ZF Commercial Vehicle Control Systems Q1 profit falls 15% despite higher revenue; margin narrows

ZF Commercial Vehicle Control Systems reported a 14.6% year-on-year decline in net profit for the first quarter of FY27, even as revenue rose on the back of higher sales, according to an exchange filing on Friday, July 24.

The company posted a net profit of ₹104.5 crore for the quarter ended June 30, compared with ₹122.4 crore in the corresponding period last year.

Revenue from operations increased 9.3% to ₹1,066.2 crore, up from ₹975.6 crore a year earlier.

ZF Commercial Vehicle Control Systems shares were down 4.2% at ₹2,267 as of 1:54 p.m

Margins contract

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 4.8% year-on-year to ₹137.9 crore, compared with ₹131.6 crore in the year-ago quarter.

However, the company's EBITDA margin narrowed to 12.9% from 13.5% a year ago, reflecting margin pressure despite higher revenue.

ZF Commercial said it operates in a single business segment — automotive components and allied services.

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Rakesh Mishra appointed CFO

Separately, the company's board approved the appointment of Rakesh Mishra as Chief Financial Officer (CFO) and Key Managerial Personnel, effective September 1, 2026, according to the filing.

Previous quarter

In the March quarter (Q4FY26), ZF Commercial Vehicle Control Systems reported a 15.5% increase in net profit to ₹146.3 crore, while revenue grew 14.2% to ₹1,155.2 crore. EBITDA rose 8.5% to ₹190 crore, although EBITDA margin softened to 16.4% from 17.3% a year earlier. The company had also announced a final dividend of ₹4 per share.

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