ZF Commercial Vehicle Control Systems India Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript ZF Commercial Vehicle Control Systems India Ltd filed with BSE on 21 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
ZF Commercial Vehicle Control Systems India reported Q4 FY26 revenue of Rs 1,197 crores, up 15.2% year-on-year, with full year FY26 revenue at Rs 4,302 crores, up 9.2%. Management attributed the growth to a rebound in commercial vehicle industry production following GST rate cuts, while noting that Q4 margins declined due to higher aluminum and other commodity costs linked to the Middle East conflict and a January salary increase. The Board approved a 5:1 bonus share issue and a final dividend of Rs 4 per share post bonus, and management discussed export performance, ADAS/ESC order wins, and capex plans for FY27.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Revenue: INR1,197 crores (Q4 FY26)
p. 8
“our revenue stood at INR1,197 crores, the highest single quarter result with 15.2% growth compared to Q4 of last year”
Sweta Agarwal, page 8 of the filed PDF · View the filing
Profit before tax: INR196.6 crores (Q4 FY26)
p. 8
“Our profit before tax was INR196.6 crores, a growth rate of 16.4%”
Sweta Agarwal, page 8 of the filed PDF · View the filing
Profit after tax: INR146.3 crores (Q4 FY26)
p. 8
“our profit after tax was INR146.3 crores, a growth of 15.5% over Q4 of previous year”
Sweta Agarwal, page 8 of the filed PDF · View the filing
Total revenue: INR4,302 crores (FY26)
p. 8
“for the FY '25-'26, our total revenue stood at INR4,302 crores the highest in the history of the company with 9.2% growth compared to last financial year”
Sweta Agarwal, page 8 of the filed PDF · View the filing
Profit before tax: INR693 crores (FY26)
p. 8
“Our profit before tax was INR693 crores for FY '25-'26, and year-on-year growth of 13.9%”
Sweta Agarwal, page 8 of the filed PDF · View the filing
Profit after tax: INR517 crores (FY26)
p. 8
“PAT of INR517 crores, which is a year-on-year growth of 12.2%”
Sweta Agarwal, page 8 of the filed PDF · View the filing
Aftermarket revenue: INR151 crores (Q4 FY26)
p. 5
“the aftermarket business reported revenue of INR151 crores in Q4 '25-'26”
Paramjit Singh Chadha, page 5 of the filed PDF · View the filing
Aftermarket revenue: INR584 crores (FY26)
p. 5
“FY revenue stands at INR584 crores, which is a growth of 15.6% compared to last financial year”
Paramjit Singh Chadha, page 5 of the filed PDF · View the filing
Export revenue: INR1,025 crores (FY26)
p. 6
“company reported export revenue of INR1,025 crores in financial year '25-'26, reflecting a decline of 11.1% year-on-year compared to financial year '24-'25”
Paramjit Singh Chadha, page 6 of the filed PDF · View the filing
Export of services growth: 22.5% (Q4 FY26)
p. 6
“Export of services recorded a strong growth of 22.5% in Q4 financial year '25-'26 compared to the same quarter last year”
Paramjit Singh Chadha, page 6 of the filed PDF · View the filing
Export of services growth: 15.4% (FY26)
p. 6
“services export grew by 15.4% in financial year '25-'26 compared to the previous financial year”
Paramjit Singh Chadha, page 6 of the filed PDF · View the filing
CV production growth (>6 ton): 16.5% (FY26)
p. 4
“commercial vehicle industry, which delivered a robust 16.5% growth in production for medium and heavy vehicle segment more than 6 tons”
Paramjit Singh Chadha, page 4 of the filed PDF · View the filing
OE sales growth: 17.6% (FY26)
p. 5
“our OE sales grew by 17.6% in FY '25-'26, clearly outperforming industry growth as explained above”
Paramjit Singh Chadha, page 5 of the filed PDF · View the filing
OE growth: 17.5% (FY26)
p. 15
“OE growth was 17.5%, aftermarket 15.5%, with export degrowth of 11%.”
Sweta Agarwal, page 15 of the filed PDF · View the filing
OE revenue: INR1,978 crores (FY26)
p. 15
“OE is INR1,978 crores, aftermarket INR583 crores, exports INR1,025 crores, with service income INR509 crores.”
