Forbes Precision Tools & Machine Parts has reported a decline in its third quarter financial performance, with net profit falling to ₹56.00 million compared to ₹74.00 million in the corresponding quarter of the previous year. This represents a significant year-on-year decrease of 24.32% in the company's bottom line.

Financial Performance Overview

The engineering company's Q3 results show the impact on profitability during the quarter. The decline in net profit indicates operational challenges or market conditions that affected the company's financial performance compared to the same period in the previous fiscal year.

Business Impact

The ₹18.00 million absolute decline in net profit highlights the financial challenges faced by Forbes Precision Tools & Machine Parts during the third quarter. The company, which operates in the precision tools and machine parts segment, experienced reduced profitability compared to its performance in the same quarter of the previous year.

The year-on-year comparison provides insight into the company's operational efficiency and market positioning during the reporting period. The decline suggests that the company faced headwinds that impacted its ability to maintain the profit levels achieved in the corresponding quarter of the previous fiscal year.

Forbes Precision Tools & Machine Parts Limited , a leading manufacturer of precision cutting tools, has announced its financial results for the second quarter of fiscal year 2025-26, showcasing strong growth across key metrics.

Revenue and Profitability

The company reported a significant increase in its top-line and bottom-line figures for Q2 FY26:

The company's revenue from operations grew by 12% year-over-year to ₹63.27 crore in Q2 FY26, up from ₹57.54 crore in the same quarter last year. This growth was accompanied by a 12.9% increase in net profit, which rose to ₹8.30 crore from ₹7.35 crore in Q2 FY25.

Operational Performance

Forbes Precision Tools demonstrated improved operational efficiency in the quarter:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a substantial increase of 27%, reaching ₹14.60 crore compared to ₹11.50 crore in the corresponding quarter of the previous year.
• The EBITDA margin expanded by 305 basis points to 23.04% in Q2 FY26 from 19.99% in Q2 FY25, indicating enhanced operational efficiency and cost management.

Half-Yearly Performance

For the first half of FY26 (H1 FY26), the company's performance remained strong:

• Revenue from operations for H1 FY26 stood at ₹115.68 crore, compared to ₹109.31 crore in H1 FY25, marking a 5.8% increase.
• Net profit for the half-year reached ₹12.12 crore, marginally lower than the ₹12.19 crore reported in H1 FY25.

Management Commentary

Mahesh Tahilyani, Managing Director of Forbes Precision Tools & Machine Parts Limited, stated in the company's filing, "The Board of Directors has reviewed and approved the unaudited financial results for Q2 and H1 FY26. Our performance this quarter reflects our commitment to growth and operational excellence in the precision cutting tools segment."

Dividend Declaration

The company has declared an interim dividend of ₹5 per equity share (face value ₹10) for the financial year 2025-26. This dividend was declared at the board meeting held on April 24, 2025, and was subsequently paid on June 8, 2025.

Future Outlook

While the company has shown strong growth in Q2 FY26, it remains cautious about future projections. The management notes that the Indian Parliament has approved the Code on Social Security, 2020, which may impact employee benefits. The company plans to assess and recognize any changes once the relevant provisions are notified and rules for quantifying the financial impact are issued.

Forbes Precision Tools & Machine Parts Limited continues to focus on its core segment of precision cutting tools and related components, aiming to maintain its growth trajectory and operational efficiency in the coming quarters.