Alps Digital Devices Limited IPO

01At a glance

What the company does: buys finished digital devices of one global manufacturer, which the document calls only its "Principal", from that manufacturer's national distributors and resells them to independent retailers and mobile phone stores in Kerala, Tamil Nadu and Puducherry; it makes nothing itself (DRHP p.25, DRHP p.148).

Who pays it: more than 1,100 active retail customers across 54 districts in FY26; the top five took 26.60% of FY26 revenue and the top ten 34.63% (DRHP p.27). The customers are not named. Kerala brought 76.19% of FY26 revenue (DRHP p.27).

Why it is raising money: ₹40.0 crore of the net proceeds is for working capital, all to be deployed in FY 2026-27, and the rest for general corporate purposes, capped at the lower of 15% of the gross proceeds or ₹10.0 crore (DRHP p.88, DRHP p.89). There is no offer for sale (DRHP p.1).

How fast it has grown: revenue from ₹587.0 crore in FY24 to ₹1,159.4 crore in FY26, about 40.5% a year, and profit after tax from ₹6.6 crore to ₹16.5 crore, about 58.3% a year (our arithmetic, DRHP p.55). Most of it came in FY26, when revenue rose 69.31% (DRHP p.252).

The one thing to understand: the business turns a very large revenue into a thin margin. In FY26 it kept about 3.1% of revenue after the cost of the goods it resold (our arithmetic, DRHP p.55), the EBITDA margin was 2.00% and the PAT margin 1.43% (DRHP p.97). Every rupee of it depends on one supplier relationship: the two national distributors of the Principal supplied 99.96% of FY26 purchases (DRHP p.26), and smartphones were 93.69% of FY26 revenue (DRHP p.158).

02The business, in plain words

What Alps Digital Devices does

Alps Digital Devices is a regional distributor and stockist, a middleman between a phone and computer maker and the shops that serve the public. It buys the Principal's smartphones, laptops and computers, tablets, chargers and cables, smartwatches, earphones and other accessories from the Principal's authorised national distributors, holds the stock at its branch offices, and supplies it on credit to independent retailers, mobile phone stores and electronics dealers, which the document calls the general trade channel (DRHP p.147, DRHP p.148). It also sells extended warranty packages that a third-party vendor services (DRHP p.148).

A retailer in Kerala or Tamil Nadu needs the Principal's phones and accessories in stock → the company places purchase orders with the Principal's national distributors, receives the goods at its branches and allocates them by each retailer's sales history → it invoices the retailer under agreed credit terms and delivers through third-party transporters → it is paid the resale price, keeping the difference over its purchase cost (DRHP p.155, DRHP p.156, DRHP p.35).

The company was incorporated in Kochi on January 31, 2014 as Alps Distributors Private Limited, became an authorised distributor of the Principal in some Kerala districts in 2019, entered Tamil Nadu in 2023 and Puducherry in 2024 (DRHP p.173, DRHP p.174). It changed its name to Alps Digital Devices Private Limited in April 2026 and became a public company with a fresh certificate dated July 10, 2026 (DRHP p.2).

It works from a leased registered office in Kochi and 7 branch offices (DRHP p.147), employed 87 people at March 31, 2026 (DRHP p.161), and has no subsidiary, associate or joint venture (DRHP p.175). It owns no land or buildings; its property, plant and equipment was ₹1.7 crore at March 2026, mostly vehicles (DRHP p.152, DRHP p.224).

The agreement with the Principal is governed by foreign law with international arbitration outside India (DRHP p.37). The Principal can appoint other distributors in the same territories, change its national distributors or make direct sales, and the document says the company has no long-term supply contracts and buys through purchase orders (DRHP p.26).

Earnings equation: Revenue = devices sold × average resale price, and gross profit = revenue − cost of goods resold. The document gives neither the number of units sold nor an average price, so only the money side can be filled in: in FY26 revenue of ₹1,159.4 crore less purchases of ₹1,143.1 crore plus the ₹19.4 crore rise in stock leaves about ₹35.6 crore, 3.1% of revenue, to pay for staff, rent, marketing, interest and profit (our arithmetic, DRHP p.55).

03Where the money comes from

The company reports one segment and sells only in India (DRHP p.256, DRHP p.229). By product, state and city tier the document gives:

Source: DRHP p.158, DRHP p.27, DRHP p.151. Tablets were 1.81% of FY26 revenue, charging and connectivity accessories 1.17%, earphones and headphones 0.64%, smartwatches 0.28% and extended warranty packages 0.11% (DRHP p.158). Tier 3 cities took the largest share by tier, 42.91% of FY26 revenue (DRHP p.151). Tamil Nadu sales went from ₹44.6 crore in FY24 to ₹260.4 crore in FY26 (DRHP p.27).

