indian Navy's flagship event for innovation and indigenization, among IIT Chennai, Indian Navy and Apollo Micro Systems Ltd highlights the shift towards a collaborative R&D model. This partnership is expected to focus on high-technology areas critical to modern warfare, including advanced Electronic Warfare systems, precision guidance and control systems, and high-energy armament solutions and not limited to them.
• Indigenization of armament will not only propel the IN to be self-reliant but also cut down costs and reduce dependence on foreign vendors.
• Indigenization of ship borne weapons/ armament is very challenging and complex in nature.

CRITICAL SYSTEMS/ SUBSYSTEMS

23

CRITICAL SYSTEMS/ SUBSYSTEMS

24

Actuality

Signed by

Signed by

Signed by

Signed by

25

Ruggedized Computer Module

Fire Control System

Critical Ground Handling System

Combination of Camera, Laser, GNSS Module

Propulsion Systems

Inertial Navigation Systems

Telemetry Systems

Weapon Dispensing Systems

And many more

HOMING SYSTEMS

Universal Homing System for Heavy Weight Torpedoes, This first-of-its-kind technology was developed in collaboration with DRDO.

We are the only qualified vendor for Homing Systems of Heavy Weight Torpedoes.

Heavy Weight Torpedoes are included in the Ministry of Defence Embargo List, which encourages the induction of indigenous systems into the Indian Armed Forces.

We invested last six years in developing this specific Universal Homing System.

We are fully prepared to meet the demand for large-scale production, with our Unit-III facility.

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
26

INERTIAL NAVIGATION SYSTEMS AND RADAR EQUIPMENTS

• We hold a license to manufacture Inertial Navigation Systems (INS) and is presently engaged in the development of multiple navigation solutions.
• In parallel, we are collaborating with selected domestic and international partners to accelerate technology development and subsystem integration. To support these activities, we have initiated procurement of critical test and calibration equipment required for the evaluation of advanced navigational systems. The product portfolio under development includes:
• MEMS-based Inertial Navigation Systems
• Fiber Optic Gyro (FOG) based Navigation Systems
• Ring Laser Gyro (RLG) based Navigation Systems

• The license also authorizes us to manufacture complete Radar Equipment along with all associated and allied subsystems integral to radar technology. This includes the development, production, testing, and integration of radar assemblies, signal processing units, antennas, transmit-receive modules, and other related components essential to modern radar systems.

• MEMs based INS is in the advance stage of development

• RF Seeker development has initiated

LAND MINES

PRACHAND

PRACHAND is an Anti-Tank Munition with full width attack capability.

First line of defence against enemy infantry and armoured columns or terrorist trying to infiltrate into our territory.

We produced Hardware for this anti tank munitions.

It comes under new family of Munitions in India.

New Variants of Anti Tank Mines are under Development, with Al sensor Fusion.

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
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MUNITION SYSTEMS

Awarded Transfer of Technology (TOT) by the Defence Research and Development Organization (DRDO) in Explosive

Fuzes

• ESAD based Fuze for Mini Depth Charge (MDC)
• Mechatronic Fuze for Grenade

Warhead

• Omni Directional Multi-EFP Warhead for NASM-SR Missile
• Exploder Mechanism for Naval Warheads
• Warheads for Ulpgm-V2 (UAV Launched Precision Guided Missile V2)

Land Mine

• Prachand Munition Hardware

Safety Arming Mechanism

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INDUSTRIAL EXPLOSIVE

30

DEFENCE EXPLOSIVES

Under the IDR Act, 1951, authorizing the manufacture of Cyclotetramethylenetetranitramine (HMX) and Trinitrotoluene (TNT).

This marks a timely and strategic addition of both industrial explosives and specialised defence explosives, positioning the IDL Explosives as a domestic supplier of high-energy materials, supporting India's Atmanirbhar Bharat initiative, and creating potential opportunities in the export market.

Development opens up the opportunity for us to meet its captive requirements of high-energy defence explosives while also addressing the growing demand in both domestic and export markets.

HMX: 50 MTPA
TNT: 500 MTPA
License valid upto 15 years.

HIGHLIGHTS

FY26 AND Q4FY26

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
32

SHAREHOLDING PATTERN

Promoter
Institutions
Public

• As on 31st March 2026

INSTITUTION NAMES

• Magnificia Global Opportunities VCC
• Al Maha Investment Fund
• Minerva Ventures Fund
• Zeal Global Opportunities Fund
• Red Bay
• Morgan Stanley
• SPDR Emerging Market ETF
• BOFA Securities Europe
• BNP Paribas Financial Market
• SPDR S&P Emerging Market Small Cap ETF
• Societe Generale
• Motilal Oswal Nifty India Defence Index Fund
• SB Opportunities Fund
• Aditya Birla Sun Life Nifty India Defence Index Fund
• Grobiz SME Opportunity Fund
• Groww Nifty India Defence ETF
• Blueocean Emerging India
• Mirae Asset BSE India Defence ETF

and many more

EXTENDING OUR STREAK OF STRONG PERFORMANCE- FULL YEAR

(All Figures in Millions)
YoY

CONSOLIDATED

Revenue from Operations	EBITDA*	EBITDA Margin
INR 9043	INR 2182	24%
+ 61 %	+ 69 %	+ 114 bps
PAT	PAT Margin	Order Book
INR 1074	12%	INR 14320 Mn
+ 91 %	+ 185 bps	As on 31st March 2026

• Excluding Other Income

EXTENDING OUR STREAK OF STRONG PERFORMANCE- FULL YEAR

(All Figures in Millions)
YoY

STANDALONE

Revenue from Operations	EBITDA*	EBITDA Margin
INR 7649
+ 36%	INR 2139
+ 66%	28%
+ 497 bps
PAT	PAT Margin
---	---
INR 1206
+ 111%	16%
+ 558 bps

• Excluding Other Income

EXTENDING OUR STREAK OF STRONG PERFORMANCE- QUARTERLY RESULT

STANDALONE

Revenue from Operations	EBITDA*	EBITDA Margin
INR 2052	INR 604	29%
+ 27 %	+ 68 %	+ 321 bps
PAT	PAT Margin
---	---
INR 375	18%
+ 162 %	+ 940 bps

EXTENDING OUR STREAK OF STRONG PERFORMANCE- QUARTERLY RESULT

CONSOLIDATED

Revenue from Operations	EBITDA*	PAT
INR 2933	INR 676	INR 368
+ 81%	+88%	+ 164%
EBITDA Margin	PAT Margin
---	---
23%	13%
+ 82 bps	+ 391 bps

DISTINCT. DETERMINED. AHEAD.

DISTINCT. DETERMINED. AHEAD.

01
The only company with Highest Participation in Indigenous Missile Programs of DRDO.

02
The only company in India with a proven track record of supplying from an individual systems to complete platforms, including explosives.

03
The only company in India working for weapon system platforms of DRDO for a period spanning over 41 years enriched with rich legacy of technical know how of development and manufacturing curve of Weapon System Platform.

04
The only private public listed company in Indian defense sector having largest infrastructure including R&D capabilities.

LEGACY OF TRUST, VISION FOR ATMANIRBHAR BHARAT

Standalone Performance over the years

THE BIG PICTURE-INDIGENIZATION

40

We Indigenize- Systems/ Sub-Systems/ Weapons. India Builds Its Own Future.

700+
On board
Technologies

Approved
Vendor for
DRDO and
DPSU

RFP Type to name some
Make 1 Program
Make 2 Program
IDMM
Buy Indian
Buy and Make (Indian)
Emergency
Procurement

150+
Indigenous
Program
Participation

41+
years of
experience

Presence in all
Missiles Programs

Presence in all
NAVAL Warfare
Programs

THE ROAD WE HAVE WALKED

OUR VISION AND MISSION

42

VISION

To emerge as a world-class company and a unique solution provider with Total Solutions Under One Roof.

