Whalesbook
📉 The Financial Deep Dive
Forbes & Company Limited's unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, reveal a sharp deterioration in performance.
The Numbers:
Standalone Performance:
- Q3 FY26 Revenue: ₹1,650 Lakhs (YoY ↓ 13.84% from ₹1,915 Lakhs in Q3 FY25).
- Q3 FY26 Profit After Tax (PAT): ₹284 Lakhs (YoY ↓ 66.19% from ₹840 Lakhs in Q3 FY25).
- Nine Months FY26 Revenue: ₹5,666 Lakhs (YoY ↓ 3.14% from ₹5,850 Lakhs).
- Nine Months FY26 PAT: ₹1,285 Lakhs (YoY ↓ 33.97% from ₹1,946 Lakhs).
- Standalone EPS declined to ₹2.20 (Q3 FY26) from ₹4.68 (Q3 FY25).
Consolidated Performance:
- Q3 FY26 Revenue: ₹1,780 Lakhs (YoY ↓ 13.88% from ₹2,067 Lakhs in Q3 FY25).
- Q3 FY26 PAT: ₹419 Lakhs (YoY ↓ 33.81% from ₹633 Lakhs in Q3 FY25).
- Nine Months FY26 Revenue: ₹5,895 Lakhs (YoY ↓ 17.77% from ₹7,169 Lakhs).
- Nine Months FY26 PAT: ₹1,538 Lakhs (YoY ↓ 43.35% from ₹2,715 Lakhs).
- Consolidated EPS fell to ₹3.29 (Q3 FY26) from ₹4.97 (Q3 FY25).
The Quality:
The significant drop in PAT, both standalone and consolidated, far outpaces the revenue decline, signaling considerable margin compression. The company also recognized an incremental impact of ₹164 Lakhs (standalone) and ₹173 Lakhs (consolidated) due to changes arising from new Labour Codes, accounted for as past service cost. This adds a non-operational financial burden.
Operational Distress & Management Changes:
Adding to the financial woes, the company announced several critical developments:
- Its erstwhile subsidiary, Forbes Technosys Limited (FTL), has entered the Corporate Insolvency Resolution Process (CIRP). This signifies severe financial distress for the subsidiary, with potential financial implications for the parent.
- The joint venture agreement with MACSA ID S.A. was terminated.
- Forbes & Company Limited acquired the entire shareholding in Forbes Bradma Optimark Private Limited (FBOPL), making it a wholly-owned subsidiary from March 31, 2025. While this consolidates ownership, it comes amidst other negative developments.
- Key management personnel changes include the resignation of Company Secretary Mr. Pritesh Jhaveri and Interim Chief Financial Officer Mr. Pavan Somani. The appointment of Mr. Jagannath Govale as the new CFO offers some stability, given his extensive experience.
- A legal matter concerning Svadeshi Mills Company Limited remains pending final orders.
🚩 Risks & Outlook
The outlook for Forbes & Company Limited appears challenging, overshadowed by deep financial performance declines and significant operational risks. The entry of FTL into CIRP is a major red flag, potentially leading to write-downs or contingent liabilities. Management changes, particularly the departure of the interim CFO, coupled with a pending legal matter, add layers of uncertainty. Investors should monitor any further disclosures regarding FTL's CIRP and the company's ability to arrest the profit erosion and stabilize its operational structure. The limited review report from auditors also warrants careful attention, although specific adverse findings are not detailed here.