This is a regulatory clarification filed by Apollo Micro Systems Limited (AMS) with the stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding a news article in The Economic Times.

The company clarifies that the reference to a "₹1 bid" in the article's headline is not part of the judgment from the Hon'ble High Court of Andhra Pradesh and does not pertain to the company or the subject tender.

The judgment, dated 09.09.2026, was issued in W.P. No. 2450 of 2026, a writ petition filed by an unsuccessful bidder, M/s Jaykay Enterprises Limited, against the Union of India, DRDO, and NSTL. The petition challenged the award of a contract to AMS, the L-1 bidder.

The court's judgment is stated to be substantially in favor of the company and the procuring authorities (DRDO/NSTL). The Hon'ble Court rejected the petitioner's prayers for cancellation of the tender and for the disqualification of bidders. The court found that no lapse, fault, mala fide, or arbitrariness could be established against the company or against DRDO/NSTL.

The award of the tender and the financial approval in favor of the company continue to hold. This is subject only to the completion of a pre-award verification by the competent authority, as mandated under Clause 6.42(b)(ii) of the DRDO Procurement Manual, 2025.

The Hon'ble Court upheld the tender conditions, the bid-opening process, and the evaluation in all other respects. The court also recorded the company's legitimate commercial basis for its competitive bid.

The company provides background, stating it has served DRDO programmes for over four decades. It cites sustained investments in R&D, indigenous development, and vertical integration as the basis for its cost-effective, high-quality solutions and competitive pricing.

Regarding the specific technology for the tender (PBMM-NG), the company states it was developed two years ago on a No Commitment – No Cost (NC-NC) basis and was offered to DRDO. As the procurement framework (DcPP route) did not permit direct acceptance, a tender was floated. The company emerged as the L-1 bidder in this process. Since the technology was already developed, the company states no further development cost was involved, justifying its legitimate and competitive price.

The company's technology, infrastructure, and financial strength were validated by DRDO per DcPP guidelines. All participating companies were technically evaluated under the same framework.

The letter is signed by Baddam Karunakar Reddy, Managing Director (DIN: 00790139), and is for the information of the exchange members and investing public.