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.
The company claims to provide end-to-end capabilities across the system development lifecycle, including system design, prototyping, embedded software development, manufacturing, hardware integration, testing, and post-deployment support. It also states that it uses reusable hardware modules and software components to support customisation and faster project execution.
The company has witnessed a consistent increase in its profit after tax (PAT). It increased from Rs 2.17 crore in FY23 to Rs 2.40 crore in FY24 and Rs 8.11 crore in FY25.
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.
Digilogic Systems’ present facility and proposed new facility are both located in Hyderabad, Telangana, creating operational concentration in a single region. Any disruption at this site due to localised social unrest, natural disasters, production delays, political instability, regulatory issues, workforce productivity challenges, or quality problems can disrupt manufacturing and project execution.
The defence & aerospace industry accounted for Rs 18 crore (99.02 percent) of the company’s revenue for the period ended September 30, 2025; Rs 71.23 crore (98.85 percent) in FY25; Rs 51.45 crore (99.79 percent) in FY24, and Rs 55.51 crore (99.19 percent) in FY23. Any adverse changes in defence or space budget priorities, procurement policies, contract timelines, or programme requirements, including reductions, delays, terminations, or policy shifts under defence acquisition frameworks, could materially affect order inflows and revenue visibility.
The top supplier alone accounted for Rs 4.85 crore (36.95 percent) of the company’s total purchase for the period ended September 30, 2025; Rs 22.07 crore (41.83 percent) in FY25; Rs 14.21 crore (47.14 percent) in FY24, and Rs 15.71 crore (40.00 percent) in FY23. Any deterioration in this vendor’s ability to manufacture or deliver materials on time, shortages or delays due to capacity limitations, or increases in raw material prices could disrupt production schedules and affect sales and customer relationships.
The company and its directors are involved in certain ongoing legal proceedings. The company’s business prospects could be hit in case of adverse judgments in any of these cases.
As of December 15, 2025, the company had outstanding financial indebtedness of Rs 18.66 crore. Failure to service or repay these loans could harm the company’s operations and financial position.