Bonfiglioli Transmissions
FinMinutes Deep Business Model & Edge
Bonfiglioli Transmissions Limited is one of India's largest technology-led mechanical and electro-mechanical power transmission and industrial drive solutions providers by revenue, catering to Industry & Automation, Off-Highway Mobility, and Wind Industries. Backed by its Italian parent Bonfiglioli S.p.A., the company operates three manufacturing facilities in Tamil Nadu and Maharashtra and supplied over 11,800 SKUs as of December 31, 2025.
What this company actually does — full breakdown ▾
Bonfiglioli Transmissions Limited manufactures a comprehensive portfolio of mission-critical, highly precision-engineered gearboxes, gear motors, electric motors, servo drives, and drive systems. Its operations are structured around three business verticals: Industry & Automation Solutions (low, medium, and heavy-duty gear motors and gearboxes), Off-Highway Mobility Industry (propulsion, swing, slew, and drum drives for excavators, concrete mixers, and agricultural machinery), and Wind Industry (integrated yaw and pitch drives for wind turbines ranging from 225 kW to 5 MW). As of December 31, 2025, the company had manufactured and supplied over 11,800 SKUs to more than 930 direct OEM customers and a pan-India dealer network comprising 44 authorized dealers with 54 outlets. The company operates three manufacturing facilities located in Thirumudivakkam and Mannur (Tamil Nadu) and Talegaon (Maharashtra), supported by 13 sales offices and 13 authorized third-party service facilities across India. Geographically, domestic sales accounted for 70.04% of revenue from contract with customers in the six months ended June 30, 2026, while exports to markets including the United States, Italy, Germany, and China accounted for 29.96%. The company relies on a localized supply chain for raw materials and castings, alongside co-engineering partnerships with major OEMs that create long-term platform lock-in.
- Industry & Automation Solutions — Offers low, medium, and heavy-duty gear motors and gearboxes in torque capacities ranging from 13 Nm to 1,400 kNm, electric motors, variable frequency drives, servo motors/drives, and precision drives for robotics and automation across material handling, chemicals, mining, food/beverage, and textiles.
- Off-Highway Mobility Industry — Offers swing and track drives, drum and skip/mixer drives, wheel/auger/conveyor drives, and cutter/hoist drives across torque ranges from 1,000 Nm to 3,000 kNm for earthmoving, concrete, mining, road construction, agricultural, and material handling machinery.
- Wind Industry — Offers fully integrated yaw and pitch drive systems for wind turbines ranging from 225 kW to 5 MW capacities.
Market leadership in India across all three verticals (25.0% share in low/medium-duty gear motors <15 kNm, 32.0% share in off-highway mobility among non-captive players, and 67.9% share in domestic wind yaw and pitch drives in 2025), comprehensive portfolio with over 11,800 SKUs, deep co-engineering partnerships with top OEMs taking up to 30 months created high switching costs, established global brand parentage (Bonfiglioli S.p.A.), and an extensive sales and service footprint with 44 dealers (36 exclusive).
The Offer
Valuation at the Offer Price
The filing does not print a single headline multiple, so this one is ours: the upper band divided by the latest restated earnings per share — the same arithmetic the “Basis for the Offer Price” section performs. It is struck on pre-issue earnings; where the issue creates new shares, the post-issue multiple is computed in the workings below. The peer group is the one the filing itself names. A premium is not the same thing as expensive and a discount is not the same thing as cheap — the peer table and the reasons sit further down this page.
FinMinutes IPO Score — How It's Built
Transparent, deterministic, computed from the filing — not an opinion. Open any component below to see exactly what it measures and what it is worth. Components with no disclosed input are dropped from the weighting entirely rather than held at an invented neutral, because a constant inside a weighted average is not neutral — it quietly drags every score toward the middle. Weighted across 5 live components.
100% of the designed weighting had real data behind it on this issue. A lower coverage figure does not mean a worse company — it means we are standing behind less of the picture, and you should read the findings below rather than the headline number.
How this is measured12%
Whether fresh capital actually enters the business. A predominantly offer-for-sale issue is marked down ONLY when the financials are weak. A profitable, cash-rich company selling down is treated as neutral, not penalised, because it does not need the money.
How this is measured12%
What changed between the draft prospectus and the final one. A period roll-forward or a refreshed industry report is expected and scores neutral. A statutory auditor replaced mid-process, a prior year restated, an offer-for-sale expanded late, new statutory dues disclosed, or a risk factor quietly removed all score against. Where only one of the two documents has been read, this component is dropped from the weighting rather than guessed.
How this is measured32%
Driven by the models battery run on the filing's own restated numbers: the Piotroski fundamental tests (scored out of those we could actually run), the Altman Z-double-prime solvency zone, and the direction of profit across the disclosed period. It is not a single yes/no on last year's profit.
How this is measured10%
The post-issue earnings multiple against the peer median disclosed in the filing. A discount to the median scores well and a premium scores badly. When the filing does not disclose comparable peer multiples, this component is dropped from the weighting rather than held at a made-up neutral.
