Forbes & Company Q2 Profit Declines Amid Major Capex Approval

Revenue: Rs 18.12 crore | Net Profit: Rs 4.58 crore

Reader Takeaway: Expansion efforts via Rs 50 crore capex offset by quarterly profit decline and planned subsidiary consolidation.

What just happened

Forbes & Company has released its financial performance for the quarter ended September 30, 2026. The company reported a net profit of Rs 4.58 crore, down from Rs 6.33 crore in the same quarter last year. Quarterly revenue remained largely stable at Rs 18.12 crore compared to Rs 18.70 crore in the previous year.

Why this matters

The company’s board has greenlit a significant capital expenditure of Rs 50 crore to drive growth. This includes Rs 35 crore earmarked for the initial development phase of an IT Park in Wagale, Thane, and Rs 15 crore (plus GST) for a new factory shed in the Chikalthana Industrial Area. These investments signal a strategic push toward infrastructure enhancement and operational optimization.

The backstory

The board also approved the divestment of the company's 49% stake in its associate, Neuvo Consultancy Services Private Limited, to Shapoorji Pallonji Real Estate Private Limited for Rs 5.88 lakh. Following this transfer, Neuvo Consultancy will no longer be classified as an associate. Meanwhile, the company’s subsidiary, EFL Mauritius Limited, has initiated the process for voluntary deregistration.

Legal and Operational Updates

The Bombay High Court has provided relief regarding Svadeshi Mills Company Limited by setting aside a previous judgment and granting a permanent stay on winding-up proceedings. This development is significant for Forbes & Company, which holds an interest in the entity alongside Grand View Estate Private Limited.

Management Commentary

Management highlighted the performance of its subsidiary, Forbes Bradma Optimark Private Limited, which posted a half-year net profit of Rs 0.28 crore. Despite historical accumulated losses of Rs 4.42 crore, the subsidiary maintains a positive net worth of Rs 0.58 crore and continues to prioritize cost-cutting measures and new business avenues.

What to track next

Investors should monitor the timeline for the IT Park construction in Thane and the progress of the Chikalthana factory project, as these will be critical indicators for future revenue growth and operational scalability.