Forbes & Company Ltd reported a sharp decline in its financial performance for the fourth quarter and full year FY26, largely impacted by weak real estate revenue recognition. Despite some resilience in its industrial automation segment, the company’s overall earnings took a significant hit.
Forbes & Company witnessed a steep fall in its standalone net profit during the fourth quarter of FY26. The company posted a net profit of ₹1.87 crore, marking a substantial decline of 85.4 percent compared to ₹7.47 crore recorded in the same quarter last year.
The drop in profitability was primarily driven by a significant contraction in revenue. Revenue from operations fell sharply to ₹16.48 crore in Q4 FY26, compared to ₹88.22 crore in Q4 FY25. Similarly, total income declined to ₹17.78 crore from ₹89.83 crore in the corresponding period of the previous fiscal year.
On a sequential basis, however, revenue remained largely stable, with the company reporting ₹16.50 crore in Q3 FY26. This indicates that while the quarterly performance did not worsen compared to the immediate previous quarter, it remained significantly below last year’s levels.
The primary reason for the weak quarterly performance was a sharp drop in real estate revenue. The company’s real estate segment generated only ₹6.79 crore in Q4 FY26, compared to a significantly higher ₹80.67 crore in the same quarter last year.
This steep decline highlights the cyclical and project-based nature of real estate revenue recognition. Since revenue is recognized only upon completion milestones such as possession and transfer of control, any delay or absence of such events can heavily impact financial results.
While the real estate business struggled, the Coding and Industrial Automation segment provided some support to the company’s overall performance. Revenue from this segment rose to ₹9.69 crore in Q4 FY26, up from ₹7.55 crore in Q4 FY25.
This growth reflects steady demand in the industrial automation space, offering a degree of stability to the company’s otherwise volatile earnings profile. However, the segment’s contribution was not sufficient to offset the sharp decline in real estate revenue.
The company’s total expenses for the quarter dropped significantly to ₹15.06 crore from ₹74.52 crore in Q4 FY25. This reduction aligns with the lower scale of operations, particularly in the real estate segment where project-related costs and inventory movements were subdued.
Despite the decline in expenses, profitability remained under pressure due to the steep fall in revenue.
Profit before tax (PBT) stood at ₹2.72 crore, compared to ₹12.79 crore in the year-ago quarter and ₹3.27 crore in the previous quarter. This indicates both year-on-year and sequential declines in pre-tax earnings.
Certain cost components showed an upward trend despite the overall decline in expenses. Finance costs rose marginally to ₹15 lakh, while depreciation expenses increased significantly to ₹1.25 crore from ₹39 lakh in Q4 FY25.
Additionally, the company reported a tax expense of ₹85 lakh during the quarter, compared to a tax benefit in the corresponding period last year. This further weighed on net profitability.
As a result, basic and diluted earnings per share (EPS) declined to ₹1.45 in Q4 FY26, compared to ₹5.79 in Q4 FY25, reflecting the sharp fall in net income.
For the full financial year FY26, Forbes & Company reported a notable decline in both revenue and profit.
The sharp fall in annual performance reflects the heavy dependence of the company on real estate revenue recognition cycles.
A key factor influencing the company’s financials is its revenue recognition approach in the real estate business. Forbes & Company recognizes revenue under Ind AS 115, which requires fulfillment of specific conditions such as:
Due to the absence of major recognition events during FY26, real estate revenue dropped drastically to ₹14.68 crore, compared to ₹145.16 crore in FY25.
This underscores how timing differences in project completion can lead to significant fluctuations in reported earnings.
Forbes & Company operates across two primary segments:
The company is part of the Shapoorji Pallonji Group, a well-established conglomerate with diversified interests.
Going forward, the company’s performance will largely depend on the timing of real estate project completions and subsequent revenue recognition. While the industrial automation segment provides steady growth, the real estate business remains the key driver of overall financial performance.
Conclusion
Forbes & Company’s FY26 results highlight the challenges associated with revenue volatility in the real estate sector. The sharp decline in Q4 earnings and full-year performance underscores the impact of delayed or limited revenue recognition from property projects.
Although the industrial automation segment continues to grow steadily, it is not yet large enough to fully counterbalance the fluctuations in real estate income. Future growth will depend on successful project completions and improved revenue visibility in the coming quarters.