Date: 12th February, 2026

BSE Limited, National Stock Exchange of India Ltd.,

Department of Corporate Services Listing Department
Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G,
Dalal Street, Mumbai – 400 001 Bandra Kurla Complex,
Bandra (E), Mumbai – 400 051

Scrip Code: 540879 Symbol: APOLLO ISIN: INE713T01028

Subject: Transcript of the Earnings Conference Call held on February 9, 2026 under
Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Dear Sir/Madam,

Pursuant to Regulation 30, read with Part A of Schedule III, and other applicable provisions of the
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended and further to our intimation dated February 2, 2026, regarding
schedule of the Earnings Conference Call with investors, we wish to inform you that the conference
call was held on Monday, February 9, 2026.

Transcript of the above-mentioned Earnings Conference Call is attached herewith and can also be
accessed at: [Link]

We request you to take the above on record.

Thanking You

Yours Faithfully

FOR APOLLO MICRO SYSTEMS LIMITED

BADDAM Digitally signed by
BADDAM
KARUNAKA KARUNAKAR REDDY
Date: 2026.02.12
R REDDY 12:15:14 +05'30'

BADDAM KARUNAKAR REDDY

MANAGING DIRECTOR
DIN: 00790139
 “Apollo Micro Systems Limited
Q3 FY '26 Earnings Conference Call”
February 09, 2026

MANAGEMENT: MR. BADDAM KARUNAKAR REDDY – MANAGING

DIRECTOR – APOLLO MICRO SYSTEMS LIMITED
MR. ADDEPALLI SAI KRISHNA KUMAR – WHOLE-TIME
DIRECTOR, OPERATIONS – APOLLO MICRO SYSTEMS
LIMITED
MR. SUDARSHAN CHILUVERU – CHIEF FINANCIAL
OFFICER – APOLLO MICRO SYSTEMS LIMITED

MODERATOR: MR. VIKASH SINGH – ICICI SECURITIES

Page 1 of 19
 Apollo Micro Systems Limited
February 09, 2026

Moderator: Ladies and gentlemen, good day and welcome to the Apollo Micro Systems Q3 FY ‘26 Earnings
Conference Call hosted by ICICI Securities Limited. Certain statements during the conference
call may be forward-looking statements. Such forward-looking statements are subject to certain
risks and uncertainties.

As a reminder, all participant lines will be in the listen-only mode and there will be an
opportunity for you to ask questions after the presentation concludes. Should you need assistance
during the conference call, please signal an operator by pressing star then zero on your touchtone
phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Vikash Singh. Thank you, and over to you, sir.

Vikash Singh: Thank you. Good evening, everyone. Welcome to Apollo Micro Systems Q3 FY ‘26 and nine-
months FY ‘26 Results Conference Call. From the management side, we have with us Mr.
Baddam Karunakar Reddy, Managing Director; Mr. Addepalli Sai Krishna Kumar, Whole-Time
Director, Operations; and Mr. Sudarshan Chiluveru, CFO.

Without taking any much time, I'll hand it over to Mr. Reddy for his opening remarks. Over to
you, sir.

Karunakar Reddy: Yes, good morning. This is Karunakar Reddy, Managing Director. Joined with me, Mr. Sai
Kumar and our CFO, Mr. Sudarshan Chiluveru. Mr. Sai Kumar will be presenting. Then after
questioning this thing, answering this thing, I will be responding to you. Okay? Over to Mr. Sai
Kumar, please.

Sai Kumar: Thank you, sir. Good evening, everyone. Thank you for being with us today. It's always a
privilege to engage with our valued investors and provide updates on our performance strategy
and future outlook. I'm pleased to share that we have delivered our highest ever quarterly and
highest ever nine-month revenue marked by consistent execution, operational discipline, and a
strong commitment to indigenization and the Make in India initiatives.

I trust you've had the opportunity to review our financial results, letter to shareholders, press
release, tear sheet, and investor presentation. This marks our third interaction for the fiscal year
2026. We are pleased to begin with two significant milestones that mark our continued growth
and global progress.

First, we are also pleased to announce that an additional acquisition by ADIPL, which is
expected to be completed before the end of this financial year. This acquisition will significantly
enhance our organic growth and overall strength.

Looking ahead, we expect revenue to grow at least at a CAGR of 45% to 50% over the next
three years, which has always been our, guidance since few quarters, solely by the core business,
excluding any contribution from the recent acquisition or the future acquisitions that we do in
this financial year. This growth is underpinned by a healthy order book and multiple products
entering into the production phase.

Page 2 of 19
 Apollo Micro Systems Limited
February 09, 2026

Let me now take you through our consolidated performance for nine months and third quarter
ended 31st December 2025. In Q3 FY ‘26, we delivered highest revenue ever and the revenue
surged by 70% YoY basis to INR252 crores, up from INR148 crores in Q3 FY ‘25 as a result of
our robust order book execution and successful transition of multiple products into the
production phase.

Our EBITDA, excluding other income, rose sharply by 33%, reaching INR50 crores in Q3 FY
‘26. PAT registered at 25% YoY increase to INR23 crores, compared to INR18 crores in the
previous year same quarter. The order book as on 31st December stood at INR1,305 crores on a
consolidated basis.

Considering nine months FY ‘26, we have delivered highest ever performance in our history.
Our revenue from operations has spiked 53% to INR611 crores, up from INR400 crores in nine
months FY ‘25. This trend has been continued in the EBITDA, excluding other income, which
has increased by 61% to INR151 crores compared from INR93 crores in nine months FY ‘25.

EBITDA margin has been expanded by 134 basis points in nine months FY ‘26. Our PAT has
climbed by 67% to INR71 crores, up from INR42 crores in nine months FY ‘25. These results
underscore our continued operational excellence and reaffirm the strength of our growth
trajectory in FY ‘26 and beyond.

