Defence major Apollo Micro Systems on Saturday reported a net profit of Rs 25.2 crore in the first quarter of financial year 2027, marking a 43% jump from Rs 17.7 crore posted in the same quarter last year.The company’s revenue from operations came in at Rs 251.3 crore, marking an impressive 88% jump from Rs 134 crore posted in the corresponding quarter of the previous year, Apollo Micro Systems said in a regulatory filing.Both figures are the best the company has ever posted in the first quarter.Its EBITDA came in at Rs 48 crore, up 18% from Rs 41 crore in the first quarter of the previous year. This is also the best figure the company has ever posted in the June quarter, it said in a press release statement.The company’s EBITDA margin, however, declined 9.2 percentage points to 21.4% from 30.6% in Q1FY26.Apollo Micro Systems Q1 commentaryApollo Micro Systems Managing Director Baddam Karunakar Reddy said the company’s best-ever Q1 performance reflects its execution, resilience and continued focus on key priorities. He said the company intends to build on the momentum with greater vigour and sharper execution while staying aligned with the evolving requirements of the defence sector.Reddy said the opportunity ahead remains significant, adding that Apollo Micro Systems will continue to strengthen its capabilities, deepen its contribution to national defence preparedness and deliver with greater speed, discipline and purpose.It added that the explosives market is expected to see strong growth in the coming years, reaching $9.37 billion by 2029 at a compound annual growth rate (CAGR) of 8.8%.Rising government spending on defence across countries including the US, China, India, Russia, the UK and France is expected to be a key driver of market growth. Other factors supporting growth over the forecast period include increasing territorial and political conflicts, global population growth and urbanisation, higher government spending on infrastructure development and rising construction activity.However, geopolitical tensions and global trade restrictions have intensified supply chain disruptions, leading to production delays and critical shortages of explosives.State-owned defence public sector units also recorded a 42.8% increase in exports, reaching Rs 8,389 crore during the financial year. A significant portion of these exports comprises explosives and ammunition components, particularly for artillery, which is seeing strong demand in Europe.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)