Force Motors Ltd reported a decline in March quarter profit, even as operating performance improved and margins expanded.

Net profit fell 36% to ₹279 crore, compared with ₹435 crore in the year-ago period, largely due to a high base and the absence of exceptional gains seen last year.

Revenue from operations rose 8.2% to ₹2,550 crore, up from ₹2,356 crore a year ago.

Operating performance remains strong

The company’s operating performance remained firm during the quarter, with EBITDA rising 25.8% to ₹414 crore, while margins expanded to 16.25% from 13.97% in the year-ago period.

The improvement was driven by operating leverage and better cost efficiencies.

Base effect drags profit

The sharp decline in net profit was primarily due to the base effect. In the corresponding quarter last year, the company had reported significant exceptional gains, which had inflated profitability. In contrast, the latest quarter did not see comparable one-off support, leading to a weaker year-on-year comparison despite stronger core performance.

For the full year, the company reported revenue of ₹9,056 crore, compared with ₹8,071 crore in the previous year, while net profit rose to ₹1,211 crore from ₹800 crore, supported by both operating growth and exceptional income during the year.

Dividend, acquisition announced

The board has recommended a final dividend of ₹50 per equity share of face value ₹10 each (500%) for FY26, subject to shareholder approval at the upcoming annual general meeting. The record date for the dividend will be announced in due course.

Separately, the company said it has acquired Veera Tanneries Pvt Ltd for around ₹162 crore, making it a wholly owned subsidiary. It also recognised a provision related to new end-of-life vehicle rules during the year.

Shares of Force Motors Ltd ended 1.12% higher at ₹21,000 apiece on Wednesday. The stock has gained over 132% in the past year, sharply outperforming the Nifty 500, which has returned around 3.4% over the same period.