Defence IPO rush: Axis Capital identifies 5 high-growth new issues - Tonbo, Kusumgar lead pipeline

The combined market capitalisation of 390 IPO-listed companies tracked by Axis Capital rose 15.91% month-on-month in April,to Rs 57,55,547 crore from Rs 49,62,207 crore.

The S&P BSE IPO index gained 18.3% in the same month, against 7.5% for the Nifty and 6.9% for the Sensex. 5 companies in Axis Capital’s dedicated analysis sections carry material defence exposure.

Axis Capital on Kusumgar

Incorporated in 1990, Kusumgar manufactures woven, coated and laminated synthetic fabrics known as engineered fabrics across four market segments, two of which are Aerospace and Defence Fabrics and Aerospace and Defence Solutions. The company has six manufacturing facilities in Gujarat and one fabrication unit in Uttar Pradesh. As of March 31, 2025, its product portfolio covered over 1,000 unique fabric configurations.

The issue is a pure offer for sale of Rs 650 crore. Axis Capital, IIFL Capital Services and Motilal Oswal are Book Running Lead Managers. SEBI gave its approval on January 7, 2026.

Revenue from operations grew to Rs 779 crore in FY25 from Rs 301.65 crore in FY23. EBITDA margin stood at 24.18% in FY25, against 22.50% in FY23. Profit for the period was Rs 111.99 crore in FY25, up from Rs 37.22 crore in FY23. Cash flow from operating activities was Rs 506.27 crore in FY25. Total borrowings as of March 2025 stood at Rs 246.50 crore.

“Track record has given the company access to technology and markets through partnerships,” Axis Capital’s report notes.

Axis Capital on Tonbo Imaging India

Tonbo Imaging designs, develops and manufactures sensing, processing, communication and guidance systems for surveillance, reconnaissance, targeting and control. Its product range includes thermal imaging cores, weapon sights, hand-held thermal imaging binoculars, targeting systems, missile seekers, fire control systems and missile guidance systems.

The issue is a pure Offer for Sale of 1,80,85,246 equity shares. JM Financial and IIFL Capital are Book Running Lead Managers. SEBI approval is pending as of the report date.

Axis Capital’s report notes that Tonbo held 93% market share of thermal imaging exports from India in FY2024-25, and had deployed over 20,000 systems across 24 countries as of June 30, 2025. Its products are free from export restrictions under International Traffic in Arms Regulations. The company owns 100% of its intellectual property across optics, embedded software and electronics, with no dependence on external technology partners.

Revenue from operations grew to Rs 469.08 crore in FY25 from Rs 96.83 crore in FY23. EBITDA was Rs 139.07 crore in FY25, with a profit of Rs 72.76 crore. The three months ended June 2025 showed revenue of Rs 68.68 crore and profit of Rs 5.43 crore.

“Leading defence technology solutions provider with pioneering proprietary technologies,” Axis Capital’s report states.

Axis Capital on Pioneer Fil-Med

Pioneer Fil-Med manufactures and supplies traction motors, traction alternators, brake discs and filters for Indian Railways across diesel-electric and electric platforms. In 2023, the company expanded into wind generators for turbine manufacturers.

The issue includes a fresh issue of Rs 250 crore and an OFS of Rs 250 crore, totalling Rs 500 crore. Nuvama Wealth and Equirus Capital are Book Running Lead Managers. SEBI approval is awaited.

Axis Capital’s report states the company is among the top three Category-I approved suppliers for traction alternators and is a Category-I approved supplier for traction motors, HHP 4500 traction motors, brake discs and filters to Indian Railways. It is one of only two Indian manufacturers certified to produce 100 MVA 220 kV Scott transformers. During FY26, the company executed orders for 129 sets of wind generators, of which 117 sets were supplied between October 1, 2025, and February 28, 2026.

