Apollo Micro Systems Limited (APOLLO) May 19, 2026 Conference Transcript

Ladies and gentlemen, good day and welcome to Apollo Microsystem Limited Q4FI26 Earnings Conference Call hosted by ICICI Securities Limited. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involved risk within certainties that are difficult to predict. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your dash turn phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pritish Uramkar from ICICI Securities. Thank you and over to you, sir.

Thank you, operator. Good morning, everyone. I welcome you all to Apollo Microsystems Q4 FR26 conference call. I would like to thank the management for giving us the opportunity to hold the conference call. From the management team, we have Mr. Karunakar Reddy, Managing Director, Mr. Sai Kumar, World-Time Director, and Mr. Sudarshan Shilveru, CFO. Now, I hand over the call to the management for opening remarks. Thank you. Good morning, everyone.

Myself, A. Krishnashai Kumar, the Director of Operations of All of Microsystems. Thank you all for being with us today. It's always a privilege to engage with our valued investors and provide updates on our performance strategy and future outlook. I am pleased to say that we have delivered our highest ever quarterly and 12-month revenue marked by consistent education, operational discipline, and a strong commitment to indigenization and the Aatman Nibbhar Bharat initiative. I trust you have had the opportunity to review our financial results, shareholder letter, press release, pair sheet, and investor presentation. The shareholder letter reflects the true thoughts from Apollo Microsystems, which will help you understand where we are headed and our long-term direction. The press release provides a concise overview of our annual and quarterly financial performance. The Pairship offers a snapshot of who we are, what we do, our financial highlights, and a glimpse into Vision 2036. The investor presentation provides a comprehensive overview of our weapons, systems, and subsistence, explosive portfolio, financial performance, and strategic priorities. This marks our fourth interaction to conclude fiscal year of 2026. We are pleased to begin with a significant milestone that marks our continued growth and global progress. We are pleased to announce that an additional acquisition by our subsidiary, Apollo Defense Industries Private Limited, is expected to be completed before the end of this financial which will significantly complement our organic growth and overall strengthen our business. We are currently charting our Vision 2036 document, which will be unveiled soon, and will outline our detailed strategy, three key growth areas, and strategic direction for Apollo's growth over the coming decade. A glimpse of Vision 2036 has already been shared with you through the shareholder letter and the tear sheet. Our vision is to grow as a global OEM over the next 10 years with recognizable revenue streams across land, air, and sea domains, expanding our presence in Indian markets while continuing to scale in global markets, Delivering valued products built with conviction, and strengthening our R&D capabilities with the most advanced and futuristic technologies. The four pillars of our vision are, first, becoming a global OEM, made in India, transitioning from a tier-one supplier of critical electronics to a recognizable global OEM in different platforms, where Apollo's name is on the platform itself, not only inside the electronic system which forms part of the platform. Second, building recognizable and diversified revenue streams across land, air, and tree, so that no single platform, program, or customer defines the Apollo story. Third, deepening our presence in Indian defense procurement while meaningfully expanding in global markets, converting our first export order into a sustained international revenue stream. And fourth, driving conviction-led innovation, which has always been a backbone of Apollo microsystems, backed by futuristic R&D in radiofrequency technologies, artificial intelligence, autonomous systems, and inertial ramification technologies. We do make mistakes. Some bets will succeed, while others may require a course correction. What I commit to you on behalf of the entire team, Apollo, and the management and the managing director of Apollo is that we will communicate with complete transparency through both success and feedbacks without grotting over challenges or overstating achievements. Let me now take you to our consolidated performance in the last five years. Full year, that is, to turn 26, and 4th quadrant at 31st March, to turn 26. Over the last five years, we have delivered strong compounded growth and operational performance. Between FY21 and FY26, our revenue grew from operations at a target of 20%, while EBITDA grew at a target of 41% over the same period. Our bottom line significantly outpaced top-line growth, registering a target of 64%. We also witnessed meaningful margin expansion during this period. Habitat margin improved from 19% in FI21 to 24% in FI26, reflecting an expansion of 500 basis points. Fat margin expanded by 300 basis points, increasing from 6% in FI21 to 12% in FI26. The ROCE improved substantially from 10% in FI21 to 18% in FI26, demonstrating enhanced operation efficiency and capital productivity. Our working capital cycle has also seen a significant improvement, reducing from 626 days in FI21 to 359 days in FI26. Moving to our FI26 performance, during the last call, we had indicated an integral internal target of achieving a 15% tax margin at the standalone level. We commit, we deliver. We close the year with a full year tax margin of 16%. At consolidated level, our top line of FI26 stood at 9,004 crores, registering a strong year-on-year growth of 61% compared to 562 crores in FI25. EBITDA, excluding other income, grew significantly by 69% to 218 crores in FI26 as against 129 crores in FI25. A similar