Most of us think of cars and bikes when it comes to automobiles. But passenger cars is not the only segment in the auto category. Behind the scenes, there’s a company that has silently powered India’s roads, schools, hospitals, and even the defence sector for decades – Force Motors.
It’s not a company that will grace news headlines every day. It doesn’t feature on billboards or sell millions of shiny sedans. Instead, it builds something quite needed – sturdy, reliable vehicles that can move loads of people and goods where they’re needed most.
From your child’s school bus to the army’s all-terrain vehicles and ambulances saving lives, Force Motors has shaped a position where durability and trust matter more than glam.
But here’s the twist: while it has always been seen as a solid, workmanlike player, the company is now in the middle of a silent revolution.
And investors, often obsessed with bigger auto names, are beginning to ask: Is this the hidden growth story in India’s auto space?
The origins of a hard worker
Force Motors’ story goes back to 1958, when it was founded by N. K. Firodia. Back then, the idea was simple: build affordable and rugged vehicles that could handle India’s tough roads.
Their products weren’t trendy, but they resolved real issues for a growing country. Through the years, Force earned a reputation as the “spine maker.” A company you went to for reliable utility vehicles, light commercial vans, and even tractors.
If Maruti Suzuki is the “family carmaker” of India, Force Motors is more like the unsung hero that ensures the daily hustle of life keeps moving.
Before the gear change
Before its current drive, Force Motors faced years of flat sales, low margins, and investor indifference. Between FY18 – FY22, its revenue growth was negative (down about 5%), profits turned into losses, and its core segments faced demand issues.
Many investors considered Force as a utility original equipment manufacturer (OEM) that would never break out.
During that lean period, Force fought with overdependence on older sections (like agricultural vehicles, which it finally decided to shut down in 2024). And it did not have a fresh growth catalyst.
It drifted between break-even and moderate profits. For example, its profit margins stayed small, and investors turned cautious as there wasn’t a noticeable improvement plan.
The legacy image weighed heavily: it was known more for dependability in utility roles than for growth. But one day, the company turned around.
The turning point
Force Motors walked awat from non-core segments like tractors, invested in vans and ambulances, upgraded internal cost processes, and focused harder on its contract engine business for luxury carmakers globally.
From there, the turnaround began in earnest. Today, things look very different. The turnaround has stopped being just a hope and has become a reality.
The Numbers: Growth Picking Up
For years, Force Motors had a reputation of being a “steady but slow mover.” Sales were stable, but growth was modest. Investors often overlooked it in favour of high-growth auto stocks. But things have begun to change in the last three years.
The not flashy, but key portfolio
Force isn’t about marketing luxury sedans or mass-market hatchbacks. Its forte is in utility and specialization.
Today, Force Motors makes a wide range of automobiles. Its Trax and Traveller vans are used in schools, staff transport fleets, and hospitals. The Traveller ambulance, in particular, has become synonymous with emergency medical services in India. In fact, Force Motors is one of the largest providers of ambulances in India.
Then there’s the Gurkha, a strong off-roader meant for tough terrains. While it vies for space in the same segment as Mahindra’s Thar, the Gurkha has always been placed more as the real utility off-roader than a lifestyle SUV.
Force also produces vehicles for the defence sector, such as its light transport and off-road models for operations across tough geographies.
And perhaps most importantly, it is the only company globally that assembles engines for Mercedes-Benz and BMW in India. Yes, you read that right.
The luxury cars that zip through Indian roads often have engines built by humble Force Motors in Pune.
This combination of practical utility vehicles, defence presence, and luxury engine contracts makes Force Motors unlike any other company in the auto industry.
Let’s look at some numbers
In FY22, the company reported revenues of around ₹3,240 crore. At the time of writing this the trailing twelve-month (TTM) revenue number has jumped to ₹8,484 crore. That’s a growth of about 162% over this time period.
In the latest quarter (Q1 FY26), Force Motors’ revenue grew to ₹2,297 crore, up 21.88% YoY from ₹1,885 crore in Q1FY25. The net profit surged ~52% YoY, reaching ₹176 crore excluding exceptional items.
After struggling with thin margins for years, Force Motors has begun making profits from operational efficiencies. Its margins increased to 14% from 4% in Q1FY23, because of growing demand and cost effectiveness.
What’s more, it remained debt-free in that quarter. The market took notice: after the results, the stock rallied to hit a 52-week high of 22,000 in August.
