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Force Motors Revenue Soars, Profit Dips on Tax Rule
28 Oct
Summary
- Revenue surged 40.6% to ₹2,925 crore in Q2 FY27.
- Net profit declined 16.2% to ₹294 crore due to tax effects.
- EBITDA increased 19.9% to ₹434 crore, but margins narrowed.
Force Motors reported robust operational performance in the second quarter of FY27, driven by strong commercial demand. Revenue from operations surged by 40.6% to ₹2,925 crore compared to the same period last year.
Core earnings also showed positive movement, with EBITDA increasing by 19.9% to ₹434 crore. However, the company's bottom-line profitability experienced a 16.2% year-on-year decline, with net profit standing at ₹294 crore for the quarter.
This decrease in net profit is primarily due to a high-base tax effect. Force Motors had recognized a one-time tax benefit in Q2 FY26, making year-on-year comparisons of profit after tax and earnings per share not directly comparable.
Despite the revenue growth, EBITDA margins saw a contraction of 260 basis points, falling to 14.8% from 17.4% in the corresponding quarter of the previous fiscal year. The company is focused on strategies to protect operating margins amidst escalating input costs.
