Digilogic Systems Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Digilogic Systems Ltd filed with BSE on 05 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Digilogic Systems reported FY26 revenue growth of 8.4% year-on-year to INR78.27 crores, with EBITDA growing 16.5% to INR15.18 crores and PAT growing 33.8% to INR10.43 crores. Management attributed the revenue shortfall against its earlier 20-25% guidance to import delays in hardware from US and European OEMs caused by geopolitical disturbances, resulting in a spillover of over INR22 crores into FY27. The company also discussed its new RF-focused subsidiary Abhedhya, its in-house single board computer development, and Project UDAN, a manufacturing expansion expected to become operational by mid-2028.
2 statements from this call are not shown because their supporting quotes could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Total income: INR78.27 crores (FY26)
p. 6
“Total income grew from INR72.19 crores to INR78.27 crores, which is 8.4% year-on-year growth.”
Sri Harsha, page 6 of the filed PDF · View the filing
EBITDA: INR15.18 crores (FY26)
p. 6
“Our EBITDA number grew from INR13.04 crores to INR15.18 crores, which is 16.5% year-on-year growth.”
Sri Harsha, page 6 of the filed PDF · View the filing
EBITDA margin: 19.6% (FY26)
p. 6
“EBITDA margin also improved from 18.1% to 19.6%, which is 152 bps and then PAT grew from INR7.79 crores to INR10.43 crores which is 33.8% year-on-year growth”
Sri Harsha, page 6 of the filed PDF · View the filing
PAT: INR10.43 crores (FY26)
p. 6
“PAT grew from INR7.79 crores to INR10.43 crores which is 33.8% year-on-year growth and this is a cascading effect of the impact of EBITDA growth.”
Sri Harsha, page 6 of the filed PDF · View the filing
PAT margin: 13.3% (FY26)
p. 6
“The PAT percentage also improved from 10.8% to 13.3%, which is 250 bps increase.”
Sri Harsha, page 6 of the filed PDF · View the filing
Cash flow from operations: INR12.63 crores (FY26)
p. 6
“this is our biggest improvement where you will see that it has gone to positive INR12.63 crores for the financial year 2026.”
Sri Harsha, page 6 of the filed PDF · View the filing
Receivables: INR42.87 crores (As of March 31, 2026)
p. 6
“Coming to our receivable levels, we are at INR42.87 crores for March 31, 2026, out of which only INR2.31 crores is greater than 180 days”
Sri Harsha, page 6 of the filed PDF · View the filing
Payables: INR17.09 crores (As of March 31, 2026)
p. 6
“Coming to the payable levels, we are at INR17.09 crores and most of the payables are less than one year.”
Sri Harsha, page 6 of the filed PDF · View the filing
Working capital cycle: 3.46 times (FY26)
p. 6
“we have improved from 1.6 times in FY25 to 3.46 times, which is predominantly because of better inventory and debtors”
Sri Harsha, page 6 of the filed PDF · View the filing
Debt-to-equity ratio: 0.04 times (FY26)
p. 6
“Coming to the debt-to-equity ratio, it has improved from 0.4 times to 0.04 times because we were able to reduce our debt and equity base has also increased.”
Sri Harsha, page 6 of the filed PDF · View the filing
Order book: INR31 crores (FY26)
p. 5
“We have also shown a good order book of INR31 crores this financial year.”
J. Shashank Varma, page 5 of the filed PDF · View the filing
Q1 FY27 spillover revenue: more than INR22 crores (FY27)
p. 7
“That effect you can see the kind of spillovers with which we started our first week of April, which is close to more than INR22 crores is our spillover.”
J. Madhusudhan Varma, page 7 of the filed PDF · View the filing
Purchase orders in hand: INR30-plus crores (As of May 30, 2026)
p. 7
“by end of 30th May, we already have INR30-plus crores in hand.”
J. Madhusudhan Varma, page 7 of the filed PDF · View the filing
Revenue split by product - measurement equipment: 49% (FY26)
p. 15
“ATEs is about 17% and checkouts at about 22%, and then measurement equipments set about 49%.”
Sri Harsha, page 15 of the filed PDF · View the filing
Guest house finance exposure: INR2.1 crores
p. 17
“So, the total exposure for the guest house would be somewhere in the range of about INR2.1 crores.”
Sri Harsha, page 17 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Purchase orders in hand — INR100-plus crores · By September FY27
stated firmly by J. Madhusudhan Varma
p. 7
“So, my target is by September, by September I should have purchase orders in hand close to INR100-plus crores, with which our billing will be comfortably meeting the targets which have been projected.”
J. Madhusudhan Varma, page 7 of the filed PDF · View the filing
Revenue growth — 25% to 30% · FY27
stated firmly by J. Madhusudhan Varma
p. 18
“And projections of whatever we have given 25% to 30% is happening, and I really don't have any kind of hesitation to say that we are going to meet those projections.”
J. Madhusudhan Varma, page 18 of the filed PDF · View the filing
Deferred tender pipeline — INR200-plus crores · 6 to 8 months delay, spilling to subsequent financial year
stated conditionally by J. Madhusudhan Varma
p. 8
“So, keeping that in view, that INR200-plus projections what I put, they still stand good. Only thing is that might get delayed by few months, maybe 6 to 8 months, which might spill over to subsequent financial year.”