growth trajectory was witnessed in fact, which outpaced revenue growth and increased by 91% to 107 crores in FI26, compared to 56 crores in FI25. FI26 has been a breakthrough year in Apollo's history, marked by strong financial discipline and operational execution. During the year, ROCE and ROE stood at 18.23% and 11.21% respectively. EBITDA margin expanded by 114 basis points to 24% in FI26, while PAT margin expanded by 185 basis points to 12% in FI26. In FI26, we made the highest investment in R&D within the industry during FI26, with R&D expenditure amounting to 8% of revenue, which is around 72 crores in absolute terms. Notably, we recorded zero attrition within our R&D team during this year, reflecting the strength and stability of our talent base. In FI26, our focused and rigorous R&D efforts culminated in the successful development of products such as mini-carpetal sensor suits for underwater autonomous vehicles, fiber-optic gyro-based ion systems, and several other advanced solutions. We are also actively working on multiple critical and next-generation technologies and solutions that will strengthen our future capabilities and growth trajectory. I would now like to draw your attention to some of the key highlights of FI26 that have laid a strong foundation for the years ahead, including a successful fundraise, greenfield expansion in Telangana, 100% acquisition of ideal explosives, RITITOR, our first export order, a tri-party alliance with Indian Navy, IIT Chennai, and AMS, and MOU with GRFC. We have also received an industrial license for TNT and RDX through a subsidiary company, Ideal Explosive. We have received a DPIT license covering UAVs, ion assistance, radar, rocket doors, underwater mines, ATGMs, decoys, shafts and players, aerial bombs, rockets, missiles, and loitering munitions. This is a remarkable achievement, which are a lifetime license for the company, and which paves a way and a road for penetrating into a full-fledged platform for the company, for the Indian markets, as well as for the global markets. And also, we have received transfer technology for direct-renowned weapons, including laser-based, DEW, and electro-optical tracking systems. I would like to now touch upon a quarterly performance. On a consolidated basis, Q4FI26 marked our highest ever quarterly revenue, EBITDA, and FAT performance. Revenue surged by 81% year-on-year basis to 293 crores, compared to 162 crores in Q4FI25, given by robust execution of our order book and the successful transition of multiple products in production phase. EBITDA also witnessed strong growth, increasing by 88% to 68 crores in FY26Q4, and the pack required an exceptional growth of from 64% year-on-year, rising to 37 crores as against 14 crores in the corresponding quarter of the previous year. Our order book, as of 31st March, stood at 14, 32 crores on a controlled basis, providing strong visibility for future growth. Our strength, Apollo Heritage strength, has been in the air and underwater domains, including missiles, electronic warfare, avionics, top-dose sonars and underwater mines. Our presence in land systems has historically been limited. However, this is now changing in a deliberate and well-resourced manner. FY2627 will mark our series of entry into key defense domains, including armament electronics, fire control systems, and battle tanks. Infantry combat vehicles and artillery platforms, vehicle-mounted contact road systems, the trial schedule in the upcoming quarters. We have done remarkable progress in development of our futuristic, you know, rocket programs like the BM-21 drive rocket. As you all are aware, we have been interested in partnering suppliers for various programs in guidance and navigation systems. One such program is the PIMACA program and so many other programs. We will also continue our role as the Approved Production Partner for DIDO, and you all are aware that we are already an Approved Production Partner for Multi-Influence Ground Mine, and we are expecting to become a DCPB partner for other variants of mine of DIDO. India's MIGM, which is India's first indigenous naval mine of its class, designated as Vigana, developed under DCPP with DiGro. Each of these initiatives represent a strategic foothold, together forming the foundation for long-term compounding growth over the coming decades. In the air domain, our focus areas include unmanned systems, lightning munitions, hail platforms, and counter zones. Our commitment to emerging technology spans three core areas, RF systems, artificial intelligence, and emission navigation systems. In RF, we are developing various RF centers like RF tracking and direction finding systems, and various other electronic warfare centers, advanced communication tools, the neutral backbone of modern combat platforms. In Artificial Intelligence, we are building embedded AI for sensor fusion for autonomous vehicles and underwater autonomous systems, and also for various battlefield applications and also for the various direction-finding applications. We have done a good progress in this concluded financial year in developing initial navigation systems based on fiber-optic zeros, and we will be unveiling the products soon, and we will update our investors from time to time. These commitments underscore our continued operational excellence and reaffirm the strength of our growth trajectory into F536. We have evolved from being a subsystem and systems manufacturer to establishing ourselves as a full-fledged weapon system manufacturer, a significant milestone in our journey of growth and technological excellence. Building on 41 years of technological excellence, we are poised to evolve into a multidisciplinary defense system powerhouse to drive next generation innovation. Our vision is bold, built on strong fundamentals, and an unlavering commitment in creating value for our stakeholders. Thank you for your continued trust and support. We now look forward to addressing your questions.

