Apollo Micro Systems Limited has announced the completion of its acquisition of IDL Explosives Limited through its subsidiary, Apollo Defence Industries Private Limited (ADIPL). The acquisition, finalised on 16 November 2025, marks a significant strategic move for the company as it seeks to expand its capabilities in the defence sector.
The acquisition of IDL Explosives, a heritage industrial explosives manufacturer in India, is seen by Apollo Micro Systems as more than just a transaction. It represents a strategic foundation for future growth, particularly in the defence sector. IDL Explosives holds a licence under the IDR Act, 1951, to manufacture high-energy military-grade explosives such as HMX and TNT, which are reserved for a select group of Indian companies.
The completion of this acquisition has also seen the removal of a ban by Coal India, which had previously constrained IDL’s largest market. This has restored access to mining customers across the country. Additionally, ADIPL has facilitated a swift restructuring of IDL’s balance sheet, with long-term debt fully repaid and a significant increase in cash position, growing roughly five-fold year-on-year.
Apollo Micro Systems’ Managing Director, Baddam Karunakar Reddy, highlighted the importance of this acquisition, stating that it marks the company’s evolution from being perceived solely as an electronics company to becoming a comprehensive defence platforms group. The integration of IDL Explosives is expected to enhance Apollo’s ability to serve the full spectrum of weapons and warheads required by the Indian armed forces over the next decade.
The company has also been awarded a DPIIT industrial licence for the manufacture of Unmanned Aerial Vehicles and allied defence equipment, signalling its transition from a Tier-2 supplier of electronics to a full-fledged Original Equipment Manufacturer. Apollo Micro Systems is now poised to manufacture Unmanned Aerial Systems, Unmanned Ground Vehicles, Counter-Drone Systems, and Autonomous Underwater Platforms, further solidifying its position in the defence industry.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).