Digilogic Systems IPO

Digilogic Systems designs, builds and supports test and simulation hardware for India's defence and aerospace programmes. Its main product line is Automated Test Equipment (ATE) and test jigs that check whether electronic components and subsystems work correctly, checkout systems that validate units such as control electronics and actuators by simulating real operating conditions, and radar and electronic-warfare simulators that recreate threat signals so defence systems can be tested in a controlled environment. Alongside the hardware it sells data-acquisition software and IP cores, plus services covering system integration, upgrades and lifecycle support. Orders come from government entities, either directly through tenders or indirectly through third-party vendors supplying them. The company works from a 10,688 sq ft Hyderabad headquarters and manufacturing site and a Bangalore marketing office, and had 102 permanent employees on 31 December 2025.

Revenue comes from purchase orders for custom-built test rigs, won directly from government entities through tenders or indirectly via vendors supplying them. Test Systems generated ₹6,386.56 lakhs of FY25's ₹7,205.98 lakhs revenue from operations (88.63%). EBITDA margin, as reported in the prospectus, rose from 10.56% in FY24 to 18.60% in FY25. Two structural constraints shape the model. Customers are concentrated: the largest contributed 30.85% of FY25 revenue and the top ten 88.25%. And the cash cycle is long, because extended development and production cycles demand high working capital — ₹3,074.70 lakhs of FY25 revenue was booked in March 2025 alone and remained outstanding as receivables at year-end. Borrowings reached ₹2,203.92 lakhs by 30 September 2025.