Published: October 12, 2026
StartupFeed Quick Take
- The Tonbo Imaging IPO opens October 15 at Rs 665-700 a share, an Rs 852.1 crore offer that closes October 19.
- It is entirely a sale by promoters and investors of up to 1.22 crore shares, so Tonbo raises no fresh capital.
- Net profit fell about 30% to Rs 50.88 crore in FY26, yet the issue values Tonbo at Rs 4,009.8 crore.
Bengaluru defence firm Tonbo Imaging has set its IPO price band at Rs 665-700 a share, with the Rs 852.1 crore offer opening October 15.
The Tonbo Imaging IPO is a pure offer for sale. Promoters and investors sell up to 1.22 crore shares, and Tonbo gets nothing. At Rs 700, the issue values the firm at Rs 4,009.8 crore. That is about 2.7 times its Series D valuation of Rs 1,500 crore in April 2025. Across its rounds, Tonbo Imaging has raised more than Rs 500 crore, from backers including Qualcomm Ventures, Artiman, Celesta and Florintree.
The timing is awkward. Revenue and profit both fell in the year to March 2026. Net profit dropped about 30% to Rs 50.88 crore, from Rs 72.76 crore a year earlier. Total income fell about 22% to Rs 369.94 crore.
What the Tonbo Imaging IPO actually offers
The Tonbo Imaging IPO sells up to 1.22 crore existing shares in a band of Rs 665 to Rs 700, with no fresh issue. SEBI’s observations last month trimmed the offer from 1.81 crore shares in the draft papers. Anchor investors bid on October 14, and the issue closes on October 19. Retail bidders are set aside at least 35% of the offer, with up to half for institutions.
The sellers are the three cofounders, Arvind Kondangi Lakshmikumar, Ankit Kumar and Cecilia D’Souza, along with investors led by CEAQ Technologies. JM Financial and IIFL Capital Services are the lead managers. KFin Technologies is the registrar.
Because no new shares are created, none of the Rs 852.1 crore reaches Tonbo Imaging. The money goes to the people selling. For a buyer, that shifts the question. You are backing a defence exporter, not funding its next order.
Revenue and profit both fell in FY26
Tonbo Imaging reported a net profit of Rs 50.88 crore in FY26, down about 30% from Rs 72.76 crore a year earlier. Total income fell about 22% to Rs 369.94 crore. Tonbo had grown fast before that. Revenue from operations climbed from Rs 96.83 crore in FY23 to Rs 469.08 crore in FY25.
The draft prospectus blames the FY26 drop on a large export order delayed by the West Asia crisis. The product mix also shifted. Tactical-system sales fell to Rs 211.68 crore in FY26, from Rs 359.27 crore in FY24. Platform-system sales moved the other way, rising to Rs 144.81 crore. One more signal sits in the cash flow. Tonbo reported negative operating cash flow in both FY25 and FY26, even while it stayed profitable.
| Metric (Rs crore) | FY25 | FY26 | Change |
|---|---|---|---|
| Total income | 474.39 | 369.94 | Down ~22% |
| Net profit | 72.76 | 50.88 | Down ~30% |
What Tonbo Imaging makes, and its one clear edge
Tonbo Imaging designs and builds electro-optic and infrared systems for armed forces, including thermal sights, missile seekers and fire-control systems. The firm was incorporated in 2003 and turned to defence manufacturing in 2012, after its founders bought out the business. By March 2026, more than 28,000 of its systems were in service across 24 countries.
Exports are its real strength, and brought in 65.5% of revenue in FY25. A Frost & Sullivan report calls Tonbo the largest maker of thermal imaging systems by sales value for India’s defence buyers. The firm also had 94.3% of the country’s thermal imaging exports by units over FY24 to FY26.
The model is asset-light, and Tonbo has owned all its core intellectual property since FY24. Its cofounder and chief executive, Arvind Kondangi Lakshmikumar, explained the approach in a 2016 interview.
“This way, we didn’t have to set up large manufacturing facilities.”
Arvind Kondangi Lakshmikumar, cofounder and chief executive, Tonbo Imaging. From a 2016 interview with Outlook Business.
The price the market is being asked to pay
At Rs 700 a share, the Rs 4,009.8 crore valuation works out to nearly 79 times Tonbo Imaging’s FY26 net profit of Rs 50.88 crore. That multiple rests on a year when profit fell. The order book gives the bull case some support. Tonbo held confirmed orders of Rs 314.14 crore as of June 30. Of that, Rs 231.77 crore came from India and Rs 82.37 crore from abroad. Tonbo added Rs 7.10 crore more in July. Borrowings stood at Rs 116.06 crore at the June quarter.
The number to watch is FY27. If the delayed export order lands and revenue climbs back toward the FY25 peak, the price looks less steep. If it does not, buyers paid a high multiple for a down year.
What this means for you: If you are a retail investor weighing the Tonbo Imaging IPO, remember that Tonbo keeps none of the Rs 852.1 crore you put in. Decide by October 19 whether a defence exporter priced at nearly 79 times a down-year profit is worth it.
StartupFeed Insight
An all-exit IPO in a down year is a seller’s call, not a growth story. Tonbo Imaging is a rare asset. It is India’s dominant thermal imaging exporter, with its own IP and a global reach few rivals can match. But the price asks a lot. Nearly 79 times a profit that just fell 30%, for a business with lumpy, order-led revenue and negative operating cash flow, leans hard on FY27. Watch the December quarter closely. If the deferred export order ships and revenue climbs back toward the FY25 peak, the valuation ages well. If not, early buyers carry the risk the founders just sold.
By Avinash Mishra, Business Correspondent
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Disclaimer: This article is for information only and is not investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. Please speak to a SEBI-registered advisor before investing.
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