Alps Digital Devices customers: how concentrated the revenue is

Source: DRHP p.27. The top ten customers bought ₹401.5 crore in FY26 out of revenue of ₹1,159.4 crore, about a third, from a base of more than 1,100 retailers (DRHP p.27). The top-ten share moved up two percentage points over two years and the top-five share seven. More than 450 customers placed repeat orders in each of the last three years, which the document says made up 68.75% of business (DRHP p.151). The largest single customer's share is not given.

One related party is a customer. Sales to Aldous Glare Tech and Energy Private Limited, a group company in which George Thomas holds 60% and Geela George 20%, were ₹92.2 crore in FY26 and ₹13.6 crore in FY25 (DRHP p.232, DRHP p.271), 7.95% and 1.99% of revenue (our arithmetic, DRHP p.232). The document does not say whether it is among the top ten customers.

The supply side is where the dependence sits. Two suppliers, the Principal's national distributors, supplied 50.94% and 49.02% of FY26 purchases, and a third 0.02% (DRHP p.26). The same split held in FY25 and FY24 (DRHP p.26). The company derives all of its revenue from the Principal's products (DRHP p.25).

04The growth record

Alps Digital Devices financials: revenue, profit and margins

Source: DRHP p.97, DRHP p.54, DRHP p.55, DRHP p.56, converted from ₹ lakh. Revenue went from ₹587.0 crore in FY24 to ₹1,159.4 crore in FY26 and profit after tax from ₹6.6 crore to ₹16.5 crore (DRHP p.55). Return on equity on average equity was 87.02%, 50.95% and 59.28% (DRHP p.238).

Our arithmetic over FY24 to FY26: revenue grew about 40.5% a year (our arithmetic, DRHP p.55), EBITDA about 50.3% a year (our arithmetic, DRHP p.97) and profit after tax about 58.3% a year (our arithmetic, DRHP p.55). The company's own figures are 40.53%, 50.32% and 58.34% (DRHP p.152). EBITDA margin moved from 1.75% to 2.00%, up 25 basis points, so from 1.8% to 2.0% rounded (DRHP p.97). Revenue rose 16.65% in FY25 and 69.31% in FY26 (DRHP p.254, DRHP p.252).

The year ends on March 31 throughout. Restatement lowered FY25 profit from ₹8.1 crore to ₹7.8 crore and FY24 from ₹6.7 crore to ₹6.6 crore, for gratuity worked out on an actuarial basis, a CSR expense moved to the year it belonged to, and recalculated tax (DRHP p.242). FY26 needed no adjustment (DRHP p.242).

What sits around the record:

• Cash: operating cash flow was −₹18.3 crore in FY26, ₹1.9 crore in FY25 and −₹9.2 crore in FY24 (DRHP p.56). In FY26 trade payables fell ₹28.7 crore and inventory rose ₹19.4 crore, while receivables fell ₹12.1 crore (DRHP p.56).
• Other income was ₹1.4 crore in FY26, ₹1.0 crore of it a gain on selling mutual funds, 6.3% of FY26 profit before tax of ₹22.4 crore (our arithmetic, DRHP p.55, DRHP p.230).
• Debt: borrowings were ₹42.1 crore at March 31, 2026, almost all short term (DRHP p.54), debt to equity 1.17 times, about 1.2× (DRHP p.238), and net debt, borrowings less ₹5.7 crore of cash and bank balances, about 1.6× FY26 EBITDA (our arithmetic, DRHP p.54). Return on capital employed was 31.11%, so 31.1% rounded (DRHP p.97).
• Customers and suppliers: the top five customers were 26.60% of FY26 revenue, so 26.6% rounded, and the top ten 34.63%, so 34.6% (DRHP p.27); the largest supplier was 50.94% of FY26 purchases, so 50.9% (DRHP p.26).
• Product: smartphones were 93.69% of FY26 revenue, so 93.7% rounded (DRHP p.158).
• Related-party sales: sales to Aldous Glare Tech and Energy Private Limited were 7.95% of FY26 revenue, so 8.0% rounded (our arithmetic, DRHP p.232).
• Contingent liabilities: ₹0.08 crore at March 31, 2026, the amount frozen in two bank accounts, and none in the two earlier years (DRHP p.58).
• Bad debts: ₹0.40 crore written off in FY26, none in FY25 or FY24 (DRHP p.32).
• Industry: the company describes its industry as consumer electronics and digital devices distribution (AP p.2).

05What the growth is made of

Revenue rose ₹572.3 crore from FY24 to FY26 (our arithmetic, DRHP p.55). The company puts the FY26 jump down mainly to smartphones, laptops and computers, tablets and earphones, which grew 70.88%, 82.82%, 63.61% and 87.89% (DRHP p.253).

