ZF Commercial Vehicle Control Systems India (ZFCVINDIA) Q2 25/26 earnings summary

Executive summary

• Consolidated revenue for Q2 FY26 was INR 958.21 crores, up 0.8% year-over-year; H1 revenue grew 4.1% to INR 2,003.6 crores.

• Net profit for H1 FY26 rose 10.6% to INR 230.65 crores; Q2 PAT was INR 108.3 crores.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2025 were reviewed and approved by the Board and Audit Committee, with unqualified auditor reports confirming compliance with regulatory standards.

• Dr. Christian Brenneke resigned as Non-Executive Non-Independent Director, effective 4 November 2025, and Mr. Ivan Brajdic was appointed as Additional Director effective 5 November 2025, pending shareholder approval via postal ballot.

• EBITDA margin for Q2 stood at 22.9%; profit before tax was 18.6% of product sales.

Financial highlights

• Q2 consolidated revenue: INR 958.21 crores (0.8% YoY growth).

• H1 consolidated net profit: INR 230.65 crores (10.6% YoY growth).

• Standalone revenue from operations for the six months ended 30 September 2025 was ₹1,86,502.76 lakhs, up from ₹1,84,501.25 lakhs year-over-year.

• Consolidated profit after tax for the six months was ₹23,065.20 lakhs, compared to ₹20,855.30 lakhs year-over-year.

• Working capital improvement of INR 187 crores in H1, driven by better collections and cash utilization.

Outlook and guidance

• Commercial vehicle industry outlook remains positive, with growth expected from GST reforms, infrastructure spending, and mining resumption.

• Strategic focus on increasing penetration of safety and e-mobility products, including trailer ABS/EBS and e-compressors.

• Anticipates continued growth in LCV and e-bus segments, supported by regulatory changes and rising demand.

• The company continues to operate in the automotive components and allied services segment, with no change in business focus.

• Export volumes to the U.S. expected to remain challenged in the near term, with partial offset from European market growth.