Force Motors delivered exceptional financial performance in FY26, demonstrating strong growth across key metrics. The automotive manufacturer's annual results showcase robust operational efficiency and significant profitability improvements.

Financial Performance Overview

The company's FY26 consolidated results revealed impressive growth momentum across revenue and profitability parameters:

Quarterly Performance Highlights

Q4 FY26 results demonstrated continued strength with revenue from operations reaching ₹25.50 billion compared to ₹23.56 billion in Q4 FY25. The quarter's net profit stood at ₹2.78 billion versus ₹4.35 billion in the previous year's corresponding quarter.

Exceptional Items Impact

The company benefited from significant exceptional income during FY26, totaling ₹2.11 billion net. This included government incentives of ₹2.89 billion under the Madhya Pradesh Industrial Investment Promotion Assistance Scheme, partially offset by ₹774 million in expenses related to new labor code implementations.

Operational Efficiency Improvements

Force Motors demonstrated enhanced operational leverage with substantial EBITDA growth of 54.50% year-on-year. The company's profit before tax increased significantly to ₹15.16 billion from ₹12.38 billion in the previous year, reflecting improved cost management and operational efficiency.

Strategic Developments

The company completed the acquisition of Veera Tanneries Private Limited for ₹1.62 billion on April 23, 2026, making it a wholly-owned subsidiary. Additionally, Force Motors transitioned to the new tax regime under Section 115BAA, resulting in deferred tax benefits.

Shareholder Returns

The board recommended a dividend of ₹50 per equity share (500% on face value of ₹10), demonstrating strong commitment to shareholder returns despite the substantial growth investments.

The company's robust cash generation capabilities supported this dividend recommendation, with cash and cash equivalents increasing to ₹8.30 billion from ₹5.07 billion in the previous year.

Force Motors Limited has announced its audited financial results for the quarter and year ended March 31, 2026, following the board meeting held on April 29, 2026. The company reported a standalone net profit of ₹1,21,126 lakhs for FY26, representing a significant increase from ₹79,997 lakhs in the previous year. Revenue from operations for the year stood at ₹9,05,654 lakhs, compared to ₹8,07,123 lakhs in FY25.

Financial Performance Summary

The board approved both standalone and consolidated audited financial results for Q4 and FY26. For the quarter ended March 31, 2026, standalone net profit was ₹27,367 lakhs, while consolidated net profit reached ₹27,854 lakhs. Basic and diluted earnings per share (EPS) for the standalone entity stood at ₹919.28 for FY26, up from ₹607.13 in the previous year.

Dividend Recommendation

The board of directors has recommended a dividend of ₹50 per equity share of ₹10 each, representing a 500% payout. This dividend is subject to approval by shareholders at the ensuing Annual General Meeting. The recommendation reflects the company's strong financial performance and commitment to shareholder returns.

Exceptional Items and Key Developments

The financial results included exceptional items for FY26. The company recognized exceptional income of ₹28,863 lakhs as government incentives under the Madhya Pradesh Industrial Investment Promotion Assistance Scheme, 2010. Additionally, exceptional expenses of ₹7,739 lakhs were recorded due to the implementation of new labour codes effective November 21, 2025, resulting in a past period employee benefit liability.

Force Motors also announced the acquisition of Veera Tanneries Private Limited (VTPL) on April 23, 2026, for a total consideration of ₹16,196 lakhs. VTPL has become a wholly owned subsidiary of the company. Furthermore, the company has shifted to the new tax regime under Section 115BAA of the Income Tax Act, 1961, from FY26, resulting in the write-off of MAT credit entitlement of ₹559 lakhs and reversal of deferred tax liability of ₹9,105 lakhs.

Auditor's Report and Compliance

Kirtane & Pandit LLP (Firm Registration No. 105215W/W100057), the statutory auditors, issued an audit report with an unmodified opinion on both standalone and consolidated audited financial results for FY26. The auditor confirmed that the financial results give a true and fair view in conformity with Indian Accounting Standards. The company continues to maintain compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.