Force Motors Limited – FY2026 Financial Highlights

Key Metrics (FY2026 vs FY2025)

• Revenue from Operations: ₹9,05,654 lakhs (+12%)
• Net Profit (Standalone): ₹27,367 lakhs (‑66%)
• Net Profit (Consolidated): ₹27,854 lakhs (‑65%)
• Basic & Diluted EPS (Year): ₹919.28 (↑ 52%)
• Cash & Cash Equivalents: ₹82,328 lakhs (↑ 65%)
• Total Equity: ₹4,26,413 lakhs (↑ 37%)
• Dividend Proposed: ₹50 per share (500% of face value)

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1. Financial Performance

• Revenue Growth: Driven by higher vehicle sales and other income, total income rose to ₹9,16,751 lakhs.
• Margin Compression: Cost of materials, employee benefit expense, and finance costs increased, pushing total expenses to ₹7,86,315 lakhs.
• Exceptional Items: Net exceptional income of ₹21,124 lakhs reflects a large government incentive (₹28,863 lakhs) offset by a labour‑code liability (₹7,739 lakhs).
• Tax Regime Shift: Adoption of the new u/s 115BAA regime resulted in a ₹559 lakhs MAT credit write‑off and a reversal of a ₹9,105 lakhs deferred tax liability.

2. Strategic Moves

• Acquisition of VTPL: Completed on 23 Apr 2026 for ₹16,196 lakhs. VTPL becomes a wholly‑owned subsidiary, expanding Force Motors’ product line and market reach. The transaction is classified as a non‑adjusting event for FY2026.
• Dividend Recommendation: Board proposes a ₹50 per share dividend, subject to shareholder approval, indicating confidence in cash generation.

3. Regulatory & Compliance

• ELV Rules (2025): New extended producer responsibility obligations for end‑of‑life vehicles. Company has provisioned ₹260 lakhs; actual cost and implementation timeline remain uncertain.
• Labour Code Liability: Past‑period employee benefit liability of ₹7,739 lakhs arising from the new Labour Codes.

4. Balance‑Sheet & Liquidity

• Equity Surge: Other equity rose from ₹3,09,044 lakhs to ₹4,25,095 lakhs, largely due to the VTPL acquisition and retained earnings.
• Cash Position: Cash increased by ₹32,346 lakhs, driven by strong operating cash flow (₹1,29,670 lakhs) and modest financing outflows.
• Liabilities: Non‑current liabilities fell, while current liabilities grew modestly, keeping the debt profile low (no borrowings reported for FY2026).

5. Risks & Opportunities

Risk	Impact	Mitigation
Profitability dip	Lower earnings may affect dividend sustainability.	One‑off labour‑code expense expected to be non‑recurring; focus on cost control.
Regulatory cost (ELV)	Potential future cash outflows for EPR certificates.	Provision already made; monitor rule finalisation.
Acquisition integration	Execution risk could affect synergies.	Clear integration plan and capital allocation.
Tax regime change	MAT credit loss and deferred tax adjustments.	Benefit from lower statutory tax rate under new regime.

6. Outlook

• Short‑term: Expect continued revenue growth as vehicle demand recovers; profit margins may improve once the labour‑code liability is fully absorbed.
• Medium‑term: VTPL integration could add new product segments and cross‑selling opportunities, enhancing top‑line.
• Investor Takeaway: Strong cash and equity base support dividend payout, but investors should watch margin recovery and regulatory cost developments.

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Prepared on 29 April 2026 based on Force Motors Limited’s audited FY2026 standalone and consolidated financial statements.