Thanks, good afternoon. Thank you for joining us today, and welcome to ZF Commercial Vehicle Control Systems India Limited's call to brief you on the Q4 quarterly earnings and the earnings for FY 20 25-26.

Today the fourth quarter earnings and annual results for FY 20 25-26 will be presented by the management team of ZF Commercial Vehicle Control Systems India Limited. Your hosts today from ZF Commercial Vehicle Control Systems India Limited are Mr.

P.S. Chadha, Managing Director; Ms.

Sweta Agarwal, Chief Financial Officer; Mr. Shankar Venkatachalam, Head of OE Sales; and Ms.

Muthu Kavitha, Assistant Company Secretary. I now hand over the call to Mr.

P.S. Chadha, who will provide further insights into the results.

Over to you, sir.

Thank you Jayaraj. Good afternoon to all of you.

I warmly welcome you all to ZF Commercial Vehicle Control System India Limited fourth quarter results and full-year performance for 2025-26. Certain forward-looking statements that we will be making today are based on management's good faith and expectations concerning future developments.

As the actual results may differ materially from these expectations as a result of many factors. ZF Commercial Vehicle Control System India Limited's results for the quarter ending March 31, 2026 and the annual performance for financial year 25-26 were published on 13th May, 2026.

They are available on the website www.zf.com under the ZF CV India Investor Relations section. We hope that you have had an opportunity to go through them.

A transcript and recorded audio of this call will also be made available on the website www.zf.com under the ZF CV India Investor Relations section. I am happy to talk to you today as we give you the update about business performance.

We will first talk about industry and economy updates. I will begin with the brief overview of macroeconomic and industry environment relevant to our business.

The Indian economy has continued to demonstrate strong momentum, with GDP expanding by 7.8% in Q3 of financial year 25-26, and the full-year growth estimate revised upward from 7.4 to 7.6. This performance has been supported by improving consumption trends, sustained investment activity, alongside continued policy support including GST reductions, which have further strengthened the overall demand environment.

Industrial output grew by 4.1% during FY 25-26, broadly in line with the previous year. While some moderation in mining and electricity weighed on overall performance, the manufacturing sector showed improvement, growing at 5% compared to 4.1% last financial year.

This growth was primarily driven by strong momentum in capital goods and infrastructure-linked sectors, supported by government's continued focus on capital expenditure. Inflation remained relatively contained during the year, averaging 2.1% for FY 25-26, although it edged up to 3.4% in the month of March, largely due to movements in food and energy prices.

On global front, the economic environment remains challenging, influenced by ongoing geopolitical developments, particularly the conflict in West Asia and associated disruption to global supply chains. While these factors may have some impact on India, domestic fundamentals continue to remain relatively resilient, although external volatility could pose near-term pressure on industrial activity.

From an industry standpoint, there are encouraging signs of improvement. The mining sector exhibited a positive trend in Q4 of 25-26, with growth accelerating to 5.4% in March '26 from 3.1% in February, indicating a gradual recovery in commercial vehicle demand.

At the same time, sustained movement in infrastructure, capital goods, and construction activity continues to support overall industry growth. In addition, replacement demand for aging fleets driven by need for improved efficiency and lower total cost of ownership is expected to further underpin demand for new vehicles going forward.

Looking at Indian commercial vehicle industry, India's strong GDP momentum was reflected in commercial vehicle industry, which delivered a robust 16.5% growth in production for medium and heavy vehicle segment more than 6-ton, indicating healthy and broad-based demand, growth driven by improved consumption, GST reform, positive momentary condition, and continued policy support. The industry outlook continues to be supported by strong structural drivers, including an aging fleet driving replacement demand, sustained growth in e-commerce and logistics, and increasing consolidation of trailer segment.

At the same time, the push towards electrification supported by government policies, public-private partnership adoption in public transport is accelerating the transition towards cleaner mobility. While above positive factors are conducive for the growth, however external risks such as the Middle East conflict remain areas to monitor.

Looking at sales, FY 25-26 sales was driven by sharp industry rebound after GST rate cuts supported demand in the second half. We face short-term headwinds, such as capacity ramp-up challenges, supplier constraint, and global geopolitical disruption causing gas and key commodity shortages.

Our teams mitigated these challenges, executed with discipline, and delivered the best-ever results in the history. The company strengthened its future-ready portfolio with new product launches and product ramp-ups during the financial year.