Thank you very much. We will now begin with the question and answer session. Then, anyone who wishes to ask the question may press star and 1 on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. I request to all the participants, kindly limit yourself to two questions per participant and rejoin the queue for a follow-up question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from land of Ahmed Dikshan from Goldman Sachs. Please, go ahead.

Yeah, hi. Good morning, everyone, and thanks for the opportunity. Congratulations for a very good set of numbers and a very informative presentation uploaded on the exchanges. A couple of questions from my end. The first one is essentially if I look at the revenue growth, very impressive. Order book is around 1430 odd crores. Now, my question is more on, you know, near-term scenario. What kind of order inflows we expect in FY27 and FY28, let's say, because, you know, if we don't get substantial order inflows, then this superlative revenue growth might not be sustained. So just want to get your thoughts on that, the order inflows that you expect for FY27 and FY28. That is the first question.

Can you continue with all your questions? I will answer it, Tom.

Okay. The second one is essentially on FI36 vision. I mean, thanks for articulating it in the letters to shareholders. Just want to understand the key tenets of that FI36 vision. I mean, while you have explained in terms of products where you want to be the multidisciplinary company, but if you have any financial parameters, I mean, handy, if you can articulate them, that would be wonderful. Okay.

So, I will go ahead to the first question. So, primarily, you know, we are expecting a last ticket project, you know, which we have been, you know, quite vocal about for last, you know, one year. And the time has come and, you know, the clocking of, you know, this large ticket, you know, orders are due to come and any time in this financial year we will be getting. And our order book size also will cumulatively increase, both on a standalone as well as on a console basis. So that is something that I would like you to, you know, understand. We will continue to grow at a similar rate, you know, in this particular financial year and the subsequent financial year. Back by the size of the order book that we are going to have, the order book size will increase, you know, significantly, you know, as we have been telling. And that's something that's going to happen in this financial year. That's something which I want to tell you. Regarding the FI statistics, we just wanted to give a glimpse of what we are trying to do. The more nitty-gritty of that, you know, we will come back to our investors and we will start being more vocal about it and how the numbers will culminate and all, you know, from time to time. But at this point of time, where we are heading, we just want to give a course, you know, for you to understand, you know, what's the vision, you know, that we have down the line.

Okay, so great. That's helpful. Thank you.

Thank you. Next question is from the line of Abhijit Singh from Systematics Group. Please go ahead.

Thank you for the opportunity and good to see such great results. Sir, I want to understand what is our products and offering in the air defense systems that are going to come up like, you know, QRSAMS and KUSHA. So what is our capability and products and offerings going into these air defense systems? That is my first question. Second question, sir, where are we on the development of the RF Seeker in the BrahMos, and do we also supply some other subsystems, modules for BrahMos other than our development initiative on Seekers?

So, if you remember, you know, in the previous phone call, our managing director, he has already informed to investors that, you know, we have started the RF Seeker development, in-house RF Seeker development for a couple of programs, and the programs are, these are our internal, you know, R&D programs, and we are investing heavily in that, and we are setting up a specialized, you know, You know, our speaker, you know, you know, checking facility in our upcoming unit in the other talk. So, this is about the our speaker. And regarding the, our presence in QRSAN, Kusha, and other things like this, these are two mitigating questions, you know, I would not like to take on a call. But, you know, I would like to, you know, tell that we have a good and decent presence in both the Kusha program as well as in the QRSAN program. So, data systems like the SAM, you know, actuations and other systems are part of these programs. As of now, I just forget.

Okay, sir. Thank you. Thank you so much.

Thank you. Next question is from the man of Gaurav Shah from Nitya Capital. Please, go ahead.

Good morning, sir. Congratulations for a very good set of numbers. I have two set of questions. One is I wanted to check on what is the status of the Unit 3, which was under construction. Second one is I wanted to know your thoughts on the large inventory and trade receivables that we have on our books and how do we see it coming down vis-a-vis the total revenue going forward.

