Apollo Micro’s margin rebounds as quarterly revenue growth outpaces costs
Operating margin rose 3.09 percentage points QoQ, while the stock’s +9.55% first-session gain was unusually large for its recent results history.
Filed 18 May 2026, 15:31 IST · after market close · Apollo Micro Systems Ltd (APOLLO)
Key takeaways
- Consolidated revenue rose +81.28% YoY to Rs 293.26 cr, while operating margin expanded 0.82 percentage points.
- Quarterly momentum improved as revenue grew +16.27% and expenses +11.78%, lifting operating margin by 3.09 percentage points.
- Shares rose +9.55% in the first session after the filing, versus a 1.95% median absolute post-results move across eight results.
Price around the results
Q4FY26 revenue acceleration lifted operating profit
Consolidated revenue grew +81.28% YoY and +16.27% QoQ, while operating profit increased +87.94% YoY and +34.23% QoQ. The sequential improvement was supported by expenses growing +11.78%, slower than revenue, which lifted operating margin by 3.09 percentage points to 23.07%. Interest expense also fell -33.33% QoQ, supporting the increase in profit before tax.
Margin recovered from the Q3FY26 trough
Operating margin had declined from 30.64% in Q1FY26 to 26.28% in Q2FY26 and 19.98% in Q3FY26 before recovering to 23.07% in Q4FY26. On a YoY basis, expenses grew +79.37%, slower than the +81.28% revenue increase, resulting in a 0.82 percentage-point margin expansion. The company’s margin was 7.41 percentage points above the 15.66% median for 71 Industrials peers that had reported the quarter.
Lower tax rate helped the YoY profit conversion
Net profit grew +163.54% YoY, ahead of the +149.05% increase in profit before tax, as the tax rate fell by 3.67 percentage points to 32.86%. Sequentially, the tax rate rose by 5.34 percentage points, partly limiting the benefit of the operating recovery. Other income contributed 5.82% of pre-tax profit, so it was a supplementary but not dominant part of earnings.
The post-results rally was unusual for Apollo Micro
The stock gained +9.55% in the first session after the results, with a +5.08% opening gap and volume at 9.24 times the reference level. That reaction was notably stronger than the stock’s recent pattern: six of the last eight post-results moves were negative, and the median absolute move was 1.95%. The shares were up +32.51% after five sessions and +41.33% after 30 sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹293 cr | ₹252 cr | +16.27% | +81.28% |
| Other income | ₹3 cr | ₹1 cr | +250.55% | +336.99% |
| Expenses | ₹226 cr | ₹202 cr | +11.78% | +79.37% |
| Operating profit | ₹68 cr | ₹50 cr | +34.23% | +87.94% |
| Operating margin (%) | 23.07% | 19.98% | — | — |
| Interest | ₹9 cr | ₹14 cr | -33.33% | -14.18% |
| Depreciation | ₹7 cr | ₹6 cr | +14.08% | +68.36% |
| Profit before tax | ₹55 cr | ₹32 cr | +73.55% | +149.05% |
| Tax | ₹18 cr | ₹9 cr | +107.25% | +124.00% |
| Net profit | ₹37 cr | ₹23 cr | +60.80% | +163.54% |
| EPS (₹) | ₹1.09 | ₹0.69 | +57.97% | +136.96% |
Operating margin of 23.07% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +9.55% | +9.68% |
| Next session | +14.69% | — |
| 5 sessions | +32.51% | +31.39% |
| 15 sessions | +27.99% | — |
| 30 sessions | +41.33% | — |
Volume on the results session was 9.24× its 20-day average.
What to watch
- Whether operating margin holds above 23.07% after the Q4FY26 recovery.
- Whether revenue growth continues to exceed the +11.78% sequential expense growth recorded in Q4FY26.
- Whether the tax rate moves below or above 32.86% in the next quarter.