Forbes & Company Ltd (502865)
📢 Recent Corporate Announcements
Forbes & Company reported a weak set of results for Q1 FY27, with standalone revenue declining 42.1% YoY to Rs 12.76 Cr. The decline was driven by a 57.4% drop in Real Estate revenue and a contraction in the Coding and Industrial Automation segment. Standalone PAT fell 22.7% YoY to Rs 3.07 Cr. Notably, the Coding and Industrial Automation segment turned loss-making at the EBIT level, reporting a loss of Rs 0.69 Cr compared to a profit of Rs 0.31 Cr in the year-ago period.
- Standalone revenue from operations fell to Rs 12.76 Cr from Rs 22.03 Cr in Q1 FY26.
- Real Estate segment revenue dropped significantly to Rs 5.80 Cr from Rs 13.63 Cr YoY.
- Coding and Industrial Automation segment reported an EBIT loss of Rs 0.69 Cr.
- Standalone Profit After Tax (PAT) stood at Rs 3.07 Cr, down from Rs 3.97 Cr YoY.
- Promoter pledging remains a critical risk with 98.25% of the 73.85% promoter stake pledged.
Forbes & Company reported a weak set of results for Q1 FY27 (ended June 30, 2026), with standalone revenue from operations falling 42.1% YoY to Rs 12.76 Cr. The decline was broad-based, with Real Estate revenue dropping 57% YoY to Rs 5.80 Cr and the Coding & Industrial Automation segment falling 17% to Rs 6.96 Cr. Profitability was also hit as the Automation segment swung to a loss of Rs 0.69 Cr from a profit of Rs 0.31 Cr in the year-ago period. Standalone Net Profit stood at Rs 3.07 Cr, down 22.6% YoY, aided by other income of Rs 3.30 Cr.
- Standalone Revenue from operations decreased to Rs 12.76 Cr from Rs 22.03 Cr in the corresponding quarter of the previous year.
- Coding and Industrial Automation segment reported a loss of Rs 0.69 Cr at the EBIT level, compared to a profit of Rs 0.31 Cr YoY.
- Real Estate segment revenue fell sharply to Rs 5.80 Cr from Rs 13.63 Cr in Q1 FY26.
- Total Comprehensive Income for the quarter was Rs 3.15 Cr, a 43% decline from Rs 5.53 Cr in the same period last year.
- The company filed for deregistration of its wholly-owned subsidiary, EFL Mauritius Limited, on June 30, 2026.
Forbes & Company Ltd has scheduled a board meeting on August 14, 2026, to approve its unaudited financial results for the quarter ended June 30, 2026. The company is coming off a challenging March 2026 quarter where it recorded a net loss of Rs 1.97 crore on revenue of Rs 17.19 crore. With a small TTM revenue base of Rs 76 crore and a high promoter pledge of 98.25%, the upcoming results are crucial for assessing operational recovery in its industrial automation segment. The trading window has been closed since June 25, 2026, in anticipation of this release.
- Board meeting scheduled for August 14, 2026, to approve Q1 FY27 results
- Results cover the three-month period ended June 30, 2026
- Trading window remains closed until 48 hours after the results become public
- Company reported a net loss of Rs 1.97 crore in the preceding March 2026 quarter
- Promoter pledge remains high at 98.25% of their 73.85% stake
Financial Performance
Revenue Growth by Segment
The Real Estate segment grew by 79.2% YoY, reaching INR 167.95 Cr (from INR 93.73 Cr). The Coding and Industrial Automation (CIAB) segment grew by 0.84% YoY to INR 31.34 Cr (from INR 31.08 Cr). Total consolidated income from operations rose 45.8% to INR 215.57 Cr.
Geographic Revenue Split
Not disclosed in available documents; however, the company operates in diverse markets and recently liquidated its European operations (Forbes Lux International AG) to focus on domestic growth.
Profitability Margins
Standalone Operating Profit Margin declined from 23% to 20% YoY. Consolidated Profit Before Tax (PBT) from continuing operations grew 84.6% to INR 40.21 Cr. Net profit was significantly boosted by INR 93.85 Cr from discontinued operations.
EBITDA Margin
Consolidated EBITDA margin stood at approximately 20.4% (INR 44.07 Cr on INR 215.57 Cr total income), reflecting strong performance in the Real Estate division despite a segment loss of INR 1.16 Cr in the CIAB division.
Capital Expenditure
The company reduced its consolidated gross block of assets from INR 14.01 Cr to INR 7.80 Cr, primarily due to the deconsolidation of Forbes Technosys Limited (FTL) which held a gross block of INR 7.95 Cr.
