Q1 2027 ZF Commercial Vehicle Control Systems India Ltd Earnings Call Transcript
Key Points
- ZF Commercial Vehicle Control Systems India Ltd (BOM:533023) reported a 9.3% year-on-year growth in revenue from operations for Q1 FY26-27, driven by strong performance in the aftermarket and export segments.
- The aftermarket business achieved a 15.6% year-on-year growth, reaching INR158.4 crore, with a record monthly sale of INR63.06 crore in June 2026, supported by healthy replacement demand and preventive maintenance trends.
- Export revenues grew 9.7% year-on-year to INR271.4 crore, driven by higher volumes of double diaphragm spring brake actuators and air compressors, along with successful new product launches for North American customers.
- The company secured Electronic Stability Control (ESC) nominations from three major OEMs, positioning itself to reinforce its leadership in advanced braking technology ahead of upcoming truck safety regulations.
- Operational excellence was recognized with multiple awards, including a CII Gold Award for the Ambattur plant, and sustainability initiatives such as a new rainwater harvesting system and reduced LPG consumption were implemented.
- Profit after tax declined by 14.7% year-on-year to INR104.5 crore, primarily due to the absence of a significant foreign exchange gain of INR39 crore recorded in the same quarter last year.
- The company faced external headwinds including volatility in key commodity prices (e.g., aluminum rising from INR260 to INR360 per kg) and an industry-wide shortage of blue-collar manpower during April and May.
- The trailer segment experienced a decline in demand during the quarter, attributed to slower mining activity, monsoon-related disruptions, and higher input costs.
- Gross margins came under pressure due to rising costs of commodities like aluminum, LPG, and other petroleum-related products, with only partial cost recovery from OEMs achieved so far.
- Other expenses increased by approximately 10% quarter-on-quarter, driven by foreign exchange losses, higher CSR and consultancy costs, and increased rental expenses for service locations.
Ladies and gentlemen, good day and welcome to ZF Commercial Vehicle Control Systems India Limited Q1 FY27 Earnings Conference Call hosted by 360 One Capital Market Private Limited.
(Operator Instructions)
I now hand the conference over to Mr. Annamalai Jayaraj from 360 One Capital Markets Private Limited.
Thank you and over to you Mr. Jayaraj.
I will introduce the management. So good afternoon.
Thank you for joining us today and welcome to ZF Commercial Vehicle Control Systems India Limited's call to brief you on Q1 FY 2026-27 earnings.
Today, the first quarter earnings for FY 2026-27 will be presented by the management team of ZF Commercial Vehicle Control Systems India Limited. Your posts today from ZF Commercial Vehicle Control Systems India Limited are Mr. Paramjit Chadha, Managing Director Mr. Shankar Venkachalam, Head of OG Sales.
Mr. Swati Dutta, General Manager of Finance, and Ms. Sivi Kavya, Company Secretary. I'll now hand over to
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