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Smallcap auto stock soars 20%; zooms 216% thus far in CY25. Do you own?
Shares of Force Motors hit a new high of ₹20,563, soaring 20 per cent on the BSE in Thursday's intra-day trade in an otherwise subdued market after the company reported healthy June quarter earnings (Q1FY26). In comparison, the BSE Sensex was down 0.28 per cent at 82,492 at 10:02 AM.
In the past one month, the stock price of Force Motors has rallied 50 per cent, as compared to 0.54 per cent rise in the BSE Sensex. Thus far in the calendar year 2025 (CY25), the stock price of the smallcap automobile company has zoomed 216 per cent, as against 5 per cent gain in the benchmark index.
Force Motors Q1 results
For Q1FY26, Force Motors reported 54 per cent year-on-year (YoY) jump in standalone profit before tax (PBT) at ₹286.54 crore. The company had posted PBT of ₹185.66 crore in the same quarter last fiscal. Revenue from operations grew 21.9 per cent YoY at ₹2,297 crore. Profit after tax increased 55 per cent to ₹185.22 crore from ₹119.59 crore.
In Q1FY26, the company's domestic sales jumped 26.14 per cent to 9,013 units, as against 7,145 units sold in Q1FY25.
What's driving the stock price of Force Motors?
Since March 27, the stock price Force Motors has appreciated by 135 per cent after the company in an exchange filing said it has to deliver 2,978 Force Gurkha light vehicles (GS 4X4 800 kg Soft Top) to the Indian Defence Forces.
These vehicles are tailored to meet the diverse operational requirements of both the Indian Army and the Indian Air Force, showcasing Force Motors' capability to deliver mission-ready vehicles designed to perform in demanding defence environments, Force Motors said.
Force Motors has been catering to the defence sector for many years through its Gurkha LSV (Light Strike Vehicle), a vehicle renowned for its durability, off-road prowess, and adaptability.
Force Motors - Outlook
Force Motors' leading position in the domestic light commercial vehicle (LCV) passenger segment, presence across multi-utility vehicles (MUVs) and sports utility vehicle (SUVs) segments, and well-established position in the automotive component business with long standing relationships with reputed original equipment manufacturers (OEMs) resulting in a diversified revenue stream.
The company focuses on the niche passenger segment of LCV. In the LCV school bus and ambulance segment, the company has a market share of 70-75 per cent. Force Motors will continue to benefit from its niche positioning in the automotive OEM market, supported by the steady launch of new products and variants and rise in demand in the LCV segment, according to Crisil Ratings.
The company's brands include 'Urbania' in the LCV segment, 'Traveller' in the PV, school bus, ambulance and delivery van segments; 'Trax' in the UV, ambulance and delivery van segments; and 'Gurkha' and 'Citiline' in the UV segment. Healthy cash generation and prudent funding of capex will ensure the debt protection metrics remain at healthy levels.
About Force Motors
Force Motors is a fully integrated automobile company, specialising in the engineering, development, and manufacture of vehicles, aggregates, and components.
Force Motors' formidable product range spans light commercial vehicles and multi-utility vehicles, and its export presence extends to the Middle East and Gulf region, Asia, Latin America, and Africa.
Mercedes-Benz and BMW assigned Force Motors the responsibility of producing and testing engines for all cars and SUVs manufactured in India. Every Mercedes-Benz vehicle made in India is powered by an engine produced at Force Motors in Chakan Pune.
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