Force Motors Q2 Net Profit Drops 16.6% to Rs 291 Crore on Normalised Tax Expenses

Force Motors reported a 16.61% decline in standalone net profit for Q2 FY27, recording Rs 291.44 crore compared to Rs 349.51 crore in the corresponding period of the previous financial year. The decline in net profit was primarily driven by the absence of a one-time tax benefit that boosted the company's bottom line in the year-ago quarter.

Revenue from operations grew 40.52% year-on-year to Rs 2,924.54 crore in Q2 FY27, up from Rs 2,081.27 crore in Q2 FY26. Total income for the quarter reached Rs 2,967.33 crore, compared to Rs 2,105.76 crore recorded during the same period last year.

Total expenses for the quarter expanded by 44% year-on-year to Rs 2,574.13 crore, up from Rs 1,789.81 crore in the corresponding quarter of the previous year. Cost of materials consumed rose to Rs 2,176.31 crore against Rs 1,552.86 crore in Q2 FY26. 

Profit before tax before exceptional items grew by 24.5% year-on-year to Rs 393.20 crore compared to Rs 315.95 crore in Q2 FY26. Total tax expenses for Q2 FY27 stood at Rs 101.76 crore, comprising current tax of Rs 92.92 crore and deferred tax of Rs 8.84 crore.

In Note 4 of the financial results, the company and its statutory auditors highlighted that Force Motors had opted for the new tax regime during the second quarter of FY26. This option resulted in a one-time deferred tax and MAT credit benefit of Rs 85.46 crore in Q2 FY26, creating a negative tax expense of Rs 33.56 crore for that quarter. Consequently, the management noted that tax expenses, net profit, and earnings per share for Q2 as well as H1 FY27 are not directly comparable with the corresponding periods of the previous financial year.

On a consolidated basis, Force Motors reported a net profit of Rs 293.91 crore for Q2 FY27, down 16% compared to Rs 350.70 crore in Q2 FY26. Consolidated revenue from operations increased 40.5% to Rs 2,924.66 crore from Rs 2,081.40 crore in the year-ago period. Total consolidated expenses stood at Rs 2,574.89 crore against Rs 1,789.81 crore in Q2 FY26.

During H1 FY27, standalone net profit declined 6% to Rs 503.51 crore from Rs 534.73 crore in H1 FY26. Standalone revenue from operations for H1 FY27 rose 22.5% to Rs 5,364.43 crore from Rs 4,378.39 crore recorded in H1 FY26. Standalone total expenses for the first half of the financial year stood at Rs 4,763.23 crore, compared to Rs 3,825.45 crore in the prior-year period.