We have evolved from being a subsystem and system manufacturer to establishing ourselves as
a full-fledged weapon system manufacturer, a significant milestone in our journey of growth and
technological excellence. Building on 41 years of technological excellence, we are poised to
evolve into a multidisciplinary defense system powerhouse to drive next generation innovation.
Our vision is bold, built on strong fundamentals and an unwavering commitment to create value
for all our stakeholders.

Thank you for your continued trust and support. We now look forward to addressing your
questions.

Moderator: Thank you very much. We will now begin the question and answer session. We take the first
question from the line of Sucrit D Patil from Eyesight Fintrade Private Limited. Please proceed.

Sucrit D Patil: Good evening to the team. I have two questions. My first question to Mr. Baddam is, looking
ahead, how do you see Apollo Micro Systems balancing between expanding defense and
aerospace contracts, investing in new technology, and protecting profitability? As the demand
for advanced electronics grows, what will guide your decision on which of these areas should
get the strongest focus in the coming quarters? That's my first question, I'll ask my second
question after this.

Karunakar Reddy: Yes, see like, the last quarter result also I was talking to your people. If we see the Government
of India, already DAC has cleared, Defense Acquisition Council has cleared already you must
be knowing. QRSAM one program is going for bulk production. And another program is Akash
NG also is going for a few hundred numbers. And if you see these two programs, our major
contribution is there, QRSAM also, Akash NG also our contribution is there.

Page 3 of 19
 Apollo Micro Systems Limited
February 09, 2026

And other side, naval systems also limited series production we have completed heavyweight
torpedo and we are now expecting bulk production order we are expecting. And also, we are
also doing the complete, one of the program like mine program, underwater mine programs, 3-
4 programs we are doing.

One program complete test trials also completed and anytime -- anytime this month I'm
expecting Defense Acquisition Council, DAC clearance also we are expecting. That is going to
be a major order what we are looking for immediately.

And other programs also underwater mine side if you see, couple of variants, other variants also
we are doing, limpet mine, two variants of limpet mines we are doing. We are also doing, like
deeper depth, there is a program called MOORED Mine, that MOORED Mine also anytime we
are expecting -- we are going to sign DCPP partner, as a DCPP partner we are going to sign with
DRDO.

That is also we are expecting already, fortunately, the MOORED Mine DAC clearance already
happened, the fund is in place. Only thing user trials we are yet to perform, once we complete
user trials, so we are expecting a very big order like MIGM, MOORED Mine also going to be a
big game-changer order for Apollo Micro Systems.

And many other programs like short-range programs, short-range missile programs, our
participation is there. Long-range like Agni missile, Agni 5, Agni 1 also going for a bulk
production, our major contribution is there in these programs also. And as I explained you last
previous meeting, missile technology side if you see, we have good contribution, subsystem-
wise if you see 63% of our contribution is there.

You name any program from short-range 4-kilometer range to 5,000-kilometer Agni missile
kind of thing if you consider, 63% of subsystems in fact Apollo Micro Systems is supplying to
DRDO, more than 80-90 programs. And already we are, we became DCPP partner for couple of
programs. We are also expecting two more programs we participated, anytime DRDO is going
to decide.

We are expecting one naval-based missile program, anti-ship program we are expecting, that
also I think this month DRDO is going to decide. And as you know like we are doing one
program, RGB 60 program, it's an anti-submarine program and we have done I think lab tests
and all we have done, we are going for a, I think trial tests, anytime we are planning for technical
trials.

And other programs like complete weapon systems kind of, and one of the program like anti-
drone swarm drones, hard-killing rocket we are making, that also I think we are going for trials
next month, first quarter. First quarter we are going for trials. All cursory checks and all, lab
tests and all we have completed, all simulations and all we have completed. The product is ready,
first quarter we are going for trials.

And many, many other programs are doing, at least couple of hundred programs, few hundred
programs we are doing. Every program our contribution is there as I explained you. Naval side

Page 4 of 19
 Apollo Micro Systems Limited
February 09, 2026

also we have contribution, and if you see land-based systems like launcher systems and all also
we have contribution. Missile technology if you see also our contribution is there.

LCA Mk2 is there, AMCA is there, AMCA also we are participating. Already we started doing
couple of subsystems. LCA Mk2 also we are doing almost something like five subsystems, very
critical systems design development activity we are doing.

And as you know like, explosive company also like we acquired IDL Explosives, we are now
going for a good expansion, we want to produce defense-grade explosive we want to produce,
and I think we are going to start another six months' time we definitely going to start producing
defense-grade explosive also. That is another plan is going on.

And also, we are planning to acquire couple of companies where we don't have presence. I think,
in fact, I think, before this financial year end, at least some three companies we are going to, we
are going for due diligence.

Sai Kumar: Due diligence is going on, at least one we will be able to close for sure.

Karunakar Reddy: Yes, if everything goes well, three companies are in pipeline and at least one or two companies'
acquisition we want to complete before this financial year end. That's all.

Sucrit D Patil: Thank you. My second question to Mr. Chiluveru is, again along the similar lines, as Apollo
Micro Systems plans for the next few quarters, what financial signals or metrics will be most
important in guiding you to take the decisions on cost control, working capital, and capital
allocation for R&D and capacity expansion? How do you see these levers shaping the company's
ability to protect the margins and deliver sustainable growth in the coming few quarters? Want
to understand your plan of action on this.

Sudarshan Chiluveru: As you already know, if you visualize, we have been spending around 9% to 10% of our outlay,
topline, as R&D expenditure since our company is a -- bread and butter is R&D. Unless we do
R&D, we cannot sustain and we cannot grow in the business. That's why sizable amount is
allocated for R&D, and we have even availed a term loan sanctioned by one of the banks, INR75
crores. Lot of programs we have taken up for R&D and around INR50 to INR60 crores we are
going to spend in the near future on R&D itself. That is one part.

