1. Opening Hook
While the global economy fumbles at 3.2% growth and tariffs play whack-a-mole, ZF India decided it was time to show off its “control systems” — especially over volatility. The company’s Q2 call felt like a well-oiled ABS system: firm grip, minor skids, but no spinouts. Between electrified buses, ADAS dreams, and U.S. export tantrums, management did their best to sound confident.
Stick around — things get juicy when we hit “disc brakes vs. drum brakes,” and spoiler: comfort has a price tag.
2. At a Glance
- Revenue ₹958.2 Cr (+0.8%)– CFO swears it’s not stagnation, it’s “stability.”
- EBITDA Margin 22.9%– German discipline meets Indian frugality.
- Net Profit ₹108.3 Cr– Up 10.6%, proving slow lanes can still make progress.
- Exports ↓16%– Tariffs threw a spanner in the compressor.
- Aftermarket ↑12.6%– Old parts never die; they just pay dividends.
- Stock flat– Investors waiting for ADAS laws before hitting the accelerator.
3. Management’s Key Commentary
“India’s GDP grew 7.8%, driven by consumption and fixed investment.”(Translation: Our trucks still have roads to run — unlike Europe.😏)
“Heavy-duty segment declined 3.3% due to better highway utilization.”(Translation: Our own product efficiency reduced demand. Irony alert.)
“ESC adoption has accelerated post September regulation.”(Translation: Nothing motivates buyers like government deadlines.)
“Trailer ABS, EBS, and scholar EVO+ systems to drive future growth.”(Translation: Even our acronyms have acronyms now.)
“Aftermarket grew 12.6%, driven by retrofitments and clutch boosters.”(Translation: Mechanics love us; fleet managers tolerate us.)
“Exports to the U.S. fell 20%, partially offset by EMEA growth.”(Translation: Uncle Sam took a tariff hammer; Europe handed us a bandage.)
“Sustainability week cut water use by 25%.”(Translation: If sales dip, at least the taps won’t leak profit.💧)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | YoY Change | Comment |
|---|---|---|---|---|
| Revenue | ₹958.2 Cr | ₹950.1 Cr | +0.8% | Barely broke even with inflation |
| EBITDA Margin | 22.9% | 21.5% (est.) | +140 bps | Tight cost screws, loose smiles |
| PAT | ₹108.3 Cr | ₹98 Cr | +10.6% | Profit stability in action |
| Exports | -16% | — | — | U.S. tariffs and moody OEMs |
| Aftermarket | +12.6% | — | — | Retrofit heroes saved the day |
Note:The CFO claims cost control, not divine intervention, drove margin gains.
5. Analyst Questions (and Translations)
Q:What’s ESC penetration in buses?A:60% adoption outside city fleets. (Translation: Still some buses prefer chaos.)
Q:Status of ADAS & AEBS rules?A:Drafts exist, April 2026 unlikely. (Translation: Bureaucracy moves slower than our supply chain.)
Q:Why AMT volumes so low?A:“In hundreds, but doubling.” (Translation: From 100 to 200 — champagne, please!)
Q:Exports hurt by tariffs?A:“Prepared for any scenario.” (Translation: Please, no new tariffs, we’re begging.)
Q:Parent’s debt issues?A:“Focus on India remains high.” (Translation: India’s profit props up the parent.😅)
6. Guidance & Outlook
Management expects CV growth to