Product: smartphone revenue went from ₹551.6 crore to ₹1,086.2 crore, which is ₹534.5 crore or 93.4% of the whole increase (our arithmetic, DRHP p.158). Laptops and computers started in FY25 and reached ₹24.4 crore in FY26 (DRHP p.158).

Geography: Tamil Nadu added ₹215.8 crore, Kerala ₹341.1 crore and Puducherry ₹15.5 crore over the two years (our arithmetic, DRHP p.27). The company entered Tamil Nadu in 2023 and Puducherry in 2024 (DRHP p.174), so part of the growth is new territory.

A related-party customer: sales to Aldous Glare Tech and Energy Private Limited rose from nothing in FY24 to ₹92.2 crore in FY26, about 16.1% of the two-year increase (our arithmetic, DRHP p.232).

Timing: the second half of FY26 carried 63.03% of the year's revenue, against 54.67% in FY25 (our arithmetic, DRHP p.257). The company says sales peak in the third and fourth quarters, with the Principal's launches and the festive season (DRHP p.256).

The offer document does not disclose units sold or average selling prices by product, so the increase cannot be separated into volume and price. That sentence is the finding.

06Earnings quality

The item that needs explaining is the FY26 cash outflow, −₹18.3 crore in the year profit doubled (DRHP p.56). Receivables were not the cause: receivable days went back to 16 and receivables fell from ₹56.6 crore to ₹44.1 crore (DRHP p.90, DRHP p.54). What moved was the other side.

Trade payables, money owed to the two national distributors, fell from ₹53.6 crore to ₹24.9 crore, payable days from 27 to 13, while stock rose from ₹27.8 crore to ₹47.2 crore (DRHP p.54, DRHP p.90). The company paid its suppliers faster and held more stock, and borrowed ₹14.8 crore more in short-term loans to do it (DRHP p.56).

The objects plan to cut payable days further, to 15 in FY27 against 13 in FY26 (DRHP p.90).

The thin margin also makes small items count. Finance cost of ₹1.9 crore was 8.2% of FY26 EBITDA (our arithmetic, DRHP p.55). Interest under sections 234A, B and C of the Income Tax Act was ₹0.19 crore in FY26, ₹0.10 crore in FY25 and ₹0.12 crore in FY24 (DRHP p.237).

07The balance sheet

At March 31, 2026 total assets were ₹107.6 crore: inventory ₹47.2 crore, trade receivables ₹44.1 crore, cash and bank balances ₹5.7 crore, short-term loans and advances ₹5.4 crore, mostly balances with government authorities, current investments in mutual funds ₹3.1 crore and property, plant and equipment ₹1.7 crore (DRHP p.54, DRHP p.228). Against them: short-term borrowings ₹41.9 crore, trade payables ₹24.9 crore, other current liabilities and provisions ₹3.9 crore, long-term borrowings ₹0.24 crore and net worth ₹36.2 crore (DRHP p.54).

Borrowings at March 31, 2026 by type: secured working capital loans repayable on demand of ₹25.8 crore from Axis Bank, Hero FinCorp, IndusInd Bank, HSBC and DBS Bank, unsecured working capital loans of ₹15.7 crore from Yes Bank, Aditya Birla Finance and ICICI Bank, and vehicle loans of ₹0.68 crore (DRHP p.218, DRHP p.219, DRHP p.221, DRHP p.216). Stated rates on the secured loans run from 8.25% to 10.25% (DRHP p.219).

The working capital facilities carry the personal guarantees of George Thomas and Geela George (DRHP p.220, DRHP p.248). Interest-free loans from the two promoters, ₹7.5 crore at March 2025, were fully repaid in FY26 (DRHP p.222). Of the ₹5.7 crore of cash and bank balances, ₹5.0 crore is fixed deposits pledged as margin money (DRHP p.228).

Source: DRHP p.54, DRHP p.88, DRHP p.237. None of the issue money is earmarked for repaying debt, and the capitalisation statement leaves the post-issue column blank, so borrowings after the issue cannot be worked out from the document (DRHP p.237). The FY27 working capital plan still assumes ₹46.2 crore of short-term borrowings alongside ₹40.0 crore from the issue (DRHP p.90). The contingent liabilities shown are ₹0.08 crore (DRHP p.58); the buyer financing guarantee in section 22 is not quantified.

08What the money is for

Alps Digital Devices IPO objects: what the money is for

Source: DRHP p.88, DRHP p.91. The size of the fresh issue in rupees depends on the price, which is not set, so the share of each object cannot be worked out (DRHP p.1).

