ZF Commercial Vehicle Control Systems India Limited reported strong financial growth for the financial year ending March 31, 2026. The board has recommended a final dividend of Rs. 4 per share and approved the issuance of bonus equity shares in a 5:1 ratio. Furthermore, the company announced an expansion of its authorised share capital and strategic investment in its wholly owned subsidiary to bolster manufacturing operations.
Financial Performance Overview
The company achieved robust growth in FY26, with annual standalone revenue reaching Rs. 4,055.48 crore compared to Rs. 3,804.09 crore in the previous year. Net profit after tax for the year stood at Rs. 506.68 crore, an increase from Rs. 458.66 crore in FY25. On a consolidated basis, the annual revenue was reported at Rs. 4,118.94 crore with a net profit of Rs. 517.15 crore.
Dividend and Bonus Share Issuance
In recognition of the company’s performance, the Board of Directors has recommended a final dividend of 80%, amounting to Rs. 4 per share for the fiscal year 2025-26. Additionally, the Board has approved a bonus issue of equity shares in a 5:1 ratio, meaning shareholders will receive 5 bonus shares for every 1 fully paid-up equity share held. The record date for determining eligibility for the bonus shares and the final dividend has been set for June 24, 2026.
Strategic Investments and Capital Expansion
To support ongoing operations and future growth, the Board has approved an investment of Rs. 30 crore in its wholly owned subsidiary, ZF CV Control Systems Manufacturing India Private Limited, through a rights issue of preference shares. Concurrently, the company is set to increase its authorised share capital from Rs. 10 crore to Rs. 60 crore to accommodate the capital structure adjustments required for the bonus share issuance.
Operational Highlights
The company continues to focus on its core automotive components manufacturing segment. The management noted that the financial results for the quarter ending December 31, 2025, included a one-time impact due to provisions for employee benefits following the implementation of new labour codes, which was recognised as an exceptional item. The company’s audit reports for both standalone and consolidated financial statements received an unmodified opinion.
Source: BSE