MISSION

Convert your Concepts into Reality.

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
43

RECENT STRATEGIC ACQUISITION- UNLOCKING VALUE (1/5)

Apollo Defence Industries Pvt Ltd (ADIPL), a subsidiary of Apollo Micro Systems Ltd, has completed 100% equity stake in IOL Explosives Ltd for a total consideration of INR 107 crore, in an all-cash transaction.

The company is engaged in the manufacture full range of packaged and bulk explosive specifically engineered for mining and infrastructure projects. Moreover, it also offers an extensive range of cartridge explosives.

GOCL Corporation Limited (GOCL), formerly Gulf Oil Corporation Limited, was incorporated in 1961 as Indian Detonators Ltd. (IDL), in Hyderabad. The company is the First Indian owned explosive company and is a part of the "Hinduja Group" which is one of the largest diversified transnational conglomerates with investments across several sectors and a presence in over a 100 countries.

GOCL is a Star House exporter of energetic and commercial explosive products to over 20 countries. The Company has 7 plant spreading across 6 states of India. The main plant is located in Rourkela (Odisha).

The acquired entity possesses a substantial land bank comprising of which only around 40% has been utilized. This provides significant potential for brownfield expansion, enabling future capacity enhancement with minimal incremental capital expenditure and considerable scope for our defence requirement.

The company is engaged in the manufacture full range of packaged and bulk explosive specifically engineered for mining and infrastructure projects.

Strategically fit for un-penetrated Market.

End to End One Stop Solution across Value Chain.

Enhances the ability to pursue large scale, high Value Projects.

Increasing Addressable Market via New Products.

Driving Margin Expansion through Cost Efficiencies Enabled by Vertical Integration.

Integrated and Indigenized: APOLLO Steps into the Future of Defence Solutions.

Increasing Addressable Market via Entering into New Geographies.

Brand Equity.

SUCCESSFUL ACQUISITION CONCLUSION (2/5)

IDL EXPLOSIVES LTD is now 100% owned by APOLLO DEFENCE INDUSTRIES PVT LTD

TURNING NEAR TERM CHALLENGES INTO OPPORTUNITIES (3/5)

While the near term presented headwinds including volatility in gross margins, a temporary ban by our highest revenue contributing customer, and underutilized capacity each of these challenges is being actively transformed into a driver of future growth.

Securing alternative procurement of key raw materials for balanced approach, cost fluctuations, local security of supply.

Implementing vigilant tracking of raw material price movements to protect margins.

Gross Margin recovery through better cost control and pricing discipline and increasing to expand in higher margin exports market.

Removal of Ban from Coal India.

A growth surge fueled by the return of significant orders from Coal India, which has historically been the largest contributor to IDL's revenue

Entering into military explosives manufacturing, expanding our addressable market.

Capacity conversion into revenue generating production through long term contracts and new military segment wins. Defence license for explosives has been awarded.

TESTAMENT OF OUR EFFORTS (4/5)

Our focused and proactive actions have led to the successful removal of the ban by Coal India

This is further to our earlier communication dated May 05, 2025. IDL Explosives Limited (IDLEL) has since then resolutely pursued the matter in the Hon’ble High Court of Calcutta and with CIL. The Hon’ble High Court of Calcutta has subsequently articulated specific guidelines for CIL to apply while reviewing its earlier order.

We are now informed by IDLEL that CIL has vide their letter dated 9th September 2025 communicated that they, after careful consideration of legal and factual aspects as recorded by the Hon’ble High Court and in the light of judicial directions, have reduced the ban period from 2 years to 1 year.

As the aforesaid ban period has already ended on 2nd July 2025, IDLEL becomes eligible to participate in future CIL and all other PSU tenders.

Thanking you,

TESTAMENT OF OUR EFFORTS (5/5)

From Cash Cow Business to Growing Business- Removal of Coal India Ban

Our first order was secured immediately following the acquisition, marking a decisive return to stable operations.

Date: 31st December, 2025

| BSE Limited,
Department of Corporate Services
Phinize Jeejeebhoy Towers,
Dalal Street, Mumbai – 400 001 | National Stock Exchange of India Ltd.,
Listing Department
Exchange Plaza, C-1, Block G,
Bandra Kurla Complex,
Bandra (E), Mumbai – 400 051 |
| --- | --- |

Scrip Code: 540879

Symbol: APOLLO

ISIN: INE713T01028

Subject: General Update.

Dear Sir/Madam,

This is to inform you that M/s. IDL Explosives Limited, a step-down subsidiary of the Company in the ordinary course of its business has been granted a Running Contract (RC) for supply of bulk explosives to Subsidiaries of Coal India Limited amounting to INR 4193.96 Million and an export order value of INR 15 Million for supply of cartridge explosives.

The cumulative value of orders received amount to INR 4208.96 Million.

This update is being provided for the information of our valued shareholders.

We kindly request you to take the above on record.

Thanking You

Yours Faithfully

For Apollo Micro Systems Limited

BADDAM

KARLINAKAR

BAPDRA INGENIETY SECTION

www.bapdra.com

Kavukakar Keddy Baddam

Managing Director

OUR CIRCLE OF COMPETENCE

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
49

OUR STRATEGIC ATTRIBUTES (1/7)

The only Indian company with a demonstrated, proven track record of supplying solutions from small systems to complete platforms including explosives.

The only company in India that has been associated with DRDO's weapon system platforms for over four decades, enriched with a rich legacy of technical know how expertise in the development and manufacturing curve of weapon system platforms.

The only company with highest participation in Indigenous Missile programs of DRDO.

We design and manufacture systems, subsystems and weapons using in-house engineering from initial concept through production. No reverse engineering of third-party products is performed or relied upon. All designs are documented with traceable requirements, source artifacts, and verification records; IP ownership is retained by our company or explicitly assigned to the customer under contractual terms. This practice minimizes legal and export compliance risk, ensures repeatable manufacturing, and enables tailored lifecycle support and upgrades.

We ensure comprehensive protection of the nation against multi-domain threats Airborne, Terrestrial, and Maritime.

The only private public listed company in India having largest infrastructure including Research and Development capabilities.

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
50

OUR STRATEGIC ATTRIBUTES (2/7)

Growing Organically and Inorganically.
R&D as a % of revenue in FY26 stood at 8%.

Tier 1 supplier.
Participation in complex Tenders.

Diversification of sectors, clients, geographies and Solutions offerings.
Presence in niche sectors with products where competition is limited.

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
51

OUR STRATEGIC ATTRIBUTES (3/7)

Backward integration enabled through greenfield and brownfield expansions, along with a recent acquisition and forward integration via transforming from sub-sytems to systems and now to complete weapons and weapon integration

Significant Order Book Pipeline.

First Company to contribute to Indian Weapon Systems. Significant market share in development of Weapon System and Electronics.

OUR STRATEGIC ATTRIBUTES (4/7)

Only publicly listed Tier-1 electronics designer with varied technological spectrum of Weapon electronics for missile systems.

Expertise in Ground Support Equipment system Launchers and Fire control System.

Credit Rating on Long Term Upgraded to ACUITE A- and Short Term Upgraded To ACUITE A2+.

Hold a strategic advantage in the naval domain, with a strong presence across all indigenously developed Torpedo programs.

Exclusively developed proprietary systems create a competitive moat, eliminating direct competition through unmatched integration and control.

In the Under Water Mines we are the only company in INDIA with complete offerings of Shallow Water, Deep Water and Limpet Under Water Mine.

SIGNIFICANT ENTRY BARRIER: EXPLAINED (5/7)

Substantial upfront Capex and regular capital infusion in R&D. Stringent licensing requirements and oversight.