How this is measured28%
Starts at 100 and loses points for every material finding: 12 for a flagged finding, 4 for a noted one. Two kinds feed it. DERIVED findings are computed from the filed numbers against stated thresholds — operating cash negative while profit is positive, related-party revenue above 15% of total, revenue rising while profit falls, goodwill above 30% of net worth, receivables growing more than 1.3x faster than sales, cash below half of short-term debt. Those are reproducible: the same filing gives the same answer every time, and the rule is printed beside the finding. READ findings come from the forensic sweep of the notes. Contingent liabilities, related-party intensity, customer concentration, litigation, auditor qualifications, statutory dues, promoter funding. Findings that record the ABSENCE of a problem — no litigation pending, an unmodified audit opinion — deduct nothing. This is the component our forensic read drives directly, and it moves most between companies.
3-Year Financial & Growth Trend
| Metric | FY25 | FY24 |
|---|---|---|
| Revenue (₹ Cr) | 2013.526 | 1854.183 |
| Net Profit (₹ Cr) | 237.874 | 195.164 |
| PAT Margin | 11.81% | 10.53% |
Revenue Breakdown
- Industry & Automation Solutions (Fiscal 2025): 40.95%
- Wind Industry (Fiscal 2025): 31.53%
- Off-Highway Mobility Industry (Fiscal 2025): 25.18%
- Others (Fiscal 2025): 2.34%
Market Context
NOT part of the FinMinutes ScoreThe Score above is what the filing says. Everything in this box is what the crowd says. We keep them apart on purpose — every other site blends the two and calls the result a rating. Demand is real information, but it is information about the market, not about the company, and it changes by the hour while the company does not.
Our read of the filing is solid, but demand is thin so far. Books fill late — most retail and institutional bids land in the final hours — so this may simply be the clock. Or the market may know something the filing does not say.
Subscription is low early in a book and high at the end, because most bids arrive in the final hours. A number read on day one says more about the clock than the company — which is precisely why it is not in the Score. GMP is unofficial, unregulated, and easily moved. Neither is a recommendation.
Why the numbers moved, in management’s own words
Taken from the Management’s Discussion and Analysis section of the filing. A number tells you what happened; this is the company’s explanation of why, and whether it calls the cause temporary or structural.
| Metric | Move | Management's stated reason | Type |
|---|---|---|---|
| Revenue from operations (6M FY26 vs 6M FY25) | ↑ 17.9% | Revenue from operations increased primarily due to an 18.80% increase in revenue from sale of goods driven by higher sales volumes across product lines. | Structural |
| Cost of raw materials & components consumed (6M FY26 vs 6M FY25) | ↑ 26.2% | Cost of raw materials and components consumed increased due to higher consumption volumes required to meet the growth in sale of goods. | Cyclical |
| Employee benefits expense (6M FY26 vs 6M FY25) | ↑ 19.8% | Employee benefits expense increased due to annual increments in salaries and an increase in headcount to support higher production and sales volumes and the electric motor line at Mannur. | Structural |
| Depreciation and amortisation expense (6M FY26 vs 6M FY25) | ↑ 16.2% | Depreciation increased on account of additions to plant and machinery, including additional machines at Thirumudivakkam machine shop and the new electric motor production line at Mannur. | Structural |
| Total tax expense (6M FY26 vs 6M FY25) | ↑ 26.6% | Total tax expense increased primarily due to higher restated profit before tax generated during the period. | Cyclical |
| Restated PAT from continuing operations (6M FY26 vs 6M FY25) | ↑ 29.2% | Restated profit after tax from continuing operations increased due to higher revenue from operations and disciplined expense management leading to operating leverage. | Structural |
| Total tax expense (FY25 vs FY24) | ↑ 63.6% | Total tax expense increased primarily due to tax expenses pertaining to prior years shifting from a tax credit in Fiscal 2024 to a charge in Fiscal 2025. | One-off |
| Other income (FY25 vs FY24) | ↑ 44.3% | Other income increased mainly due to higher interest income on bank deposits driven by an increase in cash deposits held by the company. | Cyclical |
| Finance costs (FY25 vs FY24) | ↓ 25.4% | Finance costs declined as the company maintained zero borrowings, with expenses consisting of lease liability interest and customer early payment arrangement charges. | Structural |
| Depreciation and amortisation expense (FY24 vs FY23) | ↑ 25.7% | Depreciation expense increased primarily due to the establishment and full-year operation of the new assembly facility at Talegaon, Pune commissioned in late Fiscal 2023. | Structural |
| Other income (FY24 vs FY23) | ↓ 51.8% | Other income declined due to lower interest income on bank deposits in Fiscal 2024 compared to Fiscal 2023. | Cyclical |
| Restated PAT from continuing operations (FY24 vs FY23) | ↑ 30.6% | Restated PAT increased due to 9.89% revenue growth, lower raw material prices, cost rationalization, and absence of foreign currency transaction losses recorded in Fiscal 2023. | Structural |
Headwinds
- Raw material price volatility and commodity cost fluctuations sector persistent
Costs of raw materials like steel, aluminium, and cast iron fluctuate due to global commodity prices, inflation, and logistics costs, impacting margins if price pass-through to customers is delayed. - Policy and regulatory uncertainty in export wind energy markets macro
Changes in foreign trade regulations, tariffs, or uncertainty surrounding US IRA tax credit timelines can delay wind project decisions and OEM order visibility. - Foreign currency exchange rate volatility macro persistent
Exchange rate fluctuations impact foreign revenue and imported raw material costs, though foreign currency sales and purchases provide a partial natural hedge.