The other part is we have massive expansion plans. As Phase 3 at Hardware Park we have
already commissioned partly in the October end, with a INR150 crores outlay with a term loan
of INR110 crores from State Bank of India. With our margin, INR150 crores worth of project
we have already implemented and another 2.5 acres we have acquired and we have started civil
works for further expansion.

And also, we have recently got allotment of another 5 acres of land adjacent to the existing
expansion plant from Government of Telangana, where we will be spending at least INR100 to
INR150 crores for further expansion. So it will be a state-of-the-art project once we complete
entire thing of project in the 10-acre, 10.5 acres of land. That is our expansion plan.

Page 5 of 19
 Apollo Micro Systems Limited
February 09, 2026

And as far as growth is concerned, we have been growing at a CAGR of 30% to 35% for the last
two-three years. The same tempo if everything goes well, whatever we are having plans of
getting the orders and all that, if it fructifies and we will be growing at 35% to 40% in the years
to come.

As far as order book is concerned, we are comfortable and with the addition of IDL Explosives,
we are into -- we will be growing into a full-fledged weapon manufacturer thing, earlier we were
having only a subsystem manufacturer. Now we can manufacture the entire missile. So order
book is good. And as far as finance is concerned, we have mobilized funds as through
preferential issue and bank finance is also made available to us as long as we need it, and all the
things are in place.

Sai Kumar: Yes, one more thing I want to share with you. See like cost-cutting wise, we are now going for
a -- we have implemented SAP and we started migrating into SAP. And also, we are doing one
automation, complete all factories now we are going for automation, we are almost
implementing Industry 4.0 standard we are implementing.

Wherein the management can see the complete machinery, how machinery is utilized, how
manpower is working, what is the machinery running hours, and if anybody/any of my customers
want to see also, they can remotely they can see, through video they can see and their status and
all in the text form also available, customer can monitor.

Management side also micro-level monitoring what we want to do, where manpower utilization
and machinery utilization properly we want to do because now Unit 2 we are -- we have two
units are there, explosive if you see explosive side four-five units are there, and third unit, third
unit itself some four units within 10-acre campus only we will be having four units in fact.

Four different buildings and it is a huge, almost going to have 5 lakh square feet area kind of
thing. Each main building is 2.6 lakh square feet area and other three buildings also more than
lakh square feet area we are building. So at the same time we are going for automation, so proper
utilization of manpower and complete machinery utilization also we want to monitor in an
automated this thing.

Sai Kumar: Yes, so the what CFO has talked about the R&D investment in the, we have already allocated
INR100 crore, for the R&D. The fund is already in place, some of which investments have
already taken place. The 9% to 10% what he talked about is in the subsequent years, up to 9%
to 10% is the investment that we are going to do in R&D, which is currently, earlier it has been
7% to 8% then it got dipped to 6%, primarily because our revenues have started kicking on a
continuous basis.

But going forward, the investments in R&D, will further increase. So that's one thing that I want
to add to what the CFO has told as a clarification as well actually. Yes, we can go to the next
question.

Sucrit D Patil: Thank you and best wishes.

Moderator: We take the next question from the line of Deekshant from DB Wealth. Please proceed.

Page 6 of 19
 Apollo Micro Systems Limited
February 09, 2026

Deekshant: Hello sir. Congratulations for the number. Impressed with the…

Moderator: Sorry to interrupt Deekshant, I would request you to come closer to your device and then speak.

Deekshant: Sure. Congratulations management, congratulations on the topline growth. We are seeing a
significant rise of cost in our employee expenses and our other expenses. While I understand
that we are in a growth phase right now and we are doing acquisitions so employee expense
might go up, but what's the major contributor to our other expense?

Sai Kumar: So if you see compared to the previous quarter sir, the other expenses in terms of the finance
cost and other things, got significantly reduced actually. Obviously, the depreciation going
forward also will increase because there's a lot of investment in terms of capex and continuous
investment in terms of the capital work-in-progress which is there in R&D, every quarter on
quarter basis, we keep capitalizing actually. Okay, and other things like, okay.

But if you see the employee expenses, we have gone in for a very, very, very large expansion.
Okay, from the current, size of the facility we have contemplated for an expansion of, 5.5 to 6.5
times. Now with the addition of the other new facility which we have recently announced that
we have been allotted 5.6 acres, up to 12x to 13x times, the facility will increase.

Proportionately the manpower also will be increasing actually. So in the next few months, the
manpower which is required for the next financial year, that recruitments also have started,
continuous basis. Hence the financial -- because training and other things like at all levels the
manpower have got increased.

From a managerial level, the head of the department level, the team leader level and at a junior
level also. So obviously the manpower has also got increased because the number of per
employee, number of projects handled by per employee is increasing on a continual basis. So
we are continuously increasing the manpower, so the cost of the manpower is increasing on a,
on a quarterly basis actually.

Deekshant: Sir, what is the core sort of other expense that is happening? Because depreciation I understand,
the sort of interest cost we are getting that also makes sense. But what is it the other expenses
that are really hitting us?

Sai Kumar: I will tell you. There's expenses related to, generally normally what happens that certain
expenses in the Q3 and Q4 will increase actually, primarily owing to, I mean to say this has been
the trend, primarily owing to we have an annual function, happening in, so that is one expense
that gets added. We participate in the, international shows and exhibitions, that is one expense
that gets added actually.

So these are certain expenses, which gets increased. But in last, few quarters, our travel expenses
also have got significantly, increased, primarily owing to huge business development, activity
that is taking place. And, in terms of the execution and integration also, lot of travel is happening
across multiple laboratories across India, pan-India basis actually.