Sweta Agarwal, page 15 of the filed PDF · View the filing
OE supplies growth: 25% (Q4 FY26)
p. 11
“our OEM supplies have grown by about 25%, aftermarket by 21%, and we see a degrowth in exports of about 6%”
Sweta Agarwal, page 11 of the filed PDF · View the filing
Europe export growth: 6% (Q4 FY26)
p. 11
“the Europe growth was about 6% and American degrowth was -- just give me a minute.”
Sweta Agarwal, page 11 of the filed PDF · View the filing
Americas export degrowth: 22% (Q4 FY26)
p. 11
“there was a degrowth in the Americas of about 22%.”
Sweta Agarwal, page 11 of the filed PDF · View the filing
Value per vehicle: approximately 45.5K (Q3 FY26)
p. 15
“the Q3 FY26, we saw a value per vehicle of approximately 45.5K.”
Shankar Venkatachalam, page 15 of the filed PDF · View the filing
Value per vehicle: around 39.5K (Q4 FY26)
p. 15
“in the Q4, it was around 40K -- 39.5.”
Shankar Venkatachalam, page 15 of the filed PDF · View the filing
Aluminum price: INR274 per kg (last quarter)
p. 12
“Aluminum as a commodity has been increased from almost INR233 per kg to INR274 per kg approximately.”
Paramjit Singh Chadha, page 12 of the filed PDF · View the filing
Bonus share issue ratio: 5:1
p. 8
“the Board of Directors has approved the issuance of bonus equity shares in the ratio of 5:1, subject to shareholder and relevant regulatory approvals.”
Sweta Agarwal, page 8 of the filed PDF · View the filing
Final dividend: INR4 per equity share (FY26)
p. 8
“the Board has recommended a final dividend of INR4 per equity share post bonus for the financial year ended 31st March '26, subject to shareholder approval.”
Sweta Agarwal, page 8 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — flattish with small single-digit growth · FY27
stated conditionally by Sweta Agarwal
p. 9
“I mean I would expect it to be more or less flattish with maybe single-digit small growth for the next year.”
Sweta Agarwal, page 9 of the filed PDF · View the filing
Capex — INR180 crores to INR190 crores · FY27
stated firmly by Sweta Agarwal
p. 10
“We're looking at about a spend of about INR180 crores to INR190 crores.”
Sweta Agarwal, page 10 of the filed PDF · View the filing
ESC regulation rollout — all vehicles greater than 6-ton segment · October 2027
stated firmly by Shankar Venkatachalam
p. 13
“All vehicles that are greater than 6-ton segment would be impacted by the regulations, which would be rolled out effective October 2027.”
Shankar Venkatachalam, page 13 of the filed PDF · View the filing
U.S. export demand — moderate improvement
stated conditionally by Paramjit Singh Chadha
p. 6
“with early signs of recovery emerging in the U.S. market in Q4, we anticipate moderate improvement in export demand.”
Paramjit Singh Chadha, page 6 of the filed PDF · View the filing
Overall quarter performance — Q1 FY27
stated conditionally by Paramjit Singh Chadha
p. 17
“So we do see a good quarter this year also.”
Paramjit Singh Chadha, page 17 of the filed PDF · View the filing
India sourcing target from ZF group — FY30
stated as an aspiration by Sweta Agarwal
p. 14
“what has been given out as a target for India's growth very definitely stand.”
Sweta Agarwal, page 14 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management cited higher material costs from the Middle East conflict and a January salary increase, with no other one-time items.
Answered by Sweta Agarwal
Asked by Mumuksh Mandlesha: What caused the 230 bps Q-o-Q margin decline in Q4?
p. 9
“Two factors that I can talk about. One is a bit on material cost.”
Sweta Agarwal, page 9 of the filed PDF · View the filing
The company has won full-suite ADAS business from 2 OEM customers and is in discussions with others.
Answered by Shankar Venkatachalam
Asked by Mumuksh Mandlesha: How are ADAS OEM order wins progressing?
p. 9
“we have already got business awards for the full suite of solutions, which has the complete range of ADAS portfolio of products beyond the requirement from 2 OEM customers, whom we are now working with.”