Working capital, ₹40.0 crore: all of it in FY 2026-27 (DRHP p.89). The board approved an estimated FY27 working capital gap of ₹155.1 crore against ₹68.0 crore at March 2026, to be met by ₹46.2 crore of short-term borrowings, ₹68.9 crore of internal accruals and ₹40.0 crore from the issue (DRHP p.90). The estimate assumes receivable days of 21, inventory days of 21 and payable days of 15 in FY27, against 16, 12 and 13 in FY26 (DRHP p.90). These are the company's own estimates, certified by its statutory auditor, not newboard's (DRHP p.90).

The objects have not been appraised by any bank or financial institution, and no definitive arrangements have been made (DRHP p.93, DRHP p.41). The document says the company will appoint a monitoring agency because the issue size exceeds ₹50.0 crore, although the issue size in rupees is still blank (DRHP p.93).

Into the business the whole fresh issue of up to 48,09,600 shares, at a price not yet set (DRHP p.1). To selling shareholders nothing; there is no offer for sale (DRHP p.1).

09Who is selling

Alps Digital Devices IPO offer for sale: who is selling

The cover states that the offer for sale is nil and that details of selling shareholders are not applicable because the entire issue is a fresh issue of equity shares (DRHP p.1). No shares changed hands for money in the three years before filing; the only transfers were gifts within the family on April 1, 2026 (DRHP p.99).

10Promoters

The promoters are George Thomas and Geela George, who hold 99.77% of the company before the issue (DRHP p.193). The document records them as spouses (DRHP p.180). Both have been directors since incorporation in 2014 and subscribed to its memorandum (DRHP p.178, DRHP p.173). The promoter group holds the remaining 0.23%: Glare George, Sanju Saji Thomas, Mini Varghese, Gelix George and Gently George (DRHP p.79).

George Thomas, aged 59, is Chairman and Managing Director, holds a Bachelor of Arts in economics and a post graduate diploma in computer science, and has over 30 years in information technology and digital devices (DRHP p.178, DRHP p.179). Geela George, aged 53, is Whole-time Director, holds a Bachelor of Commerce and a post graduate diploma in computer applications, and has around 12 years in the digital device industry (DRHP p.178, DRHP p.179). The Chief Executive Officer, Binu Malayilpothy Varghese, joined the board in February 2026 and became Whole-time Director in September 2026 (DRHP p.183). None of the directors has sat on the board of a listed company (DRHP p.45).

Pay: George Thomas drew ₹0.05 crore in FY24 and ₹0.14 crore in FY26, Geela George ₹0.07 crore and ₹0.14 crore, so promoter remuneration went from ₹0.12 crore in FY24 to ₹0.29 crore in FY26 (DRHP p.59). The terms approved in September 2026 allow total remuneration of up to ₹0.50 crore a year for George Thomas and ₹0.25 crore for Geela George, each with commission of up to 2% of net profits (DRHP p.181).

Other business: George Thomas holds 60% of Aldous Glare Tech and Energy Private Limited, which distributes electronic products, mobile devices and solar systems, and Geela George 20% (DRHP p.271). The document says it deals in digital devices of brands other than the Principal, and a non-compete agreement dated September 28, 2026 divides their business domains (DRHP p.35). It bought ₹92.2 crore of goods from the company in FY26 (DRHP p.232). George Thomas also runs the proprietorships Aldous Glare Trade & Exports, which rents premises to the company, and Able Distributors, and holds a third of Aldous Green Technology Private Limited (DRHP p.193, DRHP p.272).

Property and brand: from August 2026 the company leases its registered office from George Thomas at ₹0.02 crore a month and two branch offices from Geela George at ₹0.01 crore a month each, all for five years with a 10% increase every twelve months (DRHP p.162, DRHP p.163). The company's trademarks are applied for in the name of George Thomas, who has given the company the right to use them under an agreement of September 10, 2026 (DRHP p.33).

Pledges and guarantees: no promoter shares are pledged (DRHP p.81). Both promoters personally guarantee the company's working capital facilities from banks and NBFCs (DRHP p.45).

Cases: five tax proceedings are listed against the promoters and directors, with ₹0.38 crore involved (AP p.7). There are no criminal proceedings, regulatory actions or SEBI actions against the promoters (DRHP p.260). They have not been declared wilful defaulters (DRHP p.259).

Promoter economics: the average cost of the promoters' shares is ₹0.53 a share for George Thomas and ₹1.42 for Geela George (DRHP p.82, DRHP p.83). Each took 500 shares of ₹100 at incorporation in 2014 and 49,500 shares at ₹100 in a rights issue on May 25, 2024 (DRHP p.81, DRHP p.82). The shares were split from ₹100 to ₹10 on January 7, 2026, Geela George gifted 2,28,000 shares to George Thomas on April 1, 2026, and a 12:1 bonus followed on April 14, 2026 (DRHP p.81, DRHP p.83). No shares were transferred for money in the three years before filing (DRHP p.99).