So, Unit 3 Civil Work has already completed for Phase 1. So, case 2 civil work is still taking place. Some of the missionaries which we have ordered have already been, we have already received those missionaries and the installation process going on, there may be electrical and other facades, you know, works are going on, so we will be, you know, taking the position of the premises, you know, face-wise, and subsequently we will be shifting the missionaries which are presently in the unit one to unit three, you know, on stage basis. Okay. And regarding the inventory, you know, the inventory holding days, you know, there is an improvement in this financial year, and this is something that is going to be in the subsequent. As you all know, that the predominant business that gets recorded are development orders, actually, and we are expecting, you know, decently good production orders, you know, in this financial year as well as, you know, in the subsequent financial year. Most of the programs have got matured, and, you know, a lot of other larger players have already started receiving orders. You know, as we have been predominantly a, you know, subsystem and a supplier to various platform, you know, integrators, you know, we are likely to get a large production order. As and when these production orders keep hitting, and then the revenue starts recognizing, I think the inventory levels will slowly come down. But without this, the revenue size will also steadily grow as the number of programs are, you know, increasing the, you know, obviously the inventory will also keep growing because in the decision cycles of these raw materials and the production and testing cycles of these different systems are very, you know, highly elongated actually, which is common amongst these industries. So there's nothing, you know, I mean, say, a factor that has to be looked on about the inventory and, you know, the sizes of it. As a business keeps growing, you know, the levels will also keep growing. But, you know, as the scale of operations will increase, you will definitely see a decent improvement in the, you know, holding the rates. Because all the test facilities which we are outsourcing for the last several years, we are setting up all the test facilities. So, that is something that will contribute, you know, to the overall, you know, holding periods. You know, that is what you will see an invisibility in a few quarters on the line.

Okay. Thank you, sir.

Thank you. Next question is from the line of Darshil Zaveri from Crown Capital. Please, go ahead.

I don't know how it is.

Darshil Zaveri.

Hello. Hello.

Yes, go ahead.

Hello. Hello. Can you hear me?

Yes, sir.

Yeah. Hi, sir. Hi, sir. Firstly, sir, congratulations on a great performance, sir, and until presentation, sir. Sir, just wanted to understand, I was sorry, I was just, there was a network issue for me, so I couldn't hear the previous comments. So, in terms of IDF, what is the revenue expectations that, you know, we have in this year and going forward, sir, and what utilization and margins is it pointing? on currently, sir?

Ideal, last year, performance to date around 380 crores, a little less than 380 crores. So, it will continue to, you know, maintain a similar level of performance. So, this is primarily a huge shift of management, you know, which have been there for decades. Now, our outlook towards Ideal is totally different. As of now, I'm not able to give any guidance on Ideal. It's presently undergoing a transformation phase. In the next couple of quarters, you know, we are taking a lot of initiatives in the last one minute of quarter, and in the next couple of quarters, you know, more initiatives will be taken. I think we will be quite vocal about, you know, ideals, you know, revenue guidance and other things from, you know, from Q3 onwards.

Okay, okay. Fair enough, sir. So, but in, but currently at 50 crores, is it profitable or how, what do you feel, sir, right now? Like, could you, you know, just give a broad link in terms of, like, the potential margins that can come to the, you know, consolidated margins that we're doing right now or, you know, is it nearby? How is, how are we planning to make a DPS accredited?

In the last few years, ideally, it was loss-making, but there is a huge transformation, as I already told you, that we have started by taking up the initiatives, and the operational loss, we have reduced significantly both at different levels and at different levels of the balance sheet. Going forward, you will see a huge improvement in that. As of now, you know, it's undergoing a transformation, and one after the other, you know, we are able to, you know, do that.

Thank you. I'll request to come back for a follow-up question. Next question is from the line of Ronak Sangvi from Nafastet Managers. Please, go ahead.

Hello.

Go ahead, sir.

Yeah. Thank you for taking my question. I want to know a specific thing about, like, in the slide number 101, you have mentioned state-owned defense public sector units have recorded 42% surge in exports, reaching of 8,389 crores. A large part of these two are from explosives as part of ammunition, particularly for artillery, which is big demand in Europe. So, are you looking into that venture, sir?

Yeah, we will be going heavily on more than artillery, you know, side. We have already started getting orders, you know, to that extent. Very shortly, we are going to get a Paglium, you know, elimination order as well. So, as in then, you know, we keep getting, you know, we will definitely announce you that this is the one area which will be expanding continuously.

So, this will be like filled shells, filled artillery shells, not only the empty shells. Am I right? Yeah.