New launches, such as exhaust brake valve, OPR compressor with a power reduction feature, and solution such as EBS, ECAS for EV buses. The company also accelerated ramp-up of hydraulic and pneumatic ESC and expanded e-compressor supplies for the domestic market, while scaling exports through higher capacity compressor for Europe and new actuator variants for global trailer customer.

Against this backdrop, I will now move to some highlights during the FY 25-26 across different functions. In the OE sales, on the back of recovering commercial vehicle industry supported by a strong second-half rebound following GST normalization, improved infrastructure, mining activity, and festive demand, the company delivered a robust performance.

This momentum peaked in Q4, particularly in the commercial vehicle more than 6-ton segment, with production reaching a record 151,000 vehicles in quarter, as compared to 119,000 of previous year same quarter, reflecting a growth of 26.9%. This contributing to an overall vehicle growth of 16.6% in FY 25-26, which is 463,000 vehicles versus 397,000 vehicles.

Capitalizing on this upcycle, our OE sales grew by 17.6% in FY 25-26, clearly outperforming industry growth as explained above. As we look forward to FY 26-27, we enter the year with cautious momentum supported by GST-led tailwinds, resilient domestic demand, and strengthening fundamentals across key segments.

While the overall outlook for commercial vehicle industry remains positive, evolving geopolitical developments, particularly in West Asia, will need to be monitored. In this context, the company remains focused on executing its strategic priorities.

We aim to sustain our leadership position in braking system by strengthening our market share in ESC across OEMs ahead of upcoming truck regulation. We are also driving higher penetration of advanced trailer technologies, including trailer ABS, trailer EBS in line with AIS-113 regulations and increasing focus on safety and efficiency.

In parallel, we are accelerating new product introduction, including upgraded compressor platforms, clutch servo with wear sensor, pressure-reducing valves, electronically controlled air suspension, EBS, and e-compressors for EV platforms. We are also expanding our EV portfolio with a strong focus on e-compressors and EBS systems, particularly across independent bus manufacturers.

Beyond the near-term recovery, we see strong long-term growth driven by a tightening regulatory environment and increasing adoption of electric mobility, which together will continue to shape the future of commercial vehicle industry. In aftermarket, the aftermarket business reported revenue of ₹151 crore in Q4 25-26, and FY revenue stands at ₹584 crores, which is a growth of 15.6% compared to last financial year.

This growth was driven by active channel management like extensive aftermarket team outreach covering 6,000+ retailers, 4,000+ distributors, 1,800+ fleets, and 200+ workshops continued to be key driver of growth. Network expansion through 51 new distributor branches and 14 new service centers strengthened presence across B and C class cities, particularly in high-consumption markets.

The mining segment, which remained subdued in the first half of the year, witnessed a strong recovery in the second half, contributing to higher compressor penetration. Additionally, a regulatory push around safety compliance in the oil and gas fleet drove incremental demand, particularly for trailer EBS solution, where retrofitment initiated resulted in additional sales.

Our strategic focus on new product penetration, SPARK merchandising program especially in door controls, retrofit, ASP played a key role in accelerating the performance. Talking about exports of goods, the US tariffs created headwinds for the industry by increasing import costs and constraining manufacturing activity, which in turn impacted demand and overall market growth, while the European market remained relatively resilient and provided some offset.

The broader export environment continued to be challenging. Against this backdrop, company reported export revenue of ₹1,025 crore in financial year 25-26, reflecting a decline of 11.1% year-on-year compared to financial year 24-25.

Despite the volume moderation, particularly in the US market, we were able to out-perform the broader export market, supported by a favorable product mix and new business wins in the trailer and off-highway segment. Looking ahead, with early signs of recovery emerging in the US market in Q4, we anticipate moderate improvement in export demand.

We remain focused on proactively navigating the environment, with continued emphasis on new product launches and product ramp-ups including compressors and actuators. Export of services: export of services recorded a strong growth of 22.5% in Q4 financial year 25-26 compared to the same quarter last year.

For the full year, services export grew by 15.4% in financial year 25-26 compared to the previous financial year, driven by sustained expansion in engineering activities delivered from India to our global centers. Looking at ESG efforts, as part of our continued commitment to sustainability, we have implemented several initiatives focused on environmental stewardship and resource efficiency.

