ZF Commercial Vehicle Q4 FY26: Revenue hits Rs 1,197 cr

Results date and where the filings are available

ZF Commercial Vehicle Control Systems India Limited published its results for the quarter ended March 31, 2026 and the full-year performance for FY25-26 on May 13, 2026. The company said the results are available on www.zf.com under the ZFCV India Investor Relations section. A management conference call with analysts followed the release and discussed the quarter, full-year performance, and operating drivers. The update came as the domestic commercial vehicle cycle improved in the second half of the year.

What drove the quarter: domestic CV recovery and segment mix

Management linked the operating recovery to a stronger second half for the commercial vehicle industry. It cited GST normalization, improved infrastructure and mining activity, festive demand, and replacement demand from aging fleets. The company said the upcycle was particularly visible in Q4 in the more-than-6-tonne commercial vehicle segment. This segment saw record quarterly production of 151,000 vehicles, compared with 119,000 vehicles in the same quarter last year, translating into 26.9% growth. For the full year, the company referenced overall vehicle growth of 16.6% to 463,000 vehicles versus 397,000 vehicles.

Q4 FY26 financial performance: record revenue and profit growth

For the quarter ended March 31, 2026, management reported revenue of INR 1,197 crore, describing it as the company’s highest single-quarter result, with 15.2% growth versus Q4 FY25. Profit before tax (PBT) stood at INR 196.6 crore, up 16.4% year on year. Profit after tax (PAT) was INR 146.3 crore, up 15.5% year on year.

Market data published alongside the results also reported revenue from operations of INR 1,155.23 crore in Q4 FY26, up 14.16% year on year, and total expenses of INR 1,000.23 crore, up 14.94% year on year. Within expenses, cost of material consumed was INR 686.39 crore (up 13.11% year on year) and employee benefits expense was INR 169.83 crore (up 31.19% year on year). The stock rose 1.30% after the earnings update.

Full-year FY26: highest revenue in company history

For FY25-26, the company reported total revenue of INR 4,302 crore, a 9.2% increase over the previous year and the highest annual revenue in its history. Full-year PBT was INR 693 crore, up 13.9% year on year. Full-year PAT was INR 517 crore, up 12.2% year on year.

A separate financial snapshot reported FY26 sales of INR 4,118.94 crore, revenue of INR 4,302.13 crore, and net income of INR 517.15 crore. It also reported basic and diluted earnings per share (EPS) from continuing operations of INR 272.65 for FY26.

Operating performance: OE strength, aftermarket growth, export pressure

Management said original equipment (OE) sales grew 17.6% in FY25-26, outpacing the industry growth referenced in the call. The aftermarket business reported revenue of INR 151 crore in Q4 FY25-26 and INR 584 crore for the full year. The company said the full-year aftermarket revenue represented growth of 15.6% compared with the previous financial year.

On exports, the company reported export revenue of INR 1,025 crore in FY25-26, a decline of 11.1% year on year versus FY24-25. Management also stated that export of services recorded strong growth of 22.5% in Q4 FY25-26 compared with the same quarter last year, and that services export grew 15.4% for the full year. Another management comment in the call noted service income increased by 10%.

Cost and margin commentary from management

While revenue and profit increased, management noted cost inflation as a key theme. It said margins were hit by higher material costs, highlighting aluminum, and also by salary increases. Management linked some cost pressure to supply disruptions and Middle East geopolitical issues, and said customer recoveries typically come with a lag relative to cost increases. The company indicated there were no other special items affecting the quarter.

Dividend, bonus issue, and subsidiary investment proposal

The board of directors recommended a final dividend of INR 4 per equity share of face value INR 5 each for FY26. The company said the dividend, if approved by shareholders at the forthcoming annual general meeting (AGM), will be paid on or before August 22, 2026. Separately, management communication also mentioned that the record date for the AGM and dividend payment would be July 10, 2026.

The board also approved the issuance of bonus equity shares in the ratio of 5:1, subject to shareholder approval and regulatory clearances. This implies shareholders would receive five equity shares of face value INR 5 each for every one fully paid-up equity share held as on the record date. In addition, the board approved an investment proposal in its wholly owned subsidiary, ZF CV Control Systems Manufacturing India, through subscription to its proposed rights issue.

Key numbers at a glance

Market impact and why the update matters

The results put numbers around a stronger domestic CV environment in the second half, with management pointing to GST normalization and demand drivers such as infrastructure and mining activity. The record Q4 revenue and double-digit profit growth indicate that operating leverage from volumes is supporting earnings, even as costs rise. At the same time, the export revenue decline and the sharp increase in employee benefits expense underline the mixed nature of the operating backdrop.

The corporate actions also matter for investors tracking near-term catalysts. The final dividend proposal sets an immediate shareholder-return item pending AGM approval, while the bonus issue and the proposed subsidiary rights subscription add to the list of corporate approvals and timelines to watch.

Conclusion

ZF Commercial Vehicle Control Systems India reported record quarterly and annual revenue for FY26, supported by a rebound in domestic commercial vehicle demand and growth in OE and aftermarket businesses. Profit grew in both Q4 and the full year, while management flagged material and salary-led cost pressure and a decline in export revenue. The next milestones for investors are the shareholder approvals for the final dividend and bonus issue, along with the company’s stated dividend payment timeline up to August 22, 2026.