Thank you. Next question is from the line of Pratik Bagaria, individual investor. Please go ahead.

Yeah, hi. First of all, thanks for giving me this opportunity, and congrats for a great set of numbers. So, I have two specific questions. First, I wanted to understand that you have mentioned that around management has participated in around 150-plus indigenous programs and around 700-plus onboarded technologies. So, can you throw some light as to currently at what stage are they? Are they in the serial production stage or still in the development or prototype stage?

No, that will be a very exhaustive question, Bhagavad Gita. So, but I will just give a touch base on it that, you know, some of the programs are in development phase. Some of them are in serial production phase. Some of them are in, you know, trial phase like that, actually. Okay. So, but, you know, detailing of each program and all over the call, you know, it's very sensitive also to, you know, discuss. But, you know, these are at the various faith levels, which are spanning around the missile programs, the naval programs, the air defense programs, the land system programs, and all put together.

So, are we expecting any revenue contribution from them in the coming few quarters?

Yeah, obviously. Any indigenous missile program which is going for production, which you hear, say, you know, through the news, social media, or, you know, the defense news, or any other, you know, media, you know, all those programs, we will be having our, you know, equipment going in it, actually. That's the uniqueness of Apollo, that, you know, we have a presence across every indigenous missile program in the country, so that's how I can term ourselves.

Okay, thank you. And my second question is with respect to the promoter pledge part. I remember last year when we discussed, the idea was to bring it down completely to zero in FY26, but as I can check, it is still around 39%. So can you give us a roadmap as to what does the management see?

And immediately, roadmap, I cannot tell, but in the last, you know, call, you know, we said that, you know, in the upcoming financial year, we are going to come out of this, and we stand by that, actually, which is this financial year.

Thank you. Parthi, I'll request you to come back for a follow-up question. Next question is from the line of Ayush Agarwal from MAPL Value Investing Fund. Please, go ahead.

Yeah. Hi, sir. Good morning. Thanks for the opportunity. My questions are pertaining to the subsidiary ideal exposives. I want to understand more on the TNT and HMX side. First question is, you know, if you can tell us why are we going with a smaller expansion, not a larger one? What is the particular expansion like CAPEX size we are doing in TNT and HMX? I understand it's 500 tons for TNT and 50 tons for HMX, but, like, you know, what capital will be used for that, and why not a larger capix for these two products?

So, Ayush, primarily the TNT and HMX licenses which we obtain are the idea that for our industrial exposure requirements, actually, again, the capacities are not limited to that. For the higher capacities for the different exposure requirements, you know, we will be doing a very large expansion. So, the BPAs are getting ready, and as and when, you know, we feel it's going to be, you know, necessary that, you know, it has to be open in the market, you know, we will keep, you know, disclosing, keeping in view of the sensitivity of the area that we are working with to the investors. I understand. One more question on these products is, you know, what would be the global demand, in your opinion, for TNT, and what is the supply situation against it? Are there a lot of, you know, plants

coming up outside of India to cater to this global demand, and can we see prices coming down that have gone up in the last two, three years?

Globally, the conflicts have been boiling at the highest peak level in the last six years. You know, there is a huge depletion of stocks across the world in various countries. And keeping in view of the ESG and other, you know, issues, you know, there are a lot of plans which are unoperational for several decades in many countries. So this brings a lot of opportunity for the explosive companies both in India as well as across the world, actually. So, the idea behind the, you know, getting into exclusive was one that, you know, we wanted to get into previous platforms, now that we have a lot of experience that we have put up, and some of which we have already demonstrated, and we have been qualified, and some of the cases, you know, we have been qualified as a production partner as part of the D-I-D program. Some of the programs, we are directly developing ourselves with indigenous, you know, you know, R&D and, you know, So, both as a captive requirement is one thing we are going to do. Now that, you know, we are going to, you know, build up a facility for a captive requirement, we will also be serving for the other markets also.

Thank you. I shall request you to come back for a follow-up question. Next question is from the line of Amit Kumar from HDFC Securities. Please go ahead.

Good afternoon, sir. Congratulations for a great set of numbers. I hope I'm audible. Yeah, very much. Yeah. So, congrats, sir, for a great set of numbers and a lot of licenses from the Government of India. So, my only question is, we can see a lot of potential from these new licenses, missiles, ATGMs, torpedoes, mines, aerial bombs, etc. So, can you please spend two minutes to explain that how much is the revenue potential from each of these? I mean, I'm not, I mean, holding up for a specific number, but at least the guidelines and what could be the timelines for these materializing could be of great help.