Tailwinds
- Industrial automation, infrastructure growth, and renewable energy adoption in India sector
Growth in manufacturing modernization, adoption of energy-efficient IE3/IE4 motors, infrastructure capex, and government initiatives like PM Gati Shakti drive demand across all verticals. - Supply chain localization and in-house component manufacturing company
Localization of electric motor manufacturing at the Mannur facility significantly reduces product delivery lead times from 12 weeks to 4 weeks and optimizes supply chain costs.
| Facility | Period | Utilisation |
|---|---|---|
| Thirumudivakkam (Machine Shop) | FY23 | 74.7% |
| Thirumudivakkam (Machine Shop) | FY24 | 79.5% |
| Thirumudivakkam (Machine Shop) | FY25 | 81.0% |
| Thirumudivakkam (Machine Shop) | 6M FY26 | 80.7% |
| Thirumudivakkam (Assembly) | FY23 | 48.4% |
| Thirumudivakkam (Assembly) | FY24 | 52.0% |
| Thirumudivakkam (Assembly) | FY25 | 56.2% |
| Thirumudivakkam (Assembly) | 6M FY26 | 61.5% |
| Mannur (Assembly) | FY23 | 57.9% |
| Mannur (Assembly) | FY24 | 73.4% |
| Mannur (Assembly) | FY25 | 77.6% |
| Mannur (Assembly) | 6M FY26 | 77.9% |
| Mannur (Machine Shop) | 6M FY26 | 72.7% |
| Talegaon (Assembly) | FY23 | 57.8% |
| Talegaon (Assembly) | FY24 | 71.6% |
| Talegaon (Assembly) | FY25 | 77.0% |
| Talegaon (Assembly) | 6M FY26 | 77.0% |
Movements the filing does not explain
- Trade receivables FY25 vs FY24 — Trade receivables increased by 27.46% (from ₹ 406.19 Crore in FY24 to ₹ 517.74 Crore in FY25), but MD&A text does not provide a specific narrative driver for this balance sheet expansion.
- Operating cash flows FY25 vs FY24 — Net cash inflow from operating activities remained virtually flat at ₹ 187.68 Crore in FY25 vs ₹ 188.35 Crore in FY24 despite a 24.15% increase in restated PAT, driven by working capital lock-up in trade receivables.
A material movement that management does not address is not a finding on its own. It is a question the filing leaves open, and it is recorded here as one.
Issue Timeline
Dates as carried by the exchange feed. Allotment, refund and credit dates move more often than the open and close dates do.
- Refunds initiated2026-10-22
- Pre Application Start2026-10-13
- Bidding Start2026-10-15
- Bidding End2026-10-19
- Allotment Process Start2026-10-21
- Allotment Finalization2026-10-22
- Listing Day2026-10-23
- Mandate End2026-11-30
Applying, and Who Handles the Allotment
Check allotment status on the registrar’s own portal → We link the registrar directly rather than mirroring the form.
Deep Financials
Revenue, EBITDA and profit are what every listing site prints. Below are the full restated statements as disclosed, the ratios we compute from them, and a DuPont decomposition of the return on equity. A prospectus carries three years, not ten — that is the document’s ceiling, and within it we go as deep as it allows.
Income StatementThe profit and loss as filed, then what we derive from it — kept apart.
Statutory order, exactly as restated in the filing. Finance cost and depreciation sit inside Total Expenses under Ind AS, which is why they are listed among the expense lines here rather than below the total. The expense rows sum to the total. Rows the filing does not disclose separately are omitted rather than left blank.
| Income Statement — as filed (₹ Cr) | FY25 | FY24 |
|---|---|---|
| Revenue from Operations | 2,013.53 | 1,854.18 |
| Other Income | 10.06 | 6.97 |
| Total Income | 2,023.59 | 1,861.16 |
| Cost of Materials Consumed | 1,196.72 | 1,185.43 |
| Changes in Inventories | 54.25 | -6.41 |
| Employee Benefit Expense | 106.27 | 98.22 |
| Finance Cost | 7.78 | 10.42 |
| Depreciation & Amortisation | 47.82 | 46.63 |
| Other Expenses | 285.52 | 281.87 |
| Total Expenses | 1,698.36 | 1,616.16 |
| Profit Before Exceptional Items and Tax | 325.23 | 245.00 |
| Profit Before Tax | 325.23 | 249.58 |
| Tax Expense | 87.36 | 54.42 |
| Profit After Tax | 237.87 | 195.16 |
| Other Comprehensive Income | -1.74 | -0.67 |
| Total Comprehensive Income | 236.14 | 194.49 |
| EPS - Basic | 12.65 | 10.27 |
| EPS - Diluted | 12.65 | 10.27 |
Balance SheetWhat the company owns, owes, and is worth on paper.
| Balance Sheet (₹ Cr) | FY25 | FY24 |
|---|---|---|
| Share Capital | 125.33 | 125.33 |
| Reserves & Surplus | 867.66 | 735.62 |
| Net Worth | 992.99 | 860.95 |
| Long-term Borrowings | 0.00 | 0.00 |
| Short-term Borrowings | 0.00 | 0.00 |
| Total Borrowings | 0.00 | 0.00 |
| Trade Payables | 330.21 | 308.55 |
| Current Liabilities | 431.74 | 424.50 |
| Total Liabilities | 446.47 | 438.13 |
| Property, Plant & Equipment | 269.15 | 263.98 |
| Capital Work in Progress | 12.35 | 13.73 |
| Intangible Assets | 0.34 | 0.30 |
| Investments | 0.11 | 0.11 |
| Inventories | 319.21 | 321.42 |
| Trade Receivables | 517.74 | 406.19 |
| Cash & Equivalents | 153.18 | 144.67 |
| Current Assets | 1,090.32 | 946.79 |
| Total Assets | 1,439.46 | 1,299.08 |
Cash FlowWhere the cash actually went. Often the most honest statement of the three.
