On Friday, March 28, shares of Force Motors Ltd. experienced a notable surge of up to 7%, following the company's announcement of securing a substantial order from the Indian Defence Forces. This order entails the supply of 2,978 Force Gurkha light vehicles, specifically the GS 4X4 800 kg Soft Top variant. The procurement was facilitated by the Directorate General of Capb, Devp (CD-13/14) General Staff Branch, IHQ of MoD (Army) New Delhi.​

The Force Gurkha is renowned for its rugged design and off-road capabilities, making it an ideal choice for defense operations. This significant order underscores the vehicle's reliability and the trust that the Indian Defence Forces place in Force Motors' engineering prowess.​

In recent times, Force Motors has demonstrated remarkable financial performance. For the quarter ending September 2024, the company reported a net profit of ₹135 crore, marking a 44% increase compared to the same period in the previous year. This growth was primarily driven by a 7.8% rise in revenue to ₹1,941 crore, despite a 19% decline in the sales of its own multi-seater vans. Notably, robust demand for luxury engines, supplied to automakers like BMW and Mercedes, significantly contributed to this profit surge. ​CNBCTV18+1CNBCTV18+1Reuters+1Business Today+1Business Today+1Reuters+1

The company's Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) also saw a substantial increase, rising 25% to ₹282 crore in Q2 FY24, compared to ₹225 crore in the same quarter the previous year. The EBITDA margin expanded to 14.5% from 12.5% year-on-year, reflecting improved operational efficiency. ​Business Today+1CNBCTV18+1CNBCTV18+1Business Today+1

Force Motors' stock performance has mirrored its financial achievements. The shares have more than doubled in value over the past year, reflecting investor confidence in the company's growth trajectory. As of March 28, 2025, the stock settled at ₹8,990, marking a 2.30% increase for the day and a 35% jump over the past month.​

The company's diverse revenue streams have played a pivotal role in its success. A significant portion of revenue comes from the sales of Light Commercial Vehicles (LCVs) and Sports Utility Vehicles (SUVs). The Force Traveller, a flagship vehicle, is widely used for shared mobility, school buses, delivery vans, and ambulances. Recently, Force Motors secured an order to supply 2,429 ambulances to the Uttar Pradesh government, further solidifying its position in the commercial vehicle segment.​

In a strategic move to tap into the premium segment, Force Motors introduced the Force Urbania, a luxury van designed for corporate commutes, elite tours, and hospitality services. This vehicle offers a cost-effective alternative to models like the Mercedes Sprinter, while still delivering high-end features and performance.​

The recent defense order is expected to bolster Force Motors' production capabilities and revenue streams. By fulfilling this substantial contract, the company not only strengthens its relationship with the Indian Defence Forces but also enhances its reputation in the defense vehicle manufacturing sector.​

Investors and market analysts view this development as a positive indicator of Force Motors' growth potential. The company's ability to secure large-scale orders, coupled with its consistent financial performance, positions it favorably in the competitive automotive industry.​

As Force Motors continues to expand its product portfolio and explore new market segments, stakeholders remain optimistic about its future prospects. The company's commitment to innovation, quality, and customer satisfaction is expected to drive sustained growth in the coming years.

The Current active IPO are Infonative Solutions Limited,Spinaroo Commercial Limited,Retaggio Industries Limited,Identixweb Limited.

The Closed IPOs are  ATC Energies System Limited, Shri Ahimsa Naturals Limited, Desco Infratech Limited

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.