At our Ambattur plant, we successfully commissioned a fully automatic organic waste converter capable of processing food waste into organic manure, supporting our objective of achieving zero waste landfill and reducing our environment footprint. Further strengthening our water management efforts, we have established a rainwater harvesting pond at our Jamshedpur facility with a storage capacity of 1,200,000 1,200 kiloliters.

This initiative is designed to enhance water sustainability, reduce dependence on groundwater, and meet approximately 40% of the plant's annual water requirement through harvested rainwater. Our efforts in safety and sustainability have also been recognized externally.

The Ambattur plant was awarded first place in Tamil Nadu State Safety Award under the engineering category, reflecting the strength of our safety system, proactive risk management, and a deeply embedded safety culture. Additionally, the plant received the Gold Award at the ESG Summit 2026 organized by Anna University, recognized our continued focus on environmental, social, and governance excellence.

Update on engineering: the engineering team has played a pivotal role in quickly evaluating and releasing new additional sources inducted to meet the increasing demand for various parts like actuator, valves, driveline component, and compressor. Also stabilized the SOP in new exhaust brake for OEM in delivering greater value to our customer.

Update on manufacturing: the company continues to scale advanced technology products from its state-of-the-art multiregional manufacturing facility in Oragadam, supported both domestic and global customer. New lines for crankshaft machining, ASP cartridges, vacuum pump have been successfully commissioned.

During the year, enhanced our product portfolio with new launches across compressor, actuators, and electronic systems, while expanding manufacturing capacity across plants. Assembly capability at Jamshedpur and Lucknow was strengthened, improving agility, delivery performance, and supporting sustainability objectives through reduced logistics footprint.

CVCS India achieved a significant milestone in the journey towards operational excellence with the successful completion of overall maturity assessment across Ambattur, Mahindra World City, Lucknow, Jamshedpur plant location with a good score. The OMA framework evaluates plants on six critical dimensions, including plant basics, operations management, operations strategy, equipment effectiveness, DNA of quality, and EHS and sustainability, ensuring global consistency and best practices.

This achievement reflects our dedication to building a learning organization and driving cultural transformation through qualifications and capability building. Overall, these initiatives reflect our continued focus on operational excellence, technology leadership, and building future-ready manufacturing capabilities.

Looking at corporate social responsibility, CSR: at ZF Group, our corporate social responsibility initiatives are guided by the "Act In Now" principle. Built around four core pillars: improving road safety, enhancing the quality of life of our surrounding communities, promoting environmental sustainability, and supporting skill development.

Let me briefly highlight our CSR initiatives during the quarter. In Q4 2025-26, we focused on community infrastructure, renewable energy, and road safety.

We installed high-mast lighting across Ambattur, Jamshedpur, Lucknow, and industrial areas, enhancing safety in public spaces. In parallel, we expanded our solar lighting initiative across villages and schools, supporting sustainable energy access.

We also contributed to education infrastructure through school renovation and lighting projects, creating safer learning environments. On the capability building front, we trained NAPS trainees, and through our road safety program we reached over 1,200 drivers and nearly 600 technicians, promoting safer driving practices.

Additionally, we distributed 500 safety kit to technicians. Overall, our CSR efforts reflect a strong focus on safety, sustainability, and complete community development.

Awards which we got: our employees continued to demonstrate high level of engagement and participated in various external total employee involvement, TEI competitions, winning numerous awards across several categories in the last fiscal year. I am happy to share that in FY 25-26 our teams won 14 national awards and 16 regional awards in competitions organized by CII, ACMA, QCFI, and with many more awards at regional levels.

This included 21 awards, including three regional awards and two international awards in quarter four of financial year 25-26. Now moving on to financial performance for the quarter, I will hand over to Sweta to explain.

The results were made public at 3:55 p.m. on 13th May, 2026.

I hope you've had a chance to go through them. We are happy to share that for the quarter ending 31st March, '26, our revenue stood at ₹1,197 crores, the highest single-quarter result, with 15.2% growth compared to Q4 of last year.

Our profit before tax was ₹196.6 crores, a growth of 16.4%, and our profit after tax was ₹146.3 crores, a growth of 15.5% over Q4 of previous year. Talking about our financial performance for the whole year, I'm happy to share that for the FY 25-26, our total revenue stood at ₹4,302 crores, the highest in the history of the company, with 9.2% growth compared to last financial year.