| Cash Flow (₹ Cr) | FY25 | FY24 |
|---|---|---|
| Net Cash from Operating Activities | 187.68 | 188.35 |
| Capital Expenditure | 53.98 | 43.08 |
| Net Cash from Investing Activities | -52.38 | 109.40 |
| Net Cash from Financing Activities | -126.79 | -243.61 |
| Net Change in Cash | 8.51 | 54.14 |
Ratio AnalysisProfitability, leverage, liquidity, efficiency and earnings quality — computed by us.
Every ratio below is computed by us from the line items the company disclosed — not copied from anywhere. The arithmetic is standard; the point is that somebody actually did it. Blank cells mean the filing did not disclose the inputs, and we would rather show a gap than invent a number.
| Ratio | FY25 | FY24 |
|---|---|---|
| Profitability | ||
| EBITDA Margin (%) | 18.8 | 16.5 |
| EBIT Margin (%) | 16.5 | 14 |
| PAT Margin (%) | 11.8 | 10.5 |
| Return on Equity (%) | 24 | 22.7 |
| Return on Capital Employed (%) | 33.5 | 30.2 |
| Return on Assets (%) | 16.5 | 15 |
| Leverage | ||
| Debt / Equity (x) | 0 | 0 |
| Net Debt / EBITDA (x) | -0.4 | -0.47 |
| Interest Coverage (x) | 42.82 | 24.96 |
| Liquidity | ||
| Current Ratio (x) | 2.53 | 2.23 |
| Quick Ratio (x) | 1.79 | 1.47 |
| Efficiency | ||
| Asset Turnover (x) | 1.4 | 1.43 |
| Receivable Days | 94 | 80 |
| Inventory Days | 93 | 100 |
| Payable Days | 96 | 96 |
| Cash Conversion Cycle (days) | 91 | 84 |
| Quality of Earnings | ||
| Operating Cash Flow / PAT (x) | 0.79 | 0.97 |
| Accruals Ratio (%) | 3.5 | 0.5 |
| Capex / Depreciation (x) | 1.13 | 0.92 |
| Inventory and payable days are measured against cost of goods (materials consumed + purchases of stock-in-trade + change in inventories). Receivable days against revenue. | ||
DuPont DecompositionWhy the return on equity is what it is: margin, efficiency, or leverage.
A headline return on equity tells you what. The DuPont decomposition tells you why — whether the return is earned through margin, through asset efficiency, or simply through leverage. Two companies can post an identical ROE for opposite reasons, and only one of them is safe.
| Component | FY25 | FY24 |
|---|---|---|
| Net Margin (PAT / Revenue) | 11.8% | 10.5% |
| Asset Turnover (Revenue / Assets) | 1.4x | 1.43x |
| Equity Multiplier (Assets / Net Worth) | 1.45x | 1.51x |
| = Return on Equity | 24% | 22.7% |
| Tax Burden (PAT / PBT) | 0.73x | 0.78x |
| Interest Burden (PBT / EBIT) | 0.98x | 0.96x |
| Operating Margin (EBIT / Revenue) | 16.5% | 14% |
Computed from the disclosed statements. Where the filing omits an input, the row is left blank rather than estimated.
Quality of EarningsWhat the statements say when you read them against each other.
What the statements say once you read them against each other. These are observations, not verdicts — every one is arithmetic on the numbers the company itself disclosed, and each is stated so you can go and check it in the filing.
- Interest coverage was 42.82x in FY25. Debt servicing is comfortably covered by operating profit.
Part-Year PeriodThe stub period, kept apart from the full years.
The filing also reports a period shorter than a full year. It is shown here as filed and not annualised, and no ratio or model on this page uses it: comparing part of a year with a full year would misstate every growth rate and multiple.
| Part-year period, as filed (₹ Cr) | 6M FY26 part-year |
|---|---|
| Revenue from Operations | 1,131.87 |
| Total Income | 1,139.17 |
| Total Expenses | 939.25 |
| Profit Before Tax | 199.91 |
| Tax Expense | 51.33 |
| Profit After Tax | 148.58 |
| EPS - Basic (not annualised) | 7.90 |
| Total Assets | 1,495.82 |
| Net Worth | 1,034.27 |
| Total Borrowings | 0.00 |
| Cash & Equivalents | 140.17 |
| Net Cash from Operating Activities | 129.90 |
| Capital Expenditure | 40.92 |
Forensic ModelsBeneish, Altman, Piotroski and the Montier C-score — plus our own final-year check.
