Force Motors Q2 FY27 Results: Net Profit Falls 17% to ₹291 Crore, Shares Rise 4% in One Year

Force Motors reported a 16.6% year-on-year decline in standalone net profit to ₹291.4 crore in Q2 FY27, compared with ₹349.5 crore in the same quarter last year. However, revenue from operations increased 40.5% to ₹2,924.5 crore.

The profit decline was partly due to a one-time deferred tax benefit recorded in the previous year. EBITDA increased, but the operating margin contracted.

Force Motors Q2 FY27 Financial Performance

Metric	Q2 FY27	Q2 FY26	Change
Revenue from operations	₹2,924.5 crore	₹2,081.3 crore	+40.5%
Other income	₹42.8 crore	₹24.5 crore	+74.7%
EBITDA	₹436 crore	₹360 crore	+21.1%
EBITDA margin	14.92%	17.43%	-251 bps
Profit before tax	₹393.2 crore	₹315.9 crore	+24.5%
Net profit (standalone)	₹291.4 crore	₹349.5 crore	-16.6%

Why Did Force Motors’ Profit Decline?

Force Motors’ operating performance improved, with revenue increasing 40.5% and EBITDA rising 21.1%. However, the EBITDA margin declined to 14.92% from 17.43%, indicating lower operating profitability relative to revenue.

The previous year's profit included a one-time deferred tax benefit of ₹85.46 crore after the company opted for the new tax regime under Section 115BAA. In Q2 FY27, the company recorded a tax expense of ₹101.8 crore, compared with a negative tax expense of ₹33.6 crore in the year-ago quarter.

The company also began making provisions for Extended Producer Responsibility obligations under the End-of-Life Vehicles Rules, 2025.

Debt-Free Balance Sheet and Cash Position

Force Motors remained debt-free on a standalone basis as of September 30, 2026. Cash and cash equivalents stood at ₹726.4 crore, compared with ₹823.3 crore at the end of FY26.

During the first half of FY27, capital expenditure stood at ₹273.2 crore, while investments totalled ₹162.3 crore. Inventories increased by ₹163 crore during the period.

Consolidated Q2 FY27 Performance

Consolidated revenue rose to ₹2,924.7 crore, while net profit declined to ₹293.9 crore from ₹350 crore in Q2 FY26.

The consolidated results include Veera Tanneries Private Limited as a wholly owned subsidiary. The company stated that the transaction was accounted for as an asset acquisition, affecting comparability with the previous period.

Force Motors Share Price Returns

Period	Return
1 day	0.00%
5 days	+1.24%
1 month	-0.04%
6 months	-17.69%
1 year	+4.03%
5 years	+1,090.89%

Force Motors delivered strong revenue and EBITDA growth in Q2 FY27, despite lower reported net profit and a decline in EBITDA margin. The absence of the previous year's one-time tax benefit was a major factor behind the year-on-year profit decline.

This article is for informational purposes only and is not investment advice.

What were Force Motors' Q2 FY27 results?

Force Motors reported standalone revenue of ₹2,924.5 crore, up 40.5% year-on-year, while net profit fell 16.6% to ₹291.4 crore. EBITDA increased 21.1% to ₹436 crore.

Why did Force Motors' net profit fall despite revenue growth?

Force Motors' net profit declined partly because the previous year's results included a one-time deferred tax benefit of ₹85.46 crore. The company also recorded a tax expense of ₹101.8 crore in Q2 FY27.

What was Force Motors' EBITDA margin in Q2 FY27?

Force Motors' EBITDA margin declined to 14.92% from 17.43% a year earlier, a decrease of 251 basis points. This indicates that EBITDA grew more slowly than revenue.

Is Force Motors debt-free?

Force Motors reported zero borrowings on a standalone basis as of September 30, 2026. Its cash and cash equivalents stood at ₹726.4 crore.

How much did Force Motors' revenue grow in Q2 FY27?

Force Motors' standalone revenue from operations increased 40.5% year-on-year to ₹2,924.5 crore, compared with ₹2,081.3 crore in Q2 FY26.

Why was Force Motors' previous-year profit higher?

The previous year's results included a one-time deferred tax benefit of ₹85.46 crore following the company's adoption of the new tax regime under Section 115BAA. This benefit boosted the comparison-period profit.

What were Force Motors' consolidated Q2 FY27 results?

Force Motors reported consolidated revenue of ₹2,924.7 crore and net profit of ₹293.9 crore in Q2 FY27. Consolidated net profit was lower than the ₹350 crore reported in the same quarter last year.

What should investors watch after Force Motors' Q2 FY27 results?

Investors may monitor whether revenue growth translates into stronger margins, alongside tax expenses, capital expenditure, inventory levels and cash generation. These factors will help assess the sustainability of earnings growth.