J. Madhusudhan Varma, page 8 of the filed PDF · View the filing
Project UDAN revenue — INR11 crores to INR13 crores · FY29
stated conditionally by Sri Harsha
p. 21
“we are anticipating somewhere in the range of INR11 crores to INR13 crores in FY29, and then INR28 crores to INR30 crores in FY30, and INR57 crores to INR61 crores in FY31, and so on.”
Sri Harsha, page 21 of the filed PDF · View the filing
Current setup peak revenue capacity — INR150 crores to INR160 crores
stated as an aspiration by Sri Harsha
p. 21
“with the current setup, we anticipate it can go anywhere up to about INR150 crores, INR160 crores with the current setup, with the current facilities that we have.”
Sri Harsha, page 21 of the filed PDF · View the filing
Project UDAN commissioning — mid of 2028
stated firmly by J. Madhusudhan Varma
p. 21
“Once Project UDAN becomes reality by mid of 2028, we will start getting ourselves recognized as a manufacturing, electronic subsystem manufacturing company apart from TMS.”
J. Madhusudhan Varma, page 21 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management attributed the miss to import delays of hardware from US/European OEMs due to geopolitical disturbances, and cited a spillover and current order pipeline as reasons for confidence in FY27.
Answered by J. Madhusudhan Varma
Asked by Aditya Mutha: Why did FY26 revenue miss the 20-25% growth guidance and why is management confident about FY27 guidance?
p. 7
“Imagine a scenario, everything would have gone in the right direction without this international disturbances had these items come on time, I would have comfortably closed additionally INR20 crores apart from INR76 crores what we have closed.”
J. Madhusudhan Varma, page 7 of the filed PDF · View the filing
Management said OEMs are also proactively finding alternate shipping routes to India given its scale of consumption.
Answered by J. Madhusudhan Varma
Asked by Divyansh Thakur: What steps are being taken to mitigate the impact of geopolitical delays on hardware shipments?
p. 8
“Why because 40% of the hardware which they sell in Asia goes to India. That is the kind of consumption we have.”
J. Madhusudhan Varma, page 8 of the filed PDF · View the filing
Management named Data Patterns and Zen Technologies as the main comparable competitors in prototyping.
Answered by J. Madhusudhan Varma
Asked by Divyansh Thakur: Who are the competitors in the tender process?
p. 9
“Names means, for example, Data Patterns. Data Patterns is a big player, is there, is very much there in this line and is one of the competitors.”
J. Madhusudhan Varma, page 9 of the filed PDF · View the filing
Management said the subsidiary will build RF subsystems and is expected to become a reality in about a year, with revenue potentially starting in FY28.
Answered by J. Madhusudhan Varma
Asked by Shruti Malpani: What is the plan and timeline for the new RF subsidiary?
p. 10
“this is going to be a reality in a year's time, probably 8 to 9 months or 1 year it takes for us to build systems and start demonstrating.”
J. Madhusudhan Varma, page 10 of the filed PDF · View the filing
Management estimated the split as roughly 30% prototyping and 70% production revenue.
Answered by J. Madhusudhan Varma
Asked by Maitri Shah: What is the split between prototyping and production revenue?
p. 15
“if you see my revenue, 30% of the revenue could be from a prototyping, 70% could be from production orders.”
J. Madhusudhan Varma, page 15 of the filed PDF · View the filing
Management said effectively all revenue is B2G in substance, even where invoicing runs through intermediate B2B entities.
Answered by Sri Harsha
Asked by Shruti Malpani: What is the revenue split between B2B and B2G?
p. 16
“So, in the same fashion, we will have one or two transactions wherein we will bill it to a different business entity, that entity will ultimately bill it to the Ministry of Defence or either of the DRDO labs.”
Sri Harsha, page 16 of the filed PDF · View the filing
Management said the ATE/checkout segment typically represents 4-6% of a missile program's total budget allocation.
Answered by J. Madhusudhan Varma
Asked by Ankur Gulati: What share of a defense program's budget typically goes to Digilogic's segment?
p. 18
“So, in the total allocation of budget for a missile program, this particular segment covers maximum of 4% to 5% of the total allocation.”
J. Madhusudhan Varma, page 18 of the filed PDF · View the filing
Management said the company is earlier in its lifecycle than these peers and that growth will accelerate once it moves into subsystem-level manufacturing under Project UDAN.
Answered by J. Madhusudhan Varma
Asked by Achuth: Why has revenue growth been slower than larger peers like Zen Technologies and Data Patterns?
p. 22
“The moment you get into system of, what is it subsystem level like a manufacturing, that's where the numbers will come automatically.”
J. Madhusudhan Varma, page 22 of the filed PDF · View the filing
Risks flagged
Import delays of hardware from US and European OEMs due to geopolitical disturbances
p. 7
“generally the systems which take to get landed and reaching our office takes something like 8 weeks, that is 2 months, it really went on more than double, almost it took almost 4 months for us to receive this kind of hardware in-house with which we need to integrate.”
J. Madhusudhan Varma, page 7 of the filed PDF · View the filing
Delays in tender pipeline due to government fund allocation priority changes
p. 8
“Only thing is because of the fund allocation whatever is happening by Government of India, priorities have changed. Because priorities have changed, allocation of fund coming to the particular labs, they got readjusted.”
J. Madhusudhan Varma, page 8 of the filed PDF · View the filing
Competition in the prototyping stage of tenders
p. 9
“But when it comes to prototyping, yes, we need to compete, we need to be cost-effective, we need to win the case and prove.”
J. Madhusudhan Varma, page 9 of the filed PDF · View the filing
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