Forbes Precision Tools Q1FY27 net profit surges 137% to ₹9.03 crore
Forbes Precision Tools & Machine Parts posted a 137% YoY net profit increase to ₹9.03 crore in Q1FY27, supported by 28.9% revenue growth. The Board declared a ₹5 interim dividend and re-appointed Mahesh Tahilyani as Managing Director for three years effective April 2027.
*this image is generated using AI for illustrative purposes only.
Forbes Precision Tools & Machine Parts reported a net profit after tax (PAT) of ₹9.03 crore for the quarter ended June 30, 2026, marking a 137% year-on-year increase from ₹3.81 crore in Q1FY26. Revenue from operations rose to ₹67.55 crore from ₹52.41 crore during the same period last year, reflecting robust demand in its precision cutting tools segment. The Board also declared an interim dividend of ₹5 per equity share, signaling confidence in the company’s cash generation capabilities.
The Board of Directors approved the unaudited financial results at its meeting held on August 12, 2026, pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by Sharp & Tannan Associates, the statutory auditors of the company. Additionally, the Board re-appointed Mr. Mahesh Tahilyani as Managing Director effective April 1, 2027, for a term of three years.
Financial Performance Highlights
The company’s total income stood at ₹68.34 crore, up from ₹53.28 crore in Q1FY26. Operating expenses increased to ₹56.44 crore from ₹48.20 crore, primarily due to higher cost of materials consumed and employee benefits expense. Despite the rise in costs, the profit before tax jumped to ₹11.90 crore from ₹5.08 crore, aided by improved operational efficiency.
| Particulars | Q1FY27 (₹ in Lakhs) | Q1FY26 (₹ in Lakhs) | YoY Change |
|---|---|---|---|
| Revenue from Operations | 6,755 | 5,241 | +28.9% |
| Total Income | 6,834 | 5,328 | +28.3% |
| Total Expenses | 5,644 | 4,820 | +17.1% |
| Profit Before Tax | 1,190 | 508 | +134.3% |
| Net Profit After Tax | 903 | 381 | +137.0% |
Tax expense for the quarter was ₹2.87 crore, compared to ₹1.27 crore in Q1FY26. Basic and diluted earnings per share (EPS) stood at ₹1.75, up from ₹0.74 in the corresponding period last year.
Dividend and Corporate Actions
Shareholders will benefit from an interim dividend of ₹5 per equity share of face value ₹10 each, representing a 50% payout ratio. The record date to determine eligibility for the dividend is fixed as Tuesday, August 18, 2026, in accordance with Regulation 42 of the SEBI Listing Regulations, 2015. This declaration follows the company’s strong cash flow performance in the first quarter.
What the Numbers Show
The significant divergence between revenue growth (28.9%) and expense growth (17.1%) indicates operating leverage, allowing margins to expand substantially. While cost of materials consumed rose by 31.8%, the company managed to control other expenses, leading to a nearly doubled profit before tax. This operational efficiency, combined with stable other income, underscores the resilience of its core business model in the precision tools sector.
Historical Stock Returns for Forbes Precision Tools & Machine Parts
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +8.05% | +20.57% | -3.38% | +4.00% | -20.97% | -33.63% |
How sustainable is the current operating leverage given the 31.8% rise in material costs, and what hedging strategies might Forbes Precision employ to mitigate future input price volatility?
With the Managing Director's re-appointment effective April 2027, what specific strategic initiatives or capital expenditure plans has the board outlined for the upcoming three-year term?
Will the strong demand in the precision cutting tools segment persist into Q2FY27, or is this surge driven by one-off order bookings that may not recur?
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