Forbes Precision Tools & Machine Parts Ltd Q2 FY26 – The ₹953-Crore Cutting-Edge Child of Shapoorji Pallonji That’s Sharper Than Its Stock Returns
1. At a Glance
Meet Forbes Precision Tools & Machine Parts Ltd, the Shapoorji Pallonji offspring that manufactures tools sharp enough to cut metal — and occasionally investor enthusiasm. The stock trades at ₹185, with a market cap of ₹953 crore, P/E of 33×, and ROCE of 25 % that would make even top engineering firms blush. Q2 FY26 revenue stood at ₹63.3 crore (+10 % YoY) and PAT ₹8.3 crore (+13 % YoY). Not bad for a company born in 2022 through a demerger from Forbes & Company Ltd, the same house that once sold typewriters before turning to torque wrenches.
With a 22 % operating margin, a dividend yield of 2.7 %, and a 94 % promoter pledge, FPTMPL is like that relative who is both a valedictorian and perpetually broke.
2. Introduction
Every century-old conglomerate needs its “startup” moment — and for the Shapoorji Pallonji Group, it came with this shiny new engineering spin-off. Forbes Precision isn’t building skyscrapers like its cousins at SP Infra; it’s building the drill bits that help others do so — literally the tools behind the towers.
This company makes machine taps, end mills, carbide drills, rotary burrs, thread dies, and adaptors under classic Indian brands TOTEM, BBBB, and Forbes Kendo. If you’ve ever worked in a factory and cursed while changing a die set — congratulations, you’ve already met their product.
From a corporate structure perspective, NCLT Mumbai approved the demerger from Forbes & Company Ltd in Feb 2024, making FPTMPL a standalone listed entity from Mar 1 2024. Now it has one mission — slice, drill, mill, and hopefully thrill the markets.
3. Business Model – WTF Do They Even Do?
FPTMPL operates where engineering meets obsession. Here’s the short version, so even your cousin from crypto can understand:
a) Manufacturing: Produces precision cutting tools for threading, milling, drilling, deburring, and external threading — the bread and butter of every CNC machine in the country.
b) Brands:
TOTEM – the Indian industry legend for taps and dies.
BBBB – not a stock rating, just another product line.
Forbes Kendo – their export-grade performance tools.
c) User Industries: Automotive, Aerospace, Defence, Die & Mould, Valves, and any sector that enjoys watching sparks fly on metal.
d) Reach: 1,500 + distributors, 7 branch offices, exports to 32 countries, and a plant at Waluj, Aurangabad.
So basically — if something in India rotates, cuts, or threads, odds are Forbes Precision supplied the tool… or the credit note.
4. Financials Overview
Metric (₹ Cr)
Q2 FY26
Q2 FY25
Q1 FY26
YoY %
QoQ %
Revenue
63.3
57.5
52.4
9.9 %
20.7 %
EBITDA
14.6
11.5
8.4
27.0 %
73.8 %
PAT
8.3
7.4
3.8
12.9 %
118.4 %
EPS (₹)
1.61
1.44
0.74
11.8 %
117.6 %
Commentary: Revenue growth is small, but profit growth cuts deep. Margins rebounded after Q1 wobble — perhaps they sharpened their blades and their pricing.
5. Valuation Discussion – Fair Value Range Only
a) P/E Method EPS ₹ 5.56 × industry P/E 35.7 = ₹ 198 (upper band). Apply 10 % discount for small-cap size → ₹ 178–₹ 198.
