ZF Commercial Vehicle Control Systems India Limited continues to ramp up production of advanced technology products at its multi-divisional manufacturing plant in Oragadam. The plant manufactures e-compressors, hydraulic electronic stability control (ESC) systems, electronic stability control solutions for e-mobility, air system protector (APS) cartridges for Indian original equipment manufacturers (OEMs), and wheel-end products such as actuators, brake chambers and automatic slack adjusters for domestic and export markets.
New products such as exhaust brake assembly (EBS), e-compressor lite and brake signal transmitters for Indian truck and trailer OEMs have been successfully launched, along with expansion of the current portfolio to the aftermarket.
Assembly lines have been upgraded in the Jamshedpur, Lucknow and Pantnagar plants for manufacturing footprint capability, resulting in improved delivery performance, flexibility and customer responsiveness, while supporting sustainability objectives through reduction of transportation emissions. The company said it continues to realise productivity and quality gains through implementation of smart automation, robotic technologies, testing automation and digitalisation in assembly and machining cells.
“On engineering front, the company had successfully enabled start of production of e-compressor AirLite for truck platform, diameter 60 and 90 exhaust brake assembly product for major OEM,” said Paramjit Singh Chadha, Managing Director.
The company reported consolidated revenue of INR 11.05 billion for Q3 FY 2025–26, compared with INR 9.8 billion in the same quarter of the previous financial year, reflecting a 12.8 percent year-on-year increase and a 15.3 percent rise over the previous quarter. EBITDA margin stood at 20 percent on total sales. Profit before tax before exceptional items was INR 1.945 billion, while reported profit before tax stood at INR 1.865 billion after accounting for an exceptional impact of INR 79 million relating to labour code changes. Profit after tax reached INR 1.402 billion, translating to a 12.7 percent margin and representing an 11.7 percent increase over the corresponding quarter of the previous year and a 29.5 percent rise compared with Q2 FY 2025–26.
Explaining the seasonal margin movement, Sweta Agarwal, Chief Financial Officer, said, “We typically do our retrospective price amendments in Q3. You see an impact of price adjustments or collections from April to September also being collected in December.” She added that on a full-year basis, margins are expected to see a small expansion, with the December quarter benefiting from retrospective price adjustments.
Operationally, production in the above 6 tonne commercial vehicle segment grew 20.6 percent during the quarter, while the company’s overall sales rose 28.1 percent, reflecting an outperformance of 7.5 percent relative to the industry. Management attributed the performance to high electric bus production, increased market share among independent bus manufacturers for e-compressors and EBS systems, a sharp rise in ESC penetration driven by updated regulations effective September 2025, start of production of a new exhaust brake valve variant in Q3 FY 2025–26 and profitability improvement actions including price resetting of low-margin products.
Aftermarket revenue reached INR 1.58 billion in Q3, compared with INR 1.32 billion in the same period of the previous financial year, representing 19.2 percent growth. Retrofitment demand, particularly from public sector oil and gas customers, generated INR 41 million through trailer ABS and EBS retrofitment programmes. The company also expanded its service footprint through seven new authorised service centres.
Goods exports declined 10.9 percent year on year, primarily due to volume reduction from the US market, where vehicle production fell 28 percent during the quarter, partly offset by 9 percent growth in the EU market. The combined market decline stood at 12.2 percent. Export of services grew 11.1 percent compared with the corresponding quarter last year, driven by sustained increase in engineering activities delivered from India to global centres.
Looking ahead, the company said it is advancing strategic initiatives aligned with regulatory developments and technology adoption. These include increasing penetration and localisation of ESC systems, initiating efforts to localise electronically controlled air suspension (ECAS) in anticipation of potential low-floor bus mandates, and increasing penetration of trailer ABS, trailer EBS and Scalar EVO+ systems in line with AIS 113 trailer regulations. “Per vehicle realization once localized could be around 25k to 30k,” Chadha said.
ZF Commercial Vehicle Control Systems India Limited manufactures braking, air management and control systems for commercial vehicles, serving domestic and international OEMs and the aftermarket segment.
