This Bangalore micro-cap makes precision parts for global aerospace & defence OEMs

Apsis Aerocom is a Bangalore-based precision engineering micro-cap specializing in CNC-machined components for aerospace (30%), defence (45%), and healthcare (22%) Tier-1 global OEMs. Three NTTF-trained founder-promoters built a 99.99% accuracy manufacturing operation from a partnership firm (2012) to a listed company (2025). FY25 financials are exceptional: ₹20.5 Cr revenue (97% 2-year CAGR), 49.8% EBITDA margin, 32.4% PAT margin, 91.6% RoE. Post-listing, secured ₹8.34 Cr in new defence orders within 2 months (Apr-May 2026). IPO proceeds fund 17 machines for a new 20,000 sq ft Unit II at Hitech Defence Park, with 40,000+ sq ft KIADB Devanahalli for long-term expansion.

Apsis Aerocom (CIN: U29309KA2022PLC164926) traces its roots to January 2012, when the partnership firm 'M/s Apsis Latitude' was established in Bangalore by three NTTF-trained precision engineering professionals — Basavaraju Kanakatte Shivakumar, Mihir Kumar Pradhan, and Vinod Kumar Mariyappan. The firm converted to a Private Limited Company on August 16, 2022 and became a Public Limited Company on November 11, 2024 — setting the stage for its SME IPO on NSE EMERGE. In just over a decade, the founders built a precision components shop serving Tier-1 global aerospace OEMs, achieving 99.99% aggregate accuracy over the last 3 fiscal years. Operating from a compact 8,462 sq ft facility in Peenya Industrial Area (Bangalore), Apsis provides both Build-to-Print and Build-to-Specification precision machining services. International presence spans USA, Netherlands, Spain, and Israel. IPO proceeds are earmarked for 17 machines at a new 20,000 sq ft Unit II at Hitech Defence and Aerospace Park, plus a future 40,000+ sq ft KIADB allotment at Devanahalli.

India's defence budget ₹6.22 Lakh Crore (FY26) with 68% earmarked for domestic procurement. Defence production crossed ₹1.46 Lakh Cr in FY25 with 92% contracts to Indian firms. Defence exports target: ₹35,000 Cr. Global precision engineering growing at 7-8% CAGR. India emerging as aerospace manufacturing hub — Boeing, Airbus, GE Aviation, Safran in Bangalore. PLI scheme for medical devices driving import substitution. AS9100D certification (12-18 months) creates barriers. India's medical device market ~USD 11 billion and growing. Bangalore is India's aerospace cluster with HAL, ISRO, BEL, DRDO.

Apsis competes in the niche of AS9100D-certified, 5-axis capable precision manufacturers — a small club in India. Most Indian precision shops are 3-axis, sub-₹10 Cr operations without aerospace certification. Key advantages: (1) AS9100D + ISO 9001:2015 dual certification; (2) 5-axis MAKINO, MAZAK, OKUMA machines for complex geometries; (3) 99.99% accuracy over 3 years; (4) Cross-sector: defence + aerospace + healthcare; (5) Build-to-Print AND Build-to-Specification capability. Barriers: AS9100D takes 12-18 months, 5-axis machines cost ₹1-3 Cr each, OEM qualification takes 6-12 months. Larger peers: MTAR Technologies (₹800+ Cr mcap), Avantel (₹500+ Cr) at much bigger scale.

Pre-IPO paid-up: ₹3.25 Cr (32,52,000 shares of ₹10). Capital progression: ₹1.00 Cr (FY23) → ₹1.50 Cr (FY24) → ₹3.25 Cr (FY25). Post-IPO: up to 65,04,000 shares (₹6.50 Cr) — 100% dilution. Net Worth: ₹10.57 Cr (FY25). Reserves: ₹7.31 Cr. Total debt: ₹2.84 Cr. D/E ratio: ~0.27x. EPCG authorization for concessional duty imports with export obligations.

Unit I (Current): Plot No. 392/1, Peenya Industrial Area, Bangalore — 8,462 sq ft leased. 16 CNC machines: JYOTI VMC (4-axis), BFW AGNI+ (3-axis), AMS models (3-4 axis), HAAS VF-2 (4-axis), MAKINO SLIM3N (5-axis), MAZAK-500J (5-axis), OKUMA MU-4000V (5-axis), Tsugami Swiss-type lathe. Installed capacity: 2,40,000 kg/year; actual FY25: 1,91,980 kg (80.3% utilization). Unit II (Upcoming): Hitech Defence and Aerospace Park, North Yalahanka — 20,000 sq ft leased. IPO funds for 17 new machines. Future: KIADB allotment at Devanahalli for 40,000+ sq ft. Certifications: AS9100D + ISO 9001:2015. Full process: Engineering → Material Selection → CNC Programming → Machining → Heat Treatment → Surface Finishing → QC → Assembly → Dispatch.

Revenue driven by repeat orders from concentrated Tier-1 OEMs. Customer concentration: Top 1 = 52.03% (₹10.66 Cr), Top 3 = 84.04%, Top 5 = 94.60%, Top 10 = 99.00%. Domestic revenue 98.98% (₹20.28 Cr) with small international presence in USA (0.52%), Israel (0.26%), Spain (0.23%). Order visibility typically 3-6 months. Post-listing order momentum (Apr-May 2026): ₹1.10 Cr Aerospace & Defence order (April 29, 2026, 2-month execution) + ₹7.24 Cr Defence order (May 7, 2026, 10-month execution). Combined ₹8.34 Cr — 40.7% of FY25 revenue secured within 2 months of listing.

Revenue has grown at 97% CAGR over 2 years (FY23→FY25), but the real story is margin expansion — EBITDA margins catapulted from 18.6% to 49.8% as the company shifted towards higher-value defence and aerospace components. Material costs dropped from 44.7% of revenue to 29.2%. RoE of 91.6% and RoCE of 65.8% reflect extreme capital efficiency. Cash from operations was only ₹31.55 lakhs in FY25 due to ₹2.82 Cr inventory build-up and ₹3.77 Cr receivables growth.

Converted to Public Limited Nov 2024. Board: 6 directors (3 executive promoters, 3 independent). Committees: Audit (ID-chaired), NRC, SRC, CSR. Statutory auditor: YCRJ & Associates (FRN: 006927S). CS: Saloni Jayati (M. No. A75583). EPCG scheme active — export obligations pending. AS9100D + ISO 9001:2015 maintained. 101 employees. No material litigation. Minor GST matters. DRHP filed Sep 30, 2025 with NSE/SEBI. BRLM: Oneview Corporate Advisors. Registrar: Integrated Registry Management Services.