IPO closes on 19 Oct'26
Tonbo Imaging India Limited
Minimum Investment
₹ 14,700 / 21 shares
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- Earnings are shrinking, not growing: FY26 revenue fell 22.7% to ₹362.65 crore and PAT fell 30% to ₹50.88 crore, and Q1 FY27 swung to a ₹17.74 crore loss on just ₹36.01 crore of revenue. The latest trend is weaker than FY24–FY25 suggests, and the dip, attributed to delayed international orders, shows how lumpy tender-based defence revenue can be.
- Margins are high but volume-dependent: EBITDA margin was 28.8% in FY26 and 29.6% in FY25, strong for a hardware business, yet the June 2026 quarter posted a negative EBITDA of ₹13.04 crore, which suggests a largely fixed cost base (R&D and engineering) that magnifies swings in order timing.
- The revenue mix has flipped and is concentrated: top five customers were 53.03% of FY26 revenue, and India rose to 93.06% of FY26 revenue after FY25 was mainly exports (Europe 65.34%). The implied valuation of ~79x FY26 earnings and ~7x book value, against an RoNW of ~9.8%, leans on order wins not yet visible in reported numbers.
About the company
Founded in
18 Dec'03
Managing director
Arvind Kondangi Lakshmikumar
- Tonbo Imaging India Limited (formerly Sarnoff Innovative Technologies Private Limited) is a Bengaluru-based defence electronics company in electro-optical/infrared systems, with tactical systems (thermal weapon sights, hand-held imaging), platform systems (including a loitering munition in development) and directed energy systems (the WaveStrike high-power microwave platform).
- Customers include NATO forces, US Special Operations Command, law enforcement agencies and global defence OEMs; systems are deployed in 24 countries (about 28,000 units), with design in-house and manufacturing outsourced to EMS partners Kaynes Technology India and Avalon Technology and Services.
- Revenue was ₹428.19 crore (FY24), ₹469.08 crore (FY25) and ₹362.65 crore (FY26); the company had 339 employees as of March 31, 2026, including 130 engineers at its Bengaluru R&D facility as of June 30, 2026.
- Promoters: Ankit Kumar (Executive Director & Chief Business and Revenue Officer), Arvind Kondangi Lakshmikumar (Managing Director & CEO) and Cecilia D'Souza (Executive Director & Chief Commercial Officer)
STRENGTHS
- Owned Defence Electronics IP: Designs optics, embedded software and electronics in-house across thermal imaging, weapon sights and directed energy systems.
- Asset-Light Manufacturing: Production is outsourced to certified EMS partners (Kaynes Technology India and Avalon), keeping capital needs modest.
- Established International Presence: About 28,000 units deployed across 24 countries, with customers including NATO forces and US Special Operations Command.
- Domestic Government Position: Described as the largest supplier by sales value of thermal imaging systems to Indian government and defence buyers between April 2024 and March 2026.
- High Margins and Low Leverage: EBITDA margin of 28.8% in FY26, with borrowings of ₹116.06 crore against net worth of ₹553.16 crore (debt-to-equity ~0.21x).
RISK FACTORS
- Lumpy, Tender-Based Revenue: Demand is cyclical and tied to geopolitics and government budgets with poor visibility; FY26 revenue fell 22.7% and Q1 FY27 was loss-making.
- Customer Concentration: Top five customers were 53.03% of FY26 revenue, mostly under short-term, non-recurring tender contracts.
- Supplier and EMS Dependence: Top 10 suppliers were 68.77% of FY26 expenses, with reliance on a few global suppliers for critical components and on outsourced manufacturing.
- Export, Regulatory and Quality Exposure: Heavy dependence on export markets, strict licensing requirements, and demanding performance standards that carry risks of order cancellation, liability claims and bank guarantee calls.
- Seller-Driven Offer and Rich Valuation: The offer is entirely a sale by existing holders (the two CEAQ entities sell ~75% of the shares), the company gets no proceeds, and the implied valuation is ~79x FY26 earnings.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ Up to ₹852.18 crore
Fresh Issue
₹ Nil
OFS
₹ Up to ₹852.18 crore
Price range
₹ 665 - 700
Lot size
21 shares
Issue Objective
- This is entirely an Offer for Sale of up to 1,21,74,046 equity shares by promoters Arvind Kondangi Lakshmikumar (11,50,000), Ankit Kumar (5,80,000) and Cecilia D'Souza (2,30,000), promoter group entity Vinimaya Advisory LLP (3,39,700), investors including CEAQ Technologies Private Limited (49,98,100) and CEAQ Technologies Pte. Ltd. (41,55,096), and others. The company will not receive any proceeds; an employee reservation of up to 14,000 shares is included.
Dates
Bidding open
15 Oct'26
Bidding close
19 Oct'26
Allotment date
21 Oct'26
Refund date
22 Oct'26
Listing
23 Oct'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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