Tonbo Imaging’s FY26 revenue fell 23% as exports shrank

Tonbo Imaging India Limited shifted sharply to domestic sales in FY26 as export revenue fell to 5.57% of revenue from operations from 65.52% in FY25. Tonbo Imaging reported FY26 revenue from operations of Rs 362.648 crore, down 22.69%, while the three months ended June 30, 2026 produced an EBITDA loss of Rs 13.037 crore.

Why did Tonbo Imaging’s FY26 revenue mix shift toward India?

Tonbo Imaging’s FY26 revenue mix shifted toward India because India generated 93.06% of revenue from operations, against 33.49% in FY25. India revenue rose to Rs 337.465 crore in FY26 from Rs 157.044 crore in FY25, even as total revenue from operations declined to Rs 362.648 crore from Rs 469.080 crore.

The geographic change was principally associated with Europe. Europe generated Rs 306.518 crore, or 65.34% of revenue from operations, in FY25, but contributed Rs 0.471 crore, or 0.13%, in FY26. Revenue from Middle East and Africa markets was Rs 16.132 crore, or 4.44%, in FY26, while Asia Pacific and the United States contributed Rs 3.293 crore and Rs 0.317 crore respectively.

India’s concentration increased further in the three months ended June 30, 2026. India generated Rs 35.471 crore, or 98.51%, of quarterly revenue from operations of Rs 36.008 crore, while export revenue was Rs 0.092 crore, or 0.25%. This reported mix means overseas deliveries would need to rise materially from the FY26 level for revenue to become less India-led.

How far did Tonbo Imaging’s exports and revenue fall in FY26?

Tonbo Imaging’s export revenue fell by Rs 287.125 crore in FY26, declining to Rs 20.213 crore from Rs 307.338 crore in FY25. Exports represented 5.57% of FY26 revenue from operations, compared with 65.52% in FY25 and 48.61% in FY24, when export revenue was Rs 208.146 crore.

Revenue from operations fell by Rs 106.432 crore, or 22.69%, to Rs 362.648 crore in FY26 from Rs 469.080 crore in FY25. FY25 revenue had risen 9.55% from Rs 428.189 crore in FY24. Sale of products and solutions, which excludes other operating revenue such as technical support, component sales and foreign-exchange gains, declined to Rs 357.678 crore in FY26 from Rs 464.382 crore in FY25.

The decline also varied by product vertical. Tactical-systems revenue fell to Rs 211.675 crore in FY26 from Rs 362.296 crore in FY25, reducing its share of revenue from operations to 58.37% from 77.24%. Platform-systems revenue rose to Rs 144.808 crore from Rs 101.053 crore, lifting its share to 39.93% from 21.54%, but the increase did not offset the tactical-systems decline.

What happened to Tonbo Imaging’s margins and June-quarter earnings?

Tonbo Imaging reported lower FY26 margins and losses at both EBITDA and profit-after-tax level in the June 2026 quarter. FY26 gross margin declined to 51.05% from 56.38% in FY25, EBITDA margin declined to 28.85% from 29.65%, and profit after tax declined to Rs 50.880 crore from Rs 72.757 crore.

For the three months ended June 30, 2026, Tonbo Imaging generated revenue from operations of Rs 36.008 crore and gross profit of Rs 13.578 crore, producing a 37.71% gross margin. EBITDA was a loss of Rs 13.037 crore, equal to negative 36.21% of revenue from operations, while profit after tax was a loss of Rs 17.737 crore and the reported PAT margin was negative 47.52%.

Gross profit is defined as revenue from operations less cost of goods sold, including materials consumed and changes in finished-goods inventories. EBITDA, or earnings before interest, tax, depreciation and amortisation, is calculated as profit or loss before exceptional and extraordinary items and tax, plus finance cost, depreciation and amortisation, less other income. The reported margins therefore reflect revenue timing, production costs and operating expenses rather than sales alone.

What does the rise in working-capital days mean for Tonbo Imaging?

Tonbo Imaging’s annual working-capital days rose to 517 days in FY26 from 280 days in FY25 and 152 days in FY24. The company defines working-capital days as inventory-turnover days plus trade-receivable days minus trade-payable days, measuring the operating funding tied up after supplier credit.

The 237-day increase from FY25 occurred while FY26 revenue from operations declined 22.69% to Rs 362.648 crore. The disclosure does not split the change between inventory, customer receivables and supplier payables, so it does not establish which item caused the increase. It does show that the working-capital calculation expanded alongside the change to a predominantly domestic revenue mix.

Working-capital days were 1,454 days for the three months ended June 30, 2026, based on a 91-day period. Tonbo Imaging says this quarterly number is not directly comparable with annual periods because revenue recognition is concentrated in the second half of the financial year. The comparable annual movement is therefore 517 days in FY26 against 280 days in FY25.

What orders and plans could change Tonbo Imaging’s revenue mix?

Tonbo Imaging had a firm order book of Rs 314.240 crore across 36 orders as of June 30, 2026, including Rs 82.368 crore from six overseas orders. Domestic customers accounted for 30 orders worth Rs 231.872 crore, representing 73.79% of the order book, while overseas orders represented 26.21%.

The overseas order-book share exceeded the 5.57% export-revenue share reported for FY26, although an order book is not reported revenue. Firm orders are contractually confirmed by customers, accepted by Tonbo Imaging and supported by binding contracts or purchase orders. Any effect on revenue depends on execution, delivery and revenue recognition.

Tonbo Imaging received aggregate orders of Rs 118.152 crore between July 1, 2026 and September 30, 2026. The company also disclosed a plan to use its portfolio free from International Traffic in Arms Regulations, a United States export-control framework for defence technology, data and services, to expand in Asia, Europe and the Middle East. The disclosure provides no forecast for export revenue, margins or the timing of that expansion.

Conclusion

Tonbo Imaging’s FY26 figures show an abrupt movement from export-led sales to India-led revenue alongside lower revenue, lower annual margins and higher annual working-capital days. Tactical systems remained the larger product vertical at 58.37% of FY26 revenue from operations, but platform systems increased to 39.93% as tactical-systems revenue declined.

The next disclosed indicators are execution of the Rs 314.240 crore order book, particularly its Rs 82.368 crore overseas component, and the revenue recognition of Rs 118.152 crore in orders received between July and September 2026. Tonbo Imaging’s stated Asia, Europe and Middle East expansion plan could alter the geographic mix, but the company has not disclosed an export-revenue target or timetable.