Force Motors Shares Drop 6% Following 36% Decline in Q4 Profit
Force Motors shares slip 6% as Q4 profit falls 36% YoY to Rs 279 crore
The Economic TimesImage: The Economic Times
Force Motors' shares fell 5.66% to ₹19,799 after reporting a 36% year-on-year drop in consolidated net profit to ₹278.5 crore for Q4FY26. Despite a modest revenue increase of 8.2% to ₹2,549.8 crore, rising costs impacted profitability significantly.
- 01Force Motors reported a 36% decline in Q4FY26 profit year-on-year.
- 02Consolidated revenue rose by 8.2% to ₹2,549.8 crore.
- 03Total expenses increased by 5% year-on-year, affecting profitability.
- 04The company plans to distribute a ₹50 dividend per share, pending approval.
- 05Annual net profit surged 51% to ₹1,211.6 crore for FY26.
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Shares of Force Motors, a leading automotive manufacturer in India, declined 5.66% to ₹19,799 during Thursday's trading session following the announcement of its fourth-quarter earnings for FY26. The company reported a consolidated net profit of ₹278.5 crore, reflecting a 36% year-on-year decrease from ₹434.7 crore in Q4FY25. On a sequential basis, profit fell 31% from ₹406.1 crore in the previous quarter. Despite this, consolidated revenue from operations grew 8.2% to ₹2,549.8 crore, up from ₹2,356 crore in the same quarter last year. However, higher operational costs, which rose 5% year-on-year to ₹2,210.3 crore, primarily due to increased raw material expenses, significantly impacted profitability. For the fiscal year, Force Motors achieved a consolidated net profit increase of 51%, reaching ₹1,211.6 crore, compared to ₹800.7 crore in FY25, with annual revenue climbing 12% to ₹9,057 crore. The board has recommended a ₹50 dividend per equity share for FY26, pending shareholder approval. Over the past year, the stock has surged approximately 120%, enhancing its market capitalization to around ₹26,417 crore.
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The decline in profit may lead to cautious investor sentiment, affecting stock performance and potentially influencing future investments in the company.
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