Force Motors Ltd (FORCEMOT) Q2 FY27 Results Analysis: Volumes Surge 50%, Margin Recovery Underway
Force Motors Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 2,924.66 Cr (+40.51% YoY) and PAT growth of -16.19% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 28, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 2,924.66 Cr (+40.51% YoY) |
| PAT (Q2) | Rs. 293.91 Cr (-16.19% YoY) |
| EBITDA margin | 14.82% (-260 bps YoY) |
| EPS (Q2) | Rs. 221.18 (-16.60% YoY) |
| Market cap | Rs. 22,498.42 Cr |
| CMP | Rs. 17,075.00 |
Quarter Snapshot
Revenue grew 40.51% YoY on 50.27% volume growth, with EBITDA margin recovering 139 bps QoQ to 14.82% though still below the 15-16% guided band and down ~260 bps YoY on a smaller inventory-build credit. The reported 16.19% PAT decline is entirely a tax-base effect; normalized PAT grew 10.81% with cash conversion at 1.51x PAT and a debt-free balance sheet. The binding watch item is margin: a 15% FY EBITDA margin requires an H2 margin of 16.03% versus 14.19% in H1.
Key Investment Insights
Key Positives
- Revenue grew 40.51% YoY to Rs.2,924.66 Cr, accelerating from +6.21% YoY in Q1 FY27
- Wholesale volumes grew 50.27% YoY to 11,673 units with domestic growth of 38-62% per month
- EBITDA margin recovered 139 bps QoQ to 14.82% on volume leverage; employee costs grew only 16.58% against 40.5% revenue growth
- PBT grew 24.71% YoY to Rs.395.54 Cr; normalized PAT grew 10.81% YoY after removing the year-ago Rs.85.46 Cr one-time tax credit
- H1 operating cash flow of Rs.759.44 Cr was 1.51x H1 PAT; FCF was +Rs.486.22 Cr
- Company is debt-free with ~Rs.2,730.51 Cr in cash, bank balances, other financial assets and investments; net worth up 10.24% in six months
- Inventories grew 12.79% vs H1 revenue growth of 22.52%; trade receivables essentially flat
Risk Factors
- EBITDA margin of 14.82% is below the 15-16% guided band and down ~260 bps YoY; a 15% FY margin requires an H2 margin of 16.03% vs 14.19% in H1
- Reported owners' PAT declined 16.19% YoY (tax-base effect from the year-ago Rs.85.46 Cr 115BAA credit)
- Exports declined YoY in all three months, with revenue conversion trailing the volume print by ~10 points on mix/ASP/export effects
- Current provisions rose Rs.152.10 Cr over H1, consistent with EPR/ELV Rules 2025 build recognized as per best estimates with the EPR component undisclosed
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.