Beneish M-Score
M = -2.18An eight-variable model built to detect earnings manipulation, and built to run on exactly two consecutive years — which is what a prospectus gives us. It belongs here more than anywhere: a company about to list has the maximum possible incentive to have dressed up the very years it is about to show you. A score above −1.78 is the threshold at which the model says the accounts merit a closer look. It is a screening signal, not an accusation, and it was calibrated on listed companies elsewhere. Read the eight components, not just the total.
| Component | Value | What it captures |
|---|---|---|
| DSRI Days Sales in Receivables Index (Receivables_t / Sales_t) / (Receivables_t-1 / Sales_t-1) | 1.174 | Above 1 means receivables grew faster than sales. Revenue may be being recognised ahead of collection. |
| GMI Gross Margin Index GrossMargin_t-1 / GrossMargin_t | 0.889 | Above 1 means margins deteriorated. A firm with worsening prospects has more incentive to manipulate. |
| AQI Asset Quality Index AQ_t / AQ_t-1, where AQ = 1 - (CurrentAssets + PPE) / TotalAssets | 0.817 | Above 1 means a rising share of assets is soft (neither current nor fixed) — capitalised costs can hide here. |
| SGI Sales Growth Index Sales_t / Sales_t-1 | 1.086 | Growth is not manipulation. But high-growth firms face more pressure to keep the streak going. |
| DEPI Depreciation Index DepRate_t-1 / DepRate_t, where DepRate = Dep / (Dep + PPE) | 0.995 | Above 1 means assets are being depreciated more slowly — a quiet way to lift reported profit. |
| SGAI SG&A Index (SGA_t / Sales_t) / (SGA_t-1 / Sales_t-1), SGA proxied as employee cost + other expenses | 0.949 | A proxy, because filings rarely break out SG&A cleanly. Read it as a direction, not a precise figure. |
| LVGI Leverage Index Leverage_t / Leverage_t-1, where Leverage = (CurrentLiab + LongTermDebt) / TotalAssets | 0.918 | Above 1 means leverage rose. Debt covenants create pressure to hit numbers. |
| TATA Total Accruals to Total Assets (PAT - CashFromOperations) / TotalAssets | 0.0349 | The gap between reported profit and cash generated. The single heaviest term in the model — and the one that catches profit that never became cash. |
M = -2.18, below the −1.78 threshold. The model does not flag these accounts.
Altman Z″-Score (emerging markets)
Z″ = 12.11 · SafeA distress-prediction model. We use the Z″ variant deliberately: the original Z was calibrated on American manufacturers and misleads badly on Indian services companies. Above 2.6 is the safe zone, 1.1 to 2.6 is grey, below 1.1 is the distress zone. Like every model of its kind it is a screen, not a prophecy.
| X1 — Working Capital / Total Assets | 0.458 |
| X2 — Reserves / Total Assets | 0.603 |
| X3 — EBIT / Total Assets | 0.231 |
| X4 — Net Worth / Total Liabilities | 2.224 |
| Z″ = 3.25 + 6.56·X1 + 3.26·X2 + 6.72·X3 + 1.05·X4 | 12.11 |
X2 is meant to read retained earnings. The filing reports Other Equity, which also holds securities premium paid in by investors, so X2 here runs on reserves and reads higher than true retained earnings would. The more premium the company has raised before listing, the more Z″ is flattered.
Piotroski F-Score (adapted)
5 / 8Nine yes-or-no tests of fundamental strength — except we run eight. One of the original nine asks whether the company issued new shares, which is plainly absurd to ask of a company whose entire purpose at this moment is to issue shares. We drop that test, and we would rather tell you that than quietly fudge it.
- ✓Positive return on assets
- ✓Positive operating cash flow
- ✓Return on assets improving
- ✗Cash flow exceeds profit (quality of earnings)
- ✗Long-term leverage decreasing
- ✓Current ratio improving
- ✓Gross margin improving
- ✗Asset turnover improving
Montier C-Score
4 of 6 signsSix yes-or-no signs that reported profit may be running ahead of the business, from James Montier’s 2008 screen, read here for FY25 against FY24. Each is a direction in the statements, not a judgement. Several together are a reason to read the accounting policies and notes closely; none on its own means anything is wrong, and growing companies trip some of them honestly.
- ●Gap between profit and operating cash flow widening · PAT − CFO: ₹6.8 cr in FY24, ₹50.2 cr in FY25
- ●Receivable days rising · 80 days in FY24, 94 days in FY25
- ○Inventory days rising · 100 days in FY24, 93 days in FY25 (on cost of goods)
- ●Other current assets rising against revenue · 4.0% of revenue in FY24, 5.0% in FY25 (current assets less cash, receivables and inventory)
- ○Depreciation falling against fixed assets · 17.7% of net block in FY24, 17.8% in FY25
- ●Total assets growing more than 10% a year · 10.8% in FY25
Ratios Nobody Prints
- Contingent liabilities / Net worth: 0.3%
Contingent liabilities of 3.08 cr against a net worth of 992.99 cr — 0.3% of what the company is worth on paper. These are obligations that sit off the balance sheet but could land on it. What they consist of matters as much as the size: a corporate guarantee to a subsidiary is a different animal from a disputed tax demand, and the filing says which. - Related-party revenue / Total revenue: 15.7%
15.7% of revenue in FY25 came from entities connected to the promoters. Revenue you sell to yourself is not the same as revenue you won in the market. - Promoter remuneration / PAT: 1.8%
Managerial remuneration to the promoter group was 4.22 cr against a profit of 237.87 cr. This is a legitimate cost — but it is also a route by which value leaves a company before it ever reaches a minority shareholder.