We have ownership of Intellectual Property for all weapons/ systems/ subsystems. Long Production cycle creates monopoly due to contract duration and need of specialized requirement which limits availability of viable alternatives.

Strategic location in India's defence belt Hyderabad. New entrants face difficulty acquiring cutting edge technologies because of limited ToT.

The industry's demanding learning curve functions as a structural entry barrier, requiring significant time and expertise in complex sub-systems/ systems/ platforms/ weapons before achieving operational competence.

Operating within the defense industry, integration plays a critical role, as reliance on external entities poses risks related to supply chain disruptions and national security. Consequently, we established this domain internally.

High switching costs, reinforced by long-term partners early in a program by OEM. Since Switching supplier later is costly OEM rarely change them making it hard for new suppliers to enter, scale up or reduce unit cost. Moreover long development cycle increases switching cost making it more cost effective to continue with existing contractors for modifications than starting new programs.

DRIVERS, FINANCIAL RESILIENCE REINFORCING MOMENTUM (6/7)

Expansion in margins
- Operating Margin- from 19% (FY20) to 28% (FY26)
- PAT Margin- from 6% (FY20) to 16% (FY26).

Exports gaining Momentum.

Exports gaining Momentum - demonstrated growth in both topline and bottom line, with bottom line growth (64%) outpacing that of the topline (30%).

DRIVERS, FINANCIAL RESILIENCE REINFORCING MOMENTUM(7/7)

Technical Expertise evidenced through Moored Mines, MIGM, Rockets, Limpet Mines and many more.

Working Capital Cycle days reduced from 626 days in FY21 to 359 days in FY26.

D/E has seen a sharp reduction from 0.54 in FY25 to 0.4 in FY26.

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
56

BUSINESS OVERVIEW

DEFENCE WEAPONS

MUNUFACTURER AND

WEAPON INTEGRATOR

Established in 1985 and headquartered in Hyderabad, we are a leading multi disciplinary defence technology company and Tier-I Original Equipment Manufacturer (OEM). Building on 41 years of technological excellence, we are a fully integrated company spanning from explosives, design, development, manufacture, integration and life cycle support of advanced weapon systems and defence platforms

With over 700+ on-board technologies to the table, we bring expertise encompasses weapon electronic systems for Ground Defence, Missile Defence and Naval Defence. We build its ‘brain’ that makes decisions mid-flight, its ‘nerves’ that sense and respond, and its ‘eyes’ that track targets. Without this internal intelligence, it’s just a flying shell. We build the missile’s brain, eyes, and nerves. We make it smart.

With a strong focus on providing comprehensive end-to-end integrated services under one roof, we offer R&D, design, development, assembly, testing facilities and mass manufacturing tailored to meet the diverse needs of our clients. Given the demanding nature of defence & space applications, our offerings are designed to endure harsh environmental conditions, requiring expertise in advanced technology development and engineering excellence that eliminates the chances of failure at the time of critical defence operations.

In addition to our robust hardware and engineering expertise, we deliver integrated, technology-driven solutions across secure communications, underwater electronic warfare, and air defence. These advanced systems are engineered to equip our defence clients with reliable, mission-ready capabilities tailored to their operational needs. Furthermore, we offer custom-designed Commercial Off-the-Shelf (COTS) solutions, precisely configured to meet the specialized requirements of both defence and space sectors.

BORDER SURVEILLANCE USING SATELLITE IMAGERY

WE POWER THE AIRSPACE WITH ADVANCED SAFETY CRITICAL PRODUCTS

WE EMPOWER GROUND DEFENCE
WITH RUGGEDISED & RELIABLE
ELECTRONIC SYSTEMS

STABILISED
TURRET
CONTROL

NAVIGATIONAL
SYSTEMS

TACTICAL DATA
LINK MODEM

INTELLIGENT
VEHICLE DATA
MONITORING

MINI DETECTION
SIGNAL PROCESSING
SYSTEM

GROUND DEFENSE

AS 91000 CERTIFIED COMPANY
CEMILAC CERTIFIED COMPANY

SIGNAL
PROCESSING UNIT

HOMMING NOSE
CONE ASSY

NAVAL

AS 91000 CERTIFIED COMPANY
CEMILAC CERTIFIED COMPANY

EMPOWERING NAVAL VESSELS WITH STATE-OF-THE-ART SONAR TECHNOLOGY PROTECTING IN LAND WATERS

NNS
apollo microsystems

UNDER WATER MINES
SONAR POWER AMPLIFIERS

AIR LAUNCHED
TURPERS
ELECTRONICS

RAVANCED
FIRE CONTROL
SYSTEM

SUBMARINE POWER SUPPLIES
TURKEY CONTROL SYSTEM
EXPENDABLE
ELECT

SHIP LAUNCHED
TURPERS
ELECTRONICS

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
6-1

BUSINESS MODEL CANVAS

Key Activities

We are a fully integrated company which focuses from design, development, mass production of complex defence systems/sub-systems/weapons/Platforms and Weapon integration.

Value Proposition

Delivering advanced indigenous technologies for missile, naval defence system and explosive at lower cost of ownership and in less time leading to end to end weapon/ platform development in house.

Customer Relationship

Long-term customer relationship of over 41 years, with a track record of zero customer attrition.

Key Resource

A standardized definition is not applicable, as each product is customized to meet the specific requirements of individual Clients.

Customer Segments

Public Sector Undertakings (PSUs) Defence Research and Development Organization (DRDO) Private Defence Companies.

Key Partners

Strategic Suppliers
PSUs/ Private Cos
Finance Institution
DRDO.

Cost Structure

R&D and Testing costs vary based on product mix & is substantial. Semiconductors are imported, including from Texas Instruments, ST, DDC etc.

Revenue Stream

Product Sales: Proprietary defense and aerospace solutions tailored to client needs
Services: Maintenance, support, and lifecycle management offerings
System Integration: End-to-end integration of complex systems across platforms and technologies.

Channels

Marketing Participation in Industry Exhibitions and Trade Shows
Engagement Through Published Tenders and Procurement Portals.

OUR MARQUEE CLIENTELE (1/2)

We largely caters to / collaborates with the Ministry of Defence, Government controlled Public Sector Undertakings and Private Companies.

Earnings Presentation on May 2026 | APOLLO MICRO SYSTEMS LIMITED

OUR MARQUEE CLIENTELE (2/2)

We largely caters to / collaborates with the Ministry of Defence, Government controlled Public Sector Undertakings and Private Companies.

Earnings Presentation on May 2026 | APOLLO MICRO SYSTEMS LIMITED

CERTIFICATIONS

We are an AS 9100D & CEMILAC (Centre for Military Airworthiness & Certification) certified Organization.

CEMILAC CERTIFIED

GREENFIELD EXPANSION

01 Scaling Operations to 12x capacity.

02 Total investment of INR 300 crores which also includes a land bank of approx. 2,47,441 sq ft strategically located adjacent to Unit 3 at the Industrial Park, TSIIC Hardware Park, Phase 2, Hyderabad.

03 The facility is planned to support the manufacturing, assembly, integration, and testing of a range of weapon systems, including Grad rockets, anti-submarine warfare rockets, anti-tank mines, artillery munitions, and other similar weapon systems.

DRIVEN BY INNOVATION AND INDIGENIZATION

Our dedicated R&D team, comprising experienced engineers with core expertise in embedded hardware and software development, plays a pivotal role in our strategy. Their extensive knowledge spans Aerospace, Avionics, Space, Naval, On-Board Systems, and Ground Support Equipment, enabling advance engineering solutions and effective problem-solving.

We are honored to be recognized as a Collaborative R&D Partner by Bharat Electronics Limited.

