Force Motors Limited has announced its audited financial results for the year ended March 31, 2026, reporting a robust net profit of ₹1,21,126 lakhs. Driven by strong operational performance and government incentives, the company has recommended a dividend of ₹50 per equity share (500%). The board also confirmed the acquisition of Veera Tanneries Private Limited, marking a strategic expansion as the company continues its focus on sustainable growth and operational efficiency.
Financial Performance Highlights
For the financial year ended March 31, 2026, Force Motors recorded a total revenue from operations of ₹9,05,654 lakhs, showcasing significant growth compared to the previous year. The company’s net profit reached ₹1,21,126 lakhs, benefiting from an exceptional income of ₹28,863 lakhs received through government incentives under the Madhya Pradesh Industrial Investment Promotion Assistance Scheme. Despite facing exceptional expenses of ₹7,739 lakhs due to new labor code implementations, the company maintained a strong bottom line.
Strategic Dividend Recommendation
Reflecting its strong financial health and commitment to shareholder value, the Board of Directors has recommended a final dividend of ₹50 per share for the 2025-26 financial year. This represents a 500% payout on the face value of ₹10 per share. The dividend is subject to approval by the shareholders during the upcoming Annual General Meeting.
Business Developments
During the fiscal year, Force Motors successfully acquired the entire equity share capital of Veera Tanneries Private Limited (VTPL) for a total consideration of ₹16,196 lakhs. VTPL is now a wholly-owned subsidiary of the company. Additionally, the company has proactively aligned with new environmental regulations by recognizing a provision of ₹260 lakhs to comply with the Environment Protection (End-of-Life Vehicles) Rules, 2025, reinforcing its commitment to sustainable manufacturing and circular economy initiatives.
Transition to New Tax Regime
In a strategic move to optimize its tax liabilities, the company opted for the new tax regime (under Section 115BAA of the Income Tax Act, 1961) starting from the 2025-2026 financial year. This transition resulted in a one-time accounting adjustment, including the reversal of ₹9,105 lakhs in deferred tax liabilities, further stabilizing the company’s financial position for future growth.
Source: BSE