All variants of mine, we have, you know, two variants of mine, one shallow, one big water. And, you know, we have two variants of mine, which are liquid mines, which are diver-carried mines. All these, only these variants of mine alone would be a cumulative, you know, market, you know, very immediate market size or something like $4,000 to $4,000, of course, you know, that we are expecting, which out of this, some of the, you know, orders, you know, which we will be having this time and clear, some maybe next, next of the time and clear on a continual basis. We also have some opportunities, you know, overseas, you know, we have started permitting our offers. So just to give a glimpse of one area. So aerial bombs are bum bombs primarily. It's also a very sizable market. We are trying to, you know, reduce the cost of, you know, the production of it and something the trials have already been successful, successfully. This is something which we are working with the idea. Like that, there are many other opportunities, you know, it will be too exhausting, you know, to take up in this call, but, you know, the addressable market opportunity for the licenses that we have got is pretty large as a stamp, out of which we are qualified that it still runs into a, you know, decently very large number.

Okay. Also, I mean, if I can squeeze in. So, I mean, considering all of these products, can we see a visibility for at least next five years at the current pace of growth?

That's something which I have already told in my speech itself, that, you know, we will continue to grow at the same pace or an accelerated pace in the years coming ahead, including this financial. Okay.

Thank you, sir. Thank you. Next question is from the line of Aryan Singh from Hame Securities. Please go ahead.

Congratulations, sir, on the great set of numbers. My first question is regarding composition of the order book.

And this is not order book. We have never given, you know, I would like to refrain from the questions. I want to take it offline.

Okay, sir.

My second question is, like, what are going to be the best products which are going to contribute most of our revenue in the coming years? No, it's not like that, you know, what products are going to contribute to revenue, you know, primarily there are two aspects of it. One, you know, predominantly our business has been coming through the idea with our development programs and through the system integrators, you know, where whoever has been, you know, awarded the, you know, integration of a larger platform. So, you know, it all depends on, you know, which systems are, these platforms are getting into production phase in various years. So, it's really a very tricky question to answer, you know, as and when there is an order book, then I will be able to tell that this is happening. But the next period of, you know, a few years, you know, how that will culminate is something new. But please keep a watch on various weapon programs that are getting into production and the announcements that are given to the government or various system integrators, including the different CSUs and the private system integrators who have got orders and, you know, which are getting into production. And all of those programs, we will be, you know, having our, you know, presence.

Okay. Thank you, sir.

Thank you. Next question is from the line of Kavish Parekh from 361 Capital. Please go ahead.

Hi, team. Thanks for the opportunity. My question pertains to the current global supply chain environment. Are you witnessing any disruption in the availability of key supplies of critical components at this point? And could you also highlight the countries or regions from which you store these critical inputs? And if there is any potential impact that you see on your production timelines or costs or overall operations, if these situations persist?

Nothing. See, the geopolitical issues and something, you know, which are not new or something which are based on the current conflicts or something, this has been there since time immemorial. Okay. So, but, you know, as far as the, you know, performance point of view is concerned, you know, whether there will be a significant vent or not, you know, in the years to come, that's something that, you know, is very tough to answer, actually. But there could always be a timing issue because of the various, you know, operational conditions which are running across the globe. So, as the day stands, you know, the very immediate, what do you call, global issue which we have faced with corona, and at that time, there was a supply chain disruption. Then there was a reset of, you know, how to work in this particular type of environment of giving a guidance of, you know, what material at what point of time, you know, has to be, you know, procured. So, that's how we used to give our, you know, guidance to our, you know, OEMs and suppliers of the various semiconductors, which are our primary raw material. Accordingly, you know, we were procuring. Okay, the similar research will keep happening as, you know, as and when any such, you know, global events happen. But I think very immediate effects of, you know, inventing of the, you know, overall performance, you know, is something, you know, I don't contemplate. But the timing of the, you know, revenue recognitions may shift by a quarter or so. So, I'm not specifically talking about mini assets, you know, as an industry also, actually. But broadly, per se, if you have to ask me, as of now, there's nothing very significant, you know, that I could see. Everything is normal. As I'm speaking to you, now I'm a Middle East, you know, everything is good to go here, you know, everything is normal. So, I don't think any issue should be there.

Great, sir. Great, sir. Good to know that. Thank you so much. That was my question.

Thank you. Next question is from the line of Vivek Gautam from GS Investments. Please go ahead.

