1. At a Glance – Blink and You’ll Miss the Business Model
Alphalogic Techsys Ltd is a ₹269 Cr market-cap company trading around ₹43, down ~62% in one year, which means the stock has done a full IPL-style collapse after one good season. On paper, it’s an IT services company with 16% ROCE, 11.5% ROE, and a P/E of ~53, which politely suggests the market is pricing in future brilliance while current numbers are still warming up in the microwave.
Latest Q3 FY26 numbers:
- Revenue: ₹9.55 Cr (YoY: -53.8%, yes, minus)
- PAT: ₹2.07 Cr (YoY: +10.5%, magic trick achieved via margins & other income)
- EPS: ₹0.22
Promoters hold a chunky 73.8%, pledges sit at ~5.9%, debt is a light ₹4.94 Cr, and interest coverage is a comfy 30x. Sounds calm… until you realize this IT company is also building a 150 KLPD ethanol distillery with a ₹136 Cr loan.
Curious? Confused? Same feeling investors had after the last board meeting.
2. Introduction – From Cloud Computing to Country Liquor Economics
Alphalogic Techsys Ltd was incorporated in 2018 as a boutique IT consulting firm. The pitch was clean: digital transformation, cloud, AI, product engineering, SaaS, fintech, healthcare software — the usual IT bingo card.
And to be fair, they actually executed decently for a few years. Revenue grew at ~75% CAGR over five years, profits grew at ~20%, and margins oscillated like an Indian monsoon — unpredictable but survivable.
Then came The Strategic Curveball™.
Instead of doubling down on scalable software IP, the company decided to diversify into grain-based bio-ethanol manufacturing. Not software for ethanol plants. An actual ethanol plant. With boilers. And grain. And government approvals.
So now Alphalogic is:
- Writing code for
- fintech apps
- Designing healthcare dashboards
- AND planning to distill fuel-grade ethanol in Maharashtra
Is this diversification… or distraction? Hold that thought.
3. Business Model – WTF Do They Even Do?
The Original Business (a.k.a. The Sensible One)
Alphalogic’s core IT business includes:
- Mobile & web app development
- Cloud migration & DevOps
- BI & analytics
- Product engineering
- AI strategy & automation
Clients include Mahindra, Saint-Gobain, Bajaj Finserv, Swiggy, etc. Revenue is ~97% services, 95% domestic, and largely project-based, not annuity SaaS.
Translation for lazy investors:
👉 This is not TCS.
👉 This is a small, founder-driven IT shop with decent execution but limited moat.
The New Business (a.k.a. Hold My Beer)
The company is setting up:
- 150 KLPD grain-based ethanol distillery
- 3.3 MW co-generation power plant
- Location: MIDC Tadali, Chandrapur (Maharashtra)
- Loan sanctioned: ₹136 Cr from IREDA
This project alone is >2.5× the company’s current market cap in capital intensity.
Question for you:
👉 Does a ₹50–80 Cr annual revenue IT firm have the balance sheet DNA to digest a ₹136 Cr industrial project smoothly?
4. Financials Overview – Numbers That Need Context Therapy
Quarterly Comparison (Q3 FY26 – Quarterly Results)
| Metric | Latest Qtr (Dec 2025) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 9.55 | 20.69 | 16.80 | -53.8% | -43.2% |
| EBITDA (₹ Cr) | 2.48 | 1.77 | 2.68 | +40.1% | -7.5% |
| PAT (₹ Cr) | 2.07 | 1.63 | 2.25 | +27.0% | -8.0% |
| EPS (₹) | 0.22 | 0.20 | 0.23 | +10.0% | -4.3% |