Credit Rating & Borrowing
CARE reaffirmed a 'CARE BBB-; Stable' rating for long-term bank facilities and 'CARE A3' for short-term facilities in November 2024. ICRA withdrew its 'BB+ (Stable)' rating in February 2025 at the company's request. Borrowing costs are minimal as the company is net debt-free with only INR 0.0369 Cr in total borrowings.
Operational Drivers
Raw Materials
Not specifically named in documents, though 'input costs' and 'input prices' are cited as critical factors for the engineering and industrial automation segments.
Capacity Expansion
The company is focusing on scaling the Coding & Industrial Automation business to break even in FY25 and completing the Vicinia Phase II residential project in Mumbai.
Raw Material Costs
Not disclosed as a specific percentage of revenue, but the company notes that profitability is susceptible to fluctuations in input prices and cyclicality in the automotive end-user segment.
Manufacturing Efficiency
The CIAB segment reported a loss of INR 1.16 Cr, indicating a need for improved manufacturing efficiency and business scaling to reach the expected break-even point.
Strategic Growth
Growth Strategy
The strategy involves concentrating on growth-oriented businesses: Coding & Industrial Automation and Real Estate. This includes the full acquisition of Forbes Macsa Private Limited (now a 100% subsidiary) and the monetization of non-core assets like land banks and shipping vessels to maintain a lean balance sheet.
Products & Services
Industrial automation tools, coding and marking solutions, and residential real estate apartments (specifically the Vicinia project in Chandivali, Mumbai).
Brand Portfolio
Forbes, Vicinia.
New Products/Services
The company is developing new technologies in-house and with partners to respond to changing consumer trends, though specific revenue contribution percentages for new launches are not disclosed.
Market Expansion
Focusing on domestic Indian markets following the liquidation of loss-making European subsidiaries (FLIAG and LIAG) in August 2023.
Strategic Alliances
Acquired the remaining 50% stake in the Forbes Macsa Private Limited joint venture from Macsa ID, S.A. on March 31, 2025. Maintains a JV in Forbes Bumi Armada Limited (FBAL) which earned INR 74 Cr revenue.
External Factors
Industry Trends
The industry is shifting toward increased automation in manufacturing. The company is positioning itself by scaling its CIAB segment and focusing on high-value residential real estate in urban hubs like Mumbai.
Competitive Landscape
Competes in the fragmented industrial automation market and the highly competitive Mumbai luxury residential real estate market.
Competitive Moat
The company's moat is built on its 159-year legacy under the Shapoorji Pallonji Group and its prime real estate holdings in Mumbai, though high promoter pledging remains a threat to sustainability.
Macro Economic Sensitivity
The company is sensitive to India's GDP growth and interest rates, which directly impact real estate demand and industrial automation spending.
Consumer Behavior
Shifts toward rapid technology adoption in manufacturing and demand for premium residential spaces are driving the current product mix.
Geopolitical Risks
Political and global uncertainty are cited as factors that could restrict revenue growth by reducing demand in diversified markets.
Regulatory & Governance
Industry Regulations
Operations are governed by the Real Estate (Regulation and Development) Act (RERA) for its Vicinia project and various product safety and competition laws for its engineering division.
Environmental Compliance
The company is subject to Water and Air Pollution regulations and environmental laws, though specific compliance costs are not disclosed.
Taxation Policy Impact
Consolidated provision for taxation was INR 40.18 Lakhs for FY 24-25.
Legal Contingencies
Forbes Technosys Limited (FTL), a former subsidiary, was admitted to the Corporate Insolvency Resolution Process (CIRP) by the NCLT Mumbai Bench on March 24, 2025, leading to the suspension of its board and deconsolidation from Forbes & Company Limited.
Risk Analysis
Key Uncertainties
The primary uncertainty is the financial health of the promoter group (SP Group) given the 98.25% pledge on their 73.85% equity stake in the company.
Geographic Concentration Risk
High concentration in the Mumbai region due to the significant revenue contribution (79.2%) from the Vicinia real estate project.
Third Party Dependencies
Dependency on the automotive industry as the primary end-user for the engineering segment.
Technology Obsolescence Risk
The CIAB segment faces risks from rapid technological shifts in industrial automation, requiring continuous R&D and partnership-led product development.
Credit & Counterparty Risk
Receivables management is a 'relentless focus' to maintain liquidity; debtors turnover is healthy at 15 days.
