Are Apollo Micro Systems Ltd latest results good or bad?

Apollo Micro Systems Ltd's latest financial results indicate a notable operational performance, particularly in the context of the defence sector's growth. For the quarter ended December 2025, the company reported a year-on-year revenue growth of 69.97%, reaching ₹252.22 crores, which reflects a strong demand environment. However, the consolidated net profit growth was reported at 40.64%, a decline from the previous year's growth rate of 83.33%. This suggests that while revenue generation is robust, the pace of profit growth has moderated. The operating profit margin, excluding other income, was reported at 19.98%, which represents a decrease from the previous year's margin of 25.57%. This decline in margin indicates potential pressures on profitability, possibly due to increased costs or changes in the product mix. Additionally, interest expenses rose significantly by 55.59%, which could impact overall profitability moving forward. Overall, while Apollo Micro Systems Ltd has demonstrated strong revenue growth driven by operational momentum, the moderation in profit growth and margin compression raises questions about the sustainability of these trends. The company also experienced an adjustment in its evaluation, reflecting the complexities of its financial performance amidst a dynamic market environment. Investors and stakeholders should closely monitor these developments as they may influence future operational and financial strategies.