ZF Commercial Vehicle Q1: consolidated PAT slips 15% YoY on margin squeeze, revenue up 9%
PAT -14.63% YoY · revenue +9.29% · margins compressing
₹1,066.18 Cr
+9.29% YoY
₹104.48 Cr
-14.63% YoY
9.48%
-2.3pp YoY
₹9.18
ZF Commercial Vehicle Control Systems India's Q1 FY27 (quarter ended 30 June 2026) shows the topline still growing while profitability rolls over. Consolidated revenue from operations rose 9.3% YoY to ₹1,066.18 Cr, but net profit fell 14.6% YoY to ₹104.48 Cr — and 28.6% sequentially from Q4's ₹146.32 Cr. There were no exceptional items in the quarter (the ₹7.94 Cr labour-code provision sits only in FY26's full-year column), so reported and underlying growth are identical: this is a genuine profit decline against rising revenue, not an optics artifact.
Q1 FY-2027 vs prior quarters
The squeeze sits on costs. Consolidated cost of materials climbed 14.7% YoY to ₹638.08 Cr — about 60% of revenue and rising well ahead of the 9.3% topline — while employee costs rose 13.2% to ₹170.20 Cr. PBT margin narrowed to 13.1% from 16.8% a year ago and net margin to ~9.8% from 12.5%. This runs against the Q4 FY26 concall guidance, where management projected "stable to slightly growing margins" for FY27 alongside continued strong momentum: the volume/momentum call held (revenue +9% YoY), but margins moved the wrong way, pressured by exactly the commodity and forex costs management had flagged as the risk to watch.
The stock went into the print at ₹2,305.4, down 13.3% over the past month of trading.
For context: PAT has now risen for 2 consecutive quarters.
Management expressed confidence in continued strong momentum for FY27, driven by robust domestic demand, increasing adoption of safety and efficiency technologies, and a strong new product pipeline. They anticipate continued introduction of regulatory-aligned products, reinforcing their commitment to advancing Indian m
— This quarter: missed
No published brokerage consensus for the quarter surfaced, so a formal beat/miss against the Street cannot be struck; the analyst call is set for 28 July 2026. Two corporate actions frame the print: the 5:1 bonus issue (9.48 Cr shares allotted 25 June), for which basic EPS of ₹9.18 and all comparatives are restated (year-ago restated to ₹10.75, down from a headline ₹64.52 pre-adjustment); and a management transition, with Rakesh Mishra appointed CFO effective 1 September following the 30 June CFO resignation. Standalone tells the same story — PAT ₹99.10 Cr on revenue ₹1,041.71 Cr — with no material divergence from the consolidated basis.
W1
Net margin fell to ~9.8% from 12.5% YoY — watch whether Q2 FY27 recovers toward management's 'stable to slightly growing' margin guidance.
W2
Material cost at ~60% of revenue (₹638.08 Cr, +14.7% YoY) — the key line for commodity/forex pass-through; track on the 28 Jul call.
W3
CFO transition: Rakesh Mishra joins 1 Sep 2026 — watch continuity of cost-flex commentary and FY27 capex plans.
Filing in ₹ Lakhs, converted to Cr. Clean digital PDF; column headers unambiguous (current col 30.06.2026 Unaudited); arithmetic checks pass on both statements. No exceptional item in the Q1 FY27 quarterly columns — the ₹793.51 lakh (₹7.94 Cr) labour-code provision sits only in the FY26 full-year column, so raw = adjusted YoY. EPS restated for 5:1 bonus (9.48 Cr shares allotted 25 Jun 2026). New CFO (Rakesh Mishra) appointed eff 1 Sep 2026 after 30 Jun CFO resignation.
Informational and educational content only. Not investment advice.