There has been zero attrition in the R&D team during FY26

In FY26, our rigorous efforts in Research and Development culminated in the successful development of Mini Torpedo, sensor suite for underwater autonomous vehicles, FOG based INS systems and many other products. We are currently working on critical and advanced solutions.

BUILT INTO EVERY INDIGENIZED MISSILE

MODE

• Air to Surface Missile (ASM)
• Surface to Air Missile (SAM)
• Anti Radiation Missile
• Anti Tank Missile
• Anti Ship Missile
• Cruise Missiles
• Ballistic Missile
• Anti Submarine Missile
• Nuclear Missile

MISSILES

• RUDRAM
• VLSRAM (ASTRA VARIANT), AKASHI NGRAM, QRSAM, SANT, KUSHA
• RUDRAM, STAR, NGRAM
• NAG, AMOGHA 2, HELINA, IMPATGM
• LRAHSM, NASM
• NIRBHAY, SLCM, BRAHMOS NG
• K4, PRALAY
• SMART
• AGNI

Earnings Presentation May 2026 | APOLLO MIGRO SYSTEMS LIMITED

Earnings Presentation May 2026 | APOLLO MICROSISTERS LIMITED

MODE	NAVAL PROGRAMME
NUCLEAR SUBMARINE	Arihant
TORPEDO	Aridhaman
SUBMARINE LAUNCHED TORPEDO	TAL
UNDERWATER MINE	Varunastra
EXPANDABLE DECOYS	ALWT
	EHWT
	MIGM
	Moored Mines
	MAREECH
	MOHINI

BUILT INTO EVERY INDIGENIZED MISSILE

69

MODE

TARA
GARUTHMA
GARUDA
LRGB

PROGRAMS

RUSTOM UAV
VSHORAD AIR
DEFENCE SYSTEM
HYPERSONIC
TECHNOLOGY
DEMONSTRATOR
VEHICLE

ARTILLERY

PINAKA
GUIDED PINAKA
ATAGS

PRESENCE IN ALL

INDIGENIZED MISSILE
PROGRAMMES

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
71

INDIGENIZED MISSILES

BALLISTIC MISSILE

ANTI SUBMARINE MISSILE

INDIGENIZED MISSILES

SURFACE TO AIR MISSILE

ANTI TANK MISSILE

AMOGHA 2

NATGIM
MAPATGM

MPATGM
APOLLO MICRO SYSTEMS LIMITED

ANTI RADIATION MISSILE

NGRAM

RUDRAM-I
RUDRAM-II & IIA
RUDRAM-III

Earnings Presentation May 2026

APOLLO MICRO SYSTEMS LIMITED

NAVAL PROGRAMS

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
76

NAVAL PROGRAMS

UNDERWATER MINES

NUCLEAR SUBMARINE

TAR

TORPEDOES

78

EXPENDABLE DECOYS

SUBMARINE LAUNCHED TORPEDO

EHW.T

OTHERS

OTHERS

EXPENDABLE DECOYS

HYPERSONIC TECHNOLOGY
DEMONSTRATOR VEHICLE

81

ARMS AND AMMO

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
82

ARMS AND AMMUNITIONS

BOMBS

ARMS AND AMMUNITIONS

BUSINESS ENVIRONMENT

INDIA

2027- ERA OF TRANSITION
2027-2037- ERA OF CONSOLIDATION
2037-2047- ERA OF EXCELLENCE

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
85

NATIONS ARE GEARING UP (1/7)

World military expenditure rose by $2887 billion in 2025.
(2.9 % YoY Spike)
2.5 % of GDP in 2025.

Europe total military spending reached $864 billion (2025)
(14% YoY Increase)

The five biggest spenders in 2025 were the United States, China, Russia, Germany and India, accounted for 58% of world military spending.

The military expenditure of the 32 NATO members amounted $1581 billion (2025), 55% of spending globally

Total Military Spending by NATO member reached $1506 Billion
55% of Global Military Spending

Driver-INCREASING DEFENCE BUDGET

NATIONS ARE GEARING UP (2/7)

Biggest Spender – The USA
Accounting 33.33% of all military spending (2025)
The USA spent 2.8 times as much on the military as China (2025)

World's 2nd Largest Military Spender – China
China maintained 12% of global spending
Accounted 1.7% of China GDP
Military spent increased each year for 31 consecutive years

Russia's military expenditure reached an estimated $190 billion (2025)
5.9% YoY spurt
7.5% of GDP in 2025.

Germany 4th biggest spender globally
Military expenditure reached $114 billion
(24% YoY)
2.3% of Germany GDP (2025)

Taiwan's military expenditure reached $18.2 billion in 2025
14% YoY
2.1% of GDP

Poland Military spending reached $38 Billion (2024)
4.2% of GDP

NATIONS ARE GEARING UP (3/7)

Approximately 35 countries currently possess operational ballistic missiles of various ranges and approximately 25 countries have operational.

Wars

Russia- Ukraine and Israel- Hamas War

Continued and extensive use of weapons in conflict—especially in the Russia-Ukraine war and in Iran's missile attacks on Israel linked to the Israel-Hamas war—and by the underlying and explicit use of missiles for signaling and leverage in these conflicts and elsewhere.

Russia continued to use conventionally armed ballistic missiles, cruise missiles and one-way attack UAVs in large numbers against Ukrainian forces, critical infrastructure and civilians in 2024. Between January and September 2024, Ukraine reported that almost 5500 such systems were launched at Ukraine, averaging more than 20 day launches every day.

USA/ Israel- Iran

Prior to the strikes against Iran, the USA has also secured deals with companies with the goal of significantly increasing annual production rates for a range of systems, including Patriot, Tomahawk, SM-3, SM-6, and AIM-120 AMRAAM. As part of this effort, the Pentagon's FY26 request sought multiyear procurement authority for 13 missile types, with lawmakers ultimately signing for eight out of 13 munitions requested.

USA at risk of missile shortage after depleting stockpiles in Iran war.

Missiles are a critical part of any Arsenals

To threaten strategic infrastructure and deter the enemy from launching an attack

To retaliate against aggressive actions without resorting to large scale conflict

To hit key enemy targets far beyond the frontline

Change in policy has disrupted supply dynamics and raised concerns across Europe regarding its defense preparedness against potential Russian aggression. The concern stems from the United States' decision to cancel the deployment of long-range missiles to Germany

Together with the need to replenish stockpiles, states' perceptions of the military value and utility of missiles, air and missile defence systems contributing to growing demand for current missile.

Earnings Presentation May 2026 | APOLLO MICRO SYSTEM LIMITED

NATIONS ARE GEARING UP (4/7)

An estimated 3912 of those warheads were deployed with missiles and aircraft and the rest were in central storage. Around 2100 of the deployed warheads were kept in a state of high operational alert on ballistic missiles. Nearly all of these warheads belonged to Russia or the USA, but China may now keep some warheads on missiles during peacetime.

