Apollo Micro Systems hit a new 52-week high today at Rs. 398.40, after investors continued to price in the company’s record FY26/Q4 performance and a sharper growth runway post the IDL Explosives consolidation. The stock opened at Rs. 358.10 versus the previous close of Rs. 355.10 and traded with a VWAP of around Rs. 381.41.

The near-term trigger has been the company posting its highest-ever quarterly and annual revenue, EBITDA and PAT, alongside an improving order pipeline. The consolidated order book stood at a life-high Rs. 1,432 crore as of March 31, 2026, up 9% QoQ, translating into a book-to-bill of 1.6x, important because it signals demand visibility at a time when the company is attempting to move more programmes from development to repeat manufacturing.

What is also supporting sentiment is the pivot from being largely a systems-and-subsystems supplier to expanding deeper into munitions and explosives-linked manufacturing. Apollo has outlined a Rs. 300 crore greenfield capex plan at Hyderabad to scale capacity meaningfully for weapon systems such as guided rockets, anti-submarine warfare rockets, anti-tank mines and artillery munitions, which, if executed on timelines, can change the operating leverage profile.

On the subsidiary side, IDL Explosives is positioned as a dual-play platform (industrial plus defence-grade explosives); with restrictions around participation in Coal India tenders stated to have been removed, the subsidiary’s ability to re-enter large PSU tenders becomes a material earnings swing factor. Separately, the 15-year licence for 550 MTPA HMX + TNT production in Odisha adds optionality, with only 40% of the land bank utilised, leaving room for phased brownfield expansion as demand and clearances align.

Mr SP Tulsian is very bullish on the stock and has stated that the stock has the potential to rise to Rs.500 is next 12 months.