Page 7 of 19
 Apollo Micro Systems Limited
February 09, 2026

So these are the different heads under which, the cost have got increased in the, I mean to say,
also we are doing trials, lot of trials also. Yes, the cost of the trials is also expenses that we are
putting.

Deekshant: So sir next, I have two quick questions. One is that you have mentioned 45% to 50% CAGR
growth for the next three years in your opening remarks, and that's something that has been
consistent. So what kind of margins on net that we can expect now? Because since we are now
going through a new leap of growth in our business which as investors, we are proud of, but
what kind of net margins can be seen now?

Sai Kumar: See on a PAT level, if I talk about, we are going, we are targeting for a 15% PAT level. Yes,
consolidated there could be a small, dip in the consolidated basis. Okay, I just want to talk on a
standalone basis, I'll just want to talk about standalone basis that, standalone basis the net profit
percentage, PAT percentage, we are targeting for 15%.

Consolidated basis, primarily what happens there is only one major consolidation which is
happening which is IDL Explosives actually. Okay, there, we are, we are having a little dip
because of the, previous RC contracts of the Coal India which IDL was handling actually. That
may -- that may have a little small impact towards, this thing, but I think overall on consolidated
basis also, if you see on a year-on-year basis, there will be a significant improvement in the,
PAT level margins which will be there, even after, the consolidation.

Deekshant: So you are expecting that this year end, the next quarter we will see around 15% on consolidated
basis plus-minus 1% or so?

Sai Kumar: No, no, no, on standalone basis 15%. There will be a dip in the consolidation, because of the
IDL, that's what I was trying to say.

Deekshant: So what would be the number?

Sai Kumar: But it will be better than year-on-year basis consolidation. That's what I was trying to say.

Deekshant: If possible, can you give us a number, sir?

Sai Kumar: Quantifying at this point of time is very difficult. We are just taking control of the full control
of the management because there are spread across seven plants, continuous basis, we are
reducing wherever there is a redundancy of, the expenses or the manpower and other things,
costs and other things, are being, done.

You have to accept a fact that, the acquisition and, this thing is a very organic process. We cannot
take, actions overnight because there are traditionally employees which are older than this
company. There are 41-42 years since, employees are there who are working in the company
actually. Stage-by-stage we are doing, but currently guidance point of view to give also, I do not
have a clarity of the numbers currently.

But from Q1 next financial year onwards, we will be able to give a guidance on the consolidated
basis. But the only thing, guidance that I can give at this point of time, not in an absolute number,

Page 8 of 19
 Apollo Micro Systems Limited
February 09, 2026

is that even after consolidation, even after there is a small dip also, year-on-year point of view,
the PAT level margins are going to be on higher side.

Target for the standalone basis we are targeting for a 15% margin. That's what is our internal
target.

Deekshant: Sir lastly is on underwater mines. This is something that we have been expecting from the
government and from our partners with PSUs for some time now. So what's been update on this
and what's like been a deterrent for us right now?

Sai Kumar: All necessary approvals at all levels are over actually. The, it is just awaiting for a DAC approval,
it has come to that level actually. We are most positive and likely that, it may, the file may come
up for the DAC approval in the upcoming DAC meeting or maybe it, if it gets slipped, for an
operational reasons because certain files, certain number of X number of files only they take up
actually, if it slips it may go for another DAC meeting.

Some clarity is yet to come for even for us, as much as you are waiting, the same way we are
also waiting. Operational-wise, everything is set, we are ready up for production, the
documentation, quality plans, everything are up and ready from our end, we are fully geared up.

The moment the switch is on, we can do production, that's the stage we have already geared up
ourselves. We are still awaiting as much as you were, as soon as something comes out, we will
-- we will give our disclosure.

Deekshant: And this would be a INR2,000-INR2,500 crores order that we are thinking of, right?

Karunakar Reddy: Yes, it is going to be INR2,500 crores. Plus we are also expecting my other DCPP partner BDL
also going to take equal order, from that also we are expecting few hundred crores orders.
Because we are making...

Deekshant: Do I have permission to ask one more question, sir?

Sai Kumar: Pardon me? Yes, yes.

Deekshant: Can I ask one more question? Okay. So sir right now we are also sort of seeing some increase in
approvals, so the production state that we are going to go into, at what point can we expect our
COGS to like, start going down? You are going for automation and everything else. So at what
-- right now it's around 70% our material consumed, right? So at what point can we see a
significant improvement here?

Sai Kumar: Yes, see this question we have been giving a reply to all the investors. Once again, I will give.
There's a significant improvement at a COGS level will happen once a large-scale production
orders kick up and which are going to be an anchoring orders over the overall toplines actually.

Till such a time, the similar COGS levels would be maintained actually because predominantly
most of the projects that we are addressing are, typically R&D projects and there is no control
at COGS level actually for that. But as the large-scale production orders which we are awaiting,

Page 9 of 19
 Apollo Micro Systems Limited
February 09, 2026

okay, they are, they are something, which are going to give a significant benefit at a COGS level
for them.

Management: And you must be knowing already DAC clearance now, I think around INR2 lakhs crores orders
MoD has already given clearance. Many, many programs, naval programs, missile programs,
couple of missile programs, and long-range missiles if you see, all together INR2 lakhs crores
DAC, already Defense Acquisition Council has already cleared. So, I think,

Sai Kumar: So these are all production orders what he means to say. These are all production orders. Once
they get into system integrator level, we are going to get that production orders, which will
definitely give a benefit for it.

Deekshant: Is there any timeline for these DAC meetings so that we are aware of?

Sai Kumar: It is not in our control, sir. It depends on availability of Raksha Mantri, various other officials
who are part of this thing, not in our control. Nor do we have any, we are not privy to the
information also most of the time.

