Apollo Micro Systems shares: Defence stock up 60% in 2026, soars 8% in Q2 rally - Key levels to watch ​next

Apollo Micro Systems shares extended their post-earnings rally on Tuesday, 27 October, surging 8.5% after the defence electronics company reported strong year-on-year growth in its September quarter earnings.The stock opened at ₹415.10 apiece on the BSE and climbed to an intraday high of ₹446.40, while the day's low stood at ₹414. Apollo Micro Systems shares have gained around 45% over the past six months and nearly 60% so far in 2026.The stock had rallied nearly 9% on Monday after the company reported robust Q2 FY27 results, with net profit and revenue registering strong year-on-year growth.Apollo Micro Systems Q2 resultsApollo Micro Systems reported a 55.6% year-on-year increase in net profit to ₹48.4 crore in the September quarter, compared with ₹31 crore in the corresponding quarter last year.

Revenue from operations surged 72.2% to ₹388 crore from ₹225.3 crore a year earlier.The company said its Q2 revenue of ₹388 crore was its highest-ever for a September quarter. EBITDA rose 87.6% year-on-year to ₹111 crore from ₹59.2 crore, while the EBITDA margin expanded to 28.6% from 26.3%.The company also reported a record September-quarter profit after tax (PAT), with its order book reaching an all-time high of ₹1,765 crore.

Other income during the quarter stood at ₹3.5 crore.Apollo Micro Systems Managing Director Baddam Karunakar Reddy said the company's best-ever Q2 performance reflected strong execution, resilience and a continued focus on key priorities.Building on this momentum, the company plans to accelerate execution, sharpen its strategic focus and respond to the evolving needs of the defence sector, Reddy said.He added that Apollo Micro Systems remains committed to strengthening its capabilities, supporting India's defence preparedness and delivering products with greater speed and discipline.Apollo Micro Systems outlines Vision 2036

The company also unveiled its Vision 2036, outlining its ambition to evolve into a global original equipment manufacturer (OEM) over the next decade, with established revenue streams across land, air and sea defence domains. As part of this long-term strategy, Apollo Micro Systems plans to expand its presence in domestic and international markets, develop products focused on customer value, and strengthen its research and development capabilities by adopting advanced, next-generation technologies.

Technical Views Ruchit Jain, Head of Equity Technical Research at Motilal Oswal Financial Services, said Apollo Micro Systems is on the verge of breaking out of its recent consolidation phase. He noted that a sustained move above the ₹440 resistance level could signal further upside in the near term. On the downside, immediate support is placed around ₹400. Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, a SEBI-registered research analyst firm, said Apollo Micro Systems has formed a double-bottom pattern on the weekly chart and rebounded sharply, gaining around 17% over the week to trade near ₹439.

He identified ₹450–465 as the immediate weekly resistance zone, adding that a weekly close above ₹465 could open the way for upside targets of ₹555 and ₹572. On the downside, he flagged ₹370 as a key support level, below which the technical structure could weaken. Gaurav Arora, Head of Research at SAHI, said Apollo Micro Systems has been consolidating, as reflected in the flattening curvature of its exponential moving averages (EMAs) on the daily chart.

He noted that the stock is completing its base formation and moving towards ₹466, its previous high. This represents a retest of the levels from an earlier base breakout, while ₹355 remains a key downside level to watch. Arora added that a sustained move above ₹466 would confirm another base breakout, a pattern the stock has displayed repeatedly in the past. He said buying support has typically emerged near the 20-week EMA.

Ponmudi R, Founder and CEO of Enrich Money, said Apollo Micro Systems has witnessed renewed buying interest, with the stock gaining over 5% to trade around ₹433.35, backed by strong trading volumes of approximately 2.69 crore shares. He said the broader technical structure remains positive, with the stock trading above its 100-day moving average of ₹401 and 200-day moving average of ₹331, signalling sustained medium- and long-term bullish momentum.

Following a sharp rally, the stock has been consolidating in a broad range of ₹380– ₹447, indicating that investors are awaiting a decisive breakout. The immediate resistance lies at ₹440– ₹447, and a sustained move above ₹447, backed by strong volumes, could extend the rally towards ₹460– ₹470 in the near term. On the downside, ₹420 is the immediate support, followed by the crucial ₹400– ₹402 zone, which coincides with the 100-day moving average.

A decisive break below ₹400 could weaken the short-term bullish structure and trigger further profit booking towards ₹380. “While the underlying trend remains constructive, the sustainability of the current rally will depend on the stock’s ability to overcome the ₹447 resistance zone,” Ponmudi said. He cautioned investors against chasing sharp rallies near resistance, emphasising that a confirmed breakout, supported by sustained price action and volume participation, is essential. He also advised investors to follow disciplined risk management.