Tonbo Imaging reports a 30% decline in net profit for FY26, amidst shrinking overseas demand and scrutiny over sourcing practices, as it approaches its offer-for-sale IPO.
Tonbo Imaging has reported a sharp slowdown in its latest financial year, with net profit falling 30% to ₹362.6 crore in the year ended March 31, 2026, as operating revenue slipped 22.7% to ₹299.9 crore, according to its refiled draft red herring prospectus. The defence technology company said total income, including other income of ₹7.3 crore, came to ₹370 crore, even as the offering takes shape ahead of an offer-for-sale-only initial public offering. The filing suggests investors will be asked to focus less on headline profits and more on whether the business can sustain demand as it heads towards the public markets.
The company’s top line was hit most visibly in sales of products. Tonbo generated ₹362.6 crore from product sales, but domestic sales fell to ₹337.4 crore from ₹157 crore a year earlier and exports slumped to ₹20.2 crore from ₹307.3 crore, a steep reversal that points to weaker overseas momentum. Inc42 reported that the company’s total expenditure also eased by 20% to ₹300 crore, helped by a 23% drop in material costs to ₹165.5 crore, while employee benefit costs rose 11% to ₹49.6 crore and finance costs fell 40% to ₹10 crore.
Founded in 2012 by Arvind Lakshmikumar, Ankit Kumar and Cecilia D’Souza, Tonbo designs imaging and sensor systems used in defence, security and transport applications. Its technology spans thermal imaging, electro-optics and AI-powered sensor fusion, and the company says its systems are built to work in fog, dust and smoke. Customers named in the filing include NATO, the US Navy SEALs, the Israeli Defence Forces and Armenia’s defence ministry.
The latest filing also comes against a more complex backstory. Tonbo raised ₹175 crore in April 2025 from Florintee Advisors and EXIM Bank at a valuation of ₹1,500 crore, before filing for an OFS-only IPO of up to 1.81 crore equity shares in December 2025. SEBI cleared the proposal in July 2026, but the company later submitted a fresh prospectus with the offer size largely unchanged and with co-founders as well as investors planning to sell part of their holdings. The prospectus also addressed allegations about sourcing components from Chinese original equipment makers and claims that some contracts were priced below raw material cost to improve the appearance of its order book, all of which Tonbo denied.
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