Force Motors' revenue jumps 40.51%, but tax swing cuts net profit 16.19%
Costs rose faster than revenue YoY, while a 36.26-point tax-rate increase outweighed higher pre-tax profit.
Filed 28 Oct 2026, 17:03 IST · after market close · Force Motors Ltd (FORCEMOT)
Key takeaways
- Consolidated revenue grew 40.51% YoY to Rs 2,924.66 cr, but expenses grew faster at 44.94%, cutting operating margin by 2.60 percentage points.
- Net profit fell 16.19% YoY to Rs 293.91 cr as the tax rate moved from -10.57% to 25.69%.
- Operating margin recovered 1.40 percentage points QoQ to 14.83% after three quarterly declines, 1.81 points above the 13.02% median for 84 reported sector peers.
Price around the results
Revenue growth did not fully reach profit
Force Motors reported consolidated revenue growth of 40.51% YoY to Rs 2,924.66 cr, but operating profit rose only 19.53% to Rs 433.62 cr. Expenses increased 44.94%, outpacing revenue and reducing operating margin by 2.60 percentage points to 14.83%. Pre-tax profit still grew 24.71%, but net profit declined 16.19% because the tax charge moved from a credit of Rs 33.52 cr in Q2FY26 to Rs 101.63 cr this quarter.
QoQ margin recovery came with a tax-rate reset
Sequentially, revenue grew 19.86% while expenses rose 17.93%, allowing operating margin to recover 1.40 percentage points from 13.43%. The tax rate eased only 0.46 percentage points QoQ to 25.69%, while interest increased from Rs 0.04 cr to Rs 2.12 cr. Other income accounted for 11.57% of pre-tax profit, making it a meaningful contributor to reported earnings.
Margin has turned up after three quarterly declines
Operating margin fell from 17.57% in Q3FY26 to 16.25% in Q4FY26 and 13.43% in Q1FY27 before recovering to 14.83% in Q2FY27. The quarter's margin was 1.81 percentage points above the 13.02% median among 84 Consumer Discretionary peers that had reported. It remains below the 17.43% recorded in the year-earlier quarter.
Results were filed after market close
The results were filed after market close, so there is no reported market reaction yet. After its previous eight results, the stock rose five times and fell three times, with a median absolute move of 5.09%, indicating that a typical post-results move has been material.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,925 cr | ₹2,440 cr | +19.86% | +40.51% |
| Other income | ₹46 cr | ₹43 cr | +6.59% | +78.86% |
| Expenses | ₹2,491 cr | ₹2,112 cr | +17.93% | +44.94% |
| Operating profit | ₹434 cr | ₹328 cr | +32.29% | +19.53% |
| Operating margin (%) | 14.83% | 13.43% | — | — |
| Interest | ₹2 cr | ₹0 cr | +5200.00% | +821.74% |
| Depreciation | ₹82 cr | ₹77 cr | +5.59% | +15.19% |
| Profit before tax | ₹396 cr | ₹293 cr | +34.86% | +24.71% |
| Tax | ₹102 cr | ₹77 cr | +32.50% | — |
| Net profit | ₹294 cr | ₹217 cr | +35.70% | -16.19% |
| EPS (₹) | ₹223.03 | ₹164.36 | +35.70% | -16.20% |
Operating margin of 14.83% compares with a Consumer Discretionary sector median of 13.02% across 84 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 14.83% after the 1.40-percentage-point QoQ recovery.
- Whether expenses continue to grow slower than revenue after rising 17.93% versus revenue growth of 19.86% QoQ.
- Whether other income remains near 11.57% of pre-tax profit and the tax rate remains around 25.69%.