Earnings Call Transcript
Awaiting price reaction for this filing.
ZF Commercial Vehicle Control Systems India (formerly WABCO) posted Q4 FY25 revenue of ₹1,039 crore, crossing the ₹1,000 crore mark for the first time, with quarterly PBT of ₹168.8 crore. Full-year PBT hit an all-time high of ₹609.3 crore, supported by FY25 EBITDA margin of 22.1% and PBT margin of 18.2% of product sales. Exports grew 8.4% to ₹1,164.6 crore, while domestic OE sales declined 9.8% amid a weak CV industry (–5.4%) due to model mix shift toward lighter vehicles. Management highlighted strong growth runway from upcoming ADAS regulations (~₹40,000+ content per vehicle) and ESC bus regulations effective September 2025, with FY26 capex guidance of ~₹190 crore and LCV business potential estimated at ~EUR 90 million over 5 years.
Record profitability and improving margins signal operational strength, but weak OE sales growth and absence of forward margin guidance may temper near-term sentiment. Long-term ADAS/ESC regulation tailwinds offer substantial revenue optionality for the stock.