Force Motors Limited has ceased the designation of 12 employees as Senior Management Officials (SMOs) effective July 29, 2026. The Board of Directors approved the structural adjustment during a meeting held on that date, acting on recommendations from the Nomination and Remuneration Committee (NRC). This change removes the listed individuals from their regulatory SMO responsibilities within the company, impacting compliance reporting structures rather than operational leadership roles directly.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Force Motors also referenced SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The company clarified that resignation submission requirements under Regulation 7(C) of Schedule III do not apply, as the action constitutes a cessation of SMO status rather than a voluntary resignation.

Officials Ceased as SMOs

The following 12 individuals ceased to be part of the Senior Management Officials roster effective July 29, 2026:

The filing does not provide brief profiles or disclose relationships with directors for these officials, marking those fields as not applicable. Rohan Sampat, Company Secretary and Compliance Officer, signed the disclosure after the Board meeting concluded at 4:23 p.m.

Force Motors reported a standalone net profit of ₹212.07 crore for the quarter ended June 30, 2026, marking a 14.50% year-on-year increase from ₹185.22 crore in Q1FY26. Revenue from operations rose 6.20% to ₹2,439.89 crore, up from ₹2,297.12 crore in the prior year period. The Board of Directors approved the unaudited financial results on July 29, 2026, reflecting strong operational performance despite a sequential decline in profitability.

The Board meeting held on July 29, 2026, also reviewed the limited review reports issued by the Statutory Auditors, Kirtane & Pandit LLP. The financial statements were prepared in accordance with Indian Accounting Standard 34 (Ind AS 34) and Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has shifted to the new tax regime under Section 115BAA of the Income Tax Act, 1961, effective from the second quarter of FY26.

Financial Performance Highlights

The table below presents key standalone financial metrics on a year-on-year and sequential basis:

Consolidated Performance and EBITDA

On a consolidated basis, net profit attributable to owners of the company stood at ₹216.56 crore, compared to ₹176.33 crore in Q1FY26, representing a 22.80% year-on-year growth. Consolidated revenue from operations was 24.4B rupees, slightly higher than the standalone figure due to the inclusion of subsidiaries and joint ventures. However, consolidated EBITDA came in at 3.28B rupees compared to 3.32B rupees in the prior year period, with the EBITDA margin contracting to 13.44% from 14.45% year-on-year, reflecting the impact of rising operating costs on profitability.

The key consolidated metrics are summarised below:

Consolidation and Strategic Developments

The consolidated results now include Veera Tanneries Private Limited (VTPL), which became a wholly owned subsidiary following the acquisition of its entire equity shares via a Share Purchase Agreement dated April 23, 2026. This acquisition aligns with the company's strategy to integrate upstream supply chain capabilities. Additionally, the joint venture Force MTU Power Systems Private Limited contributed ₹4.84 crore to the share of profit from joint ventures in the quarter.

What the Numbers Show

While revenue growth remained positive at 6.20%, total expenses increased by 7.50% YoY, primarily driven by higher employee benefits expense (₹195.12 crore vs ₹166.45 crore) and other expenses (₹187.00 crore vs ₹148.17 crore). This cost inflation pressured the pre-tax profit margin, which remained nearly flat at 0.80% YoY growth despite higher top-line sales. The EBITDA margin compression to 13.44% from 14.45% further underscores the cost headwinds faced during the quarter. However, the net profit margin improved significantly due to lower tax expenses in the current quarter (₹76.78 crore) compared to the prior year (₹101.32 crore), benefiting from the shift to the new tax regime. The sequential drop in net profit from Q4FY26 suggests potential seasonality or one-time factors in the previous quarter that have normalized.