World Nuclear Forces	Deployed Warheads	Stored Warheads	Military Stockpile		Retired Warheads		Total Inventory
	2025		2024	2025	2024	2025	2024	2025
USA	1770	1930	3708	3700	1620	1477	5328	5177
Russia	1718	2591	4380	4309	1200	1150	5580	5459
United Kingdom	120	105	225	225		225	225
France	280	10	290	290			290	290
China	24	576	500	600			500	600
India		180	172	180			172	180
Pakistan		170	170	170			170	170
North Korea		50	50	50			50	50
Israel		90	90	90			90	90
Total	3912	5702	9585	9614	2820	2627	12405	12241

USA APPROACH AND PRIORITIES (5/7)

	2014 QDR (Obama II)	2018 NDS (Trump I)	2022 NDS (Biden)	2026 NDS (Trump II)
Approach	End wars in the Middle East, rebalance to Pacific	Compete, deter, win	Integrated deterrence	America First
Priority	Operating under fiscal constraint	Great power competition	Pacing challenge of China	Homeland and hemispheric security
	2014 QDR (Obama II)	2018 NDS (Trump I)	2022 NDS (Biden)	2026 NDS (Trump II)
---	---	---	---	---
Industrial base	"National asset that the Department of Defense is committed to supporting."	"Harness and protect the national security innovation base."	"Build enduring advantages across the defense ecosystem."	"Require nothing short of a national mobilization—a call to industrial arms"
Nuclear modernization	Baseline, no new nuclear weapons	Baseline, plus options to "counter competitors' coercive strategies"	Baseline, cancel SLCM-N	Baseline
National missile defense	Baseline	Baseline	Baseline	Baseline, plus "Golden Dome"

The Department of War is addressing challenges in ordering thousands of additional missile interceptors and long-range strike missiles.

Earnings Presentation May 2026 | APOLLO MICROSYSTEMS LIMITED

SPEED FOR

SOVEREIGNTY (6/7)

Defence procurement contracts in the EU (US$ million), 2018-2021 vs. 2022 – June 2025

EU MEMBER STATES
USA
OTHERS

Earnings Presentation May 2026 | APOLLO MICROSYS BMS LIMITED

NATIONS ARE GEARING UP (7/7)

Figure 2. The share of world military expenditure of the 15 countries with the highest spending in 2025

Figure 3. Military spending as a share of gross domestic product, by country, 2025

Note: The 10 countries with the highest military spending as a share of gross domestic product are labelled.

The boundaries used in this map do not imply any endorsement or acceptance by SIPRI.

Source: SIPRI Military Expenditure Database, Apr. 2026.

MARKETS WITH MACRO TAILWINDS PROVIDE CONSIDERABLE GROWTH OPPORTUNITIES (1/10)

Story in Charts

MARKETS WITH MACRO TAILWINDS PROVIDE CONSIDERABLE GROWTH OPPORTUNITIES (2/10)

Figures in INR Crores

Story in Charts

MARKETS WITH MACRO TAILWINDS PROVIDE CONSIDERABLE GROWTH OPPORTUNITIES (3/10)

All Figures in INR Crores

Story in Charts

Breakup of Total Capital Acquisition Outlay

Composition of Capital Acquisition Outlay

MARKETS WITH MACRO TAILWINDS PROVIDE CONSIDERABLE GROWTH OPPORTUNITIES (4/10)

Story in Charts

Breakup of Total Capital Outlay in Modernization

FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 * upto sep2024

FY21 FY22 FY23 FY24 FY25 FY26

MARKETS WITH MACRO TAILWINDS PROVIDE CONSIDERABLE GROWTH OPPORTUNITIES (5/10)

Composition of Defence Production

Composition of Export Production

MARKETS WITH MACRO TAILWINDS PROVIDE CONSIDERABLE GROWTH OPPORTUNITIES (6/10)

Story in Charts
FY24

Composition of Capital Acquisition Outlay among Services*
FY25

FY26

*excludes other than Capital Acquisition and DRDO, DGQA etc

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
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MARKETS WITH MACRO TAILWINDS PROVIDE CONSIDERABLE GROWTH OPPORTUNITIES (7/10)

India

In pursuance of Prime Minister Shri Narendra Modi-led Government’s vision of ‘Viksit Bharat @ 2047’ with technologically-advanced and ‘Aatmanirbhar’ Armed Forces, Union Budget of India has made a provision of Rs 7.8 Lacs crore for Financial Year (FY) 2026-27 for the Ministry of Defence (MoD), accounting or 14.28% of the Total National Budget.

Out of this, Rs 2,19,306 crore i.e. 28% of total allocation will be spent on Capital Outlay under Defence Services.

The Budget gives a strong thrust to Aatmanirbhar Bharat (Self-reliant India) by promoting indigenous manufacturing and reducing import dependence.

Domestic defence industries, including private sector players, are key beneficiaries. Around 75% of the Capital Acquisition budget is reserved for domestic defence industries in FY 2026-27.

Defence sector is prominent among the 25 sectors of industry covered under the ‘Make in India’ initiative. The provision of ‘Make’ category of capital acquisition is a vital pillar for realizing the vision behind the ‘Make in India’ initiative.

The Ministry of Defence, with the joint efforts of MoD (Finance), Acquisition Wing, Defence Services and Defence Accounts Department, has fully utilized its capital outlay of Rs 1.86 Lakh crore for Defence Services provided for the FY 2025-26 at Revised Estimates stage.

The Ministry of Defence, with the joint efforts of MoD (Finance), Acquisition Wing, Defence Services and Defence Accounts Department, has fully utilized its capital outlay of Rs 1.86 Lakh crore for Defence Services provided for the FY 2025-26 at Revised Estimates stage.

In the Financial Year 2025-26, AoN for 55 proposals amounting to Rs 6.73 lakh crore has been accorded by the DAC. Moreover, capital procurement contracts have been signed for 503 proposals amounting to Rs 2.28 lakh crore in the current fiscal year. Both the quantum of AoN given and capital contracts signed, so far, have been the highest in any given Financial Year.

> “As the nation aims for ₹3 lakh crore in defence production and ₹50,000 crore in exports by 2029, these achievements highlight India’s emergence as a reliable defence partner worldwide. By leveraging innovation, strategic partnerships, and indigenous capabilities, India is well-positioned to play a pivotal role in the future of global defence manufacturing and security”

MARKETS WITH MACRO TAILWINDS PROVIDE CONSIDERABLE GROWTH OPPORTUNITIES (8/10)

India ranks approximately 4th to 7th globally in missile technology, excelling in ICBMs, cruise missiles, and ABM systems, with hypersonic advancements closing gaps with leaders. Its indigenous focus and strategic deployments make it a regional powerhouse, though scaling production and mastering hypersonic systems are critical for climbing higher.

• Amid the ongoing Operation Sindoor against Pakistan, the defense forces set to get big boost of around INR 40,000 crores to buy arms and ammunition. The approval for the acquisitions under emergency powers was granted recently by the Defence Acquisition Council in its meeting attended by top defence ministry and military brass, defence officials told ANI
• India Opens Missile And Ammunition Manufacturing To Private Sector for Long-

Multiple instances of armed conflict and rising tensions

India's two-third military equipment is classified as vintage

• Positive Indigenization Lists: The Ministry of Defence has released its fifth Positive Indigenization List (PIL), comprising 98 high complexity systems, sensors, weapons, and ammunition. These items will be procured exclusively from domestic sources under the Defence Acquisition Procedure (DAP) 2020 within a defined timeline.
• Dedicated Budget Allocation for Domestic Industry: In FY 2023–24, a record 75% (approximately ₹1 lakh crore) of the defence capital procurement budget has been allocated for domestic industry, up from 68% in the previous fiscal year.
• Enhanced Foreign Direct Investment (FDI) Limits: FDI in the defence sector has been liberalized—up to 74% is permitted under the automatic route, and up to 100% under the government route.
• Establishment of Defence Corridors: Two dedicated Defence Industrial Corridors have been established in Uttar Pradesh and Tamil Nadu, with the objective of minimizing imports and boosting defence exports.
• Government has notified the ‘Strategic Partnership (SP)’ Model in May 2017, which envisages establishment of long-term strategic partnerships with Indian entities through a transparent and competitive process, wherein they would tie up with global Original Equipment Manufacturers (OEMs) to seek technology transfers to set up domestic manufacturing infrastructure and supply chains.
• GST removed on missiles launched from ship-launched missiles, underwater vessels, >100 mm calibre rockets etc. GST on UAVs has been sharply cut to 5 per cent from 28–18 per cent.

