Bonfiglioli Transmissions Limited

Bonfiglioli Transmissions Limited, incorporated in 1998, is a 100% subsidiary of the Italian multinational corporate promoter Bonfiglioli S.p.A., headquartered in Bologna, Italy. The company is one of India’s largest technology-led mechanical and electro-mechanical power transmissions and industrial drive solutions providers by revenue for the six months ended June 30, 2026. The company’s core value proposition centers on designing, co-engineering, precision machining, assembling, and testing mission-critical gearboxes, gear motors, and drive systems tailored to complex industrial automation, off-highway machinery, and renewable energy applications. Leveraging the 70-year global brand equity of the Bonfiglioli Group and over 25 years of operating history in India, the company operates an integrated business model supplying high-torque, energy-efficient power transmission modules across domestic and international markets.

The company categorizes its business operations into three primary end-user verticals: Industry & Automation Solutions (I&A), Off-Highway Mobility Industry, and Wind Industry. In Fiscal 2025, Industry & Automation Solutions accounted for 40.95% of operational revenue, the Wind Industry represented 31.53%, the Off-Highway Mobility Industry contributed 25.18%, and Others (non-core/component sales) represented 2.34%. Bonfiglioli holds a commanding market position in India across all three verticals, ranking #1 in low and medium-duty gear motors (<15 kNm) with a 25.0% market share in CY2025, #1 in Off-Highway Mobility Drives with a 32.0% market share, and #1 in Wind Industry pitch and yaw drives with a 67.9% market share.

Bonfiglioli’s key client segments encompass major domestic and global Original Equipment Manufacturers (OEMs), EPC contractors, and authorized dealers. In the Industry & Automation space, key customers include ElectroMech Material Handling Systems, GMM Pfaudler, Milltec Machinery, and Terex India. In Off-Highway Mobility, clients include Action Construction Equipment, Ajax Engineering, CNH Industrial, Hyundai Construction Equipment, JCB India, Schwing Stetter, and Wirtgen India. In the Wind Industry, key clients include Nordex India, Senvion Wind Technology, and Suzlon Energy. The company markets its products through direct sales to OEMs as well as a pan-India distribution network comprising 44 dealers across 54 sales outlets. Geographically, in the six months ended June 30, 2026, domestic sales generated 70.04% of total operational revenue, while export and inter-company sales to group entities in over 80 countries accounted for 29.96%.

Bonfiglioli manufactures its product portfolio across three state-of-the-art facilities located in Thirumudivakkam (Kancheepuram, Tamil Nadu), Mannur (Sriperumbudur, Tamil Nadu), and Talegaon (Pune, Maharashtra), operating on Industry 4.0 principles with integrated automation, SCADA-monitored heat treatment, and real-time data analytics. In Fiscal 2025, the company had a combined available manufacturing capacity of 1,205,748 hours and produced 341,133 units of gear motors and gearboxes across 11,857 SKUs. Certified capacity utilization figures for Fiscal 2025 were as follows:

• Thirumudivakkam Facility (Tamil Nadu): Machine Shop available capacity of 687,348 hours with an 80.99% utilization rate (556,670 hours utilized); Assembly available capacity of 323,411 hours with a 56.19% utilization rate (181,709 hours utilized).
• Mannur Facility (Tamil Nadu): Assembly available capacity of 54,040 hours with a 77.56% utilization rate (41,913 hours utilized).
• Talegaon Facility (Maharashtra): Assembly available capacity of 140,950 hours with a 76.99% utilization rate (108,522 hours utilized).
• 6M Ended June 30, 2026 Utilization Rates: Thirumudivakkam Machine Shop 80.74%, Thirumudivakkam Assembly 61.46%, Mannur Assembly 77.90%, Mannur Machine Shop 72.72%, and Talegaon Assembly 76.99%.

Bonfiglioli’s operational model is anchored by its access to the Bonfiglioli Group’s global R&D network, comprising seven international centers across India, Italy, Germany, and China, employing 376 personnel. The company regularly collaborates with the India R&D Centre located in Chennai, Tamil Nadu (housed under group company Bonfiglioli Technology Space Private Limited), which is the only laboratory in India equipped to test yaw and pitch drives for wind turbines and the only R&D site in the group integrating mechanics, electro-mechanics, and electronics under one roof. Operationally, the company maintains a robust supply chain supported by 285 local suppliers, having increased its domestic raw material procurement to 68.32% in 6M FY26, thereby reducing lead times to four weeks and enhancing cost competitiveness.

Financially, Bonfiglioli Transmissions Limited reported total income and net profits of ₹1,701.80 Cr and ₹146.67 Cr (FY23), ₹1,861.16 Cr and ₹191.60 Cr (FY24), ₹2,023.59 Cr and ₹237.87 Cr (FY25), and ₹1,139.17 Cr and ₹148.58 Cr (Q1/6M FY26). The company has demonstrated steady top-line expansion with a 2-year revenue CAGR of 9.24% and a PAT CAGR of 27.35%, along with significant deleveraging where total debt was reduced from ₹120.45 Cr in FY23 to just ₹0.79 Cr as of June 30, 2026, placing the company in a strong net cash position of ₹139.38 Cr. The company maintains an average EPS of ₹10.95 and an average RoNW of 22.45% over the last three fiscals.

Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 10.65 (NAV of ₹55.02 as of June 30, 2026). As the IPO is a 100% Offer for Sale (OFS) with zero fresh proceeds, the Post-Issue P/BV remains at 10.65. Attributing the historical earnings to the equity base, the asking price reflects a P/E of approximately 75.11 (FY23), 57.50 (FY24), 46.31 (FY25), and 37.07 (6M FY26 TTM). A comparison with listed peers shows that companies like Elecon Engineering, Shanthi Gears, Timken India, and Schaeffler India trade at an average P/E of 51.61x, indicating that Bonfiglioli is attractively priced relative to its MNC peers while offering superior return ratios, including an RoCE of 34.05%.

The issue is managed by Axis Capital Limited, BNP Paribas, ICICI Securities Limited, and Jefferies India Private Limited. MUFG Intime India Private Limited is acting as the Registrar to the Offer.

• 1 Sonia Bonfiglioli
• 2 Luciano Bonfiglioli & Luisa Lusardi
• 3 Bonfiglioli S.p.A. (Italy)
• 4 BON-FI S.r.l. (Italy)