Yes, congratulations on good set of numbers. What I especially liked was the letter written by you. It was a very heartfelt letter and very sincere. And actually, we've just started checking the company. So, basically, if you don't mind, if you can repeat the, basically, the expected growth rate for our company, opportunity size for us in India, and the differentiators for our company, and are there any products where we are making sort of a monopoly, sort of competition intensity, quite lesser. So, these are my questions.

So, if I say that, you know, I am doing, I'm having a monopoly over certain things, you know, then it becomes quite controversial. So, I would not like to, you know, term anything like that. But definitely, we have a uniqueness, you know, in terms of certain products where we are the only company who got qualified in certain areas. And in certain areas here where, you know, we are the only, you know, qualified, you know, company who is a full-fledged developer with all-round, you know, IT available with us, including the explosive portion of it. Although there are, you know, competition, you know, in certain areas where they end up to be only a system integrator or a production partner, actually. So, it's a variable listing, but there is nothing like a monopolization may not be as the right word, but we have a unique standing point where we have the ability to re-engineer and develop and advance technologies by virtue of holding the IP data, Which is a key differentiator compared to many other peer players of that specific technology or of that particular area of where we are working. That's how, you know, I would like to, you know, professionally term it as.

And coming to the opportunity size and exports also, and also the fact that the last budget, if I'm not wrong, last financial year was the first year by Government of India where the 100% allocated defense budget was used. And I believe the Dynamic Defense Secretary Mr. Singh is doing great work over there. So what is the expected growth rate for us and the company and the sector?

Definitely a dream come true and definitely a beautiful achievement by, you know, Ministry of Defense, Government of India. I personally congratulate, you know, for all the stakeholders who have contributed in achieving that. And unfortunately, I could not be a part of, you know, that achievement, which I definitely regret on my part. But we are very strong in our condition that, you know, our exports going forward will start engine to grow and subsequently will start escalating on a, you know, higher scale. For which, you know, all the requisite initiatives, we have started taking up the audits by some of the customers of interest, you know, who are interested to work with us and place orders, which are export opportunities, you know, the audits have already started, actually. And we are just, you know, expecting our new facility to get ready so that, you know, we can firmly and strongly take up the opportunities because once we commit, you know, we have to deliver them on time. And that's something which will be very important. And now that the portfolio of the, you know, Explo is also going to be growing in the next few quarters today, this is something a larger opportunity we would be eyeing. You already, as I already told to other, you know, investors in the concom, we already started, you know, submitting our offers for various export opportunities. And in the years ahead, we will be having some meaningfully good, decent amount of share in the export, you know, size we see, you know, which is being, I mean, say, recorded as an export from the country.

And there was one large order from Navi for, I believe, mines or something, torpedoes or something.

Yeah, yeah, we are expecting at any moment, we are expecting at any moment, any moment, we should be getting this approval from the initial return to the bank approval. So, as in then...

Sir, sorry to interrupt, your audio is not clear.

So, we are expecting this dot approval at any moment. As in then, we will see, we definitely keep you posted, but this is something which is going to happen very shortly.

That's wonderful to you, sir, and the government also intends on spending the full defense budget allocated. Good times are there for us, sir. Thank you very much, sir.

Thank you. Next question is from the line of Raj Rishi from DCPL. Please go ahead.

Yeah, hi, sir. Mr. R.K. Singh, the Defense Secretary, recently said in the CIA summit that the private sector might be involved in this ballistic missile production. So how do you see yourself if this happens?

It's fantastic if someone is taking the opportunity, then, you know, I should be a key contributor because I have a lot of bill blocks already available with me. But presently, that's not something that we are eyeing by ourselves.

It will expand the opportunity size for you, right?

We will definitely expand the opportunity side. You know, we have some interest coming from a few players, you know, who are eyeing to very large programs. We will be, you know, more than happy to work in a collaborative mode. This is definitely an era of collaboration. You know, we are open for opportunities wherever and whoever company would like to collaborate along with us and utilize the length and breadth of the experience in the IT build blocks that we have built over the last 40 years. And it would be lovely working, you know, together on a consortium basis. That's how I would comment as of now.

And, sir, this government proposed R&D fund of 1 lakh crore. How do you see yourself being affected by that, positively or otherwise?

I'm not serious. You could have any thought on that, you know, as of now. I have no comments on it.

Thank you. Raj, I'll request to come back for a follow-up question. Participants? I'll request you to limit yourself to one question per participant. Next question is from Laino Shreyanj from SG Securities. Please go ahead.

Hi, good morning, sir. I have a couple of questions. The first one was on the acquisition that we have. I think we've been talking of that RF acquisition. So if you could give some more details on where, you know, which line of, which area we have that acquisition and like quantum and what kind, like how do we intend to fund that, some more details around that.

