Forbes Precision Tools & Machine Parts Ltd (544186) Annual Report Analysis & Insights

Forbes Precision Tools & Machine Parts Ltd

| Annual Report 2025-26

⬤2nd Jul 26

Summary : Forbes Precision Tools achieved strong revenue growth and profitability in FY26, driven by strategic investments, market expansion, and operational efficiencies, despite global challenges.

Annual Report Analysis & Insights

Financial Disclosures

Total expenses FY26: ₹21,524.22 Lakhs.
Cost of materials consumed FY26: ₹9,331.99 Lakhs.
Employee benefits expense FY26: ₹5,044.18 Lakhs.
Depreciation and amortisation expense FY26: ₹1,550.97 Lakhs.
Undisputed trade receivables (Not due): ₹2,690.24 Lakhs.
Undisputed trade receivables (Less than 6 months): ₹329.35 Lakhs.
Credit Impaired (More than 3 years): ₹31.11 Lakhs.
Disputed trade receivables (More than 3 years): ₹140.45 Lakhs.
Total Revenue FY26: ₹25,473.95 Lakhs.
Revenue from operations FY26: ₹25,101.13 Lakhs.
Sale of products FY26: ₹24,864.27 Lakhs.
Sale of services FY26: ₹51.32 Lakhs.
Net cash from operations FY26: ₹2,755.29 Lakhs.
Net cash from investing FY26: ₹409.87 Lakhs.
Net cash used in financing FY26: (₹3,338.71) Lakhs.
Cash and equivalents at year-end FY26: ₹574.69 Lakhs.
Claims not acknowledged as debts: ₹16.81 Lakhs.
Labour matters in dispute: ₹16.81 Lakhs.
Capital commitments not provided for: ₹266.54 Lakhs.
Total Assets FY26: ₹25,133.00 Lakhs.
Total Equity FY26: ₹16,858.21 Lakhs.
Total Liabilities FY26: ₹8,274.79 Lakhs.
Net Debt FY26: ₹1,088.95 Lakhs.
All transactions at arm's length, ordinary course.
No material transactions with promoters/directors.
Policy on related party transactions available online.
Financial statements are Standalone.

Corporate Overview

Serves diverse industries across India.
Presence in global markets, including South Americas, GCC, Far East.
Dynamic operating environment, geopolitical developments.
Abnormal commodity price increases, margin pressure.
Automotive sector EV initiatives, demand impact.
High attrition rate in lower executive cadre.
Reliance on Automotive sector evolution, EV initiatives.
Vulnerable to global raw material price escalation.
Impacted by geopolitical developments, trade regimes.
Manufactures and supplies round cutting tools.
Offers complete tooling solutions for diverse industries.
Largest producer of spring lock washers in India.
Optimistic about steady progress and resilient growth.
Committed to sustainable growth and shareholder value.
Focused on operational efficiency and technological adoption.
Automotive, Oil and Gas, Aerospace, Defence.
Valve and Pump, Mould and Die, Heavy Engineering.
Electrical & Electronics sectors.
Carbide and high-speed steel round cutting tools.
HSS taps, carbide thread mills, solid carbide endmills.
Tungsten carbide rotary burrs, HSS drills, carbon steel taps.
Spring lock washers for auto and transmission.
Advanced manufacturing capabilities at Chhatrapati Sambhajinagar.
Investments in manufacturing capacity, quality enhancement.
Capacity augmentation in HSS Drills and Spring Washers.
New flute grinding machines, CNC machines added.
Continued investments in manufacturing capacity.
Capacity augmentation in HSS Drills and Spring Washers.
Installed new flute grinding machines with robotic integration.
New advanced coiling and cutting machines.

Risk Factors

Global political shocks, economic turmoil.
Abnormal commodity price increases, margin pressure.
Automotive sector EV initiatives, demand impact.
Frequent changes in legal, regulatory regime.

Key Drivers

Resilient domestic growth, strong macroeconomic fundamentals.
Make in India initiative, expanding market opportunities.
Investments in manufacturing capacity, quality enhancement.
Advanced machining solutions, new technology adoption.

Auditor’s Report

Unmodified opinion on financial statements.
Unmodified opinion on internal financial controls.
Revenue Recognition: Sale of cutting tools.
Revenue is key performance indicator, subject to misstatement.
Disclosed impact of pending litigations.

Board Commentary

Mr. Jai Mavani seeks re-appointment by rotation.
Mr. Sivanandhan Dhanushkodi's directorship continued.
No change in board composition during audit period.
Interim dividend of ₹5/- per equity share declared.
No final dividend recommended for FY26.
No amount transferred to general reserves.
Potential financial impact from new Labour Codes.
Automotive sector's EV initiatives affecting demand.
Global trade protectionism, bilateral arrangements.
Cyber-attack threats, unauthorized access risks.
Assessed impact of new Labour Codes on obligations.
No significant material orders from regulators/courts.
Complied with Maternity Benefit Act, 1961.
No benami property proceedings, no wilful defaulter status.
₹266.54 Lakhs in contracts for capital account.
Construction of Vidyalaya Primary & Secondary School (CSR).

Corporate Governance

Highest standards of ethical corporate governance practices.
Code of Conduct for Non-Executive Directors.
Insider Trading Code for prevention.
Zero tolerance for sexual harassment, Whistle Blower Policy.
Board has 50% independent directors.
Composition conforms to SEBI LODR regulations.
Independent directors meet integrity, expertise criteria.
Audit Committee: 2 independent, 1 executive director.
Nomination and Remuneration Committee: 2 independent directors.
Stakeholders' Relationship Committee: 1 independent, 1 executive director.
CSR Committee: 1 independent, 1 executive director.
No significant regulatory/court orders impacting going concern.
No sexual harassment complaints received.
Secretarial Audit Report without adverse remarks.
Audit trail feature enabled, no instances of disabling.

Management Discussion & Analysis

Future Strategy

Focus on resilience, strengthening supply chain.
Adopting new technologies, execution excellence.
Explore and innovate product portfolio globally.
Elevating performance standards, ethical conduct.

Industry Overview

Opportunities in aerospace, defence, railways, electronics.
Make in India initiative supports growth.
Infrastructure investments drive higher economic growth.

Macroeconomic Outlook

Resilient domestic growth, strong macroeconomic fundamentals in India.
Global environment dynamic due to geopolitical developments.
India's GDP projected to grow approximately 7.4%.

Operational Focus Areas

Consolidating operations, strengthening core capabilities.
Building scalable platform for sustainable growth.
Ensuring sustainable, compliant, high-standard operations.
Proactive risk mitigation, robust compliance framework.

Performance Drivers

Strategic agility, disciplined execution, operational efficiency.
Investments in manufacturing capacity, quality enhancement.
Channel expansion, targeted international outreach.
Digital transformation via SAP S/4HANA implementation.

Risk Control Measures

Diversified business portfolio across segments, geographies.
Adapting strategies to sustain growth momentum.
Internal compliance monitoring framework established.
Security measures, firewalls, threat monitoring systems.

Critical Risks

Global political shocks, economic turmoil.
Abnormal commodity price increases, margin pressure.
Automotive sector EV initiatives, demand impact.
Frequent changes in legal, regulatory regime.