11Who already owns it

Alps Digital Devices promoter holding before and after the IPO

Source: DRHP p.79. There are 1,30,00,000 shares of ₹10 before the issue and 7 shareholders, all promoters or promoter group (DRHP p.52, DRHP p.87). The document leaves the after-issue holding blank until the price is fixed (DRHP p.79). If all 48,09,600 new shares are issued, the total becomes 1,78,09,600 and the promoters' 99.77% becomes about 72.8%, so 99.8% → 72.8% (our arithmetic, DRHP p.79), and promoters with the promoter group go from 100% to about 73.0%, so 100.0% → 73.0% (our arithmetic, DRHP p.79).

There is no outside shareholder: no fund, company or employee holds shares before the issue (DRHP p.87). One year before filing George Thomas and Geela George held 50% each (DRHP p.80). The promoters have agreed to lock in 35,76,000 bonus shares for three years as the minimum promoter contribution, with the rest of their holding locked in for one and two years (DRHP p.84, DRHP p.85).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹587.0 crore in FY24 to ₹1,159.4 crore in FY26 and profit after tax from ₹6.6 crore to ₹16.5 crore (DRHP p.55).
• Receivables were 16 days in FY24 and 16 days in FY26, with 24 days in FY25 between (DRHP p.90).
• Promoter pay went from ₹0.12 crore in FY24 to ₹0.29 crore in FY26 (DRHP p.59).
• New territory: Tamil Nadu grew from 7.60% to 22.46% of revenue (DRHP p.27).
• Related-party sales to Aldous Glare Tech and Energy Private Limited went from nothing in FY24 to ₹92.2 crore in FY26 (DRHP p.232).
• Promoter loans of ₹7.5 crore were repaid in FY26 (DRHP p.222).
• Rights issue: 99,000 shares of ₹100 at ₹100 to the two promoters on May 25, 2024, the last cash allotment (DRHP p.74).
• Share split: ₹100 to ₹10 a share, January 7, 2026 (DRHP p.74).
• Bonus issue: 12:1, allotted April 14, 2026, 1,20,00,000 shares, the last allotment before the IPO, with no price paid (DRHP p.74).
• Pre-IPO placement: none; no shares were issued in the 18 months before filing other than the bonus (DRHP p.99).
• Public company: converted with a fresh certificate dated July 10, 2026, after a name change in April 2026 (DRHP p.2).
• Auditor change: none since incorporation; K.J. Anto & Co has audited all three years (DRHP p.65, DRHP p.200).
• Board: a non-executive director and two independent directors joined on July 13, 2026; George Thomas became Chairman on September 5, 2026; a company secretary and a CFO joined in June and July 2026 (DRHP p.183, DRHP p.59).
• Leases from promoters: the registered office and two branches were leased from George Thomas and Geela George in August 2026 (DRHP p.183).
• Non-compete with the group company Aldous Glare Tech and Energy Private Limited, September 28, 2026 (DRHP p.177).
• Compliance clean-up: an application to the NCLT dated September 9, 2026 to condone late adoption of accounts for four years, and a Registrar of Companies penalty order of September 3, 2026 over late transfer of unspent CSR money, against which the filing of an appeal remains pending (DRHP p.32).

13Capacity and expansion

Source: DRHP p.147, DRHP p.162, DRHP p.163. The company manufactures nothing, so the document gives no installed capacity or utilisation, and it states that raw material details do not apply (DRHP p.161). Its branch offices in Thrissur, Thiruvananthapuram, Kozhikode, Trichy, Coimbatore, Madurai and Chennai serve as distribution hubs, and all are leased or rented (DRHP p.162, DRHP p.163). None of the issue money is for capital expenditure (DRHP p.88).

What the issue adds is working capital, which the company plans to spend on carrying more stock and receivables (DRHP p.90). The document does not give warehouse area or the number of devices handled, so the chain from capacity to revenue cannot be built.

14Market size and industry structure

Alps Digital Devices industry: market size and growth

As claimed: the industry chapter is drawn from "India Digital Devices Market 2021 to 2032" by Credence Research Inc., dated September 16, 2026, which the company appointed on June 12, 2026 and commissioned and paid for (DRHP p.42, DRHP p.105). In that commissioned report the India digital device market, covering smartphones, tablets, smartwatches, laptops and computers, earphones and headphones, charging and connectivity accessories and other devices, was ₹4,05,762.12 crore in 2021 and ₹6,10,929.50 crore in 2025 (DRHP p.107). It excludes large appliances, enterprise hardware, refurbished and grey-market devices (DRHP p.105).

The part that is addressable: the company sells one manufacturer's devices, through general trade, in Kerala, Tamil Nadu and Puducherry (DRHP p.147). The commissioned report gives the South region as rising from 1,78,153.53 in 2026 to 3,21,879.42 by 2032, a 10.36% CAGR, but the line carries no unit and the South region covers more states than the company serves (DRHP p.107). The Kerala and Tamil Nadu markets are shown only as charts, whose values do not appear in the text of the document (DRHP p.130, DRHP p.134). So the document gives no rupee size for the company's three territories alone.

