Are Apollo Micro Sys latest results good or bad?

Apollo Micro Systems has reported its financial results for the quarter ending June 2025, showcasing notable growth in several key metrics. The company achieved a Profit Before Tax (PBT) of Rs 24.42 crore, reflecting a year-on-year growth of 115.72%. Profit After Tax (PAT) also saw a significant increase, reaching Rs 18.51 crore, which corresponds to a 119.6% rise compared to the same period last year. Additionally, net sales amounted to Rs 133.58 crore, marking a year-on-year growth of 46.47%. The operating profit reached Rs 40.93 crore, the highest recorded in the last five quarters, with an operating profit margin of 30.64%, indicating enhanced operational efficiency.
However, the company is facing challenges as well. Interest expenses rose to Rs 12.03 crore, a quarter-on-quarter increase of 13.71%, suggesting a rise in borrowing costs. Furthermore, the debt-equity ratio has reached 0.55 times, the highest in the last five half-yearly periods, indicating a greater reliance on debt to support operations.

Overall, while Apollo Micro Systems has demonstrated strong growth in profits and sales, it is also contending with rising interest expenses and increased leverage. The company saw an adjustment in its evaluation in light of these results.