Force Motors' operating margin falls for a second straight quarter
Costs grew faster than revenue YoY, while lower tax and higher other income supported net profit growth.
Filed 29 Jul 2026, 17:22 IST · after market close · Force Motors Ltd (FORCEMOT)
Key takeaways
- Consolidated revenue grew +6.21% YoY, but expenses grew +7.48%, narrowing operating margin by 1.02 percentage points.
- Net profit rose +22.81% YoY, helped by a 10.34-percentage-point fall in the tax rate and other income contributing 14.64% of pre-tax profit.
- Operating margin fell to 13.43% from 16.25% QoQ, marking a second straight quarterly decline.
Price around the results
Revenue grew YoY but lost sequential momentum
Force Motors reported consolidated revenue growth of +6.21% YoY, but revenue fell -4.31% QoQ. Operating profit declined -1.28% YoY and -20.89% QoQ, showing that the quarterly slowdown was sharper than the year-on-year comparison suggests. Expenses grew +7.48% YoY against revenue growth of +6.21%, which weighed on operating conversion.
Tax and other income lifted reported profit
The tax rate fell by 10.34 percentage points YoY to support the +22.81% increase in net profit, even as operating profit declined. Other income rose +166.71% YoY and accounted for 14.64% of pre-tax profit, so reported profit growth was not entirely operating-led. Interest expense also fell -69.23% YoY, although the larger profit-quality factors were the lower tax rate and higher other income.
Margin is below the sector median after two declines
Operating margin has fallen from 17.57% in Q3FY26 to 16.25% in Q4FY26 and 13.43% in Q1FY27, making this the second consecutive quarterly decline. Force Motors' margin was 2.26 percentage points below the 15.69% median among 37 Consumer Discretionary peers that had reported the quarter. Sequentially, expenses fell -1.09% while revenue fell -4.31%, explaining the 2.82-percentage-point margin contraction.
Results were filed after market close
The Q1FY27 results were filed after market close, so there is no current market reaction to assess. Across the eight prior results in the history provided, the stock rose four times and fell four times, with a median absolute move of 5.09%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,440 cr | ₹2,550 cr | -4.31% | +6.21% |
| Other income | ₹43 cr | ₹39 cr | +11.16% | +166.71% |
| Expenses | ₹2,112 cr | ₹2,136 cr | -1.09% | +7.48% |
| Operating profit | ₹328 cr | ₹414 cr | -20.89% | -1.28% |
| Operating margin (%) | 13.43% | 16.25% | — | — |
| Interest | ₹0 cr | ₹3 cr | -98.54% | -69.23% |
| Depreciation | ₹77 cr | ₹72 cr | +7.46% | +10.12% |
| Profit before tax | ₹293 cr | ₹378 cr | -22.45% | +5.61% |
| Tax | ₹77 cr | ₹100 cr | -23.04% | -24.32% |
| Net profit | ₹217 cr | ₹279 cr | -22.24% | +22.81% |
| EPS (₹) | ₹164.36 | ₹211.37 | -22.24% | +22.82% |
Operating margin of 13.43% compares with a Consumer Discretionary sector median of 15.69% across 37 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 13.43% next quarter.
- Whether expenses continue to grow faster than revenue, after +7.48% YoY versus +6.21%.
- Whether other income remains near its 14.64% share of pre-tax profit.