Auto stock skyrockets 19% after reporting 52% YoY increase in net profits

Synopsis:
Force Motors’ Q1 FY26 profit rose 52 percent YoY despite a 59 percent QoQ drop; revenue up 22 percent YoY, aiding stock surge amid sector-wide challenges.

During Thursday’s trading session, shares of a company manufacturing fully vertically integrated small and light CVs, multi-utility vehicles, and agricultural tractors jumped up to 20 percent to hit a record high on BSE, despite reporting mixed financial results for Q1 FY26.

At 01:42 p.m., shares of Force Motors Limited were trading in the green at Rs. 19,800 on BSE, up by nearly 15 percent, as against its previous closing price of Rs. 17,136.65, with a market cap of Rs. 25,805 crores. The stock has delivered multibagger returns of more than 140 percent in the last one year, and has gained by about 44 percent in the last one month.

What’s the News

According to the latest regulatory filings on the stock exchanges, Force Motors Limited announced the financial results for Q1 FY26 on Wednesday after market hours.

For Q1 FY26, Force Motors reported a consolidated revenue from operations of Rs. 2,297 crores, marking around a 2.5 percent QoQ decline compared to Rs. 2,356 crores in Q4 FY25, but a year-on-year increase of about 22 percent from Rs. 1,885 crores recorded in Q1 FY25.

The company’s net profit for the quarter stood at Rs. 176 crores, reflecting a decline of around 59 percent QoQ compared to Rs. 435 crores in Q4 FY25, but a year-on-year increase of about 52 percent from Rs. 116 crores recorded in Q1 FY25.

Force Motors has posted decent sequential results at a time when many of its auto sector peers are grappling with rising input costs and inconsistent rural demand recovery. The company’s robust growth in profitability and operating margins has likely boosted investor confidence, pushing the stock to an all-time high.

Force Motors Limited is a fully vertically integrated automobile company, with expertise in design, development, and manufacture of the full spectrum of automotive components, aggregates, and vehicles. Its range of products includes Light Commercial Vehicles (LCV), Multi-Utility Vehicles (MUV), Small Commercial Vehicles (SCV), Sports Utility Vehicles (SUV,) and Agricultural Tractors.

Written by Shivani Singh

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