Deekshant: No, I get it sir. That's confidential on their level, but I get it. Jai Hind, sir. Thank you so much
for continued work on this.

Sai Kumar: Thank you. Yes, I request everyone to restrict themselves with two questions. I am available
tomorrow, day after tomorrow for the two different conferences, you will have, if you are
attending the conference, if you are in Mumbai, you can meet me in person also. But I think,
because we will have to give opportunity for many of them, some of them are messaging me
personally also, that two questions I request most relevant two questions.

Moderator: Thank you. We take the next question from the line of Abhi Shah from Siddhi Technologies.
Please proceed.

Abhi Shah: One question regarding the subsidiary IDL Explosives. So there is a standalone losses on the
books of IDL Explosives. So what is the figure and when can we expect this figure to turn around
positive on an EBITDA margin and also on the net income basis? So when the subsidiary could
turn positive?

Sai Kumar: See primarily, if you see, there is INR4 crores loss that got added actually in the quarter, okay,
out of the 45 days that this thing is there. This quarter I think, we are expecting an EBITDA
level to be, break even, break even, okay. From next financial year Q1 onwards, the EBITDA
level and at a PAT level it was going to be a positive PAT, a positive EBITDA company actually.

Abhi Shah: Okay, so can we expect margin dilution this, this year in FY ‘26?

Sai Kumar: There will definitely be a margin dilution. There will definitely be a margin dilution which we
have told last quarter also actually. Okay, we have given that indication very brightly last quarter
itself. But you have to also observe that, the margin levels of the standalone financials, it has
significantly got increased, owing to, multiple types of systems, also entered – which have got

Page 10 of 19
 Apollo Micro Systems Limited
February 09, 2026

entered into production order in this financial year, which has given a benefit at a, I mean to say
EBITDA level as well as at the overall at the PAT level.

Okay, so owing to that, although there is, certain, in the consolidation basis there is certain
impact that is going to be there, but on overall as a consolidated basis although there is an impact
because of consolidation, on a comparative basis of year-on-year, there is still going to be an
improvement in the all the fronts, both at EBITDA level as well as at the PAT levels. That's how
we would like everyone to look at.

The rationale behind the purchase of IDL at the time of, entering the SPA agreement also we
have given in very much in detail, a detailed comprehensive, presentation we have given, that
it's a strategy with which, the IDL Explosives is acquired and, it takes few quarters for us to,
implement that strategy and bring it on to, defense-grade explosive, full-fledged this thing.

A huge capex is also being planned in IDL, which will contemplate for the future energetic
requirement both in terms of the propellant as well as in terms of the warhead explosive, for, for
our backward integration and also for, forward integration as a vertical integration, all three
levels. So it will this transition will take some time.

At the same time, in our investor presentation also we have told that, there will also be an
improvement from the next financial year owing that, we are doing a huge business development
for IDL Explosives alone on a standalone basis also where, huge export-oriented, market which
was untapped earlier is also being explored. Okay, and we have also given, decent amount of
funnel is already there in place, which will further improve the margins of the company.

Traditionally whatever, the levels at which this is there, it is going to be, subdued or compensated
with the export business as well as increase in the domestic business. Predominantly the business
comes from the Coal India, but also other, mining and infra projects also one after other, we
have started getting projects. And we have played a, key role by fighting in the court of law for
the ban of Coal India to be lifted actually.

And that was successful, we got Coal India projects, so the survival point of view there is no
problem, but Q1 onwards from the next financial year the EBITDA is going to be positive, PAT
is going to be positive. This year there could be a small, impact but there is not going to be a
serious dent on the financials at EBITDA level or the PAT level because the margin expansion
has significantly been there in the last three quarters for Apollo on a standalone basis, so that
small, impact of, the consolidation may not have a significant impact on the console side.

Abhi Shah: Thanks for the detailed answer. So again, one question I want to ask regarding the order book.
So can you just guide me what is the order book for IDL Explosives this quarter?

Sai Kumar: This quarter, the complete order book of IDL is standing at around INR500-odd crores actually.

Abhi Shah: INR500 crores. Okay. And okay. Yes, that's it.

Moderator: Thank you. We take the next question from the line of Akshay from AK Investment. Please
proceed.

Page 11 of 19
 Apollo Micro Systems Limited
February 09, 2026

Akshay: Hello, thanks for giving me the opportunity and...

Moderator: Sorry to interrupt Mr. Akshay, could you please come closer to your device and then speak?

Akshay: Okay, thank you sir and thanks for giving me the opportunity. Sir, my first question is about the
EBITDA margin, so at consolidated level not for this year because we have acquired IDL and
margin is stressed somewhat for that reason, but for the next financial year and FY ‘28, what
would be the consolidated EBITDA margins going forward? What are our targets?

Sai Kumar: No, margin levels guidance, For the EBITDA or at a PAT levels, at a Q3 level, I am not in a
position to give you. Okay, guidance we will give you, once the Q4 quarter ends based on the
outstanding order books that we have and the funnel that we have at the end of the 31st March.
Okay, that's point number one.

But broadly, there is an internal target of maintaining on a standalone basis 15% margin at a
PAT level. This is what is the guidance that we give, and we continue to stand on our guidance
on the topline revenues of increase of 45% to 50% growth. Okay, that that guidance we have
been giving and we will continue to stand on that point.

Akshay: Okay sir, and sir, my second question is about the promoter pledge, so when -- by when are we
clearing the promoter pledge?

Sai Kumar: Okay, see like everything goes well, no, like -- We are we are working towards it in few quarters,
we should be coming out. We have initially contemplated to come out in this quarter actually,
but I think in next few quarters, step by step one after other we should be coming out.

Akshay: Yes, Yes. Okay, thank you.

