Add APOLLO Ltd for the Target Rs. 365 by Choice Institutional Equities
Key Conference Call Highlights
Order Book & Business Visibility
* Robust Order Backlog: The consolidated order book stood at INR 1,432 Cr as of March 31, 2026
* Large-ticket Inflows Expected: The management expects significant, large-ticket production orders to materialise in the current financial year. It will substantially increase the order book and drive continued topline growth
* Massive Addressable Market: The immediate addressable market for just the distinct mine variants is estimated at INR 4,000–4,500 Cr
* Export Scaling up: Apollo has received its first export order and is actively pursuing overseas opportunities Strategic Updates & Vision 2036
* Evolution to Global OEM: The upcoming ‘Vision 2036’ outlines Apollo's ambition to move from a Tier-1 electronics supplier to a global OEM across land, air and sea defence platforms
* Inorganic Growth: Acquisition by subsidiary Apollo Defence Industries is expected to be completed before FY27-end
* Capacity Expansion: Civil work for Phase 1 of the greenfield expansion in Telangana (Unit 3) is complete, and the installation of the recently-received machinery is actively under way
Product Development & Regulatory Approvals
* Unlocking Platform Manufacturing: APOLLO received a lifetime DPIIT license covering UAVs, INS systems, radars, torpedoes, underwater mines, ATGMs, decoys, aerial bombs, rockets and missiles. It paves the way for manufacturing the full weapon system
* Advanced Technology Transfers: Apollo successfully obtained ToT for Directed Energy Weapons (DEW) and Electro-optical tracking systems
* New R&D Milestones: The company successfully developed a Mini Torpedo, a Sensor Suite for underwater autonomous vehicles and a Fiber Optic Gyro-based INS
* Internal RF Seeker Development: Heavy internal R&D investments are being directed towards RF Seeker development, supported by a specialised testing facility being established at the Hardware Park unit
* Domain Expansion in FY27E: Entry into new defence domains this year, including armament electronics, fire control systems and vehicle-mounted counter-drone systems
Subsidiary Focus: IDL Explosives
* Financial Turnaround: IDL Explosives recorded nearly INR 380 Cr in revenue for the year and is undergoing operational transformation to reverse historical losses
* Guidance: The management expects transformation initiatives to reflect in the next few quarters
* Capitalising on Global Shortages: The subsidiary is strategically positioned to benefit from a global depletion of ammunition stocks and will cater to both, captive Apollo requirements and broader market, demands
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SEBI Registration no.: INZ 000160131
