Shares of Apollo Micro Systems Ltd rallied 4% on 2 December after the company announced that it had secured a 15-year manufacturing licence from the Department for Promotion of Industry and Internal Trade (DPIIT) to develop defence aircraft equipment for unmanned helicopter activities, which includes unmanned aerial systems.

The license will allow the Hyderabad-based defence electronics company to develop into advanced unmanned aerial systems (UAS), inertial navigation systems (INS), and complete radar equipment, greatly increasing the company’s portfolio of high-value defence technologies.

In a regulatory filing, Apollo Micro Systems said the permit includes manufacture under two defence categories – Defence Aircraft and Allied Defence Equipment.

The approval is required for participation in the Ministry of Defence’s current and forthcoming procurement initiatives.

Apollo Micro Systems is currently developing numerous UAS platforms, including logistics and delivery UAVs, as well as offensive and attack-class unmanned systems, which are slated to start field trials within the next two quarters, according to the filing. The permit also enhances the company’s strategy for unmanned helicopters, a specialised UAV industry.

The navigation system license enables Apollo Micro Systems to develop sophisticated solutions using MEMS-based INS, Fibre Optic Gyro (FOG) systems, and Ring Laser Gyro (RLG) technologies.

To support this work, the company stated that it has begun acquiring crucial test and calibration equipment and is working with domestic and international partners on subsystem development and integration.

The permission, dated 1 December 2025, also authorises the corporation to produce complete radar systems, including transmit-receive modules, antennas, signal processors, and associated radar subsystems, which are critical components of modern surveillance and targeting platforms.

Apollo Micro Systems stated that the DPIIT licence strengthens its ability to scale production in strategic military categories and improves its position within India’s developing indigenous defence manufacturing ecosystem.

Last week, the company inked a memorandum of understanding with IIT-Chennai and the Indian Navy to expedite indigenous military technology development by addressing and solving the Armed Forces’ current and future problems.

According to the agreement, Apollo Micro Systems will serve as the technological development and manufacturing partner, transforming laboratory-scale research into battle-ready systems.

At 1:25 pm, the shares of Apollo Micro Systems were trading 3.24% higher at Rs 277 on NSE.

Ready to invest like a pro? Unicorn Signals app equips you with 100+ Free tools and knowledge you need to succeed. Download the Unicorn Signals app and gain access to daily stock lists and insightful market analysis and much more!