ZF Commercial Vehicle Control Systems India

“During the quarter, we successfully productionized new assembly lines for ASP cartridges and vacuum pumps”

“To enhance capacity and operational agility, we commissioned new assembly lines for brake actuators and valves across our manufacturing network. Strategic investments at Jamshedpur, Lucknow, and Pantnagar further improved production flexibility, responsiveness to customer requirements, and delivery performance.”

“scaling up production of e-compressors and brake signal transmitters to support growing customer demand.”

“During Q1 FY26-27, our sales in the CV >6T segment grew by 8.6%, marginally ahead of the industry's 8.4% growth”

“The Aftermarket business delivered a strong performance in Q1 FY26-27, with sales of ₹158.4 crore, representing a 15.6% year-on-year growth.”

“We also achieved our highest-ever monthly aftermarket sale in June 2026, with revenue of ₹63.06 crores”

“Looking ahead, continued investments in infrastructure across both the public and private sectors are expected to support fleet utilization and sustain aftermarket demand.”

“Against this backdrop, the Company reported export revenues of ₹271.4 crores in Q1 FY 2026”

“India’s strong economic momentum was reflected in the Commercial Vehicle industry, with CV >6T production growing by 8.4% in Q1 FY26-27, supported by healthy freight activity, robust infrastructure-led demand and continued strength in core sectors.”

“The trailer segment, however, witnessed a decline during the quarter, primarily due to slower mining activity, monsoon-related disruptions, and higher input costs, which weighed on market demand.”

“The Vehicle Scrappage Policy is expected to support replacement demand by accelerating the transition to safer, more fuel-efficient, and technologically advanced commercial vehicles.”

“This performance was driven by improved fleet utilization, healthy replacement demand, and an increasing focus on preventive maintenance by fleet operators.”

“Although the U.S. market witnessed a decline on an annual basis, it is currently ramping up, and the outlook for the upcoming quarters remains positive for both the U.S. and European markets.”

“We intensified our focus on the Aftermarket business and implemented selective price increases effective July 2026.”

“We continue to engage proactively with OEM customers on commodity and foreign exchange cost recovery measures, with a portion already realized and the balance under active discussion.”

“Under our PERFORM26 initiative, we remain focused on continuous improvement measures (CIS), productivity enhancement, value engineering, material cost optimization and manufacturing efficiency improvements to help offset inflationary pressures and strengthen profitability.”

“So aluminum has gone higher close to INR100 from around INR260 per kg, and it has gone up to more than INR360 per kg.”

“And also, there are some increases in the oil prices, consumable grease and other things. So anything related to chemical, including rubber, plastic, they have seen increase in this quarter and, in fact, in the previous quarter.”

“We continued to strengthen our market position through the launch of new products, including Disc Brake Rotors, TRW products, and Clutch Master Cylinders.”

“In addition, the successful launch and ramp-up of new products, including the Uni-Stop Disc Brake Chamber for North American customers, contributed significantly to the growth achieved during the quarter.”

“Our Engineering and R&D teams continued to drive innovation and support business growth through the rapid development and launch of key products, including the Next-Generation Electronically Controlled Air Suspension (ECAS) and the Type 24/24 High-Force Spring Brake Actuator, enabling new business wins with leading OEMs.”

“The team also strengthened our aftermarket portfolio through the launch of CV Brake Pads and Hydraulic Steering Systems, while introducing Quick Fittings for the trailer segment, further expanding our product offerings across key customer segments.”

“We would like to place on record our sincere appreciation for Ms. Sweta Agarwal for her valuable contributions as Chief Financial Officer and wish her success in her future endeavors.”

“To further strengthen our leadership and governance framework, the Board approved the appointment of Mr. Rakesh Mishra as Chief Financial Officer, effective September 1, 2026.”

“The Board also appointed Ms. C. V. Kavviya as Whole-Time Company Secretary and Compliance Officer, effective July 25, 2026.”

“The year-on-year difference is primarily attributable to the absence of the significant FX gain (₹39 crores) and higher one-time income (₹4.7 crores) recorded in Q1 of the previous financial year. In contrast, Q1 of the current financial year was affected by an FX loss of ₹1.98 crores and lower one-time income of ₹1.2 crores.”

“So that is close to INR39 crores, plus there were some actuarial valuation one-timers. So that total amount was INR43.7 crores, which in this quarter only close to INR1.98 crores. That is basically FX loss.”

“the billing was done of the services at a x-price of FX, but we got it at 1.08x. So around 8% higher forex gain we booked in this last year first quarter.”

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“Growth during the quarter was partially impacted by certain headwinds, including a 9% decline in trailer market demand and a widespread shortage of blue-collar manpower across India during April and May, which affected production across the industry.”

“During the quarter, we faced certain external headwinds, including volatility in Forex, key commodity, energy and consumable prices driven by geopolitical developments, as well as an industry-wide shortage of blue-collar manpower during April and May, which impacted production costs across several manufacturing sectors.”

“While geopolitical developments, inflationary pressures, and commodity price volatility remain factors to monitor, strong freight movement, infrastructure activity, and replacement demand continue to provide a favourable backdrop for growth.”

“Having secured business nominations from three major OEMs and progressing discussions with other key customers, we are well positioned to reinforce our leadership in advanced braking technologies.”

“In preparation for upcoming safety regulations, ESC homologation testing commenced for multiple customers at the ZF Proving Ground.”

“We are happy to share that for the quarter ending June 30, 2026, our Total income stands at 1,101.8 crores with 5.7% growth compared to Q1 of previous Financial Year. However, our revenue from operations grew by 9.3%”

“Excluding foreign exchange (FX) gains/losses and one-time items, our income increased from ₹1,001.5 crores in Q1 FY 2025-26 to ₹1,100.6 crores in Q1 FY 2026-27.”

“The Company’s Profit Before Tax (PBT) for Q1 FY 2026–27 stood at ₹140.1 crores, While Profit After Tax (PAT) amounted to ₹104.5 crores, with a de growth of -14.7%.”