Our profit before tax was ₹693 crores for FY 25-26, an year-on-year growth of 13.9%, and PAT of ₹517 crores, which is a year-on-year growth of 12.2%. I would like to thank all our stakeholders for achieving this milestone.

As a result of our good financial performance reported in FY 25-26, the Board of Directors has approved the issuance of bonus equity shares in the ratio of 5:1, subject to shareholder and relevant regulatory approvals. This means that we would be issuing five shares in lieu of every one bonus share held on the record date, which is fixed as 24th June, 2026, and 25 25th June, '26 would be the deemed date of allotment.

This is the company's first bonus issue aimed at rewarding our shareholders and enhancing market liquidity. In addition, the Board has recommended a final dividend of ₹4 per equity share post-bonus for the financial year ended 31st March, '26, subject to shareholder approval.

The record date for the AGM and dividend payment would be July 10th, 2026. Handing over to Mr.

Paramjit Singh Chadha for his closing remarks.

Thank you, Sweta. ZF CVCS India enters financial year 26-27 with strong momentum supported by robust domestic demand, rising adoption of safety and efficiency technologies, and a strong new product pipeline.

The company will continue introducing advanced regulatory-aligned products in the Indian market, reinforcing its commitment to redefining India's mobility. Thank you.

We now welcome your questions.

Thank you so much for the opportunity. Firstly to Sweta ma'am.

Just on the Q4 margin performance. It was lower by 230 bps Q-o-Q.

Can you just help us understand what factors played on the margins, whether the commodity, forex, employee cost, or any other provisions like warranty which impacted the margins?

Two factors that I can talk about: one is a bit on material cost. As the last quarter we've had significant challenges on increased supply coupled with the war-like situation in the Middle East.

Therefore, we have some increases on the cost side. Conversations are ongoing with the customers for recoveries, and therefore you see an increase in cost compared to the revenue recorded during the quarter.

On the employee cost side, well, there's been an salary increase effective 1st January, and that would also contribute to the cost increase of speak. There are no other special items or no specific callouts on inventory or any other one-time costs.

Got it, ma'am. Just going ahead for next year, how do you see the margin range in the context of the commodity, INR forex part, and the mix?

Also next year would also see the higher content for ESC, ADAS. How do you see the margin for us, ma'am?

I would expect it to be more or less flattish with maybe single-digit small growth for the next year. As we are going in, there are challenges which are being called out on the Middle East war front and caution from the government also to look at our expenses and consumption.

Very difficult to call out on given this macroeconomic situation. I would be cautious on the call-out for financial year 26-27.

Sure, ma'am. Thank you.

This is to Paramjit sir. Just on the ADAS regulation, can you update how are the OEM order wins happening and order book is building up?

If you can mention how are the key customer wins or what kind of market share we can expect for this regulation?

I think the best person here with us is Shankar. Maybe you can give this update.

Yes, sir. Thank you.

Hi, good afternoon. On the ADAS side of the business, we have been actively working with all the OEMs with regards to the potential business coming up with the upcoming regulations.

In fact, we have already got business awards for the full suite of solutions, which has the complete range of ADAS portfolio of products beyond the regulation requirement from two OEM customers whom we are now working with. With most of the other OEMs, we are in engagement with multiple OEMs on the discussions and next steps.

Here, the point of discussion is happening at an engineering technical discussions where the customers have visited our test tracks and observed our solutions in terms of benchmarking. Since there is a bigger volume segment coming out of regulations, there are several players out there in the market who are also engaging with customers.

Just to Shankar sir clarify, basically at least for two OEMs we have won the full suite of solutions, right?

That's correct.

Got it. For the ESC part, we would be quite a major player there across the OEMs.

That's correct.

Got it. Thank you so much for the opportunity.

Just lastly to Sweta ma'am, if you can share what would be the FY '27 CapEx outlook?

We're looking at about spend of about ₹180 to ₹190 crores.

Which area, ma'am, this would be?

Some of it is CapEx for new products. Others would be replacements and regular upgrades.

Got it, ma'am. Thank you so much for the opportunity.

Thank you. Last one year we have done extremely well in terms of quarter-on-quarter in terms of growth in in top line.

There is a divergence I see in terms of the EBITDA growth, the operating profit growth, if I exclude the other income. That has been not matching up with the revenue growth.

Just want to understand whether this is because of some operating deleverage, and how do you think this would actually pan out as the outlook remains pretty robust for for this financial year? For the upcoming financial year, sorry.