Force Motors now has a market cap of ~₹23,736 crore, Return on capital employed (ROCE) ~30%, and Return on equity (ROE) ~20.8% for the last year. Over the past 3 years, the stock price grew at a CAGR of ~145% while the average return on equity was 15%.
The engine assembly business for Mercedes and BMW remains a steady cash generator, giving Force Motors a stable earnings base.
These numbers show that Force is no longer surviving, it’s thriving. The combination of stronger van sales (Traveller, Trax), ambulance demand, and its steady engine contracts have added the impetus it needs to grow.
The tale has changed: from a reliable OEM in the shadows to one of the most discussed auto turnaround stories in India.
What’s captivating investors
So why is everyone suddenly talking about Force Motors?
The demand for Travellers and ambulances is rising quickly as more schools, hospitals, and corporations are being set up. Post the pandemic, the focus on healthcare infrastructure has only fast-tracked the sale of ambulances.
With India focusing on “Make in India” businesses with proven track records will profit from this push.
Mercedes and BMW sales in India are hitting record highs. And Force assembles their engines. It means every luxury car sale benefits the company indirectly.
For a company like Force, once sales volumes cross a specific limit, its profits will grow faster than income. That’s what seems to be happening today.
Unlike Tata Motors or Mahindra, Force Motors isn’t on every investor’s radar. That makes it a potentially “hidden stock,” and markets love discovering hidden jewels.
Rising institutional confidence
Large investment returns, debt-free quarters, and strong fundamentals are drawing in large institutions where none existed before.
Challenges on the road
Of course, no story is perfect. The company has its share of challenges.
For many, Force is still an old-school value maker. Competing with contemporary, sophisticated players like Mahindra in the SUV segment is not easy. Margins may have improved, but they remain lower than industry trailblazers.
The commercial vehicle demand can fluctuate with changes in the economy. A slowdown in school or corporate spending could impact sales.
Building engines may be a steady business. However, it means future growth is connected to the growth of the luxury car market.
Investors must weigh these risks carefully before getting carried away by the growth story.
The stock market angle
Here’s where things get interesting.
Force Motors’ stock price, like the company itself, has been quietly building impetus. Over the last three years, the stock has given fantastic returns, growing to ₹17,672 on 26th September 2025 from ₹1,541 on 16th July 2021.
Despite this run-up, a key valuation ratio – Enterprise Value/Earnings before interest, taxes, depreciation and amortisation (EBITDA), is at 18.42, is relatively cheaper compared to the industry median of 21.13.
And the P/E of 38.48x remains lower than some of the other auto names like Hyundai Motors India at 40.55x, and Mercury EV-Tech at 95.90x. The P/E is, however, closer to the industry median of 37.38x. That’s because the market is still watchful and waiting to see if Force can maintain this growth momentum long term.
But if it can continue delivering double-digit revenue growth, keep higher margins, and take advantage of the defence and healthcare boom, then investors may believe the story has legs.
Looking ahead
Force Motors is not sleeping on its heritage. The company is taking action to revolutionize:
Like every automobile player, Force is looking at Electric Vehicles, particularly electric Traveller vans. This could help it enter a new market as more schools, hospitals, and cities push for noiseless, green transport.
The company has reinvigorated its Gurkha SUV to attract young buyers while keeping its off-road DNA.
If executed well, these steps could provide a much larger growth pathway than the market currently expects.
A workhorse with hidden muscle
In the world of investing, some companies are like flashy sports cars, fast, visible, and always in the headlines. Others are like steady workhorses, not flashy, but reliable and amazingly robust when it counts. Force Motors fits the latter.
It has quietly built ambulances, school buses, defence vehicles, and even luxury car engines, all without seeking much attention.
Now, with demand rising, profits improving, and the market still underestimating its potential, Force Motors is finally walking into the limelight.
For investors, the question is simple: do you want to bet on the unsung workhorse before the rest of the market catches on?
While the appeal is apparent, one needs to carefully track key parameters to see if the company actually continues to deliver on its goals.
Disclaimer:
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Archana Chettiar is a writer with over a decade of experience in storytelling, and, in particular, investor education. In a previous assignment, at Equentis Wealth Advisory, she led innovation and communication initiatives. Here she focused her writing on stocks and other investment avenues that could empower her readers to make potentially better investment decisions.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.
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