Tonbo Imaging India Limited

Tonbo Imaging India Limited is a global defence electronics Original Equipment Manufacturer (OEM) founded in 2003. The company designs, develops, and manufactures advanced electro-optical and infrared (EO/IR) imaging, signal processing, free-space optical communications, and battlefield guidance systems. Its core value proposition focuses on applying computational imaging, machine learning software, and low Size, Weight, and Power (SWaP) optics to replace heavy, expensive military hardware with lighter, smarter, and cost-effective autonomous platforms. Operating through an asset-light, horizontally integrated business model, Tonbo maintains 100% in-house ownership of its intellectual property (IP) while outsourcing mass component assembly to certified electronics manufacturing partners.

The company's product portfolio covers tactical systems, naval systems, land-based vehicular platforms, aerial payloads, and homeland security suites. Tactical offerings include thermal weapon scopes, helmet-mounted sights, handheld thermal imaging binoculars, and target acquisition systems. Platform subsystems encompass multi-sensor panoramic imagers, stabilized gimbals, driver vision enhancement units, video boresight tools, missile seekers, and autonomous fire control systems. Additionally, Tonbo is developing High-Power Microwave (HPM) directed-energy systems for counter-Unmanned Aerial Vehicle (counter-UAS) and anti-drone swarm applications. Crucially, Tonbo’s entire product stack is designed to be free from International Traffic in Arms Regulations (ITAR) export restrictions, enabling unrestricted global sales.

Tonbo serves a diverse international client base comprising armed forces, paramilitary units, police agencies, and Tier-1 defence OEMs. As of June 30, 2026, the company has deployed over 28,000 systems across 24 countries, including elite defense entities such as the U.S. Navy SEALs, Israeli Defence Forces, NATO forces, and the Indian Army. Geographically, export sales accounted for 48.61% of operational revenue in FY24 (₹2,081.46 Million) and 65.52% in FY25 (₹3,073.38 Million), with major international shipments to Armenia, Romania, Slovenia, the USA, Morocco, South Korea, the UAE, the Philippines, Singapore, North Macedonia, Australia, and Taiwan. Between FY24 and FY26, Tonbo accounted for 94% of total thermal imaging export volumes from India by units shipped.

Operational infrastructure is structured around a capital-efficient prototype and testing model. All initial product prototyping, optics alignment, cleanroom sensor assembly, environmental shock testing, purging, and qualification processes are handled at the company's ISO-certified facilities in Bengaluru, Karnataka. For commercial scale-up, Tonbo relies on non-exclusive contract manufacturing agreements with leading Electronics Manufacturing Services (EMS) partners, primarily Kaynes Technology India Limited and Avalon Technology and Services Private Limited. Because production is completely outsourced to certified EMS facilities, Tonbo does not maintain heavy commercial factory capital expenditure or report traditional factory line capacity utilization percentages.

Research and development (R&D) serves as the primary growth engine for the business. As of June 30, 2026, Tonbo employs a dedicated R&D team of 130 engineers in Bengaluru (representing 38.35% of its total 339-member workforce) with an average experience of 10 years. R&D expenses stood at ₹42.41 Million (1.26% of total expenses) in FY24, ₹90.95 Million (2.43%) in FY25, ₹258.56 Million (8.62%) in FY26, and ₹85.19 Million (13.95%) in Q1 FY27. Tonbo holds 5 registered U.S. patents (assigned from CEAQ Singapore in March 2024 for an aggregate consideration of ₹1,831.91 Million) and has 4 pending patent applications across India and the U.S. covering microscanned optics, scene-based non-uniformity correction, thermal stereo vision, and sub-5 µrad gimbal stabilization.

Financially, Tonbo Imaging India Limited reported total income and net profits/losses of ₹431.90 Cr and ₹68.54 Cr (FY24), ₹474.39 Cr and ₹72.76 Cr (FY25), ₹369.94 Cr and ₹50.88 Cr (FY26), and ₹37.32 Cr and ₹(17.74) Cr (Q1 FY27). The company showed initial top-line growth in FY25 before experiencing a 22.02% revenue contraction in FY26 due to West Asia geopolitical shipment deferments. Meanwhile, short-term borrowings expanded from ₹81.09 Cr in FY24 to ₹116.06 Cr in FY26 without any debt reduction from IPO proceeds, as the issue is structured as a 100% Offer for Sale. The company maintains an average EPS of ₹19.49 and an average RoNW of 20.40% over the last three fiscals.

Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 7.45 (NAV of ₹94.01 as of June 30, 2026). As the IPO is a 100% Offer for Sale (OFS), the Post-Issue P/BV remains at 7.45. Attributing the historical earnings to the equity base, the asking price reflects a P/E of approximately 58.50 (FY24), 55.11 (FY25), and 78.81 (FY26). A comparison with listed peers shows that Tonbo commands a FY26 P/E multiple (78.81x) that is largely in line with the peer group average of 81.28x, trading closely with Zen Technologies (79.3x) and Data Patterns (85.1x), despite reporting a lower FY26 RoNW of 9.75%.

The issue is managed by JM Financial Limited and IIFL Capital Services Limited (formerly IIFL Securities Limited). KFin Technologies Limited is acting as the Registrar to the Offer.

• 1 Arvind Kondangi Lakshmikumar
• 2 Ankit Kumar
• 3 Cecilia D’Souza