Force Motors Gets CRISIL Credit Boost as It Becomes Debt-Free and Strengthens Market Position

Key Highlights

• Force Motors’ revenue rose 15% YoY in FY25 to ₹8,092 crore, led by strong LCV sales and auto component growth.

• CRISIL reaffirmed its long-term credit rating at ‘CRISIL AA+/Stable’ and short-term rating at ‘CRISIL A1+’.

• The company’s total debt dropped from ₹525 crore in March 2025 to zero by May 2025.

• CRISIL revoked its previous rating for ₹79.16 crore in non-convertible debentures after full repayment.

• Force Motors now plans to fund its ₹400–500 crore annual capex using internal resources.

Force Motors has achieved a significant financial milestone in FY25, with credit rating agency CRISIL reaffirming its strong credit ratings and highlighting the company's dominant position in India’s light commercial vehicle (LCV) passenger segment.

Strong Financial Growth in FY25

In FY25, Force Motors posted consistent growth, with revenue increasing 15% year-on-year to ₹8,092 crore. This growth was primarily driven by solid performance in the LCV segment and rising contributions from the automotive components business. The company also reported an operating profit of ₹1,113 crore and an improved operating margin of 13.8%.

Debt-Free Status Achieved

By March 2025, Force Motors had successfully reduced its debt from ₹525 crore to just ₹17 crore. By May 2025, the company had cleared all outstanding debts. With a strong liquidity position, including an unencumbered surplus of ₹1,082 crore and healthy expected cash flows, the company plans to use its internal accruals to meet its annual capital expenditure of ₹400–500 crore.

CRISIL Credit Rating Reaffirmed

CRISIL Ratings reaffirmed Force Motors long-term credit rating at ‘CRISIL AA+/Stable’ and its short-term rating at ‘CRISIL A1+’ for bank loan facilities worth ₹765 crore. The rating agency also revoked its rating for the company’s ₹79.16 crore non-convertible debentures following their full repayment.

Force Motors Market Leadership Recognized

CRISIL also highlighted Force Motors strong position in India’s LCV passenger segment, along with its product diversification. The company is also engaged in engine assembly for global brands like Mercedes-Benz and BMW. Support from its parent company, Jaya Hind Industries Pvt Ltd (JHIPL), which holds a 57.38% stake and has marketable securities valued at over ₹31,000 crore, further enhances its market credibility.

Outlook and Future Plans

CRISIL expects Force Motors to maintain a stable financial risk profile, supported by its promoters and robust market presence, despite the company’s focus on specialised vehicle segments and sensitivity to economic cycles. The company’s credit outlook is further strengthened by recent environmental, social, and governance (ESG) initiatives and its debt-free status.

With a strong financial foundation, diversified product portfolio, and leadership in the LCV segment, Force Motors is well-positioned for future growth and long-term stability.

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CMV360 Says

Force Motors strong financial performance, debt-free status, and reaffirmed CRISIL ratings highlight its market leadership in India’s LCV passenger segment. With solid backing from its parent company and plans to fund future growth through internal resources, Force Motors is set to maintain its stable outlook and expand sustainably, despite industry challenges and economic fluctuations.