Transcript of earnings call Q4
ZFCVINDIA · price
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ZF Commercial Vehicle Control Systems India delivered its highest-ever quarterly and annual results in Q4 and FY26. Q4 revenue stood at INR1,197 crores (15.2% YoY growth), with PAT of INR146.3 crores (15.5% growth). Full year revenue reached INR4,302 crores (9.2% growth) with PAT of INR517 crores (12.2% growth). The board approved a bonus issue in the ratio of 5:1 and recommended a final dividend of INR4 per share post bonus. Margin declined by 230 bps Q-o-Q due to a surge in aluminum costs (up ~18%) and higher employee expenses. Management guided for flat to single-digit margin improvement in FY27 given macroeconomic uncertainty. The company has secured ADAS business awards from 2 OEMs ahead of the 2027 safety regulation rollout. Exports declined 11% YoY to INR1,025 crores due to U.S. market weakness, though early recovery signs are emerging. Capex for FY27 is planned at INR180-190 crores.
The company posted record results with a bonus issue rewarding shareholders, but margin pressure from commodity costs and a cautious FY27 outlook may limit near-term upside. The ADAS order pipeline and ESC regulation from 2027 provide multi-year growth visibility.