ZF Commercial Vehicle Control Systems India (ZFCVINDIA) Q2 25/26 earnings summary

Executive summary

• Q2 FY 2025-26 saw marginal revenue growth and strong profitability despite global volatility and headwinds in key export markets.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2025 were reviewed and approved by the Board and Audit Committee, with unqualified auditor reports confirming compliance with regulatory standards.

• Strategic focus on regulatory-driven product adoption, electrification, and aftermarket expansion supported performance.

• Management changes at the global and divisional levels were announced, including the resignation of Dr. Christian Brenneke and appointment of Mr. Ivan Brajdic as Additional Director, pending shareholder approval.

Financial highlights

• Q2 consolidated revenue was INR 958.21 crores, up 0.8% year-over-year; H1 consolidated revenue was ₹1,88,879.77 lakhs, up from ₹1,85,667.12 lakhs year-over-year.

• H1 consolidated net profit rose 10.6% to INR 230.65 crores; consolidated profit after tax for the six months was ₹23,065.20 lakhs, compared to ₹20,855.30 lakhs year-over-year.

• Q2 EBITDA margin reached 22.9%; profit before tax was 18.6% of product sales (INR 145.9 crores); profit after tax was INR 108.3 crores.

• Earnings per share (basic and diluted) for the six months were ₹121.60 (consolidated) and ₹119.49 (standalone).

• Working capital improved by INR 187 crores in H1, driven by better collections and cash utilization.

Outlook and guidance

• Indian GDP growth projected at 6.8% for FY 2025-26, with Q2 at 7%.

• Commercial vehicle industry expected to benefit from GST reforms, infrastructure spending, and electrification.

• Positive outlook for LCV and e-bus segments; export headwinds in the US expected to be partially offset by European growth.

• The company continues to operate in the automotive components and allied services segment, with no change in business focus.