Defence Startup Tonbo Imaging Sets IPO Price Band at ₹665-700 Per Share

Tonbo Imaging Sets IPO Price Band as It Prepares for Market Debut

The upcoming IPO of Tonbo Imaging is poised to attract attention as the defence startup sets its price band and prepares for its market entry.

Understanding Tonbo Imaging’s Business Model

Tonbo Imaging specializes in developing advanced sensing, processing, communication, and guidance systems for a variety of defence applications, including surveillance and reconnaissance. The company’s product offerings encompass thermal imaging cores, weapon sights, and missile seekers, which are critical for modern military operations. By focusing on an asset-light operating model, Tonbo has been able to maintain flexibility and reduce overhead costs, with design and prototyping conducted in-house while large-scale manufacturing is outsourced to certified partners.

Market Context and Timing of the IPO

The timing of Tonbo Imaging’s IPO comes at a crucial juncture for the Indian defence sector, which is witnessing increased government focus on self-reliance and indigenous manufacturing. With the Indian government pushing for ‘Make in India’ initiatives, companies like Tonbo are well-positioned to benefit from heightened defence spending and a growing domestic market. However, the company has faced challenges recently, including a decline in revenue and profit due to delays in international orders linked to geopolitical tensions in West Asia.

Financial Performance and Future Outlook

For the fiscal year 2026, Tonbo Imaging reported a revenue of ₹362.65 crore, down 22.69% from ₹469.08 crore in FY25. The profit after tax also saw a decline, falling to ₹50.88 crore from ₹72.76 crore. The company attributed this downturn to delays in order execution and the deferment of expected orders to FY27. In the first quarter of FY27, Tonbo recorded a revenue of ₹36.01 crore but faced a net loss of ₹17.74 crore, reflecting ongoing challenges in revenue recognition and order fulfillment.

Investor Considerations Ahead of the IPO

Investors considering participation in Tonbo Imaging’s IPO should weigh the company’s innovative product offerings against its recent financial performance. While the defence sector presents significant growth opportunities, potential investors must also consider the risks associated with geopolitical uncertainties and the execution of international contracts. The IPO will be managed by JM Financial Limited and IIFL Capital Services Limited, both of which will play a crucial role in determining the success of this offering.

Key Highlights

• IPO price band set at ₹665-700 per share.
• Bidding opens on October 15, 2026, and closes on October 19.
• Tonbo Imaging has deployed over 28,000 systems across 24 countries.
• Revenue for FY26 was ₹362.65 crore, down 22.69% from FY25.
• Net loss of ₹17.74 crore reported in Q1FY27.

Investor Note: Investors should closely monitor Tonbo Imaging’s performance in the upcoming IPO, considering both the growth potential in the defence sector and the challenges the company has faced in recent quarters.