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
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MARKETS WITH MACRO TAILWINDS PROVIDE CONSIDERABLE GROWTH OPPORTUNITIES (9/10)

The explosive market size is expected to see strong growth in the next few years. It will grow to $9.37 billion in 2029 at a compound annual growth rate (CAGR) of 8.8%. The surge in government spending on the defense sectors in various countries including The USA, China, India, Russia, The UK and France is projected to be a major driver for the growth of the explosive market during the period. The growth in the forecast period can be attributed to an increase in territorial and political conflict, global population growth and urbanization, increasing infrastructure development expenditure by governments and increasing construction activities.

Geopolitical tensions and global trade restrictions have intensified supply chain disruptions, resulting in delayed production timelines and critical shortages of explosives.

A surge in global demand for explosives and ammunition, fed by ongoing conflicts in Europe and West Asia, has resulted in record Indian defence exports, with the figure crossing ₹23,622 crore in 2024-25.

State-owned defence public sector units have recorded a 42.8% surge in exports, reaching a high of ₹8,389 crore in the financial year. A large part of these too are for explosives and parts for ammunition, particularly for artillery which is in big demand in Europe.

Sources
https://www.thebusinessresearchcompany.com/reports/explosives-global-market-report/---text=What%20is%20The%20Explosives%20Market.2CAGR%20of%208.7%29.
https://job.gov.in/PressReleasePage.aspx?PRID=2160136
https://www.aimnews.in/news/business/economic-explosives-signs-mou-with-maharashtra-for-an-anchor-mega-project20260122221123/
https://www.globalgrowthinsights.com/market-reports/military-propellants-and-explosives-market-105721
https://www.bloomberg.com/news/features2020-01-21/as-europe-ramps-up-defense-spending-can-rhetentied-and-pears-most-demand.
https://economictimes.indiatimes.com/news/delivery/global-demand-for-explosives-ammunition-leads-to-record-defence-exports/articleshow/119881445.cms?from=mdr
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2116612
https://idrm.org/op-aindoor-india-approves-amergency-procurement-growers-for-defence-forces-to-buy-arms-amms/
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2098495
https://www.sipri.org/media/press-release/2020/unprovedontel-rise-global-military-expenditure-european-and-middle-east-spending-surges
https://www.sipri.org/utexit/eb/af/ffex/2020-04/2004 16 miles 2024.pdf
https://aspt.v3.ap-issn/fineart-2.amazonaws.com/wp-content/uploads/2020/05/26141647/The-cost-of-Defence-2020-2026.pdf
https://www.sipri.org/media/press-release/2024/ww/rib-trip-arms-producers-son-revenues-rise-back-wars-and-regional-tensions
https://www.sipri.org/utexit/eb/af/ffex/2020-06/yb20_summary_en.pdf
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2141635
https://www.fs.com/content/dbs168% b900-d1e6-8856-6209d9e17a76
https://www.sipri.org/media/press-release/2020/nuclear-risks-grow-now-arms-race-rooms-new-sipri-yearbook-out-new
https://www.sjparngc.com/delivery/ticda-opens-results-and-ammunition-manufacturing-to-private-sector-for-long-term-firepower-readiness-report
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2152742
https://www.newindianexpress.com/nation/2020/Oct/20/defence-ministry-approves-procurement-proposals-worth-rs-79999-crore
https://theprint.in/india/asrrospace-defence-overlabs-pharma-to-form-chunk-of-telengenes-exports-most-stop-zero-engine-cagital/2904965/
https://dom.forecastinternational.com/2026/02/27/analyzing-the-final-5y36-defense-appropriations-b40
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2247977&rep=3&lamp=1

HYDERABAD, INDIA'S DEFENCE FORTRESS (10/10)

BECAUSE OF

Conducive Ecosystem supported by deep domain expertise, strong institutional backing and globally competitive manufacturing capabilities

• World class infrastructure
• Network of over 1500 MSMEs
• Presence of DRDO, DPSUs and global OEM

RESULTING IN

DEFENCE OVERTAKES PHARMA

• At over Rs 32,000 crore in FY 26, defence and aerospace account for over a third of the Telangana's exports, beating pharma for the first time since 2014.
• Aerospace and Defence exports accounted for 33.4% of the state's total exports in FY2026, according to data shared by Telangana's Directorate of Economics and Statistics.

NOW COMES 2047 TELANGANA GOAL

BECOMING GLOBAL BUILD TO DESIGN INNOVATION

G I O B A I B U I D T O D E S I G N

Telangana will be an aerospace & defence hub by 2030: Minister Uttam Kumar Reddy

The aerospace and defence were among the priority sectors identified by the Telangana Government under its industrial policy framework, Reddy said.

By BL Hyderabad Bureau

Updated - May 08, 2026 at 06:57 PM. | Hyderabad,

CATALYST

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
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INDIA'S TIME IS NOW

Relative on INDIGENIZATION for NATIONAL SECURITY.

Export Opportunity.
Platform with long life creates aftermarket opportunity.
Military Modernization programs.

DEMAND Outpacing SUPPLY.

WORLD Dynamic is CHANGING.
Alliances Are Pivotal in Shaping
Defense Spending.

DRIVING MUTUAL GROWTH

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
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Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
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GROWING TOGETHER

• Approved Collaborative R&D Partner for Bharat Electronics Limited.
• Participation in 60+ programmes of DcPP as sub-system partner.
• As a trusted partner of DRDO, we play key role in various active defence programs.

Signed MoU with Munitions India Ltd for identified select opportunities.

Signed MoU with TCL for defense products.

Signed MoU at Swavalamban 2025 with IIT Chennai and Indian Navy.

MoU Partner to BDL for Joint Development of Naval Platforms.

MoU partner to GRSE for joint development and supply of advanced Weapons and Electronic Systems.

FINANCIAL PERFORMANCE

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
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DELIVERY ON PROMISE

Full Year (FY26)
Achieved PAT Margin 16%

PAT Margin 15%

Q4FY26
Achieved PAT Margin 18%

PAT Margin 15%

At Standalone Level

Earnings Presentation May 2026 | APOLLO MICRO SYSTEMS LIMITED
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FINANCIAL HIGHLIGHTS- FY26 (CONSOLIDATED FIGURES)

(All Figures in Millions)

Delivering Strong Performance with improved Financial Metrics

FINANCIAL HIGHLIGHTS- FY26 (STANDALONE FIGURES)

(All Figures in Millions)

Revenue from Operations

FORE - ROCE

Delivering Strong Performance with improved Financial Metrics

EBITDA

FY25
FY26

FINANCIAL HIGHLIGHTS- Q4FY26 (CONSOLIDATED FIGURES)

Revenue from Operations

Highest Ever Quarter Revenue Registered

Highest Ever Quarter EBITDA Achieved

Highest Ever PAT Registered

EBITDA (ex Other Income)

FINANCIAL HIGHLIGHTS- HISTORICAL (CONSOLIDATED FIGURES)

FINANCIAL HIGHLIGHTS- HISTORICAL

(All Figures in Millions, otherwise stated)

Interest Coverage Ratio

Working Capital Days

CONSOLIDATED INCOME STATEMENT- Q4FY26 & FY26

Particulars (Rs in Mn)	Q4FY26	Q3FY26	QoQ	Q4FY25	YoY	FY26	FY25	YoY
Revenue from Operations	2932.6	2522.2	16.3%	1617.7	81.3%	9043.2	5620.7	60.9%
Other Income	31.9	9.1		7.3		62.7	28.9
Total Revenue	2964.5	2531.3	17.1%	1625.0	82.4%	9106.0	5649.5	61.2%
Total Expenses except Depreciation, Amortization and Finance Cost	2256.1	2018.3		1257.8		6861.6	4328.6
EBITDA (ex Other Income)	676.4	503.9	34.2%	359.9	88.0%	2181.6	1292.1	68.8%
EBITDA Margin	23.1%	20.0%		22.2%		24.1%	23.0%
Finance Cost	90.8	136.3		105.8		473.2	342.2
Depreciation	69.7	61.1		41.4		223.2	153.3
PBT	547.9	315.7	73.6%	220.0	149.1%	1548.0	825.5	87.5%
Tax	180.1	86.9		80.4		474.2	261.9
PAT	367.9	228.8	60.8%	139.6	163.5%	1073.8	563.6	90.5%
PAT Margin	12.5%	9.1%		8.6%		11.9%	10.0%
Diluted EPS	1.1	0.7		0.5		3.2	1.9

NOTE- * Quarterly EPS is not annualised.

