# Tonbo Imaging IPO: Can defence sector tailwinds offset weak financials? — retained record

> Retained news record from news:india-et-markets.

Canonical: https://highsignal.app/data/records/23d38b2a64cba5a6

[← sources](https://highsignal.app/data)


source: [news](https://highsignal.app/data/news) (news:india-et-markets)  published 2026-10-15 01:20 ingested 2026-10-15 03:00

[original source ↗](https://economictimes.indiatimes.com/markets/ipos/fpos/ipo-rush-continues-tonbo-imaging-eyes-rs-852-crore/articleshow/134955019.cms)

## retained text



```
Listen to this article in summarized format
Business
Incorporated in 2003, Tonbo Imaging is a defence electronics original equipment manufacturer that designs, develops and manufactures sensing, processing, communication and guidance systems for surveillance, reconnaissance, targeting and control. Its product portfolio includes handheld thermal binoculars, targeting systems, missile seekers, thermal imaging cores and cameras, weapon sights, fire-control systems and missile-guidance systems.
The company follows an asset-light business model, retaining product design, intellectual property and research and development (R&D) in-house while outsourcing manufacturing to third-party partners. Its Bengaluru R&D centre employed 130 engineers, around 38% of its workforce, as of June 30, 2026. It serves domestic and international defence customers in 24 countries.
If that is the product profile is, how does the financial look like?
As of June 30, 2026, it had a confirmed order book of ₹314.2 crore, of which domestic orders accounted for ₹231.87 crore. But the past revenue side has been a bit worrying. Revenue and profit declined in FY26 largely due to delays in executing international orders, which also weighed on its return ratios. Defence procurement is largely tender driven, with contracts often being non-recurring and limited visibility on repeat orders, creating uncertainty over future revenue.
Read more: Jio IPO sparks investor buzz: GMP rises to 20% as Reliance’s telecom arm announces price band, dates
Financials
Revenue from operations declined 22.7% to ₹362.7 crore in FY26 from ₹469.08 crore in FY25 due to delays in executing international orders amid the West Asia conflict. Operating margin before depreciation and amortisation (Ebitda margin) declined to 28.9% in FY26 from 29.7% in FY25. The margin was within the 26-48% peer range.
Net profit declined 30% to ₹50.9 crore from ₹72.8 crore during the period. Return on equity dropped to 9.8% in FY26 from 20.2% in FY25. Operating cash flow remained negative at ₹63.2 crore in FY26 though it improved from a negative ₹136.1 crore in FY25.
Read more: Jio IPO: 5 strengths that put the Reliance-backed digital giant in spotlight
Valuation
At the upper price band, the company is valued at 78.7 times its post-issue FY26 earnings compared with Paras' 115.7, Data Patterns' 85.2, Zen Technologies' 68.5 and Bharat Electronics' 46. As the valuation is more than ten times the last fiscal revenue, there may not be much defence left for investors.
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
```



document fetched 2026-10-15 03:00