Can Bonfiglioli Transmissions IPO deliver long-term growth for high-risk investors?

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Incorporated in 1998, Bonfiglioli Transmissions manufactures mission-critical and highly precision engineered geared motors, gearboxes and drive systems. It caters to industrial automation, construction, mining, material handling, and pharmaceuticals among other sectors. The company's promoter, Bonfiglioli S.p.A. is headquartered in Italy. Its three major verticals including industry and automation solutions, off-highway mobility and wind industry contribute 41%, 25% and 32% to revenue respectively. It operates three manufacturing facilities-two in Tamil Nadu and one in Maharashtra. According to a Frost & Sullivan, the company has 67.9% market share among domestic manufacturers of yaw and pitch drives for wind turbines in 2025. The company pays a royalty of around 4% of revenue to its promoter group for the use of intellectual property including the 'Bonfiglioli' brand.

Revenue from operations increased 9.2% annually to ₹2,013.5 crore between 2023 and 2025. Net profit increased 27.4% annually to ₹237.9 crore in 2025. In the six months ended June 2026, revenue and net profit jumped 17.9% and 29.2% year-on-year respectively.

The company has no comparable listed peer. Considering the post-IPO equity and 2025 net profit, its price-earnings (P/E) multiple works out to be 46. On the basis of annualised 2026 net profit, the P/E is 37. Other gearbox, bearings and power transmission companies such as Elecon Engineering, Timken India and Shanthi Gears trade at P/E multiples of 32 to 53, while their annualised FY27 P/E multiples range from 39 to 104.