Apollo Micro Systems Limited has achieved a significant milestone with the completion of its 100% acquisition of IDL Explosives Limited through its subsidiary, Apollo Defence Industries Private Limited (ADIPL). The acquisition, finalised on 16 November 2025, marks a strategic move for Apollo as it expands its capabilities in the defence sector.
IDL Explosives, a heritage industrial explosives manufacturer in India, has been a key supplier to the mining industry. However, Apollo’s interest in IDL extends beyond its commercial explosives business. The acquisition provides Apollo with a strategic foundation, including a license under the IDR Act, 1951, to manufacture high-energy military-grade explosives such as HMX and TNT, reserved for a select group of Indian companies. This acquisition aligns with Apollo’s vision to serve the full spectrum of weapons and warheads required by the Indian armed forces over the next decade.
The acquisition comes at a time when the strategic landscape in India is evolving, with a national commitment to build indigenous capabilities at scale. The Ministry of Defence’s indigenisation lists are now mandates with timelines and budgets, pushing companies like Apollo to transition from being dependable suppliers to becoming Original Equipment Manufacturers (OEMs).
The acquisition of IDL Explosives is seen as a homecoming for Apollo, providing a platform that complements its electronics and integration competencies. The removal of the Coal India ban, which had constrained IDL’s largest end-market, has restored access to mining customers across the country. ADIPL has facilitated a swift restructuring of IDL’s balance sheet, with long-term debt fully repaid and a significant increase in cash position year-on-year.
Apollo Micro Systems is also expanding its role in the defence sector by moving from subsystems to platforms. The company has been awarded the DPIIT industrial license for the manufacture of Unmanned Aerial Vehicles and allied defence equipment. This transition positions Apollo as a full-fledged OEM of Unmanned Aerial Systems and other autonomous platforms that will define future warfare strategies.
The acquisition of IDL Explosives and the strategic shift towards platform manufacturing underscore Apollo’s commitment to becoming a leading defence platforms group in India. The foundation laid today is expected to result in years of compounding capability, scale, and opportunity for the company.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).