ZF Commercial Vehicle Control Systems India Limited Earnings Summary — Q4 FY2026
ZF Commercial Vehicle Systems India Reports Strong Finish to FY26 with 14% Revenue Growth and Record Quarterly Profits
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 7.7% sequentially in Q1 FY2027.
- Revenue of ₹1,066 Cr is 9.3% higher year-on-year.
- Revenue has compounded at 4.8% annualised over the last 10 quarters.
- Net profit of ₹104 Cr is 14.6% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 1.9% annualised across the period.
- Operating margin stands at 12.9% in Q1 FY2027.
- Operating margin compressed by 56 bps year-on-year.
- Over the last two years operating margin has contracted by 176 bps.
- PBT margin is 13.1%.
- Expenses grew 10.0% against revenue growth of 9.3%.
- Operating profit of ₹138 Cr is 4.8% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 57/100 (Healthy) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 1,066 | 1,155 | 1,075 | 913 | 976 | 1,012 | 962 | 911 | 946 | 959 |
| Expenses | Stable | 928 | 965 | 876 | 779 | 844 | 837 | 785 | 771 | 807 | 813 |
| Operating Profit | Stable | 138 | 190 | 199 | 134 | 132 | 175 | 177 | 140 | 139 | 146 |
| Operating Margin | Stable | 12.9% | 16.4% | 18.5% | 14.7% | 13.5% | 17.3% | 18.4% | 15.4% | 14.7% | 15.2% |
| Other Income | Volatile | 36 | 42 | 22 | 45 | 67 | 27 | 17 | 39 | 25 | 20 |
| Interest | Improving | 1 | 1 | 2 | 1 | 1 | 1 | 1 | 1 | 2 | 1 |
| Depreciation | Stable | 32 | 34 | 33 | 32 | 33 | 32 | 32 | 31 | 29 | 29 |
| Profit Before Tax | Stable | 140 | 197 | 187 | 146 | 164 | 169 | 161 | 146 | 134 | 136 |
| Tax | Stable | 36 | 50 | 46 | 38 | 42 | 42 | 35 | 37 | 34 | 36 |
| Net Profit | Stable | 104 | 146 | 140 | 108 | 122 | 127 | 125 | 109 | 99 | 100 |
| Net Margin | Stable | 9.8% | 12.7% | 13.0% | 11.9% | 12.5% | 12.5% | 13.0% | 12.0% | 10.5% | 10.4% |
Key Takeaways
- Revenue reached a multi-quarter high of ₹1,155 Cr, representing a 14% YoY increase.
- Net profit grew for the fourth consecutive quarter, reaching ₹146 Cr.
- Operating margins saw a sequence-on-quarter compression from 19% to 16% due to rising expenses.
- Other income surged to ₹42 Cr in Q4, significantly aiding the bottom line.
- Free Cash Flow for the full year FY26 improved dramatically to ₹667 Cr from ₹121 Cr YoY.
- Inventory levels have risen to ₹485 Cr (Mar 2026) from ₹325 Cr (Mar 2025).
- Company maintains high capital efficiency with a ROCE of 20% and a fortress balance sheet.
Management Guidance
Management remains focused on premiumization through e-mobility and advanced actuators, driving a long-term strategy to move from component supply to integrated digital systems.
Sentiment Shift
Stable
Revenue and profit growth remains robust, though margins normalized in Q4 following an exceptionally strong Q3.
Outlook
The outlook remains positive due to structural tailwinds in Indian infrastructure and increasing regulatory requirements for electronic stability control (ESC) and air disc brakes in commercial vehicles.
From the Annual Report (Key Quotes)
“Company exhibits a fortress balance sheet with near-zero debt and substantial cash reserves.”
“Strategy is clearly geared towards moving up the value chain from components to integrated digital systems.”
“Strong recovery in margins, moving from 10% in FY22 to 16% in FY26.”
Official Quarterly Documents
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This summary is AI-generated from ZF Commercial Vehicle Control Systems India Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
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