What the company is today: FY26 revenue of ₹1,159.4 crore is about 0.19% of the national 2025 market, and FY25 revenue of ₹684.8 crore about 0.11% (our arithmetic, DRHP p.107, DRHP p.55). The commissioned report's own share table puts the company's 2025 revenue of ₹684.76 crore at 0.26%, which implies a smaller base than the national total; the table does not say what that base is (DRHP p.145).

Size over time: the market grew about 10.8% a year from 2021 to 2025 (our arithmetic, DRHP p.107). The commissioned report projects ₹11,88,873.69 crore by 2032 (DRHP p.107), and it puts market growth in the latest year at about 10.54% against the company's 69.30% (DRHP p.145). The report also cites IDC that India's smartphone shipments fell 4.1% in Q1 2026 while average selling prices rose 10.4% (DRHP p.111). These are the report's claims, not figures from the company's accounts.

Segments: the report divides the market by product (the seven categories above), by brand, by sales channel (general trade, online and modern trade) and by district tier (DRHP p.105, DRHP p.140, DRHP p.143). The company sells in general trade, which the report says led the market in 2025, and nearly all of its revenue is smartphones (DRHP p.140, DRHP p.158). The report states that offline channels carried 62% of smartphone shipments, up from 58% (DRHP p.126). It puts the premium device share at around 22% to 25% in tier 1 districts of Kerala and Tamil Nadu, falling to 7% or below in tier 5 (DRHP p.144).

What drives demand: the chapter names replacement and upgrade demand, 5G, rising incomes and premiumisation, consumer financing such as no-cost EMI and exchange offers, domestic manufacturing under the PLI and mobile phone manufacturing schemes, broadband reaching 106.58 crore subscribers by March 2026, and digital education (DRHP p.107, DRHP p.110, DRHP p.115). For the company's region it claims smartphone spending 15% to 30% above the national average and says 35% to 45% of Kerala's annual digital device sales come in the Onam season (DRHP p.110, DRHP p.117).

Structure: the chapter describes the market as highly competitive, with the same products sold through regional distributors, retailers, brand outlets and online platforms at nearly the same time (DRHP p.111). Its SWOT table lists a fragmented distribution structure among the industry's drawbacks (DRHP p.112).

It names six general trade distributors, the company among them, with 2025 revenue: HP Telecom India Limited ₹1,596.15 crore, Ardas Tele Ventures Private Limited ₹1,007.29 crore, the company ₹684.76 crore, Mittal Infocom Private Limited ₹526.59 crore, Jalan Infosystem Private Limited ₹286.24 crore and Sri Shyam Baba Electronic Private Limited ₹242.54 crore, each serving its own region (DRHP p.145). Its brand analysis ranks Apple, Samsung, Xiaomi, vivo, OPPO and others (DRHP p.139).

The offer document does not name the Principal.

Inputs and trade: the company buys finished goods only, from national distributors in India, and imports nothing itself (DRHP p.230, DRHP p.33). The document says the products are manufactured outside India and imported by the national distributors, so supply depends on the Principal's manufacturing, import rules, customs duties and freight (DRHP p.33). The report notes India's electronics production of ₹13.1 lakh crore and exports of ₹4.24 lakh crore (DRHP p.116). The report lists GST of 18% on smartphones, computers and headphones (DRHP p.116).

Rules: the regulations chapter lists the Consumer Protection Act, the Information Technology Act, the Digital Personal Data Protection Act and Rules, the Sale of Goods Act, the Legal Metrology Act and the Packaged Commodities Rules, the shops and establishments laws of Kerala and Tamil Nadu and GST (DRHP p.164, DRHP p.165, DRHP p.166, DRHP p.167). The company's application for registration under the Legal Metrology Packaged Commodities Rules, dated August 25, 2026, is pending (DRHP p.269).

What the chapter says can go wrong: price competition and margin pressure across channels, with smartphones the most price-sensitive category; inventory risk from short product life cycles; dependence on imported components and supply chains; and uneven after-sales service outside the cities (DRHP p.111, DRHP p.112). The SWOT table adds grey-market and counterfeit products, foreign exchange costs and e-waste rules (DRHP p.113).

15Competitive position

Alps Digital Devices competitors

Source: DRHP p.98, DRHP p.54, DRHP p.145. HP Telecom's net worth was ₹101.0 crore against the company's ₹36.2 crore (DRHP p.98). The commissioned report gives 2025 revenue only for the unlisted names, ₹1,007.29 crore for Ardas Tele Ventures and ₹526.59 crore for Mittal Infocom (DRHP p.145). The company also names Jalan Infosystem Private Limited and Sri Shyam Baba Electronic Private Limited as competitors (DRHP p.161). Each named distributor serves a different region (DRHP p.145).

