💰 Financial Performance

Revenue Growth by Segment

Revenue from operations grew 15% YoY to INR 3,350.5 Cr in 9MFY23, driven by the IT Consumer, IT Enterprise, and Mobility segments. However, by the quarter ended September 30, 2025, revenue significantly declined to INR 593.18 Cr (reported as 59,318.50 Lakhs) due to operational disruptions from the insolvency process.

Geographic Revenue Split

The company operates across India with a presence in 600+ cities as of FY22, with a medium-term strategic goal to expand this footprint to 1,000+ cities to capture underserved Tier II and Tier III markets.

Profitability Margins

Gross Profit Margin remained stable at 4.7% in 9MFY23 compared to 4.7% in 9MFY22. Net Profit Margin was thin at 0.7% for 9MFY23, reflecting the high-volume, low-margin nature of IT distribution.

EBITDA Margin

EBITDA Margin was 2.7% for 9MFY23, a slight improvement from 2.7% in 9MFY22. Absolute EBITDA grew 17% YoY to INR 91.6 Cr during the same period.

Capital Expenditure

Not explicitly disclosed in available documents, though the company focused on 'Version 2.0' strategic shifts rather than heavy industrial capex.

Credit Rating & Borrowing

Total borrowings stood at INR 498.4 Cr as of September 2022 (INR 41.5 Cr non-current and INR 456.9 Cr current). Finance costs rose 7% YoY to INR 57.7 Cr in 9MFY23, indicating high leverage and an implied interest rate of approximately 15-16%.

⚙️ Operational Drivers

Raw Materials

IT Hardware (Laptops/Desktops), Enterprise Software, Mobility Products (Smartphones), and Cloud/Cybersecurity solutions, which collectively represent approximately 95.5% of total revenue (Cost of Goods Sold).

Import Sources

Sourced from Global Brands; while specific countries are not listed, the portfolio includes 'Multi Global Brands' typically headquartered in the USA, China, and Taiwan.

Key Suppliers

The company acts as a distributor for 'Multi Global Brands' in the IT and Mobility sectors, though specific brand names like HP or Dell are not explicitly listed in the provided text.

Capacity Expansion

Distribution capacity was 12,000+ channel partners in 600+ cities as of FY22, with a target to expand to 20,000+ partners and 1,000+ cities.

Raw Material Costs

Cost of Goods Sold was INR 3,197.1 Cr in 9MFY23, representing 95.4% of total income, highlighting the company's sensitivity to procurement pricing and vendor terms.

Manufacturing Efficiency

Not applicable as the company is a distribution intermediary; efficiency is measured by partner penetration and city reach.

Logistics & Distribution

Other expenses (including logistics) were INR 41.1 Cr in 9MFY23, representing approximately 1.2% of total revenue.

📈 Strategic Growth

Expected Growth Rate

18%

Growth Strategy

The 'Version 2.0' strategy aimed to achieve a US$1 billion revenue target by shifting from a sole IT Consumer distributor to a multi-brand IT Enterprise and Mobility distributor, focusing on EBITDA-accretive products and expanding the partner network by 66% to 20,000 partners.

Products & Services

IT Consumer products, IT Enterprise solutions, Mobility products, Cloud computing services, Cybersecurity software, and Physical Safety/Security hardware.

Brand Portfolio

The company manages a portfolio of 'Multi Global Brands' across IT and Mobility sectors.

New Products/Services

Expansion into Cloud and Cybersecurity was expected to drive higher margins, though specific revenue contribution percentages for new launches were not finalized before the insolvency.

Market Expansion

Targeting penetration into 1,000+ cities, specifically focusing on Tier II and Tier III underserved geographies.

Strategic Alliances

Maintains alliances with 12,000+ channel partners who serve as the link to end customers.

🌍 External Factors

Industry Trends

The industry is shifting from pure hardware distribution to integrated 'Hardware + Services' models, including Cloud and Enterprise solutions, where Compuage was attempting to position itself.

Competitive Landscape

Operates in a highly competitive IT distribution market with low barriers to entry for large-scale players but high working capital requirements.

Competitive Moat

The primary moat was a massive distribution network of 12,000+ partners across 600 cities; however, this moat is currently compromised by the insolvency process and lack of vendor support.

Macro Economic Sensitivity

Highly sensitive to corporate IT spending and consumer electronics demand, which are influenced by GDP growth and interest rate cycles.

Consumer Behavior

Increasing demand for mobility and cloud-based enterprise solutions over traditional desktop hardware.

Geopolitical Risks

Supply chain disruptions in global IT hardware manufacturing hubs could adversely affect product availability and margins.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Insolvency and Bankruptcy Code (IBC) 2016 since November 2, 2023. The company failed to comply with SEBI LODR regulations, including filing FY24 financials and Corporate Governance reports.

Environmental Compliance

Not disclosed.

Taxation Policy Impact

Effective tax rate was approximately 27% based on 9MFY23 figures (INR 8.5 Cr tax on INR 31.6 Cr PBT).

Legal Contingencies

The company is under Corporate Insolvency Resolution Process (CIRP) managed by Resolution Professional Mr. Gajesh Labhchand Jain. Auditors issued a 'Disclaimer of Opinion' for FY24 due to insufficient audit evidence and missing financial records.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'Material Uncertainty related to Going Concern' due to the ongoing CIRP, suspended board of directors, and severe liquidity crunch.

Geographic Concentration Risk

Concentrated in the Indian market, though diversified across 600+ cities.

Third Party Dependencies

Critical dependency on global IT vendors for product supply and financial lenders for working capital; lack of support from these parties led to the current insolvency.

Technology Obsolescence Risk

High risk of inventory obsolescence if IT products are not moved quickly, given the rapid pace of technological change in consumer electronics.

Credit & Counterparty Risk

The company faces risks from its 12,000+ channel partners' ability to pay, especially during the liquidity crisis which disrupted the normal credit cycle.