Force Motors Gets CRISIL AA+/A1+ Ratings. Turns Debt-Free in FY26

Force Motors has retained its top credit ratings from CRISIL, with the rating agency reaffirming ‘CRISIL AA+/Stable’ for long-term loans and ‘CRISIL A1+’ for short-term borrowings. The ratings apply to bank facilities worth ₹765 crore. CRISIL also withdrew its earlier rating on ₹79.16 crore worth of non-convertible debentures, following full repayment.

This comes on the back of a strong FY25 for the Pune-based automaker. Force Motors reported a 15% rise in revenue to ₹8,092 crore. Profitability improved too, with operating margins climbing to 13.8%. Operating profit stood at ₹1,113 crore.

Much of this growth came from the company’s core business: light commercial vehicles (LCVs) as well as a rising contribution from its automotive components division.

More notably, the company has cut its total debt drastically. From ₹525 crore a year ago, the figure dropped to just ₹17 crore by March 2025. All remaining dues were cleared by May, making Force Motors fully debt-free at the start of FY26.

Strong liquidity. Solid backing.

With ₹1,082 crore in unencumbered cash and strong internal accruals, the company says it plans to fund its ₹400–500 crore annual capex without any borrowing.

CRISIL highlighted Force Motors leadership in India’s LCV passenger segment and its growing portfolio of diversified products. The company assembles engines for global luxury carmakers like BMW and Mercedes-Benz, alongside its own line of Force Motors buses and commercial vehicles.

The rating agency also cited strong promoter support. Parent company Jaya Hind Industries Pvt Ltd holds a 57.38% stake and has marketable securities worth over ₹31,000 crore.

Stable outlook, despite challenges

While the business is still concentrated in a few niche vehicle categories and remains exposed to economic cycles, CRISIL believes Force Motors will maintain a stable financial risk profile. The company’s recent ESG initiatives and debt-free status further strengthen its credit position.

For now, Force Motors appears well placed. Its strong balance sheet, operational gains, and promoter backing have helped it weather industry headwinds. The reaffirmed CRISIL Force Motors ratings are a sign of confidence, in both where the company stands, and where it’s headed.

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