ZF Commercial Vehicle Control Systems India Limited has reported strong financial results for the fiscal year ended March 31, 2026. The Board of Directors has recommended a final dividend of 80% (INR 4 per share) and approved a bonus issue of equity shares in a 5:1 ratio. Furthermore, the company announced an increase in its authorized share capital and significant investments in its wholly-owned subsidiary, ZF MIPL.
Financial Performance Highlights
For the financial year ended March 31, 2026, the company achieved a standalone revenue from operations of INR 4,055.48 crore, compared to INR 3,804.09 crore in the previous year. The standalone net profit after tax reached INR 506.68 crore, up from INR 458.66 crore in the previous fiscal year. On a consolidated basis, the company reported an annual revenue of INR 4,118.94 crore and a net profit after tax of INR 517.15 crore.
Dividend and Bonus Share Issuance
The Board has recommended a final dividend of INR 4 per equity share (80% of face value) for the financial year 2025-26, subject to shareholder approval at the upcoming Annual General Meeting scheduled for July 24, 2026. Additionally, the company has approved a major bonus issue in a 5:1 ratio, meaning shareholders will receive 5 new equity shares for every 1 fully paid-up share held as of the record date of June 24, 2026.
Strategic Investments and Capital Changes
The Board has approved an investment of INR 30 crore into its wholly-owned subsidiary, ZF CV Control Systems Manufacturing India Private Limited (ZF MIPL), through a rights issue of non-cumulative optionally convertible redeemable preference shares. The funds are earmarked for capital expenditure, working capital needs, and debt repayment. To support long-term growth, the company is increasing its authorized share capital from INR 10 crore to INR 60 crore, a move that requires subsequent shareholder and regulatory approval.
Operational Updates
During the fiscal year, the company recognized a non-recurring impact of INR 7.94 crore in its financials due to the implementation of new labour codes notified by the Government of India in late 2025. The company remains focused on its singular operating segment of automotive components and allied services, continuing its commitment to operational excellence and financial stability.
Source: BSE