The Formula NotebookEvery number above, with the working shown. Check us.
Every number we publish, with the working shown. The formula, the same formula with this company’s actual figures put into it, the answer, and what it is for. Check us. That is the point.
PAT ÷ Net Worth237.87 ÷ 992.99What the company earned on the money shareholders have in it. The headline measure of return — and the one the DuPont section takes apart.
EBIT ÷ (Net Worth + Total Borrowings)333.01 ÷ (992.99 + 0.00) = 333.01 ÷ 992.99Return on ALL the capital in the business, borrowed as well as owned. Unlike ROE, it cannot be flattered by taking on debt.
EBITDA ÷ Revenue380.83 ÷ 2,013.53Operating profitability before the effects of debt, tax and depreciation. What the business earns from the act of trading.
Total Borrowings ÷ Net Worth0.00 ÷ 992.99How much the company has borrowed against what it owns. High is not automatically bad — ask whether the borrowing is being serviced comfortably.
EBIT ÷ Finance Cost333.01 ÷ 7.78How many times over operating profit covers the interest bill. Below about 2x, a meaningful share of what the business earns is going to lenders rather than owners.
(Trade Receivables ÷ Revenue) × 365(517.74 ÷ 2,013.53) × 365How long the company waits to be paid. Rising receivable days mean revenue is being booked faster than it is collected — which is where a great many accounting problems begin.
Inventory Days + Receivable Days − Payable Days93 + 94 − 96How long cash is tied up in the operating cycle before it comes back. The longer it is, the more working capital the business must fund.
Cash from Operations ÷ PAT187.68 ÷ 237.87Did the profit turn into cash? Profit is an opinion; cash is a fact. When this sits well below 1x for long, the two are drifting apart, and the filing is where you find out why.
(PAT − Cash from Operations) ÷ Total Assets(237.87 − 187.68) ÷ 1,439.46 = 50.19 ÷ 1,439.46The share of reported profit that exists on paper rather than in the bank. It is also the heaviest single term in the Beneish model, for good reason.
Workspace
The interactive workspace is withheld on this issue. Every output in it — market capitalisation, enterprise value, every multiple, the reverse discounted cash flow — rests on the share count, and on this filing that count does not agree with itself. Below is each route we compute it by and what each one produces. A workspace built on the wrong one would be wrong in a way that looks entirely plausible, so we publish the disagreement instead.
| How the count is reached | Shares | Against the others |
|---|---|---|
| pre-issue shares as stated in the capital structure | 18.80 cr | agrees |
| paid-up share capital divided by face value | 12.53 cr | does not agree |
| profit after tax divided by basic EPS | 18.80 cr | agrees |
| net worth divided by net asset value per share | 18.80 cr | agrees |
| post-issue count as stated | 18.80 cr | agrees |
The share count does not reconcile across independent routes. Every figure derived from it is withheld until the filing is re-read.
Institutional Alpha: DRHP Deep Dive
The power transmission and industrial drive market in India and globally is experiencing significant expansion driven by industrial automation, infrastructure development, renewable energy expansion, and manufacturing modernization. According to the F&S Report, India's industrial gearboxes market (>15k Nm) is projected to reach ₹ 5,790.00 Crore by FY2031, growing at a CAGR of 7.5% from FY2025, while India's industrial gear motors market (<15k Nm) is projected to grow to ₹ 4,350.00 Crore by FY2031 at an 8.0% CAGR. Growth is supported by government initiatives like Make in India and PM Gati Shakti, along with increasing adoption of energy-efficient IE3/IE4 motors, integrated mechatronics, and localized OEM drivetrain platforms across process, off-highway, and wind sectors.
Future Planning
The company plans to expand manufacturing capacity for electric motors at Mannur and heavy gearboxes at Thirumudivakkam, while deepening localized sourcing above 70% to optimize lead times and logistics costs.
Source: p.218, p.233Competitive Position
Bonfiglioli maintains a dominant position in wind yaw/pitch drives (67.9% share) and off-highway mobility drives (32.0% share), competing with both international players (SEW-Eurodrive, Nord) and domestic players (Elecon, Shanthi Gears).
Source: p.139, p.193, p.210Execution Track Record
Over 25 years in India, the company has successfully expanded from a single facility to three manufacturing plants, built a network of 44 authorized dealers, and scaled sales to over ₹ 2,000 Crore with net profit margins exceeding 11%.
Source: p.65, p.205, p.210Shareholding, Syndicate & Leadership
Leadership & Skin in the Game
Leadership: Kennady V Kaippally (Managing Director)
Litigation: Claims against company include 6 tax claims aggregating to ₹ 35.44 Crore (including ₹ 31.69 Crore GST SCN writ petition), and 8 criminal proceedings by company aggregating ₹ 4.31 Crore. Direct tax proceedings against promoters aggregate ₹ 3.64 Crore.
Auditor / RPT Flags: Statutory auditor noted CARO modifications regarding delays in payment of statutory dues (TDS, TCS, Professional tax) and audit trail (edit log) feature non-operation/tampering verification limitations at database level for accounting software.
Peers & Valuation
| Company | P/E | P/B | RoE | Margin |
|---|---|---|---|---|
| Elecon Engineering Company Limited | 31.63 | — | 14.81 | 13.94 |
| Shanthi Gears Limited | 63.39 | — | 17.42 | 14.24 |
At the ₹586 upper band, the issue is priced at 46.3x earnings — a 10% discount to the peer median of 51.6x. This is the arithmetic of the price band against the peers the filing itself lists; it is not a view on whether the offer is worth taking.
