Digilogic Systems Limited has submitted its investor presentation to BSE Limited on January 28, 2026, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The presentation provides comprehensive insights into the company's business operations, market positioning, and growth strategy in the defence and aerospace sectors.

Business Focus and Market Position

Digilogic Systems operates primarily in the defence and aerospace sectors, specializing in Test, Measurement & Simulation (TMS) markets. The company serves an established clientele including premier defense organizations through its comprehensive portfolio of test systems, application software, and services.

The company's business verticals encompass automated test systems, checkout systems, radar and electronic warfare simulators, data acquisition systems software, and intellectual property cores. These solutions cater to critical applications in missile testing, radar systems, avionics, and satellite technologies.

Financial Performance and Growth Projections

The presentation highlighted the company's improving financial metrics across recent fiscal years:

For FY26, the company has provided specific growth guidance, targeting 20-25% revenue growth, 30-35% EBITDA growth, and 40-45% PAT growth. The company currently maintains an order book of approximately Rs. 46 crore and is participating in bids worth approximately Rs. 200 crore.

Market Opportunity and Strategic Positioning

According to the presentation, India's TMS market is projected to reach Rs. 9,174 crore by FY30, while the global TMS market is expected to reach Rs. 1.6 lakh crore by the same period. This growth is attributed to increased global defence spending, which reached USD 2.7 trillion in FY24, and India's strategic shift from import-dependence to indigenous development in defence procurement.

Project Udaan Expansion Initiative

The company outlined Project Udaan, a major expansion initiative funded through IPO proceeds of Rs. 69.66 crore. The fund utilization breakdown includes:

Project Udaan aims to expand current verticals through additional workspace capacity, introduce manufacturing of electronic sub-systems with build-to-spec and build-to-print capabilities, establish in-house environmental stress screening and qualification facilities, and enable section-level integration of sub-systems. The project has completed land purchase, with land development currently in progress and construction expected to commence by March 2026.

Corporate Governance Structure

The presentation emphasized the company's governance framework, featuring multiple committees including Audit Committee, Nomination & Remuneration Committee, Stakeholders Relationship Committee, Corporate Social Responsibility Committee, and Internal Complaints Committee. The company maintains independent directors with established track records in their respective fields.

Revenue and Financial Overview

The company's recent financial performance shows consistent improvement:

The presentation noted that defence sector revenues typically show higher concentration in Q3 and Q4 due to order bunching patterns in the second half of the fiscal year. The company's diversified service offerings include firmware and software development, upgradation and retrofits, and lifecycle support and maintenance services.

Digilogic Systems Limited, a technology solutions provider for India's defence and aerospace sectors, has announced its Initial Public Offering (IPO) scheduled to open on January 20, 2026, and close on January 22, 2026. The Hyderabad-based company, founded in 2011, specializes in Automated Test Equipment systems, radar and Electronic Warfare environmental simulators, application software, and embedded signal processing solutions.

Strong Financial Recovery in FY2025

The company demonstrated robust financial performance in FY2025, showing significant improvement across key metrics. Revenue recovery was particularly notable after a decline in the previous year.

The company's profitability metrics showed substantial improvement, with PAT margin expanding from 4.64% in FY2024 to 11.25% in FY2025. Total assets grew by 104.22% to ₹72.57 crores, while equity increased significantly to ₹33.46 crores.

IPO Proceeds and Expansion Plans

The company has outlined specific utilization plans for the IPO proceeds, with the majority allocated toward infrastructure expansion.

The new facility will feature environmental test capabilities for electronic sub-systems, aimed at enhancing operational capabilities and reducing dependence on outsourcing. This expansion aligns with the company's strategy to strengthen its end-to-end solution offerings.

Business Profile and Market Position

Digilogic Systems operates through two facilities - its Corporate headquarters in Hyderabad and a marketing office in Bangalore. The company holds strategic industry certifications including AS9100D for aerospace quality management and ISO 9001:2015, positioning it as a qualified supplier for critical defence applications.

Key business characteristics include:

• Customer Loyalty: 98% of revenue in H1 FY2025 came from repeat customers
• Government Relations: Empanelled as Development cum Production Partner (DcPP)
• Experience: Over 18 years in defence and aerospace sectors
• Leadership: Management team with over 38 years of combined industry experience

Risk Considerations

Despite strong financial performance, the company faces several operational and financial risks that potential investors should consider.

The company's operating cash flow showed volatility, turning negative in FY2025 despite strong profitability improvements. This pattern indicates potential working capital management challenges typical in project-based defence businesses.

Growth Trajectory and Market Opportunity

The company's financial metrics indicate strong growth momentum, with revenue CAGR of 13.46% and PAT CAGR of 93.29% over the FY2023-25 period. The current ratio improved to 1.61 in FY2025, indicating better liquidity management.

Digilogic Systems' positioning in India's defence sector aligns with the government's focus on indigenization and increased defence spending. The company's reusable engineering platforms and comprehensive solution capabilities provide competitive advantages in securing repeat business from government entities and defence PSUs.