What the company puts forward: its distribution rights from the Principal in its territories, a multi-tier retail network of more than 1,100 customers, an asset-light model, established procurement from the authorised distributors and experienced promoters (DRHP p.150, DRHP p.152). It has received the Principal's 'JIGAR' revenue champ award in 2026 (DRHP p.147).

Against that: the rights come from one Principal under a foreign-law agreement, the Principal can add distributors in the same territories or make direct sales, and the company has no long-term supply contracts and no non-compete with its retailers (DRHP p.26, DRHP p.37, DRHP p.27). Competition also comes from organised retail chains, brand stores and e-commerce platforms (DRHP p.36).

16Peers the company named

Peers named in the offer document: HP Telecom India Limited (DRHP p.96).

The document picks one listed peer and takes its P/E of 21.89 as the industry average, highest and lowest at once, on stock exchange data of September 23, 2026 (DRHP p.96). HP Telecom is about twice the company's FY26 revenue, ₹2,391.7 crore, with a lower PAT margin of 1.07% and a higher RoCE of 43.46% (DRHP p.98). Its revenue grew about 49.84% in FY26, against the company's 69.31% (DRHP p.145, DRHP p.252). The company's FY26 EPS is ₹12.72 on the post-bonus share count (DRHP p.95). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Alps Digital Devices IPO risks

Suppliers: one Principal, two suppliers: all revenue comes from one manufacturer's products, bought from two national distributors that supplied 99.96% of FY26 purchases, with no long-term contract (DRHP p.25, DRHP p.26) → the Principal can add distributors in the same territories, change its national distributors, make direct sales or alter terms (DRHP p.26) → the agreement is under foreign law with arbitration outside India (DRHP p.37).

Business: one product: smartphones were 93.69% of FY26 revenue, ₹1,086.2 crore (DRHP p.31) → any fall in demand for the Principal's phones, or a shift to other brands, reaches revenue almost one for one, because laptops, tablets and accessories together were about 6% (DRHP p.158).

Financial: thin margin: EBITDA margin was 2.00% and PAT margin 1.43% in FY26 (DRHP p.97) → a margin change of half a percentage point on FY26 revenue would be about ₹5.8 crore, roughly a quarter of FY26 EBITDA of ₹23.1 crore (our arithmetic, DRHP p.97) → the company says pricing, incentives and launch timing are largely set by the Principal (DRHP p.30).

Financial: cash and borrowing: operating cash flow was negative in two of three years, −₹18.3 crore in FY26 (DRHP p.29) → borrowings of ₹42.1 crore are almost all repayable on demand, including ₹15.7 crore of unsecured loans that can be recalled at any time (DRHP p.54, DRHP p.39) → the FY27 plan needs ₹155.1 crore of working capital, of which ₹40.0 crore comes from the issue (DRHP p.90).

Financial: buyer financing: the company has an arrangement with a financing platform that lends to its retailers, and has undertaken to guarantee 50% of each retailer's dues if the guarantee is invoked (DRHP p.30) → a retailer default may require the company to pay principal, interest and penalties and to take back stock (DRHP p.30) → the document does not give the amount of retailer loans covered.

Customers and geography: Kerala was 76.19% of FY26 revenue and the three territories 100% (DRHP p.27) → the top ten customers took 34.63% of FY26 revenue (DRHP p.27).

Promoters: related parties: a group company controlled by the promoters bought ₹92.2 crore, 7.95% of FY26 revenue, while the document describes it as dealing in other brands (DRHP p.232, DRHP p.35) → the registered office, two branches and the trademarks belong to the promoters (DRHP p.163, DRHP p.33) → both promoters personally guarantee the working capital facilities (DRHP p.45).

Regulation and compliance: delays in adopting accounts for four years await NCLT condonation, the filing of an appeal against an ROC penalty over late CSR transfer remains pending, and a Legal Metrology registration is pending (DRHP p.32, DRHP p.269) → the document cannot quantify any resulting penalty (DRHP p.32).

Issue-specific: the promoters' average cost is ₹0.53 and ₹1.42 a share after the split and bonus (DRHP p.82, DRHP p.83) → the objects have not been appraised and there is no firm arrangement for the money (DRHP p.93) → after the issue the promoters would still hold about 72.8% (our arithmetic, DRHP p.79).

18Litigation and regulatory matters

Cases against Alps Digital Devices and its promoters

Criminal: none against the company, promoters, directors, key managerial personnel or senior management; the one criminal case is filed by the company (DRHP p.259, DRHP p.260, DRHP p.261). Regulatory: no actions against the promoters or directors and no SEBI or stock exchange action (DRHP p.260). Civil: no material litigation by or against the company (DRHP p.260). Tax: none against the company, direct or indirect (DRHP p.261).

