Bonfiglioli plans ₹100 crore-plus annual CY26-CY27 investment

Bonfiglioli Transmissions Limited plans investment of more than ₹100 crore in each of CY26 and CY27, alongside 75% aggregate capacity utilisation in H1 CY2026. The company says this capacity buildup will support future growth, including an expansion of its Talegaon facility for existing products and heavy-duty gearboxes.

How much is Bonfiglioli investing in capacity?

Bonfiglioli has disclosed investment of more than ₹100 crore in CY26 and more than ₹100 crore in CY27 as part of a significant step-up in capacity-building outlay. The presentation does not state a combined two-year figure, a project-by-project allocation, or the timing of expenditure within each calendar year. It positions the investment as the fourth of four growth levers, alongside customer reach and product breadth.

The disclosed plan follows Bonfiglioli's establishment of its Talegaon unit in Maharashtra in 2023 and is supported by a three-site manufacturing base in India. Its production network also includes the Thirumudivakkam unit, established in 1999 and substantially expanded in 2018, and the Mannur unit, established in 2011. The source does not specify whether all three sites will receive capital under the CY26 and CY27 investment programme.

Why is Bonfiglioli adding capacity now?

Bonfiglioli is adding capacity while aggregate utilisation was 75% in H1 CY2026, according to the presentation. This is an aggregate measure across its manufacturing infrastructure, rather than a disclosed utilisation rate for each factory, product line or business vertical. The source does not provide rated capacity, output volume or remaining capacity at the 75% utilisation level.

Local sourcing and factory systems form part of the operating context for the plan. About 70% of materials were sourced locally in CY2025, while Industry 4.0 measures include automation, connected machines and product traceability to support manufacturing and service. Bonfiglioli says these mechanisms operate across its end-to-end production and assembly footprint, which serves Off-Highway Mobility, Wind, and Industry & Automation Solutions.

The capacity case also sits beside a broad product portfolio and varied end markets. The Industry & Automation business has more than 11,800 stock-keeping units, or SKUs, covering gearbox offerings, while no individual industry contributes more than 10% of that segment's revenue. In Off-Highway Mobility, Bonfiglioli lists 274 SKUs and a torque range from 1,000 newton metres to 3,000 kilonewton metres, spanning five application groups.

Which Bonfiglioli plant is being expanded?

Bonfiglioli is expanding its Talegaon facility to add capacity for existing products and heavy-duty gearboxes. The Maharashtra site occupies 24 acres under a 95-year lease, began operations in 2023, and is dedicated to Industry & Automation Solutions. Its stated current capabilities are assembly and painting; the presentation does not disclose the expanded plant's capacity, completion date or capital allocation.

The other two factories have different locations and operating roles. Thirumudivakkam in Tamil Nadu is an owned 11.6-acre site serving Off-Highway Mobility Solutions and Wind Industries, with machining, heat treatment, assembly and painting capabilities. Mannur, also in Tamil Nadu, is a leased 3.5-acre Industry & Automation Solutions facility with assembly and painting capabilities. All three sites hold ISO 9001, ISO 14001 and ISO 45001 certifications for quality, environmental, and occupational health and safety management systems.

This layout places the announced Talegaon expansion within the Industry & Automation network rather than the Thirumudivakkam network that handles Wind and Off-Highway Mobility production. Industry & Automation represented 42.0% of revenue in 9M CY26, compared with 29.4% for Off-Highway Mobility and 26.8% for Wind. The 9M CY26 period is a partial calendar year and is not directly comparable with a full-year result.

How does capacity spending support Bonfiglioli's growth plan?

Bonfiglioli says the investment supports its ambition of about 15% compound annual revenue growth rate, or CAGR, ahead of underlying market growth. Its capacity-and-customer-reach lever also includes 13 sales offices, 26 service locations and 54 dealer outlets. The company plans to acquire customers, particularly rapidly growing original equipment manufacturers, while using multiple product platforms to pursue a greater share of existing customer spending.

The other three growth levers combine diversified end markets, India-specific products, and exports. In H1 CY26, revenue from new products was 29.7%, and the top 10 customers represented 31.7% of revenue. Export share was 30.6% in 9M CY26, with shipments to 18 countries. Bonfiglioli says more than 50% of products are co-engineered with customers, while its wider Group presence across 80 countries supports export opportunities.

Financial data show growth through CY25 before the planned CY26 and CY27 spending. Revenue rose 19.3% from CY23 to CY25, while earnings before interest, tax, depreciation and amortisation grew 52.0% and profit after tax grew 60.2% over the same comparison. The latest 9M CY26 figures are below as reported and should be read as a nine-month period rather than a full-year comparison.

Profitability margins also increased over the disclosed periods. The earnings before interest, tax, depreciation and amortisation margin was 14.5% in CY23, 18.4% in CY25 and 19.7% in 9M CY26. The profit-after-tax margin moved from 8.7% in CY23 to 11.8% in CY25 and 13.1% in 9M CY26. The presentation does not link these margin movements directly to the announced capacity investment.

Conclusion

Bonfiglioli's disclosed programme combines more than ₹100 crore of investment in each of CY26 and CY27 with 75% aggregate utilisation in H1 CY2026 and a specific Talegaon expansion. The plan is directed at supporting future growth across a three-site Indian manufacturing network, with Talegaon focused on Industry & Automation Solutions and additional capacity for existing products and heavy-duty gearboxes.

The next disclosures to watch are the actual CY26 and CY27 investment deployment, the timing and scale of the Talegaon expansion, and movement in aggregate utilisation. Bonfiglioli has also set an ambition of about 15% revenue CAGR, while 9M CY26 included a 30.6% export share and H1 CY26 included a 29.7% revenue contribution from new products, providing operating measures against which the capacity plan can be assessed.