Digilogic Systems Ltd IPO
Aerospace & Defence
Price Band
₹98 – ₹104
Lot Size
1200
Minimum Bid Quantity
2400
Minimum Investment
₹249600
Issue Size
₹81.01Cr
Opens
2026-01-20
Closes
2026-01-22
Listing
28-01-2026
Subscription Status
Qualified Institutional Buyers
1.6 x
Non-Institutional Investor
0.56 x
Retail Individual Investor
1.06 x
Total
1.08 x
IPO Details
Issue Type
FP
Face Value
₹2
Tick Size
1
ISIN
INE1OOT01028
Pre-Apply Available
No
Daily Bidding Time
10:00:00 - 17:00:00
About the Company
Digilogic Systems Limited designs, develops, integrates, manufactures, supplies, and supports automated test equipment (ATE) systems, radar and electronic warfare (EW) environmental simulators, application software, and embedded signal processing solutions for the defence and aerospace engineering sector. Its offerings are grouped into test systems (ATE, checkout systems, and radar/EW simulators), application software (data acquisition platforms and IP cores), and services (system integration, upgrades, and lifecycle support). It assembles test systems and integrates them with system software and embedded processing modules. The company generally receives purchase orders directly from government entities through tenders and indirectly through third-party vendors supplying government entities. It operates from two facilities: a registered office and a facility in Hyderabad that combines design, engineering, administration, and manufacturing functions, and a marketing office in Bangalore that supports business development, customer engagement, and project execution.
Pros
- • Digilogic Systems claims to have over 18 years of experience delivering systems for the defence and aerospace sectors. It states that its portfolio includes radar simulators, automated test systems for aircraft programmes, and validation systems for satellite payloads.
- • Digilogic Systems claims to have long-standing relationships with institutions in India’s defence and aerospace ecosystem, where its solutions are deployed in core projects. It states that it is empanelled as a design partner under the Development cum Production Partner (DcPP) framework, which involves compliance with stringent technical and quality standards.
- • Digilogic Systems claims to have entered into arrangements with overseas entities for sharing technical know-how that supports the co-development of specialised systems. It also states that it has executed MoUs with overseas and domestic entities for development in areas such as system integration and export.
Cons
- • The company has recorded negative cash flow from operating activities amounting to Rs 10.52 crore in FY25 and Rs 6.65 crore in FY23. Additionally, negative cash flow from investing activities amounted to Rs 10.80 crore for the period ended September 30, 2025; Rs 5.12 crore in FY25; Rs 1.37 crore in FY24; and Rs 0.63 crore in FY23. The company also reported a negative cash flow from financing activities of Rs 4.11 crore in FY24. If such cash flow patterns continue, the company may need to depend more on borrowings or other funding to meet working capital needs and invest in development/manufacturing requirements for projects, which can increase financing pressure and constrain execution.
- • The top customer alone accounted for Rs 6.86 crore (37.75 percent) of the company’s revenue for the period ended September 30, 2025; Rs 22.23 crore (30.85 percent) in FY25; Rs 16.74 crore (32.48 percent) in FY24, and Rs 16.18 crore (28.91 percent) in FY23. The company undertakes work largely on a supply order basis rather than long-term purchase arrangements. Any failure to retain this client or any reduction in orders due to delivery schedule changes, pricing pressure, quality/quantity issues, changes in government policies, disputes, disqualification, or customer consolidation could lead to a significant drop in cash flows and liquidity.
- • Digilogic Systems’ revenue is heavily concentrated in its test systems segment, which is linked to the critical test, measurement, and simulation technologies market. The test systems business segment accounted for Rs 16.55 crore (91.05 percent) of the company’s revenue for the period ended September 30, 2025; Rs 63.86 crore (88.63 percent) in FY25; Rs 41.30 crore (80.11 percent) in FY24; and Rs 35.20 crore (62.89 percent) in FY23. Any slowdown in this market, driven by factors such as changes in government policies or initiatives, interest rates, or broader economic conditions, could lead to a sharp reduction in demand for the company’s test systems and materially impact its revenues and cash flows.
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