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Apollo Micro Systems shares gain over 7% acquiring entire stake in IDL ExplosivesApollo Micro Systems's acquisition of IDL Explosives will have a range of benefits for the former, including consolidation of core, high-value defence assets, drive margin expansion via cost efficiencies enabled by vertical integration, enhanced ability to pursue large-scale, high value projects, among others. By Shloka Badkar   May 5, 2025, 12:23:58 PM IST (Published)2 Min ReadShares of Apollo Micro Systems Ltd. gained over 7% on Monday, May 5, after the company acquired 100% stake in IDL Explosives Ltd. for ₹107 crore in an all-cash deal.

The transaction is expected to be completed within two to three months.

IDL Explosives, which is a subsidiary of GOCL Corp Ltd., is engaged in the manufacturing and supply of packaged and bulk explosives used in mining and infrastructure projects. It reported a revenue of ₹623 crore during financial year 2024.

The acquisition will have the following benefits for Apollo Micro Systems:

Lead to consolidation of core, high-value defence assets and know-how.

Unlock access to adjacent high-value domains such as precision-guided. munitions, loitering systems, warheads and autonomous weapon platforms.

Drive margin expansion via cost efficiencies enabled by vertical integration.

Enhance the ability to pursue large-scale, high value projects.

Increase total addressable market (TAM) and extend reach into high-potential markets across east and west Africa, the Middle East and South East Asia.

Apollo Micro expects the global explosives market to grow at a Compounded Annual Growth Rate (CAGR) of 8.8% by financial year 2029 to $9.37 billion.

"The surge in government spending on the defense sectors in various countries including The USA, China, India, Russia, The UK and France is projected to be a major driver for the growth of the explosive market during the period," the company said.

Apollo Micro Systems reported a net profit of ₹32 crore and revenue of ₹372 crore in the financial year 2025. Its revenue grew by 25% from the previous year. Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) during the quarter stood at ₹84 crore, while margin expanded to 23% from 22% in the previous fiscal.

The company's order book, at the end of the third quarter of FY25, stood between ₹500 crore to ₹550 crore. Its revenue growth for FY26 is expected between 45% to 50%.

Shares of Apollo Micro Systems gained 7.3% to hit an intraday high of ₹124.99 apiece on Monday, May 5. The stock was up 5.68% at ₹123 apiece at 11.50 am. It has gained 13.7% in the past month.

With inputs from Rhea Bhatia

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