Bonfiglioli makes the gearboxes and drives that move conveyors, excavators and wind turbines. It is the Indian arm of Italy’s Bonfiglioli group, which owns all of it, and sells directly to over 930 customers. The IPO is a sale of 23% of the company by the parent.
How Bonfiglioli makes money
Industry and automation: 41% of sales (₹824 Cr)
Sells gear motors, a gearbox joined to an electric motor, to makers of conveyors, packaging lines, robots and other factory machines. It is the largest line and grew 23% in the latest six months.
Wind: 31% of sales (₹635 Cr)
Makes the gearboxes and the drives that turn the turbine head into the wind and tilt the blades. It holds about 68% of the Indian wind-drive market, but sales were flat in the latest six months.
Excavators and mixers: 25% of sales (₹507 Cr)
Makes drives for construction machines, designed together with each customer from the start. This is the fastest-growing line, up 36% in the latest six months.
How the goods are made and sold
Three plants (two in Tamil Nadu, one near Pune) made 3.41 lakh units in FY25. 63% of sales go direct to machine makers and 19% through 44 dealers. The company earns an 18% operating margin, pays 4.4% of sales to the Italian parent as royalty for the brand and designs, and customers take 94 days to pay.
Key dates
Sales mix · Customers · Links with the parent
A market leader, but one that leans on its Italian parent
Where FY25 sales came from
Industry and automation
₹824 Cr 40.9%
Wind industry
₹635 Cr 31.5%
Excavators and mixers
₹507 Cr 25.2%
Others
₹47 Cr 2.3%
Who bought, share of FY25 sales
Direct to makers
63.3%
Through dealers
19.4%
Group companies
15.2%
Others
2.1%
Key takeaway
Bonfiglioli serves three growing end markets and is the largest Indian maker in each, with 68% of wind drives, 32% of off-highway drives and 25% of industrial gear motors. These markets were worth ₹5,850 Cr in FY26 and are forecast to reach ₹8,940 Cr by FY31, about 9% a year, in a report paid for by the company. The group is both customer and supplier: group companies bought 15% of FY25 sales, the biggest supplier is a group company, and Bonfiglioli pays the parent 4.4% of sales (₹89 Cr in FY25) in royalty. Ten customers took 36.6% of sales, and wind, a third of sales, was flat in the latest six months.
Sales · Profit · Cash, FY23 to June 2026
Profits are rising, but cash has not kept pace
Sales (₹ Cr)
Up 8.6% in FY25
Profit after tax (₹ Cr)
Up 24% in FY25
Cash from operations (₹ Cr)
Flat for three years
The numbers
| FY23 | FY24 | FY25 | Jan-Jun 2026 | |
|---|---|---|---|---|
| Sales (₹ Cr) | 1,687 | 1,854 | 2,014 | 1,132 |
| EBITDA margin (%) | 14.45 | 15.91 | 18.41 | 19.78 |
| Profit after tax (₹ Cr) | 146.7 | 191.6 | 237.9 | 148.6 |
| Profit per share (₹) | 7.57 | 10.08 | 12.65 | 7.90 |
| Cash from operations (₹ Cr) | 198.2 | 188.4 | 187.7 | 129.9 |
| Return on equity (%) | 19.2 | 23.1 | 25.7 | 14.7 |
Year ends 31 December. January to June is six months, so its return on equity is not a yearly figure. EBITDA is operating profit before interest, tax and wear on assets.
Key takeaway
Sales rose from ₹1,687 Cr in FY23 to ₹2,014 Cr in FY25, and January to June 2026 sales were up 17.9%. Profit after tax rose from ₹147 Cr to ₹238 Cr as the operating margin climbed from 14.5% to 18.4%, and return on equity was 25.7% in FY25. The company has no borrowings and held ₹139 Cr of net cash in June 2026. The weak spot is cash. Operating cash was ₹188 Cr in FY25, only 79% of profit against 135% in FY23, because customers now take 94 days to pay, and since January 2024 the company has paid ₹344 Cr to the parent through dividends and a buyback.
Sale by the parent · Anchors · Closest peer
The parent takes the money, and the price is 46% above the peer
How the offer is split
Institutions
Up to 50%
Non-institutional
At least 15%
Retail investors
At least 35%
The anchor book
73 anchors put in ₹759 Cr at ₹586. Indian mutual funds took 59.2%, foreign funds 32.2% and life insurers 8.5%. Half of their shares are locked in for 30 days and the rest for 90 days.
Against the closest listed peer, Elecon Engineering
| Bonfiglioli at ₹586 | Elecon | |
|---|---|---|
| Profit per share (₹) | 12.65 | 15.20 |
| P/E | 46.3x | 31.6x |
| Return on net worth (%) | 24.0 | 14.8 |
Key takeaway
At ₹586 the shares cost 46.3 times FY25 profit against 31.6 times for Elecon. Bonfiglioli is the more profitable of the two, but the price already counts on that.
Anchor price ₹586 · Strong anchor demand · Listing gain view
A strong business and anchor book, but priced too richly to hold
Strong anchor book
73 funds put in ₹759 Cr at ₹586. Indian mutual funds and insurers took 68%.
Clear market leader
Largest in India in wind drives, off-highway drives and industrial gear motors.
Profits and margins rising
Profit after tax from ₹147 Cr to ₹238 Cr in two years.
No debt and a strong return
₹139 Cr net cash. Return on equity 25.7% in FY25.
Growth picking up
Sales up 17.9% in Jan to Jun 2026.
Priced above its peer
46.3x P/E against 31.6x for Elecon, a 46% premium. This limits gains after listing.
Auditors flagged gaps
Accounts backup not kept in India and audit-trail logs off for some systems, in FY23 to FY25.
Leans on the parent
6% royalty. Group firms bought 15% of sales.
The parent takes the money
The company gets nothing. ₹344 Cr was paid out since 2024.
Few customers, flat wind
Top ten took 36.6% of sales. Wind sales were flat.
Our opinion
Apply for listing gains
Strong demand from 73 anchor funds and a market leader with rising profit and no debt support a listing gain. At 46% above its peer, the price is too rich to hold for the long term.