Plant Vitals
The operating metrics that actually price this business — the ones a generic IPO page skips. Straight from the filing.
| Metric | Value | Detail |
|---|---|---|
| Combined Available Capacity | 1,205,748 hours | Fiscal 2025 across 3 manufacturing plants |
| Thirumudivakkam Machine Shop Utilisation | 80.99% | Fiscal 2025 (80.74% in 6M FY26) |
| Thirumudivakkam Assembly Utilisation | 56.19% | Fiscal 2025 (61.46% in 6M FY26) |
| Mannur Assembly Utilisation | 77.56% | Fiscal 2025 (77.90% in 6M FY26) |
| Talegaon Assembly Utilisation | 76.99% | Fiscal 2025 (76.99% in 6M FY26) |
| Total Units Manufactured | 341,133 units | Fiscal 2025 gear motors and gearboxes |
| Active SKUs Produced | 11,857 SKUs | Fiscal 2025 (8,780 SKUs in 6M FY26) |
| Direct OEM Customers | >930 | As of June 30, 2026 |
| Authorized Dealer Network | 44 dealers | Operating 54 outlets across India as of June 30, 2026 |
| Domestic Raw Material Sourcing | 69.87% | Share of raw material cost in Fiscal 2025 (68.32% in 6M FY26) |
Source: p.31, p.205, p.206, p.210, p.233 - Business / MD&A
🔍 Forensic Findings — What the Footnotes Say
Findings from across the filing — the notes, MD&A, related-party disclosures, contingent liabilities, CARO and litigation, alongside the risk section itself. Each carries where it was found, so you can see which were buried and which were disclosed. Findings marked derived are computed from the filed numbers against a stated rule, shown beside them.
The IPO is a 100% Offer for Sale (OFS) of 4,32,39,042 equity shares by the promoter selling shareholder Bonfiglioli S.p.A., with no fresh issue proceeds accruing to Bonfiglioli Transmissions Limited.
p.4, p.8, p.63, p.68Statutory auditor Batliboi reported modifications in CARO / Rule 11(g) disclosures regarding non-operation of audit trail features for certain tables/fields in ERP software and lack of preservation of edit log records for prior periods.
p.41, p.211, p.214In FY2025, related party income represented 15.59% of total income and related party expenses represented 24.83% of total expenses, including ₹ 88.81 Crore in royalty and ₹ 42.78 Crore in professional fees paid to BSPA.
p.22, p.24, p.25, p.82Company received SCN from GST Commissioner alleging excess/ineligible ITC availing of ₹ 31.69 Crore, currently challenged via writ petition before Madras High Court.
p.36, p.39, p.400Claims against company include 6 tax claims aggregating to ₹ 35.44 Crore (including ₹ 31.69 Crore GST SCN writ petition), and 8 criminal proceedings by company aggregating ₹ 4.31 Crore. Direct tax proceedings against promoters aggregate ₹ 3.64 Crore.
p.36, p.39, p.41, p.255, p.274, p.400Statutory auditor noted CARO modifications regarding delays in payment of statutory dues (TDS, TCS, Professional tax) and audit trail (edit log) feature non-operation/tampering verification limitations at database level for accounting software.
p.36, p.39, p.41, p.255, p.274, p.40015.7% of FY25 revenue (₹315.48 cr) came from entities connected to the promoters. Revenue sold to yourself is not revenue won in the market.
rule: RPT revenue > 15%Company's Claims vs Reality
We stress-test each claim against the filing's own data.
F&S Report confirms 25.0% market share in low/medium-duty gear motors (<15k Nm), 32.0% share in off-highway mobility non-captive, and 67.9% share in wind yaw/pitch drives in 2025.
p.139, p.205, p.210In-house manufacturing of electric motors at Mannur and localized component sourcing increased domestic procurement share to 68.32% in 6M FY26.
p.217, p.218, p.364Proprietary SWOT — Company-Specific
Strengths
- Market leadership across Industry & Automation, Off-Highway Mobility, and Wind verticals in India
- Comprehensive product portfolio with over 11,800 SKUs supported by 3 manufacturing facilities in Tamil Nadu and Maharashtra
- Strong financial profile with zero debt, 25.66% ROE, and consistent operating cash flows
Weaknesses
- High dependence on promoter BSPA for proprietary technology, trademarks, and R&D support
- Working capital lock-up in trade receivables extending receivable days to 94 days in FY25
Opportunities
- Expansion in Indian industrial gearboxes market projected to grow at 7.5% CAGR to ₹ 5,790 Crore by FY31
- Increasing demand for energy-efficient IE3/IE4 motors and local assembly expansion at Mannur and Talegaon
Threats (material, not boilerplate)
- Raw material price volatility in steel, aluminium, and cast iron mda
Why it matters: Increases cost of goods sold and compresses EBITDA margins if pricing adjustments with OEM clients are delayed. - Regulatory uncertainties and policy shifts in global wind power export markets mda
Why it matters: Export markets contribute ~30% of revenue from operations, making earnings vulnerable to overseas wind project installation timelines.