Moderator: Thank you. We take the next question from the line of Manoj Jain from Jain HUF. Please
proceed.

Manoj Jain: Namaste sir and Jai Hind. I would like to first state that, on the 5th of January I had sent an email
to you people, asking a certain question but I don't know why it was unanswered. Now the
question I'd like where which I placed there, I'm placing it once more here, which is that recently
in CNBC-TV18 and other some websites some allegations some articles came on this your
company in which it was alleged that something like that the shareholders had rejected a proposal
for approving related party transactions in tune of INR500 crores between Apollo Defence,
Apollo Strategic Technologies and IDL Explosives with almost 99% of the institutional
shareholders voting against the resolution.

So is this true? I don't know why the company did not refute it or say anything about it. So if
you can kindly clarify on this matter. Thank you very much.

Sai Kumar: I will clarify, sir. The point is like this, it is not a neither an allegation nor false, sir, it is in a
public domain. We have went we have gone in for an approval to shareholders stating that we
would like to give a corporate guarantee towards subsidiary companies actually. Okay, sir.

Page 12 of 19
 Apollo Micro Systems Limited
February 09, 2026

The fact which -- the fact which every investor has to understand is that if we are taking a stake
in a company, maybe a 100% acquisition or a minus stake or a majority stake, those companies
typically rely on a parent company for support in terms of the financials. Right, sir?

Manoj Jain: Yes, yes, yes. Yes.

Sai Kumar: By being a support to the give a financial support to those companies, some certain guarantees
has to be given as a corporate, okay. We have to stand as a guarantee and give that comfort to
their either their lending partners or we may have to give some guarantees when they want to
bid for a higher, tender projects or something like that.

Based for that purpose, in order to give such kind of a comfort letters or a corporate guarantees,
this this resolution has been moved by us, which shareholders largely shareholders have accepted
actually, but certain shareholders, they have gone with the what do you call biased, what do you
call reports of certain report -- certain agencies who have made a report that, certain RPT, related
party transaction based, corporate action is being initiated by Apollo.

Here the related party transaction point of view, none of the, the fund is not coming going to any
of the, what do you call promoters, no such this thing is being given, only corporate guarantee,
we are standing as a guarantee corporate guarantee has to be given without which, those
company survival will become difficult actually. Okay.

Further we did -- there is nothing to refute nor is it an allegation. There are you -- there are
certain people who will write some, irrational topics in the social media which are being picked
by few other people and, we do not want to respond certain things which are there on that
actually.

The fact is that the resolution got defeated because certain people did not understand, whoever
has voted negative we have reapproached and we have given a presentation, but they being
certain mutual funds, they go by these agencies' reports actually. We did not further move that
resolution once again for a reason that even if we move now for the next financial year starting
from 1st April we will have to once again approach for, shareholder approval.

For the purpose of this one or two months, there's no point in taking approval because once again
we have to take, it's a cost for the company, it is your company who is incurring loss by again
going to the ballot, it is INR20-INR25 lakhs expenditure for me actually. I did not want to spend
that, we have requested our bankers to, maintain certain refrain over it and wait for some time,
we will further go in for shareholder approval.

This time we will make a comprehensive presentation to all the people, whoever has written
reports to them also we will approach, and we will tell them the rational. There is no benefit that
is being accorded to any of the, subsidiary companies nor any benefit accorded to any of the
promoters by moving this resolution.

It is purely for the purpose of supporting the subsidiary companies so that they become
independently they will be able to run over a period of time till such time When a baby is born,

Page 13 of 19
 Apollo Micro Systems Limited
February 09, 2026

it should eventually be able to stand and walk on its own two feet, but until then, it needs to hold
its father's hand to walk, right?

So, if I'm extending my hand to help him, and someone says, "Don't give him your hand, let him
fall," that wouldn't be right, would it? We appreciate and understand the concerns of that
reporting agencies, we are going to address it, I will come back with the resolution, I will
convince them, once again we will get it fast. That is the thought process that we have internally.
I hope this is clear and there is nothing hanky-panky happening there.

Manoj Jain: Okay, actually the report was made in such a way that as a shareholders, I could not understand
that what was going on, so that's why I wanted clarification. And one more thing, sir, that I don't
know why my question was not answered.

Sai Kumar: Jain sir, I request, please when reading -- when you read the report, whether the report has been
written, appropriately by understanding what further resolution has been moved or not is also I
request you to understand it, not just reading the report alone because reports are being prepared
by certain analyst not understanding.

Because, when you prepare a report see I ask like you are an investor, whenever we conclude a
call also now also, I want to tell, if when you are talking to us over the call of half an hour, one
hour, you will not understand anything about the company, please visit us, talk to the
management at least once in a lifetime. Okay?

Then only you will understand, after that we can have any number of calls. So whenever whoever
is writing analyst also, I request analyst to please visit us, understand us, we can give you one
hour, one and a half hour time, then you can write the report. Sir, what is not clarified I will
clarify again.

Manoj Jain: Yes, sir, regarding this only I said that I had sent an email to you people but, regarding this only
and but it was not answered, sir. That's why...

Sai Kumar: I regret it is unanswered, sir, verbatim it will be answered in next 72 hours.

Manoj Jain: Okay, sir, thank you, thank you for this and one more, one more question, small question I can
ask, that any further plans of equity dilution for your company, means can you give any kind of
indication that any kind of equity dilution in the future which you are planning?

Sai Kumar: As and when as and when it is contemplated, we'll keep you informed, sir.

Manoj Jain: Okay, sir. Okay, thank you very much.

Moderator: Thank you. The next question is from the line of Ankush Agrawal from Surge Capital. Please
proceed.

Ankush Agrawal: Hi, sir, just a clarification. So you said out of INR1,300 crores of order book, INR500 crores is
IDL and rest INR800 crores are standalone.