Shankar Venkatachalam, page 9 of the filed PDF · View the filing
Costs rose disproportionately due to a timing lag between commodity cost increases and customer price recoveries.
Answered by Sweta Agarwal
Asked by Lakshminarayanan: Why is EBITDA growth lagging revenue growth?
p. 10
“That's because the costs have increased disproportionately to the revenue due to these -- yes, the timing difference between the cost to the revenue.”
Sweta Agarwal, page 10 of the filed PDF · View the filing
OEM supplies grew about 25%, aftermarket 21%, exports declined about 6%, with export services up 22.5%.
Answered by Sweta Agarwal
Asked by Dishant Jain: What are the segment-wise growth figures for Q4?
p. 11
“our OEM supplies have grown by about 25%, aftermarket by 21%, and we see a degrowth in exports of about 6%, with the growth of 22.5% on export service income.”
Sweta Agarwal, page 11 of the filed PDF · View the filing
Management said higher diesel prices could affect freight rates and fleet buying capacity with a lag, though efficiency-driven replacement demand could offset this.
Answered by Shankar Venkatachalam
Asked by Dishant Jain: Will rising diesel prices affect demand?
p. 11
“Typically, this would impact the freight rates. So, then impact on freight rates will have cascading effects on the utilization of trucks and thereby the buying capacity of fleet owners.”
Shankar Venkatachalam, page 11 of the filed PDF · View the filing
Current fitment is voluntary, mainly in petroleum and oil tanker segments, with mandatory regulation starting 2027.
Answered by Shankar Venkatachalam
Asked by Pritesh Chheda: Is ESC fitment currently mandatory or voluntary?
p. 15
“As of now, there is fitment happening voluntarily primarily in the POL that is the petroleum and oil tanker segment”
Shankar Venkatachalam, page 15 of the filed PDF · View the filing
Management said new RFQs are ongoing and the group's India growth target stands, though specifics on timing were not detailed.
Answered by Sweta Agarwal
Asked by Nishant Vass: Is India sourcing on track to meet ZF's FY30 group targets?
p. 14
“We are getting some new RFQs, I would say, and that's ongoing.”
Sweta Agarwal, page 14 of the filed PDF · View the filing
A one-time selling price variance benefited Q3 and was not repeated in Q4, making the underlying trend flat.
Answered by Shankar Venkatachalam
Asked by Darshan Bhandarkar: What explained the Q3 to Q4 decline in content per vehicle?
p. 16
“It was related to certain selling price variances that we got from customers. Those were some one-timers that were got in the close of the quarter.”
Shankar Venkatachalam, page 16 of the filed PDF · View the filing
Risks flagged
Geopolitical conflict in West Asia disrupting supply chains and raising commodity costs
p. 4
“the conflict in West Asia and associated disruption to the supply -- global supply chains”
Paramjit Singh Chadha, page 4 of the filed PDF · View the filing
U.S. tariffs increasing import costs and constraining export demand
p. 6
“the U.S. tariffs created headwinds for the industry by increasing import costs and constraining manufacturing activity, which in turn impacted demand and overall market growth”
Paramjit Singh Chadha, page 6 of the filed PDF · View the filing
Rising aluminum commodity costs due to supply crisis
p. 15
“there has been a crisis of aluminum availability in the market in last quarter, and that has also caused the increase in the price of aluminum and some more commodity”
Paramjit Singh Chadha, page 15 of the filed PDF · View the filing
Lag between cost increases and customer price recoveries pressuring margins
p. 10
“Conversations with customers are ongoing to collect it, but there is always a lag between the two, and that's what's showing up as a degrowth in EBITDA.”
Sweta Agarwal, page 10 of the filed PDF · View the filing
Potential slowdown in vehicle purchases from rising diesel prices affecting freight rates
p. 11
“this slowdown may be there in terms of the vehicle purchase. So that's something that we need to keep a close eye on.”
Shankar Venkatachalam, page 11 of the filed PDF · View the filing
External volatility from geopolitical developments could pressure industrial activity
p. 4
“external volatility could pose near-term pressure on industrial activity”
Paramjit Singh Chadha, page 4 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.