Force Motors Q1 FY27 Results (NSE: FORCEMOT)
Signal: Margin expansion
The read
Q1FY27 shows continued operating margin improvement — OPM at 16.1% (+360bps YoY), 4th straight quarter of expansion — driven by lower raw material cost ratio (72.1% vs 74.9% a year ago). Revenue growth moderated to +6.2% YoY from prior quarter's 8.2%, but PAT jumped 22.8% aided by a swing in JV contribution (profit of ₹4.84 Cr vs loss of ₹8.96 Cr). Standalone PAT grew 14.5% — healthy but less dramatic. The acquisition of Veera Tanneries (completed April 2026) is too small to move the needle yet. Overall a solid quarter of margin-led earnings growth despite modest top-line expansion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,440.01 Cr | 6.2% | -4.3% |
| EBIT | ₹288.45 Cr | 0.6% | |
| Net profit | ₹216.59 Cr | 22.8% | |
| EPS | ₹164.36 | 22.8% | |
| EBIT margin | 16.1% |
P&L walk
Revenue growth of 6.2% YoY to ₹2,440 Cr driven by volume/mix as raw material cost fell to 72.1% of revenue (-280bps YoY); OPM expanded 360bps to 16.1% as employee and other costs grew in line, depreciation steady; PAT ₹216.59 Cr (+22.8% YoY) boosted by share of JV profit ₹4.84 Cr (vs loss of ₹8.96 Cr a year ago) and higher other income; EPS at ₹164.36 tracks PAT.
Segments
Company operates in a single segment (automotive), no segment split provided.
Key positives
- Operating margin expanded 360bps YoY to 16.1% — 4th consecutive quarter of expansion — as raw material cost ratio fell 280bps to 72.1%.
- Consolidated PAT grew 22.8% YoY to ₹216.59 Cr, driven by core operations and a turnaround in JV profit (₹4.84 Cr vs loss of ₹8.96 Cr).
- Company remains debt-free (finance cost ₹0.04 Cr) with strong ROCE of 36.08% and ROE of 29.23%.
- EPS of ₹164.36 grew in line with PAT, with no dilution.
Key concerns
- Revenue growth slowed to 6.2% YoY from 8.2% in Q4FY26 — near-term demand may be moderating.
- Employee cost grew 17.2% YoY, outpacing revenue growth — could pressure margins if not offset by further RM gains.
- Other expenses rose 26.2% YoY, driven by ELV Rules provisioning and general inflation.
Research and educational content only. Not investment advice.