LCV maker’s AA+/Stable and A1+ ratings reaffirmed as it posts healthy revenue growth, improved margins, and turns debt-free in early FY26.
26 Jul 2025 | 3850 Views | By Sarthak Mahajan
Force Motors Limited has announced that CRISIL Ratings has reaffirmed its long-term credit rating at ‘CRISIL AA+/Stable’ and short-term rating at ‘CRISIL A1+’ for its bank loan facilities amounting to ₹765 crore. Additionally, the rating agency has withdrawn its earlier rating for the company’s ₹79.16 crore non-convertible debentures following full ...
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Force Motors Limited has announced that CRISIL Ratings has reaffirmed its long-term credit rating at ‘CRISIL AA+/Stable’ and short-term rating at ‘CRISIL A1+’ for its bank loan facilities amounting to ₹765 crore. Additionally, the rating agency has withdrawn its earlier rating for the company’s ₹79.16 crore non-convertible debentures following full repayment.
The reaffirmation reflects Force Motors’ sustained performance in FY25, marked by a 15% year-on-year revenue growth to ₹8,092 crore, largely driven by robust sales of light commercial vehicles and increased contribution from its automotive components business. The company also reported an improved operating margin of 13.8% and operating profit of ₹1,113 crore.
Force Motors has significantly deleveraged its balance sheet, reducing total debt from ₹525 crore to ₹17 crore by March 2025 and repaying all dues by May 2025. It is now debt-free and plans to fund its ₹400–500 crore annual capex through internal accruals. The company’s liquidity remains strong with ₹1,082 crore in unencumbered surplus and healthy cash flows projected over the medium term.
CRISIL highlighted Force Motors' dominant position in India’s LCV passenger segment, its product diversification (including engine assembly for BMW and Mercedes-Benz), and the strong backing of its parent, Jaya Hind Industries Pvt Ltd (JHIPL), which holds a 57.38% stake and possesses marketable securities worth over ₹31,000 crore.
Despite its concentration in niche vehicle segments and susceptibility to economic cycles, CRISIL expects the company to maintain a stable financial risk profile with continued support from its promoters. The company’s recent ESG improvements and zero-debt status further bolster its credit outlook.