Tonbo revenue fell 23% in FY26; June quarter posted loss

Tonbo Imaging India Limited reported revenue from operations of Rs 362.648 crore in FY26, down 22.69% from Rs 469.080 crore in FY25, and then recorded a Rs 17.737 crore loss after tax in the three months ended June 30, 2026. The quarterly loss followed FY26 profit after tax of Rs 50.880 crore and negative operating and return measures.

Why did Tonbo revenue fall 23% in FY26?

Tonbo’s FY26 revenue fell mainly because tactical-product revenue declined more than platform-system revenue increased. Revenue from operations decreased to Rs 362.648 crore in FY26 from Rs 469.080 crore in FY25, while the company’s reported revenue-growth measure changed from positive 9.55% in FY25 to negative 22.69% in FY26. FY26 revenue was also below the Rs 428.189 crore reported for FY24.

Tactical-system revenue fell to Rs 211.675 crore in FY26 from Rs 362.296 crore in FY25, a reduction of Rs 150.621 crore. Platform-system revenue rose to Rs 144.808 crore from Rs 101.053 crore, an increase of Rs 43.755 crore, while other revenue was Rs 1.195 crore in FY26. Tonbo defines tactical systems as electro-optical sights for dismounted soldiers’ observation and targeting, while platform systems are designed for surveillance, reconnaissance and targeting platforms.

The disclosed revenue mix changed with the category shift. Tactical systems accounted for about 58% of FY26 revenue from operations, compared with about 77% in FY25, based on the reported category and total revenue figures. Platform systems represented about 40% in FY26, compared with about 22% in FY25, meaning a comparable revenue recovery would require further platform growth or a reversal in the tactical-sales decline.

How did Tonbo move from profit to a June-quarter loss?

Tonbo moved from full-year profitability to a June 2026 quarterly loss as gross and operating margins declined. For the three months ended June 30, 2026, revenue from operations was Rs 36.008 crore, gross profit was Rs 13.578 crore and earnings before interest, tax, depreciation and amortisation, or EBITDA, was a loss of Rs 13.037 crore. Tonbo defines EBITDA as operating profit before financing costs and depreciation and amortisation, excluding other income.

The June 2026 EBITDA margin was negative 36.21%, compared with positive 28.85% in FY26 and 29.64% in FY25. Gross profit margin was 37.71% in the June quarter, below 51.05% in FY26 and 56.38% in FY25. Tonbo defines gross profit as revenue less cost of goods sold, so the June-period result left a smaller proportion of revenue after direct costs than either full-year period.

Tonbo reported a Rs 17.737 crore loss after tax for the three months ended June 30, 2026, with a negative 47.52% profit-after-tax margin. That compared with FY26 profit after tax of Rs 50.880 crore and a 13.75% margin, and FY25 profit after tax of Rs 72.757 crore with a 15.34% margin. The June-quarter figures are not annualised, so they report a three-month outcome rather than a forecast for the full financial year.

What do Tonbo’s returns and working-capital figures show?

Tonbo’s June-quarter return measures became negative, while working-capital days rose from 517 days in FY26 to 1,454 days for the three-month period ended June 30, 2026. Return on capital employed, or ROCE, was negative 4.31% at June 30, 2026, compared with 14.54% in FY26 and 27.41% in FY25. Tonbo calculates ROCE as earnings before interest and tax divided by capital employed.

Return on equity, or ROE, was negative 3.25% for the June 2026 period, compared with 9.75% in FY26, 20.20% in FY25 and 52.72% in FY24. Tonbo calculates ROE using restated profit after tax and average shareholders’ equity. The June ROCE and ROE figures are not annualised, and the negative measures coincide with the Rs 17.737 crore quarterly loss.

Tonbo states that the 1,454 working-capital-day measure for June 2026 is not directly comparable with annual periods because of business cyclicality and revenue recognition concentrated in the second half of the financial year. Working-capital days equal inventory days plus trade-receivable days minus trade-payable days under Tonbo’s definition. The annual progression was 152 days in FY24, 280 days in FY25 and 517 days in FY26.

Can Tonbo’s order book support later revenue?

Tonbo had a confirmed order book of Rs 314.240 crore at June 30, 2026, up from Rs 279.016 crore at March 31, 2026 but below Rs 563.144 crore at March 31, 2024. Tonbo defines the confirmed order book as customer orders that have been confirmed but remain unfulfilled. The measure therefore represents work yet to be delivered rather than revenue recognised in the June 2026 period.

Domestic orders were Rs 231.872 crore, or about 74% of the June 2026 confirmed order book, while international orders were Rs 82.368 crore, or about 26%. At March 31, 2026, domestic orders were Rs 197.109 crore and international orders were Rs 81.907 crore. The Rs 35.224 crore increase in the total order book over the three months was therefore principally associated with the domestic component.

Tonbo’s June 2026 KPI disclosure lists tactical orders of Rs 115.430 crore, platform orders of Rs 98.348 crore and other orders of Rs 6.462 crore. Revenue conversion depends on fulfilment of confirmed orders, but the disclosure does not specify delivery dates or margins by order. The order book can support later reported revenue only as orders are fulfilled and recognised under the company’s accounting policies.

Conclusion

Tonbo’s disclosed KPIs show a deterioration from FY25 to FY26 and then into the three months ended June 30, 2026. FY26 revenue fell 22.69%, gross margin declined by 5.33 percentage points, and the June period recorded negative EBITDA, profit after tax, ROCE and ROE. The principal disclosed full-year revenue movement was the Rs 150.621 crore decline in tactical-system revenue, only partly offset by the Rs 43.755 crore rise in platform-system revenue.

The next KPI disclosures will show whether the Rs 314.240 crore June 2026 order book converts into revenue and whether the domestic-order increase continues. Tonbo has confirmed that it will disclose the KPIs periodically, at least annually or more frequently if its board decides, until one year after listing. The company also states that this requirement does not extend to monitoring use of offer proceeds because the offer is entirely an offer for sale and Tonbo receives no proceeds.