Revenue from operations grew to Rs 326.42 crore in FY25 from Rs 86.07 crore in FY23. EBITDA margin was 17.62% in FY25 against 7.88% in FY23. Profit for the period was Rs 40.44 crore in FY25. In the six months ended September 2025, revenue stood at Rs 156.06 crore with profit of Rs 25.41 crore. Total borrowings were Rs 18.55 crore as of March 2025.

“Established manufacturer in select high-entry-barrier segments of the locomotive traction equipment industry, including traction motors and alternators,” Axis Capital’s report says.

Axis Capital on Vinir Engineering

Vinir Engineering manufactures specialised, critical, heavy, precision-forged and machined components for defence, aerospace, railways, energy turbines, hydraulics and high-end engineering. Its components go into armoured vehicles, armaments and ammunition, combat equipment, military hardware, cryogenics systems, aircraft propulsion systems, power turbines and railway locomotive and braking systems.

The issue is a pure Offer for Sale of 5,33,00,000 equity shares. Pantomath Capital Advisors is the Book Running Lead Manager. SEBI approval was received on July 17, 2025.

Axis Capital’s report notes the company uses all four forging types closed die, open die, ring rolling and radial forging combined with in-house heat treatment, across three manufacturing units with a total installed capacity of 38,000 MTPA. During FY24, it supplied components to over 60 customers in India and internationally.

Revenue from operations was Rs 229.53 crore in FY25, up from Rs 153.46 crore in FY22. EBITDA margin expanded to 20.24% in FY25 from 13.13% in FY22. Profit for FY25 was Rs 29 crore. In the six months ended September 2024, EBITDA margin reached 25.36% on revenue of Rs 103.38 crore. Total borrowings as of March 2025 stood at Rs 13.67 crore.

“De-risked business model with broad customer base, diverse industry applications and multiple factory locations,” Axis Capital’s report states.

Axis Capital on UKB Electronics

Incorporated in 2004, UKB Electronics is an integrated Electronic Manufacturing Services provider with two product verticals home appliances and consumer electronics, and strategic electronics. It operates 11 manufacturing facilities across Pune, Ahmednagar, Noida, Ghiloth, Goa, Sri City and Chennai.

The issue includes a fresh issue of Rs 400 crore and an OFS of Rs 400 crore, totalling Rs 800 crore. Motilal Oswal and IIFL Capital Services are Book Running Lead Managers. SEBI approval was received on January 23, 2026.

Axis Capital’s report states the company has supplied Electronic Manufacturing Services products to the Indian Space Research Organisation and the Goa Shipyard after securing the requisite pre-certifications and approvals. It is one of the few companies in India with E-beam radiation infrastructure approved by the Atomic Energy Regulatory Board of India. As of March 2025, the company held approximately 170 country-specific certifications and exported to more than 17 countries. Of customers served between April 2022 and March 2025, 22 were India’s Fortune 500 organisations, including 10 public sector undertakings.

Revenue from operations grew to Rs 787.27 crore in FY25 from Rs 529.55 crore in FY23. EBITDA margin was 12.31% in FY25. Profit for the period was Rs 46.02 crore in FY25, up from Rs 19.12 crore in FY23. Total borrowings stood at Rs 233.82 crore as of March 2025.

“The company is among the limited Electronic Manufacturing Services players with a presence in the defence sector,” Axis Capital’s report states.

Conclusion

These five companies represent different layers of India’s defence manufacturing supply chain materials, systems, traction equipment, forgings and electronics manufacturing. All five carry dedicated analysis in Axis Capital’s May IPO Market Update. Three, Kusumgar, Vinir and UKB Electronics hold valid SEBI approvals. Tonbo Imaging and Pioneer Fil-Med are awaiting SEBI observations.

Disclaimer: The content above details upcoming IPO opportunities and financial performance metrics for specific companies within the defense and aerospace sectors. Investing in Initial Public Offerings involves significant risks, including market volatility and the potential loss of principal. This information is for educational purposes and does not constitute an offer, solicitation, or recommendation to buy, sell, or hold any security. Readers should consult a SEBI-registered investment advisor or a qualified financial professional before making any investment decisions.