CONSOLIDATED INCOME STATEMENT - HISTORICAL

Particulars (Rs in Mn)	FY20	FY21	FY22	FY23	FY24	FY25	FY26
Revenue from Operations	2459.0	2030.7	2431.9	2975.3	3716.3	5620.7	9043.2
Other Income	16.0	6.4	7.6	8.2	18.3	28.9	62.7
Total Revenue	2475.0	2037.1	2439.5	2983.5	3734.6	5649.5	9106.0
Total Expenses except Depreciation, Amortization and Finance Cost	1972.4	1645.5	1976.7	2334.3	2877.7	4328.6	6861.6
EBITDA (ex Other Income)	486.7	385.3	455.2	640.9	838.7	1292.1	2181.6
EBITDA Margin	19.8%	19.0%	18.7%	21.5%	22.6%	23.0%	24.1%
Finance Cost	151.0	160.2	170.5	223.7	303.0	342.2	473.2
Depreciation	99.0	86.9	89.8	103.7	113.0	153.3	223.2
PBT	252.6	144.6	202.5	289.6	440.9	825.5	1548.0
Tax	112.5	42.1	56.4	102.2	129.9	261.9	474.2
PAT	140.1	102.5	146.2	187.4	311.1	563.6	1073.8
PAT Margin	5.7%	5.0%	6.0%	6.3%	8.4%	10.0%	11.9%
Diluted EPS	0.7	0.5	0.7	0.6	1.2	1.9	3.2

CONSOLIDATED BALANCE STATEMENT - HISTORICAL

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Key Balance Sheet Items(Rs in Mn)	FY20	FY21	FY22	FY23	FY24	FY25	FY26
Equity Share Capital	207.6	207.6	207.6	207.6	282.4	306.5	357.3
Reserves	2751.6	2851.7	2992.7	3634.4	4909.8	5769.2	12724.9
Borrowings	132.0	162.2	1157.8	1436.5	2080.4	3353.5	5432.6
Other Liabilities	990.7	1313.2	353.4	524.9	632.4	793.9	1350.1
Trade Payables	569.4	783.0	1280.6	1122.9	1657.4	2771.9	3820.1
Total Liabilities	4651.2	5317.7	5992.1	6926.3	9562.4	12994.9	23685.1
Net Block	502.6	490.8	858.8	1048.1	1407.0	1722.7	3152.6
Capital Work In Progress	365.2	522.1	296.2	316.4	348.4	722.8	1962.9
Other Assets	224.3	218.9	349.0	539.8	911.3	1534.9	4242.3
Trade Receivables	1354.8	1695.0	1364.1	1466.0	2352.7	2383.3	4813.2
Inventory	2079.5	2256.9	2961.6	3415.3	4335.6	6006.4	7952.9
Cash and Cash Equivalents	124.8	134.0	162.3	140.8	207.4	624.8	1561.1
Total Assets	4651.2	5317.7	5992.1	6926.3	9562.4	12994.9	23685.1

CONSOLIDATED CASHFLOW STATEMENT - HISTORICAL

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Particulars (Rs in Mn)	FY20	FY21	FY22	FY23	FY24	FY25	FY26
Cash Flow From Operating Activities	469.1	73.8	431.8	-162.9	-784.9	102.4	-1297.6
Cash Flow From Investing Activities	-186.9	-238.6	-243.0	-347.6	-587.9	-912.9	-3569.0
Cash Flow From Financing Activities	-360.3	165.1	-186.7	509.5	1372.3	1211.3	5358.9
Net Change in Cash and Cash Equivalents	-78.1	0.4	2.2	-0.9	-0.5	400.7	492.3

OPPORTUNITIES ALIGNED AND READY: HERE'S WHY WE'RE POSITIONED TO WIN

• The requirement of missile systems is envisaged to grow significantly in the upcoming years with the induction of a large number of ships, submarines and aircrafts.
• There is a critical need to advance the development of Anti-Submarine Warfare (ASW) rockets to effectively counter emerging and increasingly sophisticated underwater threats.
• Presently, IN holds a large number of torpedoes imported from western origin countries and of eastern origin. There is a huge opportunity to contribute in indigenous development of the Homing System where we have significant presence.
• Presently, IN holds a large number of torpedoes imported from western origin countries and of eastern origin. There is a huge opportunity to contribute in indigenous development of the Homing System where we have significant presence.
• Conventional weapons like bombs and missiles cause physical (kinetic) damage, but modern threats often require non-kinetic responses—especially where civilians or infrastructure are involved. This highlights the need for smart munitions with enhanced precision and the ability to distinguish targets and deliver directional lethality.

READY TO SERVE THE COUNTRY

We anticipate a sharp increase in our internal demand for explosives and propellants as several of our matured munition platforms will be entering large-scale production, including:

• Underwater Mine
• Short and Medium Range Rocket
• Other Critical Munition and Armament Systems
• Anti Submarine Warfare Rocket

Earnings Presentation May 2026 | APOLLO MIDIO SYSTEMS LIMITED

STRATEGY FOR THE YEARS AHEAD

Strengthening core R&D

We aim to strengthen our R&D foundation to drive innovation and develop cutting-edge technologies in defence and strategic electronics.

Pursue Large Ticket Size and Complex Orders

• Focus on pursuing large Value and complex projects that match our capabilities
• Target technically complex projects in specialized area that offers better margin with few competitors.

One Stop Solution under one roof

• End-to-end solutions across the munitions and weapons value chain from manufacturing of high energy materials and propellants, advanced storage, testing facilities to munitions and integrated platform.

Rooting in Bharat and Expanding Geographical footprints

• We are committed to expanding our presence in the Indian market by leveraging indigenous capabilities aligning with National Defence initiatives.
• We seek to grow our footprint in international markets by offering advanced, export-ready systems. This integrated approach positions us for sustainable growth, technological leadership, and global competitiveness in the years ahead.

Building tomorrow Global OEM

• Our strategy focuses on moving up the value chain to become a Global Original Equipment Manufacturer (OEM), delivering complete, high-reliability solutions.

Growing Organically and Inorganically

• We are committed to enhancing our market presence through a combination of organic expansion and strategic acquisitions.

We are strategically positioned to seize the domestic and global demand and lead the new era of Atmanirbhar Bharat.

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MANAGEMENT DESK

FY 2025-26 has been a breakthrough year for Apollo Micro Systems, our highest-ever annual revenue and profitability, the successful conclusion of the IDL Explosives acquisition through ADIPL, the award of the DPIIT license for UAV manufacture, and the receipt of our first export order. We are pleased to announce that an additional acquisition by ADIPL is expected to be completed before the end of the next financial year, which will significantly complement our organic growth and overall strength of the business.

GRATEFUL FOR THE OPPORTUNITY & PROUD TO CONTRIBUTE

DRDO & Indian Navy conduct combat firing (with reduced explosive) of indigenous Multi-Influence Ground Mine.

