Apollo Micro Systems Limited – Q4 FY26 Results

key financial highlights

• Revenue from Operations:
  • Revenue (Q4 FY26): ₹29,325.62 Lakhs
    • QoQ Change: +16.27%
    • YoY Change: +81.28%
  • Previous Quarter (Q3 FY26): ₹25,222.01 Lakhs
  • Previous Year (Q4 FY25): ₹16,176.67 Lakhs
• Profit After Tax (PAT):
  • PAT (Q4 FY26): ₹3,678.76 Lakhs
    • QoQ Change: +60.78%
    • YoY Change: +163.51%
  • Previous Quarter (Q3 FY26): ₹2,288.09 Lakhs
  • Previous Year (Q4 FY25): ₹1,396.08 Lakhs
• QoQ Performance:
  • Revenue Trend: Revenue improved strongly due to higher execution and operational scale-up.
    
  • Profit Trend: Profitability improved sharply supported by operating leverage and better earnings conversion.

Margin Analysis

Drivers:

• Strong operating leverage improved profitability.
• Cost of materials remained elevated but was absorbed through higher revenue scale.
• Employee and operational expenses increased in line with business expansion.
• Finance costs moderated sequentially compared to Q3 FY26.

Insight:

• The company demonstrated strong scalability with earnings growth significantly outpacing revenue growth.

Earning quality check

Key Drivers:

• Strong rise in receivables and inventories impacted operating cash flow.
• Operating cash flow remained negative despite strong profitability.
• Higher working capital deployment supported business expansion.

Interpretations:

• Reported earnings remain strong, though cash conversion weakened due to aggressive working capital expansion.

balance sheet Analysis

• Total Assets: ₹2,36,850.83 Lakhs
• Total Liabilities: ₹1,06,028.79 Lakhs

Insight:

• The company materially expanded its asset base during FY26 with strong growth in inventories, receivables, CWIP, and goodwill, indicating aggressive expansion and execution ramp-up.

key risks

• Negative operating cash flow due to rising working capital.
• High receivables and inventory levels may impact liquidity.
• Elevated debt levels increase financial obligations.
• Defence order execution timelines remain critical.

management strategy signals

Focus Area:

• Expanding defence electronics manufacturing capabilities.
• Increasing execution of large defence and aerospace orders.
• Capacity expansion through capital expenditure and CWIP investments.
• Strengthening long-term order pipeline.

Financial metrics table

Quarterly Performance Context