Bonfiglioli Transmissions IPO review: The public offer of Bonfiglioli Transmissions, Indian arm of Italy’s Bonfiglioli S.p.A., opens for bidding on Thursday, October 15, to raise ₹2,533.66 crore. The issue will close for bidding on Monday, October 19.
The company is India’s largest technology-led power transmission and industrial drive solutions provider. It makes gearboxes, gear motors, and drive systems at three plants for three verticals: Industry & Automation, Off-Highway Mobility, and Wind.
The company delivered revenue, Ebitda and profit after tax (PAT) CAGR of 9.2%, 23.3%, and 27.4%, respectively, during the CY23-CY25 period, while delivering RoCE/RoE of 33.5%/24.0% respectively in CY25, which is better than its peers, said SBI Securities.
What analysts recommend on Bonfiglioli Transmissions IPO
Here’s what analysts suggest on the offer:
SBI Securities
The company benefits from a strong and loyal dealer network comprising 44 dealers as of June 2026, of which 16 have been associated with the company for over 20 years, and 36 operate on an exclusive basis, providing deep market reach and customer stickiness.
At the upper price band of Rs 586, the issue is valued at CY25/CY26E (annualized) P/E multiple of 46.3x/37.1x respectively, based on post-issue capital which is similar to its peers.
Anand Rathi
At the upper price band the company is valued at 47.7x CY26 P/E and 60.7x CY26 EV/EBITDA, implying a market capitalization of ₹1,10,166 million, making the valuation appear fully priced. Increasing industrial modernisation and automation adoption offer long-term growth opportunities.
However, cyclical end-market demand, competitive intensity and input cost volatility remain key risks. Going forward, industrial capital expenditure, automation adoption and renewable energy expansion could support business growth. Thus, we assign Subscribe for Long Term rating for the issue.
Swastika
The valuation of 46.3x FY26 EPS leaves limited room for immediate, multi-fold expansion on day one, but it accurately reflects the company’s market-leading position, strong parentage, and clean balance sheet.
Ebitda margins have expanded from 18.4% in FY25 to 19.8% in Q1 FY27, driven by higher localization of gear components and growing demand in high-margin wind turbine drives.
The balance sheet maintains a low debt-to-equity ratio (~0.12x), allowing internal accruals to fund expansion without diluting return ratios.
Strong financial metrics, market leadership in gearboxes, high return ratios, and direct exposure to India’s industrial automation and renewable energy tailwinds make it a high-quality compounder for long-term industrial portfolios.
Bonfiglioli Transmissions IPO GMP
Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.