Other nations that have developed seabed mines similar to DRDO's MIGM include the United States, Russia, China, and Italy. With this achievement, India joins the league of technologically advanced nations in undersea warfare capabilities.

Source- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2127155

Ministry of Defence

DRDO & Indian Navy conduct combat firing (with reduced explosive) of indigenous Multi-Influence Ground Mine

Posted On: 05 MAY 2025 8:19PM by PIB Delhi

Defence Research and Development Organisation (DRDO) and Indian Navy have successfully undertaken combat firing (with reduced explosive) of the indigenously designed and developed Multi-Influence Ground Mine (MIGM). The system is an advanced underwater naval mine developed by the Naval Science & Technological Laboratory, Visakhapatnam in collaboration with other DRDO laboratories - High Energy Materials Research Laboratory, Pune and Terminal Ballistics Research Laboratory, Chandigarh.

MIGM is designed to enhance the Indian Navy's capabilities against modern stealth ships and submarines. Bharat Dynamics Limited, Visakhapatnam and Apollo Microsystems Limited, Hyderabad are the production partners for the system.

Complimenting DRDO, Indian Navy and the Industry, Raksha Mantri Shri Rajnath Singh stated that the system will further enhance undersea warfare capabilities of the Indian Navy.

Secretary, Department of Defence R&D and Chairman DRDO Dr Samir V Kamat said, with this validation trial, the system is now ready for induction into the Indian Navy.

---

SB/Sarry

(Release ID 2127155)

Read this release in: Gujarati, Urdu, Marathi, Hindi, Bengali

CREATING IMPACT IN INDIA'S DRIVE FOR ATMANIRBHAR BHARAT

Enters into a Strategic Greenfield Expansion with Government of Telangana(GoT) at "Rising Telangana Summit 2025"

SUCCESSFUL AEROSHOW

Aero India is a premier event in the aerospace and defense industry, and our participation aligns with our strategic goals. It provides an excellent platform to showcase our products, engage with key stakeholders, and strengthen business partnerships. We have signed an MoU with TCL which shows our commitment and confidence in the business by delivering the future need based products.

SETTING THE RECORD STRAIGHT

Dilution of Equity-

All equity dilution to date has been strategic and prudent. The current preference round is intended to reinvest in the business, with a focus on leveraging growth opportunities in the defence sector.

Quarterly Result Is Not The Correct Yardstick-

In a business defined by tailored, complex, and mission-critical solutions, sequential (Q-o-Q) comparisons often fail to reflect the true picture. Product mix and delivery cycles vary significantly based on client-specific requirements. Accordingly, annual performance remains the most meaningful benchmark for evaluating our financial and operational progress.

On High Working Capital Days-

Due to the nature of the industry in which we operate, our working capital cycle tends to be high. This is primarily driven by the need to maintain adequate inventory levels for defence-critical and mission-critical systems, ensuring uninterrupted supply in line with the Ministry of Defence requirements and operational readiness standards. In the development phase, inventory is held longer due to prototyping and testing. As we are entering the production phase, inventory turnover improves with faster conversion to finished goods, higher order fulfillment, and quicker revenue realization. Finalized specifications reduce rework and holding time, streamlining the working capital cycle.

SKIN IN THE GAME/ LEADERSHIP WITH LONG TERM COMMITMENT

Mr. Baddam Karunakar Reddy (Managing Director)

He founded Apollo Micro Systems in 1985 and has been instrumental in driving innovation in defence electronics. Renowned for his expertise in engineering and miniaturization techniques, he has significantly enhanced the performance of various weapon systems. Under his visionary leadership, the company has emerged as a key supplier of weapon system electronics in India. His long-term vision is to establish Apollo as a world-class defence systems provider.

Mr. Addepalli Krishna Sai Kumar (Whole Time Director- Operations)

He is an Engineer with 24 years of experience in Sales & Marketing, Administration & Finance, serving Apollo Micro Systems Ltd for past 22 years. He has strong expertise in financial engineering and cash flow optimization, contributing to the company's financial robustness and strategic initiatives. As Director (Operations), he manages day-to-day operations, business acquisition, new vertical development, and investor relations, driving the company's growth and market leadership.

Mr. Chandrapati Venkata Siva Prasad (Whole Time Director- Technical)

He is a Post Graduate in Electronics. He handles Design & Development with 28 years of experience working on variety of technologies. He is serving AMS for past 24 years. His Design expertise, and product development capabilities are the best available in the industry. He is a core design architect for complex weapon system electronics of major Indigenous Defence programs.

EARNINGS CALL INVITE

Q4FY26 & FY26

We are announcing our results for the quarter ended March 31st 2026 and full year ended March 31st 2026, on 18th May 2026. Following the announcement, the management team will host a conference call for investors and analysts on May 19th 2026, at 11:00 AM IST. The call will commence with a brief discussion on the previous quarter's performance followed by an interactive question and answer session. Please find the call details given below:

Day and Date	Tuesday, May 19th, 2026
Time	11:00 AM IST
Universal Dial In	+91 22 6280 1144 / +91 22 7115 8045
International Toll Free	Hong Kong
Singapore
UK
USA	800964448
8001012045
08081011573
18667462133
Diamond Pass Link	LINK

Note: Please dial in at least 10 minutes prior to the schedule to ensure that you are connected in time.

For further information, please contact- +91 72888 92228 or write to us at investors.relations@apollo-micro.com

SAFE HARBOR

This presentation and the accompanying slides (the "Presentation"), which have been prepared by Apollo Micro Systems Ltd (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation, directly or indirectly, in any manner, or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities of the Company in any jurisdiction, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. Except for the historical information contained herein, statements in this Presentation and any subsequent discussions, which include words or phrases such as 'will', 'aim', 'will likely result', 'would', 'believe', 'may', 'expect', 'will continue', 'anticipate', 'estimate', 'intend', 'plan', 'contemplate', 'seek to', 'future', 'objective', 'goal', 'likely', 'project', 'on-course', 'should', 'potential', 'pipeline', 'guidance', 'will pursue' 'trend line' and similar expressions or variations of such expressions may constitute 'forward-looking statements'. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements.

These risks and uncertainties include, but are not limited to Company's ability to successfully implement its strategy, the Company's growth and expansion plans, the performance of the Indian economy and of the economies of various international markets, obtain regulatory approvals, provisioning policies, technological changes, investment and business income, income or cash flow projections, the performance of the industry in India and world-wide, exposure to market risks as well as other risks.

The Company's actual results, levels of activity, performance or achievements could differ materially from results expressed in or implied by this Presentation. Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

Given these uncertainties and other factors, viewers of this Presentation are cautioned not to place undue reliance on these forward-looking statements. The information in this Presentation does not constitute financial advice (nor investment, tax, accounting or legal advice) and does not take into account an investor's individual investment objectives, including the merits and risks involved in an investment in the Company or its securities, or an investor's financial situation, tax position or particular needs.

Past performance information in this Presentation should not be relied upon as an indication of (and is not an indicator of) future performance. This Presentation is not a prospectus, disclosure document, a statement in lieu of a prospectus, an offering circular, an invitation or an advertisement or an offer document under the Companies Act, 2013, together with the rules and regulations made thereunder, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, or any other applicable law in India. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation, and nothing in this Presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. The Presentation has not been independently verified and any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

Note: Figures in previous periods might have been regrouped or restated, wherever necessary to make them comparable to current period. For the ease of presentation, certain financial information herein has been rounded off to one decimal place or two decimal places or whole numbers, as the case may be.

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ATS
apollo microsystems

THANK YOU

Email: investors.relations@apollo-micro.com

+91 72888 92228

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