Apollo Micro Systems shares jump 23% in 2 days after securing arms manufacturing licence

Apollo Micro Systems shares surged up to 5.5% on Monday, hitting an intraday high of Rs 298.48, extending gains from the previous session when the stock had already jumped 17%. The sharp rally follows a key regulatory approval, with the stock climbing over 23% across the last two trading sessions.

In a release dated April 17, the Hyderabad-based defence technology company, Apollo Micro Systems Limited, said it has secured an arms manufacturing licence from the Government of India. The approval was issued by the Department for Promotion of Industry and Internal Trade under the Ministry of Commerce & Industry on April 10, 2026. The licence has lifetime validity with no expiration and permits an annual production capacity of up to 1,000 units per category.

Under the licence scope, the company is authorised to manufacture a wide range of advanced defence systems. These include Category I arms of calibre above 12.7mm, such as missiles, anti-tank guided missiles (ATGMs), torpedoes, underwater mines, safety arming mechanisms, chaffs, flares and decoys. Category II approvals cover aerial bombs, rockets and loitering munitions.


Highlighting the strategic importance of the development, Managing Director B Karunakar Reddy said the licence marks a significant step in expanding the company’s footprint in defence manufacturing. He added that, combined with the capabilities of IDL Explosives, the company is now positioned to develop and manufacture a meaningful range of weapon systems for both the Indian Armed Forces and export markets.

The management emphasised that the company plans to scale operations in a phased manner, ensuring that manufacturing infrastructure, quality systems and regulatory compliances are firmly in place before ramping up production.

From a valuation perspective, Apollo Micro Systems Limited appears to be trading at elevated levels. The stock currently has a price-to-earnings (P/E) ratio of 113.18, a price-to-sales (P/S) ratio of 6.69, and a price-to-book (P/B) ratio of 16.64.

On the technical front, data from Trendlyne indicates that the stock’s 14-day Relative Strength Index (RSI) stands at 75.5. Since an RSI reading above 70 is typically considered overbought, this suggests the possibility of a near-term pullback.

However, the broader trend remains strong. The stock is trading above all eight of its simple moving averages (SMAs), signalling sustained bullish momentum.

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