Apollo Micro Systems Limited (AMS), headquartered in Hyderabad, has marked a pivotal advancement in India's defence manufacturing landscape through its step-down subsidiary, IDL Explosives Limited. 

The subsidiary has secured a 15-year Industrial License under the Industries (Development and Regulation) Act, 1951, authorising the production of high-energy explosives HMX (Cyclotetramethylenetetranitramine) and TNT (Trinitrotoluene).

This development, announced in mid-December 2025, underscores AMS's strategic push towards self-reliance in critical energetics for defence applications.

The license specifies annual production capacities of 50 metric tonnes per annum (MTPA) for HMX and 500 MTPA for TNT, addressing key gaps in domestic supply chains for munitions and propellants. Located in Rourkela, Odisha, the facility positions IDL Explosives as a vital contributor to India's Atmanirbhar Bharat initiative, reducing dependence on imports for these high-performance materials essential in missiles, warheads, and artillery shells.

HMX, known for its superior detonation velocity and stability, serves as a booster in advanced solid rocket motors, while TNT remains a staple for filling armour-piercing projectiles and general-purpose bombs.

Karunakar Reddy, Managing Director of AMS, hailed the approval as a "significant strategic milestone," emphasising its validation of the company's technical expertise, operational excellence, and compliance with stringent safety standards.

He noted that the license enables fulfilment of captive defence requirements while unlocking opportunities in domestic industrial sectors and international export markets for both defence and civilian explosives. This aligns with AMS's broader portfolio in precision guidance systems, avionics, and missile components, enhancing vertical integration across the defence supply chain.

The acquisition of IDL Explosives by AMS, completed earlier in 2025 for approximately ₹107 crore from the Hinduja Group, laid the groundwork for this expansion, bolstering the company's explosives manufacturing footprint. Market response was positive, with AMS shares rising over 1% to around ₹229 on the announcement day, reflecting investor confidence in its growth trajectory amid rising defence indigenisation mandates.

This licence not only fortifies AMS's role in supplying energetics to major programmes like BrahMos missiles and Akash air defence systems but also supports emerging hypersonic and next-generation munitions development.

Strategically, the move arrives at a critical juncture for India's defence sector, where energetics imports constitute a vulnerability amid geopolitical tensions with neighbours like China and Pakistan. By localising HMX and TNT production, IDL Explosives contributes to cost efficiencies, supply security, and technological sovereignty, potentially enabling exports to allied nations under frameworks like the Quad.

Future scalability could involve R&D into insensitive munitions or polymer-bonded explosives, further elevating AMS's competitive edge in global defence markets.

In the context of India's defence budget exceeding ₹6 lakh crore for FY2026, such private sector milestones exemplify the success of 'Make in India' policies in attracting investment into niche high-tech domains. AMS's ecosystem, spanning over 20 subsidiaries, now encompasses a comprehensive spectrum from electronics to propellants, positioning it as a key private player alongside public giants like DRDO and Ordnance Factories.

This licence renewal prospect after 15 years promises sustained revenue streams, with analysts projecting enhanced order books from the Ministry of Defence. Overall, IDL Explosives' achievement reinforces India's ascent as a credible defence exporter, blending indigenous innovation with proven manufacturing prowess.

Agencies