Sai Kumar: Yes, sir, yes, sir, yes.

Page 14 of 19
 Apollo Micro Systems Limited
February 09, 2026

Ankush Agrawal: So INR800 plus INR500, that's the number, right?

Sai Kumar: Yes, yes, order book.

Ankush Agrawal: Okay, okay. That was all. Thank you.

Moderator: Thank you. We take the next question from the line of Shreyans Gathani from SG Securities.
Please proceed.

Shreyans Gathani: Hi, good evening, sir. I had a question on the acquisition. So if you could give some more details
around, which space the acquisition is in and what size of acquisition are we doing, what
revenues, just some more details on what we are looking to acquire?

Sai Kumar: Acquisition is strategic in nature once again, okay. But we are bound by NDA, I cannot disclose,
on exactly what it is actually because many of the people, will make their own assumptions out
of it, but good strategic acquisition. Wherever we are doing acquisitions, we will be doing where
we do not have a significant presence or we do not have a presence at all.

Shreyans Gathani: Got it. Sir, not just like any in which specific space because I know that we're looking to acquire
some RF company for a while now, so?

Sai Kumar: NDA is signed and NDA is signed, due diligence is in the process, after we do our internal due
diligence, it will come to merchant bank stage actually, okay, where the merchant banker is
involved right from the NDA stage itself actually, okay. This is what I can tell you.

Shreyans Gathani: Got it. Okay. And second question is on the QRSAM order, it's already passed DAC, so when
do we expect that order coming in because I assume that that'll also be quite a significant order
for us?

Karunakar Reddy: Yes, Yes. QRSAM order, BEL already negotiation is going on, MoD is negotiating with Bharat
Electronics. I think anytime, anytime this month only I think BEL is going to sign the MOU
with MoD. I think this month we are expecting. Before March, all subsystem-level orders also
they want to finalize. That is what the public sector undertaking, BDL is going to produce the
missile, overall project Bharat Electronics is going to handle.

So BDL we are in touch with BDL now because missile onboard systems we are doing. BDL
already they started negotiations and the, I think before March they want to finalize, in fact.

Shreyans Gathani: Got it. Okay, that's very helpful. Thank you. That's all from my end.

Moderator: Thank you. We take the next question from the line of Vivek, an individual investor. Please
proceed.

Vivek: Hi, thank you for the opportunity and congratulations on good set of numbers. My question one
is, probably I did not hear clearly, this order of MOORED Mine would be somewhere around
INR2,500 crores?

Karunakar Reddy: Yes, DAC approval is there in place, I think INR2,500 crore, correct, yes.

Page 15 of 19
 Apollo Micro Systems Limited
February 09, 2026

Vivek: Okay, okay.

Karunakar Reddy: Two variants we are doing, two variants we are doing, one approval already is there in place.
One DAC approval is in place, MOORED Mine already approval is there, MIGM we are
expecting anytime this month.

Vivek: Okay. Regarding this Directed Energy Weapons, any progress on the order from the DAC?

Sai Kumar: No, sir. It will take some more time.

Vivek: Okay. Thank you so much.

Moderator: Thank you. We take the next question from the line of Disha from Sapphire Capital. Please
proceed.

Disha: Yes, thank you so much for this opportunity. So, sir, just couple of questions. So what has been
the contribution for IDL so far in terms of the revenue?

Sai Kumar: It means in the consolidation.

Disha: Yes, Yes.

Sai Kumar: See there is a consolidation happened for 45 days actually, okay, with a clock date of 16th
November. So in terms of the topline, the contribution is around INR50.8 crores.

Disha: And what sort of contribution are we expecting overall for this year?

Sai Kumar: This quarter could be around INR90 crores.

Disha: Okay. And sir just going ahead, I think you mentioned 45% to 50% is what we're planning on a
standalone basis, that is organic growth. But with this IDL, we'll get the full year for
consolidation next year, and a lot of other acquisitions also that are in pipeline. What sort of
growth are we targeting for FY ‘27 and for years going ahead?

Sai Kumar: The futuristic acquisitions may not add to the consolidation even if it is done before 31st March
actually because hardly any time will be left, that may not be very significant actually. But
typically whatever consolidation has happened I told whatever guidance happened I told
actually.

So on a consolidation basis, guidance I told you I will not be able to give any guidance on the
consolidation. My guidance is only on a standalone basis. Guidance we will start giving from
the next financial year onwards on a consolidated basis.

Disha: Okay. Okay. Fair enough, sir. And for the IDL, I think you mentioned just to just to clarify...

Sai Kumar: So my guidance ceases, till now whatever guidance we have given that ceases as of 31st March
2026. Fresh guidance, on a because now that consolidations are happening, fresh guidance on a
consolidated basis we will start giving from the next financial year onwards.

Page 16 of 19
 Apollo Micro Systems Limited
February 09, 2026

Disha: Okay. All right, sir. And just so just to clarify, you mentioned that IDL will be EBITDA break
even we are expecting by this quarter and PAT and EBITDA positive from 1st Q FY ‘27, right?

Sai Kumar: Yes, yes.

Disha: Okay, okay. Alright. That's it from my side. Thank you so much and all the best.

Moderator: Thank you. We take the next question from the line of Santosh Singh, an individual investor.
Please proceed.

Santosh Singh: Good evening, sir. Hello, am I audible?

Sai Kumar: Yes, Yes, good evening. Good evening.

Santosh Singh: Sir, my question is around the debt level. How are you going to fund this acquisitions which you
have planned and how would the debt would look like? That is my first question.

Sai Kumar: Continue, sir, you ask all the questions, I will answer at a time.

Santosh Singh: Okay, that is the first question, Yes.

Sai Kumar: As far as, the ADIPL, which is going to do the acquisition, okay, we are going to infuse funds
into that, which will meet that this thing, sir, actually.