The two GST orders are described as received by "the firm", listed under George Thomas; the document does not name the firm (DRHP p.262). Group companies: no outstanding litigation (DRHP p.273).

The company also records an application to the NCLT, Kochi Bench, to condone late adoption of accounts for FY20, FY22, FY23 and FY24, and an ROC penalty order of September 3, 2026 over the FY25 unspent CSR amount of ₹0.08 crore; the amount of the penalty is not stated (DRHP p.32).

19Related-party transactions

Source: DRHP p.232, DRHP p.233. Salaries were ₹0.14 crore each to George Thomas and Geela George in FY26, ₹0.33 crore to Binu Malayilpothy Varghese, and ₹0.03 crore to Glare George (DRHP p.233). Rent of ₹0.10 crore was paid to Geela George and ₹0.12 crore to Glare George in FY26 (DRHP p.233). Purchases from Aldous Glare Tech and Energy were ₹0.42 crore in FY26 (DRHP p.232). The company says sales to related parties are at arm's length and at prevailing price lists (DRHP p.234).

What appeared or changed in the two years before filing: sales to Aldous Glare Tech and Energy began in FY25 and reached ₹92.2 crore in FY26 (DRHP p.232); Itnet Infocom ceased to be a related party after March 31, 2024, when George Thomas left its board and shareholding (DRHP p.59, DRHP p.195); the promoters' interest-free loans were repaid in FY26 (DRHP p.222); and from August 2026 the company leases its registered office from George Thomas and two branches from Geela George on five-year terms with a 10% yearly increase (DRHP p.162, DRHP p.163).

At those rents the three leases cost about ₹0.46 crore in their first year, against total FY26 rent of ₹0.58 crore (our arithmetic, DRHP p.162, DRHP p.231).

20What the offer document does not say

The Principal is not named. Customers and suppliers are not named, and the largest customer's share is not given. Units sold and average selling prices are not given, so growth cannot be split into volume and price. The terms of the distribution agreement, its length and renewal date, and any margin or incentive the Principal pays are not given.

The amount of retailer loans covered by the 50% buyer financing guarantee is not given (DRHP p.30). The size of the market in the company's own territories is not stated in readable figures. The financial details of the group companies are left to the company's website (DRHP p.272). The names and amounts of the two material creditors are left to the company's website (DRHP p.263).

The issue size in rupees, the general corporate purposes amount and the issue expenses are blank (DRHP p.88, DRHP p.91). The post-issue shareholding is blank (DRHP p.79). The amount of the ROC penalty is not given (DRHP p.32).

Some inconsistencies are recorded as document matters, not business ones: the risk factors say there have been delays in paying dues to financial institutions while the history chapter says the company has made no delays or defaults on current borrowings (DRHP p.41, DRHP p.176); the document says a monitoring agency will be appointed because the issue exceeds ₹50.0 crore while the issue size is blank (DRHP p.93);

the working capital table heads all three historical columns "31-Mar-24" (DRHP p.90); the Legal Metrology paragraph refers to "furnishing and other lifestyle products through its store network" (DRHP p.165); the Thiruvananthapuram lease is dated August 13, 2026 in one chapter and August 17, 2026 in another (DRHP p.163, DRHP p.183); the trademark arrangement is called an assignment agreement in one place and an assignment deed in another

while being described as a right to use (DRHP p.33, DRHP p.269); the list of primary transactions in the last three years shows only the April 2026 bonus and leaves out the May 2024 rights issue (DRHP p.99, DRHP p.74); and the commissioned report's market share table does not reconcile with its own national market size (DRHP p.145, DRHP p.107).

21Five questions for management

1. How many units of smartphones and other devices were sold in FY24, FY25 and FY26, and at what average price, so that the 69.31% FY26 growth can be split into volume and price?
2. Which products made up the ₹92.2 crore of FY26 sales to Aldous Glare Tech and Energy Private Limited, at what margin, and to whom did it resell those goods, given that it deals in brands other than the Principal?
3. What is the term of the distribution agreement with the Principal, when does it come up for renewal, and what share of FY26 gross profit came from incentives or schemes paid by the Principal or the national distributors?
4. How much did retailers owe the financing platform at March 31, 2026 under the arrangement in which the company guarantees 50% of dues, and has the guarantee ever been invoked?
5. Why did payable days fall from 27 to 13 in FY26, and how much of the ₹40.0 crore from the issue goes to paying suppliers sooner rather than to more stock and receivables?

2Sources and cited facts

This study was read from 2 documents the company filed. The 187 figures it cites are listed under the document each came from, with the page and the sentence as printed.