Live Subscription Status
Allotment Status
Check your allotment on the registrar's portal → Registrar: MUFG Intime India
Allotment is decided by the registrar, not by us and not by the exchange. In an oversubscribed retail book, allotment is by lottery, so a large application does not improve your odds beyond one lot. If money stays blocked after the refund date, the mandate expiry (30 Nov 2026) is the date to raise with your bank.
Analyst Q&A: Burning Questions
Facts from the filing. No recommendation — that layer arrives once our Research Analyst registration is live.
Why is there no primary capital being raised in this IPO to fund capacity expansion?
The company maintains a zero-borrowing debt-free balance sheet with ₹ 140.17 Crore in cash reserves and generates robust internal operating cash flows (₹ 187.68 Crore in FY25) sufficient to fund ongoing capex requirements.
p.65, p.68, p.90What is the extent of revenue and supply chain concentration with the promoter group BSPA?
In FY2025, purchases from related parties accounted for 15.18% of total purchases, while sales to related entities represented 15.59% of total income, with all transactions conducted under formal arm's length agreements.
p.20, p.25, p.73How do royalty payments to BSPA impact the company's operating margin profile?
The company pays a 6% royalty on specified product sales to BSPA for IP access, which represents ~4.4% of annual revenue (₹ 88.81 Crore in FY25), reflecting in an EBITDA margin of 18.41% for FY25.
p.22, p.82, p.114What are the key legal or audit vulnerabilities disclosed in the filing?
Key disclosures include a pending GST Input Tax Credit dispute of ₹ 31.69 Crore before the Madras High Court and auditor CARO notes on ERP audit trail non-preservation and minor statutory tax deposit delays.
p.36, p.39, p.41, p.400Reading the Offer Structure
100% offer for sale — and the company does not appear to need the cash.
A high offer-for-sale share is not automatically a concern. On the disclosed numbers this company is profitable and not heavily borrowed, so the listing reads as an exit route for existing shareholders and a route to a public market rather than a funding exercise. Large, cash-generative companies routinely list this way.
What Earlier Investors Paid
Early capital takes real risk and is fairly rewarded for it — a large multiple built over many years is normal. What deserves a closer look is a steep step-up in a short window: a round priced cheaply only months before the offer.
| Shareholder | Priced at | When | vs IPO price |
|---|---|---|---|
| Bonfiglioli S.p.A. | — | 2026-01-25 | — |
Prices are as stated in the filing’s allotment history and are not adjusted for later bonus issues or share splits. Where a company has issued bonus shares, the multiples above understate the true return and can even read as losses. Adjusting for that is on our list; until it is done we would rather show the raw disclosure and tell you its limits than publish a confident number that is wrong.
Lock-in Expiry Calendar
Shares held before the IPO cannot be sold immediately; they unlock in tranches. When a tranche unlocks, more shares become eligible to trade. Retail investors are frequently caught unaware by these dates. The schedule below follows from the listing date; quantities are shown only where the filing discloses them.
- 23 Apr 2028Promoter's Contribution18 months
- 23 Apr 2027Promoter (Excess) / Pre-Offer Capital6 months
- 22 Nov 2026Anchor Investors (50%)30 days
- 21 Jan 2027Anchor Investors (50%)90 days
An unlock means more shares may be sold — not that they will be, and not that the price will move. We state the dates; what you do with them is your call.
What Changed Between the DRHP and the RHP
Companies file a draft prospectus, then a final one. The changes in between are rarely reported, and they can be revealing.
| Item | In the DRHP | In the RHP / Addendum |
|---|---|---|
| Offer for Sale The Offer for Sale share count by promoter Bonfiglioli S.p.A. was reduced by 3,759,917 Equity Shares (an 8.00% reduction in OFS share volume) between DRHP and RHP. | Up to 46,998,959 Equity Shares offered for sale by Bonfiglioli S.p.A. | Up to 43,239,042 Equity Shares offered for sale by Bonfiglioli S.p.A. |
| Reporting Period Financial statements were updated in the RHP to cover 6M FY26 and Fiscal 2025, removing Fiscal 2022 and 9M FY25 from the restated historical periods. | Nine months ended September 30, 2025 and Fiscals 2024, 2023, and 2022 | Six months ended June 30, 2026 and June 30, 2025 and Fiscals 2025, 2024, and 2023 |
| Risk Factors Three additional risk factors were incorporated in the RHP, covering regulatory disclosures under Press Note 2 (2026 Series) and updated market considerations. | 73 Risk Factors | 76 Risk Factors |
| Contingent Liabilities Disputed income tax demand declined from ₹ 7.99 Crore to ₹ 2.81 Crore following resolutions under Vivad se Vishwas Scheme 2024. | ₹ 8.27 Crore as of September 30, 2025 (including ₹ 7.99 Crore Income tax demand) | ₹ 3.08 Crore as of June 30, 2026 (including ₹ 2.81 Crore Income tax demand) |
| Litigation RHP disclosures updated to explicitly report a pending GST show cause notice writ petition before the Madras High Court aggregating ₹ 31.69 Crore. | Indirect tax litigation excluded GST Input Tax Credit SCN writ petition | Indirect tax litigation highlighted ₹ 31.69 Crore GST Input Tax Credit SCN writ petition |
Educational, grounded entirely in the company's filings (DRHP/RHP). Not investment advice. FinMinutes does not provide buy/sell recommendations.