Santosh Singh: Okay. No, my question was basically is it from internal accruals or you are going to raise more
fund, that can you give more clarity on that?

Sai Kumar: Currently internal accrual, sir.

Santosh Singh: Okay, okay. Second question was around this order line, I mean, order which you have, what is
execution timeline you're targeting? I mean and what percentage of that will be, executing each
quarter or maybe a yearly. Can you give some idea around that? The rate of execution basically.

Karunakar Reddy: No, coming orders you are talking about, sir, which order?

Santosh Singh: Order book, which you have. INR1,300, right? So how is that going to be, executed? Per year,
per quarter, how is that going to be, executed?

Sai Kumar: Sir, the current outstanding order book is around INR1,300 crores. On a consolidated basis
actually, okay. So partially of that will be concluded in this financial year, and some running
orders, fresh orders, keep coming on a short-term this thing. But majorly, the current for the next
45 days, 50 days to for the end of this financial year, the orders what has to be executed
everything are already in the pipeline.

Rest of the orders, what do you call are the ones which will be executed in the next financial
year where we have further funnel, where we are expecting orders, to contemplate for the
guidance that is given on a standalone basis for the company actually.

Page 17 of 19
 Apollo Micro Systems Limited
February 09, 2026

Santosh Singh: Okay, okay, I got it. My last question would be basically what percentage we are, I mean
maintaining our R&D expenditure, could you help me with that currently?

Sai Kumar: Sir, average of 6% to 8% has been traditionally our R&D spend, sir, actually. Okay. This year it
may cross that trend actually. That's how I can tell you.

Santosh Singh: Okay, got it, sir. Yes, thank you for answering all my questions and best wishes for the next
quarters. Yes, thank you so much.

Sai Kumar: Thank you so much. Thank you.

Moderator: Thank you. We take the next question from the line of Deepen from PhillipCapital. Please
proceed.

Deepen: Hi, thank you for the opportunity and congratulations on a great set of numbers. Sir, my first
question is on the lines of your acquisition for IDL Explosives. So, sir, I wanted to understand
as to where have we reached in terms of licensing and certification pertaining to the defense
explosives and what all are what more certification and licensing are pending?

How much time it could take us and when can we start with the commercial production and
maybe even foresee orders for defense explosives?

Sai Kumar: Sir, it is too detailed an information which I am not in a position to disclose at this point of time.
But broadly, I will answer your question, that a detailed compendium of the different explosives
related to defense explosives has, is already ready. And we are for some of the things, we have
already started placing orders for the machinery.

For some of the things, negotiation is going on, parallelly licensing activity is also parallelly
going on. And there is a team of expert consultants who have been nominated to do this job
actually. Next financial year, we are likely to get, large-cap, weapon system orders for which we
are geared up.

Deepen: Got it, sir. Sir, in one of the DPSUs' commentary, so they told us that there was some supply
chain issue that they are facing, so any slowdown from ordering from DPSUs that you might be
seeing in or any commentary on the industry side of it that you would like to...

Sai Kumar: Obviously, when the context when the context of IDL has come, I told to the previous, this thing
also, that this is a backward integration for us, it's also a forward integration for us and a vertical
integration also, okay. We are we are building capacities which will not only meet our internal
captive requirement going forward, but will also be, serving as an outsourcing for the many.

So in the current scenario, doing it in a very, very large quantity, the ecosystem is very small
and the requirements are growing exponentially in every quarter-by-quarter basis, every month,
rather, I should position it as. And we are observing the trend. As we do not have a full, although
we have a clarity and idea, we have appointed, very, very senior consultant panel actually.

Not one member, okay, a panel of senior consultant who is expertise in the explosives in the
different types of, someone who is expert in the warhead, someone who is expert in propellant,

Page 18 of 19
 Apollo Micro Systems Limited
February 09, 2026

within propellant someone who is expert in different things, someone who is expert in
ammunition, okay. So like this, artillery, okay.

Like that, a panel of, consultants are, working on it, in terms of the current captive requirement
of us and the futuristic requirement of to serve different industries, both for the public sector and
there is a growing demand in the private sector, lot of people are entering into this project this
thing. Even for them also IDL is going to be a support system, sir, going forward.

Deepen: Got it, sir. That's all from my side. Wish you the best. Thank you for the opportunity.

Moderator: Thank you. Ladies and gentlemen, that was the last question for the day. And I would now like
to hand the conference over to the management for closing comments. Over to you, sir.

Sai Kumar: Thank you so much. We extend our sincere gratitude to the Ministry of Defence, Government
of India, for their continued trust in the Indian defense manufacturing ecosystem. Their
confidence reflected through substantial investments is a strong endorsement of our nation's
industrial capabilities and innovation potential.

We remain steadfast in our commitment to delivering advanced solutions that bolster operational
readiness and strengthen national security. It is an honor to serve the nation by all of us from the
company and we stand fully prepared to support our armed forces under all circumstances.

I extend my heartfelt thanks to all our esteemed investors and analysts for being with us today.
Your continued trust and partnership mean the world to us. Your participation and feedback are
invaluable to us. We remain committed to enhancing our performance and driving sustainable
growth. We look forward to welcoming you to our facilities where you will have opportunity to
observe our operation and initiatives at a ground level.

Should you have any further questions or wish to share your thoughts, please do not hesitate to
contact our investor relations team or write to us at [Link]@[Link]. Thank
you once again for your time and interest. We look forward to reconnecting with you during our
Q4 update. Wishing you all a great day. Jai Hind. Thank you ICICI team, for arranging this call.

Moderator: Thank you. Thank you, management. On behalf of ICICI Securities Limited, that concludes this
conference. Thank you for joining us and you may now disconnect your lines.

Page 19 of 19