Alphalogic Techsys Limited is a diversified boutique consulting and industrial manufacturing group. Originally established as India’s first startup to list on the **BSE Startup Segment** in **2019**, the company has since graduated to the **BSE Main Board**. The group operates through three distinct business verticals: Information Technology, Industrial Storage Solutions (via its listed subsidiary), and a major new foray into Green Energy/Biofuels. --- ### **I. Multi-Sectoral Business Architecture** The group’s operations are structured across three high-growth pillars, ranging from asset-light digital services to capital-intensive industrial manufacturing and energy production. | Segment | Entity | Core Activities & Products | Key Metrics/Status | |:---|:---|:---|:---| | **Information Technology** | Parent (Alphalogic Techsys) | Product Engineering, Cloud Computing, Mobility, AI/ML, and Cybersecurity. | Serves global clients in **BFSI, Healthcare, and SaaS**. | | **Industrial Storage** | Alphalogic Industries Ltd | Design, manufacturing, and installation of Industrial Racks, Mezzanine Floors, and AS/RS systems. | **BSE SME** listed subsidiary; operates a state-of-the-art plant in **Pune**. | | **Biofuels (Green Energy)** | Parent (New Venture) | Production of fuel-grade ethanol and by-products (DDGS and CO₂). | **150,000 Litres Per Day (KLPD)** capacity plant under development in **Chandrapur**. | #### **1. Information Technology & Digital Transformation** Alphalogic Techsys provides a comprehensive suite of digital transformation services, specializing in **cloud-first** solutions and **end-to-end product development**. The company leverages partnerships with global cloud leaders including **Amazon Web Services (AWS)**, **Google Cloud**, and **Microsoft Azure**. * **Cloud Computing:** Cloud advisory, implementation, migration, **IaaS solutions**, and **DevOps services**. * **Product Engineering:** Enterprise/Web portals, **CMS**, and custom applications using **React JS**, **Angular JS**, and **Ruby on Rails**. * **Mobility:** Native and cross-platform application development for **Android** and **iOS**. * **Artificial Intelligence:** Strategy and consulting, **Data Discovery**, AI platform solutions, and **Intelligent Process Automation**. * **Revenue Model:** Income is derived from a mix of fixed-price, time-and-material, and annuity-based contracts. #### **2. Industrial Storage Solutions (Alphalogic Industries Limited)** The subsidiary, **Alphalogic Industries Limited**, is **ISO-certified** and **BIFMA-accredited**. It operates a manufacturing facility in **Pune** and serves high-profile clients including **Blinkit, Zepto, Swiggy, Haldiram's, JSW, and Bharat Forge**. * **Product Range:** Industrial Racks, Mezzanine Floors, and **Automated Storage and Retrieval Systems (AS/RS)**. * **Market Position:** Successfully completed an **IPO** of **13,41,600 shares** at **₹96/share** in **July 2023**, listing on the **BSE SME Platform**. #### **3. Green Energy: The Ethanol Expansion** The company is undergoing a strategic pivot into the **Green Energy** space to align with India’s **20% Ethanol Blending Programme (EBP)** target for **2025-26**. * **Location:** **MIDC Tadali, Chandrapur** (a designated underdeveloped region). * **Capacity:** **150 KLPD** grain-based bio-ethanol production with a **3.3 MW co-generation power plant**. * **Feedstock:** Utilizes maize, broken rice, and damaged food grains to ensure year-round operations. * **By-products:** Production of **DDGS** (Dried Distillers Grain Solubles) and **CO₂**, creating secondary revenue streams. --- ### **II. Strategic Transformation & Capital Allocation** Alphalogic is transitioning from a pure-play IT firm to an **ESG-responsible** industrial group. This shift is reflected in its aggressive capital expenditure and corporate restructuring. * **Ethanol Project Financing:** The total investment is approximately **₹160.35 crores**. This is supported by a **₹136 crore** term loan sanctioned by **IREDA** (signed March 2024). Civil works are approximately **50% complete**, with major equipment ordered from **Mojj Engineering Systems Ltd**. The expected **Date of Commercial Operation (CoD)** is in **Calendar Year 2026**. * **Corporate Simplification:** The group liquidated its US-based subsidiary, **Faraday Digital Inc.**, in **2023-24** to streamline operations and focus on domestic project execution. * **Resource Conservation:** The Board has skipped dividends for **FY 2023-24** and **FY 2024-25** to retain profits for the high-CAPEX ethanol project. * **Fundraising Enabling Resolutions:** Shareholders approved a resolution in June 2024 to raise up to **₹105 Crores** through QIP, Rights Issues, or Preferential Allotments for growth and debt refinancing. --- ### **III. Financial Performance & Capital Structure** The company has demonstrated significant growth in revenue and profitability, supported by frequent corporate actions to reward shareholders and manage equity. #### **Financial Highlights (FY 2023-24)** | Metric | Standalone (₹ Lacs) | Consolidated (₹ Lacs) | | :--- | :--- | :--- | | **Revenue from Operations & Other Income** | **774.78** | **5,565.04** | | **Profit Before Tax (PBT)** | **387.66** | **699.05** | | **Profit After Tax (PAT)** | **294.01** | **528.94** | #### **Equity & Shareholding Evolution** * **Authorized Share Capital:** **₹26,00,00,000** (5.20 crore shares at **₹5** each). * **Bonus Issues:** * **July 2024:** **14:48** ratio. * **December 2023:** **1:3** ratio. * **September 2022:** **1:2** ratio. * **Warrant Conversions:** Completed the conversion of **2,500,000 warrants** (issued in 2022 at **₹42**). The final tranche of **770,000 warrants** was converted on **May 08, 2024**. * **Related Party Transactions:** A threshold of **₹80 crore** was approved for **FY 2024-25** to facilitate seamless operations between the parent and its industrial subsidiary. --- ### **IV. Risk Management & Operational Resilience** The company maintains a conservative leverage profile, with a **Debt-Equity Ratio** of **0.02** in **FY25**, down from **0.12** in **FY24**. #### **Key Efficiency Ratios** | Metric | FY25 | FY24 | Change (%) | | :--- | :--- | :--- | :--- | | **Current Ratio** | **6.99** | **3.60** | **+94.18%** | | **Return on Equity (ROE)** | **15%** | **16%** | **-7.51%** | | **Return on Capital Employed (ROCE)** | **18.65%** | **17.13%** | **+8.92%** | #### **Risk Mitigation Strategies** * **Ethanol Volatility:** Vulnerability to feedstock pricing and OMC policy is mitigated by multi-grain feedstock capabilities and a **3.3 MW captive power plant**. * **Industrial Margins:** Direct exposure to **steel price fluctuations** is managed through dynamic pricing and expanding into high-margin **automated storage solutions**. * **IT Security:** Investment in cybersecurity frameworks to prevent breaches in the BFSI and Healthcare verticals. * **Sustainability:** Commitment to meet **10% of power needs** via renewable sources and ensuring all ethanol plants adhere to **Zero Liquid Discharge (ZLD)** and rainwater harvesting norms. * **Liquidity:** Maintains flexibility through **committed credit lines** and secured bank overdrafts (e.g., **IDFC First Bank** at **7.3% p.a.**). The company has **not accepted** any public deposits.