Auto stock skyrockets 10% after reporting 253% YoY increase in net profits

Synopsis: With a market cap of more than Rs 27700 Cr Force Motors Ltd in Q3FY26 saw a 253 percent YoY growth in profits along with recording an exceptional income. The company in context has seen its stock give a compounded return of 140 percent in the last 3 years

The small cap stock of Force Motors Ltd where the company is in the business of manufacturing  different kinds of vehicles saw its stock rise by 10 percent soon after the company announced its Q3FY26 result with a 253 percent YoY profit growth and 13 percent YoY revenue growth.

With a market cap of Rs 27,749 Cr, Force Motors Ltd saw its stock hit an intraday high of Rs 22171 which is 10 percent higher than the previous close of Rs 20062. The company stock has given a compounded return of 140 percent in the last three years.

The Q3FY26 Result

In the latest quarterly result the company has seen its revenue from operations increase by 13 percent YoY, from Rs 1,889 Cr in Q3FY25 to Rs 2,129 Cr in Q3FY26, while the QoQ increased by 2 percent from Rs 2,081 Cr. The net profits grew by 253  percent going from Rs 115 Cr in Q3FY25 to Rs 406 Cr in Q3FY26, while the QoQ increased by 16 percent from Q2FY26’s Rs 351 Cr. 

In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 14 percent YoY, from Rs 5715 Cr in 9MFY25 to Rs 6507 Cr in 9MFY26. The net profits for the same period grew by 155 percent going from Rs 366 Cr to Rs 933 Cr.

The company has a 3 year sales CAGR of 36 percent, while the TTM is at 15 percent. The company’s 3 year profit CAGR is at 100 percent, while the TTM number is at 89 percent. The company also has a ROCE of 30 percent and a ROE of 21 percent.

The Exceptional Income 

Force Motors Ltd recorded exceptional income of about Rs 288 crore from government incentives under the Madhya Pradesh Industrial Investment Promotion Assistance Scheme, 2010, sanctioned in December 2025 and received in January 2026 for FY25.

Along with the exceptional income, Force Motors Ltd also reported an exceptional expenses of about Rs 77 crore due to the implementation of the New Labour Codes from 21 November 2025, which created a one-time past employee benefit liability, And the company has stated that any further impact will be assessed once the related rules are notified.

Acquisitions

Apart from approving the Q3FY26 result, Force Motors Limited has received in-principle board approval to explore acquiring 100 percent equity in Veera Tanneries Private Limited, a chrome-free organic leather manufacturer, which is primarily to acquire its land bank for business expansion, which is expected to be completed by the the end of this fiscal year. 

Business Overview

Force Motors Ltd is an Indian automotive manufacturer specializing in the design, development and production of commercial vehicles, multi-utility vehicles, engines and components.Headquartered in Pune, Maharashtra, it was incorporated on 8 September 1958 and is known as India’s largest van maker with global partnerships in engine manufacturing.

Force Motors manufactures engines, axles, and powertrain components for major global OEMs like Mercedes-Benz and BMW in India, and industrial diesel engines through its JV with Rolls-Royce Power Systems, along with select components for other global auto players.

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