Force Motors Q1 profit rises 23% to ₹217 crore as revenue growth offsets margin pressure
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Force Motors reported a 22.8% year-on-year rise in its consolidated net profit for the first quarter of FY27, supported by steady revenue growth, although operating margins came under pressure during the period.
The company posted a consolidated net profit of ₹216.6 crore for the quarter ended June 30, compared with ₹176.4 crore in the corresponding period last year. Revenue from operations increased 6.2% to ₹2,440 crore from ₹2,297 crore a year earlier. Operational EBITDA stood at ₹328 crore, marginally lower than ₹332 crore in the year-ago quarter, while EBITDA margin narrowed to 13.4% from 14.5%.
Revenue growth remains steady
The automaker's total income rose to ₹2,478 crore during the quarter from ₹2,322 crore a year ago, aided by higher sales across its product portfolio. Profit before tax and exceptional items increased to ₹293 crore from ₹278 crore in the year-ago period.
The company did not report any exceptional items during the quarter. Finance costs remained negligible, while depreciation and amortisation expenses increased to ₹77 crore from ₹70 crore a year earlier, reflecting continued investments in the business.
Margins soften
Despite healthy revenue growth, profitability at the operating level remained under pressure as employee benefit expenses and other operating costs increased during the quarter. Employee benefit expenses rose to ₹195 crore from ₹166 crore a year earlier, while other expenses increased to ₹187 crore from ₹148 crore.
The contraction in EBITDA margin to 13.4% from 14.5% reflected the impact of these higher costs, even as the company maintained double-digit growth in net profit.
In a separate filing, Force Motors said its board approved the reappointment of independent directors Vallabh Bhanshali, Mukesh Patel and Sonia Prashar for a second term of five consecutive years, subject to shareholder approval. The board also approved changes in the company's senior management structure with effect from July 29.
The company also noted that it has completed the acquisition of Veera Tanneries Pvt. Ltd., which has become its wholly owned subsidiary and has been consolidated in the financial statements. Additionally, Force Motors recognised provisions during the quarter to comply with the Environment Protection (End-of-Life Vehicles) Rules, 2025, relating to extended producer responsibility obligations.