ZF Commercial Vehicle Control Systems India has delivered its strongest financial performance to date, with FY26 revenue reaching INR 4,302 crores, representing a 9.2% growth. Following this success, the Board has recommended the company’s first-ever bonus equity share issue in a 5:1 ratio. Despite macroeconomic challenges and global supply constraints, the company continues to see strong demand supported by new product launches and an expanding footprint in advanced safety technologies.
Record Financial Performance
The company achieved historic financial milestones in the financial year 2025-26. Annual revenue soared to INR 4,302 crores, while Profit After Tax (PAT) climbed to INR 517 crores, marking a 12.2% year-on-year increase. Performance for the final quarter (Q4, Jan-Mar 2026) was equally robust, with revenue hitting INR 1,197 crores and a 15.2% growth compared to the same period in the previous year.
Shareholder Value Initiatives
In recognition of this robust financial performance, the Board of Directors has approved the company’s first-ever bonus issue of equity shares in a 5:1 ratio. Shareholders will receive 5 bonus shares for every 1 existing share held. The record date for this issuance is June 24, 2026. Furthermore, the Board has recommended a final dividend of INR 4 per equity share, payable post-bonus, subject to shareholder approval at the upcoming Annual General Meeting.
Strategic Growth and Outlook
The company is capitalizing on the transition toward advanced vehicle safety technologies. The OE sales segment grew by 17.6% during the year, outperforming the broader industry. Management highlighted that the business is actively securing orders for a full suite of ADAS (Advanced Driver Assistance Systems) solutions. With the upcoming regulatory mandates effective in October 2027, the company is positioning itself as a leader in braking systems and electronic stability control.
Operational Highlights
Despite short-term headwinds, including U.S. tariff pressures and geopolitical instability in the Middle East, the company remains resilient. The aftermarket business contributed INR 584 crores to the total annual revenue, driven by an extensive network of 6,000-plus retailers and 4,000-plus distributors. The company also continues to invest in future-ready manufacturing, with a planned capital expenditure of INR 180-190 crores for FY27 to support new products and plant upgrades.
Source: BSE
