IPO-Bound Tonbo Imaging’s Net Profit Sinks 30% YoY To ₹362.6 Cr In FY26

Defence tech startup Tonbo Imaging has reported a net profit of ₹362.6 Cr in the financial year ended March 31, 2026 (FY26), a 30% decrease from ₹469.1 Cr it reported in the same period last year.

This came after the startup also reported a 22.7% YoY decline in its operating revenue during the fiscal year to ₹299.9 Cr from ₹374.3 Cr in FY25. Including other income of ₹7.3 Cr, Tonbo’s total income during the year stood at ₹370 Cr, as per its recently refiled draft herring prospectus.

Tonbo Imaging earned a bulk of its revenue from the sale of products, which fetched ₹362.6 Cr during the year. Within this, domestic sales constituted a bigger piece worth ₹337.4 Cr, while it earned around ₹20.2 Cr from exports.

Notably, the startup’s domestic sales were slashed by over half from ₹157 Cr reported in FY25, while exports slumped 93.4% YoY from ₹307.3 Cr.

Founded in 2012 by Arvind Lakshmikumar, Ankit Kumar, and Cecilia D’Souza, Tonbo Imaging designs and deploys advanced imaging and sensor systems that enhance situational awareness in complex and challenging environments. Their technology covers thermal imaging, electro-optics, and AI-powered sensor fusion used in military reconnaissance, infrastructure security, and transport safety.

Tonbo’s systems are built to operate effectively in obscured conditions like fog, dust, and smoke, providing critical real-time intelligence for military personnel, unmanned drones, and security forces. Its expertise lies in blending micro-optics, low-power electronics, and digital image processing to produce lightweight, low-power platforms across visible and infrared spectrums.

It counts the likes of NATO, US Navy SEALs, Israeli Defense Forces (IDF), and the defence ministry of Armenia as its customers.

In April last year, the startup raised ₹175 Cr in its Series D funding round from Florintee Advisors and EXIM Bank at a valuation of ₹1,500 Cr.

The startup had filed its draft papers with SEBI for an OFS-only IPO of up to 1.81 Cr equity shares in December last year. It received SEBI’s approval in July, however, it filed a fresh DRHP earlier this month, with the offer size largely unchanged. All three cofounders are looking to offload part of their holdings through the IPO, along with a number of investors.

The startup flagged a number of allegations against it in the fresh DRHP, including complaints that it procures critical components from Chinese OEMs through CEAQ Technologies Pte Ltd and that contract wins were priced below the cost of raw materials, intended to inflate the company’s order-book optics ahead of the IPO.

Tonbo Imaging refuted all allegations against it in the DRHP.

Breaking Down Tonbo Imaging’s Expenses

Tonbo’s total expenditure dipped 20% to ₹300 Cr in FY26 from ₹374.3 Cr in the previous year.

Cost Of Material Consumed: The cost under this head slumped 23% ₹165.5 Cr in FY26, from ₹215.3 in the previous year.

Employee Benefit Expenses: The employee benefit expense of the startup stood at ₹49.6 Cr, up 11% from ₹44.4 Cr in the previous year. This includes the salary and bonus expense, ESOP expense and staff welfare expense including other employee related costs.

Finance Costs: The cost under this head decreased 40% to ₹10 Cr in FY26 from ₹17.7 Cr in the previous year.

The post IPO-Bound Tonbo Imaging’s Net Profit Sinks 30% YoY To ₹362.6 Cr In FY26 appeared first on Inc42 Media.