ZF Commercial Vehicle Control Systems India Limited reported strong financial results for Q3 FY ’25-’26, with consolidated revenues increasing by 12.8% YoY to INR 1,105 crores. EBITDA margin reached 20%, driven by outperformance in the OE sales segment, which grew 28.1%, significantly outpacing the 20.6% growth in the overall CV (6-tonne+) market. Aftermarket sales also showed robust growth of 19.2%.
Q3 FY ’25-’26 Financial Highlights
ZF Commercial Vehicle Control Systems India Limited announced its results for the quarter ending December 31, 2025. Total consolidated revenues reached INR 1,105 crores, marking a 12.8% year-on-year increase and a 15.3% sequential jump from the previous quarter. This marks the first time the company crossed INR 1,100 crores in quarterly revenue.
Operating performance was strong, yielding an EBITDA margin of 20% on total sales. Profit Before Tax (PBT) before exceptional items (related to Labor Code changes) stood at INR 194.5 crores. After accounting for the INR 7.9 crores exceptional impact, the reported PAT was INR 140.2 crores, resulting in a 12.7% PAT margin and an 11.7% growth over the previous year’s corresponding quarter.
Operating Performance and Market Context
The company’s OE sales grew by 28.1% in Q3 FY ’25-’26, outperforming the overall Indian CV (more than 6-tonne) production growth of 20.6% by 7.5%. This outperformance was attributed to high EV bus production, increased market share in e-compressor/EBS, and rising ESC penetration due to new regulations.
Industry Outlook
Management noted that the overall CV industry is experiencing a strong upward momentum, supported by robust domestic economic fundamentals, including 8.2% GDP expansion in Q2 ’25-’26. Truck segment growth is expected to be sustained by infrastructure spending (INR 12.2 lakh crores outlay) and mining activity resumption.
Aftermarket and Exports
Aftermarket sales demonstrated healthy momentum, reaching INR 158 crores, a strong 19.2% growth over the prior year’s INR 132 crores. This was significantly driven by retrofitting demand (e.g., INR 4.1 crores from trailer ABS/EVS retrofits).
Conversely, export performance declined by 10.9% YoY, primarily due to volume reduction in the U.S. market, though this was partially offset by improvement in the EU market. The company remains focused on localization and leveraging India as a strategic engineering hub, evidenced by 11.1% growth in export of services.
Strategic Initiatives and Product Focus
Key Growth Drivers
- Electrification: Growing focus on the EV ecosystem is accelerating demand for electric buses. The content value for an e-compressor is significantly higher than ICE equivalents.
- Safety and Emission Norms: Mandating of low-floor buses is expected to drive significant penetration of the ECAS (Electronically Controlled Air Suspension) product.
- Localization: Efforts are underway to localize ECAS, trailer ABS, and trailer EBS to align with emerging regulations like AIS 113.
Regulatory Timelines and Pricing
Regarding the upcoming ADAS legislation in 2027, management stated discussions are in an advanced phase, noting that customer pricing expectations for ADAS are currently settling around half the initial indicated figures (around INR 40,000 to INR 45,000). For the mandated ESC for buses, volumes are increasing by approximately 3,000 units YoY (about 1,000 units per month) due to legislation.
ESG and Operations Update
The company continues to prioritize sustainability, highlighted by energy conservation projects saving approximately 50,000 units annually via compressor leak arresting and 20,000 units through the introduction of eFans in AHUs.
Operationally, Mr. G. Mukund succeeded Mr. M.S. Ravi Kumar as the new Head of Operations, effective January 30, 2026.
Source: BSE