I know you said it's going to close this year, but where are we with that? As of now, I'm born, as of now, I'm born to India and not be able to divulge any much detail. In the next few, I mean, you know, before the end of this quarter, we'll start getting to hear, you know, more significant news, which we have been vocal during the last quarter of the fall as well. So that has got little delayed, you know, owing to the, you know, global conflicts and, you know, the various processes internally that, you know, we were contemplating couldn't happen. But as in, as things get, you know, progress a little more, you know, we will be more vocal and I will keep your question.

Thank you. Next question is from the line of Ankur Kumar from Alpha Capital. Please go ahead.

Hello, sir. Thank you for taking my question. Sir, I wanted to understand on this order book of 1430 odd crore, how much of this we expect to execute in this year?

A little tricky question, you know, we have, you know, a few upcoming orders as well, you know, some of the orders, you know, will be executed in this financial year, some will spill over to the next financial year, but we have some or a few orders expected in this financial year, you know, which will appeal to the momentum growth that we have been demonstrating, so I can say.

For this year, what is, what should be our estimate on revenue and margin, sir?

We'll continue to grow at similar tips.

Thank you. Ankur, I'll request you to come back. Next question is from the line of Ankur Shagarwal from Sovich Capital. Please go ahead.

Yeah, hi. Thank you for taking my question. So, firstly, if I look at our scandal in the UK for the year,

The question is

that our guidance for the organic growth was about 45 to 50 percent in terms of revenues. The standalone revenue growth for this year has been around 36 percent, so slightly lower than that. So, just wanted your thoughts on that, and going ahead, do we continue to maintain the 45-50% stage of organic food guidance, or are we sort of changing it, given that some of the bigger orders that we were expecting last year's implemented is this?

Second projects which we expected to be, you know, excluded in the last quarter of, you know, previous finance year, that couldn't happen because of the present approvals, you know, which was pending, actually, from our customer, again, which was still lying. That's all the folding, you know, inventory is all about, actually. That's something that we would be getting eventually, you know, generally these are all timing-based, based on the various approvals that we get from time to time. It's fully restricted, actually. So, that's how, you know, we couldn't meet that, you know, 8-9% of guidance, you know, we have just got missed. But we will bounce back and, you know, we will continue to maintain similar momentum.

Thank you. Next question is from the line of Rahel Dasani from Metal Analytics. Please, go ahead.

Yeah, hi. Am I audible?

Yes, sir.

Yeah, I have two quick questions regarding IDL Explosives. First of all, how easy is it to get into the different explosive customers and utilize a new capacity, especially IDL having an industrial explosive supplier tag? And secondly, what margins are possible in TNT and SMX? Because as we know, IDL is currently loss-making, and maybe this expansion and new products change that. Otherwise, Apollo's stand-alone numbers will dilute.

Good question, you know, the second part of it. I will tell you, see, on an averaging, when it goes for a consult, then definitely there will be a trip owing to the, you know, presently negative bit of ideal. But as I already told that, you know, it's in a transformation phase, It's just purely temporary, and, you know, this is something which will start getting bonds back in the next few quarters down the line. Regarding the, you know, exact margin, you know, kind of a guidance that I will start giving from Q3 on this, which I have already told, actually. Regarding your first question, you know, whether this, you know, the new market, you know, which is, you know, the different explosive thing, we are already part of a different explosive market. The various systems that we are supplying already, you know, are filled with it and where we are actually outsourcing it. This is something that we would continue to do with our capital systems, actually. So, we have been part of the defense ecosystem. We have been part of the defense technology ecosystem, which is the ideal. So, I don't think there is any challenge with us, you know, for us, rather, you know, to penetrate much deeper into the market. The size of the market is pretty large, and the size of the industry size, you know, which is, you know, Now, presently, supplying for it is pretty small. So I think, you know, we definitely have a very large opportunity owing to both capital requirements and also for the requirements of the country.

Thank you. Ladies and gentlemen, we'll take that as our last question. I'll now hand the conference over to the management for closing comments.

Yeah, thanks. So we extend our sincere gratitude to the Ministry of Defense and Government of India Thank you. to all our extreme investors and analysts for being with us today. Your continued trust and partnership means the bold to us. Your participation and feedback are invaluable to us. We remain committed to enhancing our performance and driving sustainable growth. We look forward to welcoming you to our facilities where you will have the opportunity to observe our operations and initiatives at the ground level. If you have any further questions or just to share your thoughts, please reach out to Investor Relations or write to us at Thank you very much.

On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect tonight. Thank you.