Good afternoon, Lakshminarayanan. As replied also to the previous question, we see this impact of the war and increasing prices of certain commodities, which is leading to a blip on the cost side.

Conversations with customers are ongoing to collect it, but there is always a lag between the two, and that's what's showing up as a de-growth in EBITDA. We would expect that to get corrected on a lagged basis.

No, I'm talking about the EBITDA growth with respect to the revenue growth, not talking about the margins here. For example, the revenue growth has been higher, but the EBITDA growth has been lower.

That's because the costs have increased disproportionately to the revenue due to the timing difference between the cost to the revenue.

Thank you. That's my question.

Thank you.

Hi team, thanks for taking my question. Basically I wanted to understand something from Hello, can you hear you?

Sorry to interrupt

Is it better now?

Hi team, thanks for taking my question. Basically I wanted to understand on the technology side.

If we talk about AEBS and [unclear],

Hello, am I audible?

Yes, you are.

Yeah. Ma'am, is it possible to give the segment-wise growth figures for the quarter Q4, like trailer, aftermarket, and exports?

Sure. Give me a minute.

Aftermarket has grown by about 25% and after- Sorry, the our OEM supplies have grown up grown by about 25%, aftermarket by 20 21%, and we see a de-growth in exports of about 6%. With 6% with the 6% increase on service income.

Sure. Is it possible to give the Europe and US growth for the quarter?

The Europe growth was about 6%, and American de-growth was Just give me a minute.

Conti.

There was a de-growth from the Americas of about 22%.

22%.

On a blended basis, a 10% de-growth for us.

Sure. Ma'am, just on the demand scenario, since government is also increased diesel prices today morning, like in the past whenever it has happened, has it impacted the on-ground demand going forward?

How do you see the demand from here onwards?

Typically this would impact the freight rates.

Then

impact on freight rates will have cascading effects on the utilization of trucks, and thereby the buying capacity of fleet owners. It may not happen immediately, but this slowdown may be there in terms of the vehicle purchase.

That's something that we need to keep a close eye on.

On the other side, if you see, people may like to buy the new truck because old are not so efficient and the cost of ownership is So, it depends upon how the fleet owners take the decision on which side.

Fair. Can I ask one more?

Thank you.

Sure.

Team, is it possible to provide how much aluminum and copper consist of our total raw material cost?

Approximately in last quarter the major increase has been in aluminum. It is close to 15 to 18%.

Okay. Aluminum consists of around 15 to 18% of the total cost?

No. Aluminum only.

Only in

aluminum as a commodity.

Aluminum as a commodity

has been increased from almost ₹233 per kg to ₹274 per kg approximately. It varies from grade to grade.

That is around close to around 18% as a commodity. That is a major commodity for our products.

Okay. Understood, sir.

Thank you. That were all my questions.

Yeah.

Thank you for the opportunity. Just wanted to ask on the tech side.

Does AEBS and ADAS work together, if any supplier is giving us order, he mean to give orders for both together, or we get orders for both separately?

Ideally, we would look at a system partner as a combination setup, because you have both the electronic stability control and the AEBS which will work in tandem. Today most of the OEMs have dissociated one with the other, they are looking at options where they could use one or two partners in these cases.

Okay. AEBS and ADAS, not ESC, AEBS and ADAS also it works same way?

Within AEBS is one of the features of ADAS. Five features have been mandated as part of the regulation.

Under those five features, typically OEMs would like to go with one partner who's able to demonstrate all five features. Okay.

Just to my understanding correct, for ESC and ADAS, there could be two separate suppliers, but generally for AEBS and ADAS, they prefer single supplier. Is my understanding correct?

Correct.

Yeah. Thank you.

I'll join back in the queue.

Hi, good afternoon. So,

Good afternoon, Madhu.

Hi. My first question is, as we're seeing the safety regulations starting to get implemented, are we already seeing a meaningful increase in our CPV across the bus and CV platforms?

Or if it's possible to quantify the before and after?

Today we already have electronic stability control mandated in all buses except Type 1 city buses since September 2025. That's the uptick that you're seeing in the last financial year.

Going forward, the next wave of regulation is effective 2027, it may not be effective in this coming financial year, but most of the work will be happening for that, and the impact of that will be seen in the subsequent financial year.

That's on the buses. What about the more than 12-ton trucks which are coming in from 2027?

That's right. All vehicles that are greater than 6-ton segment would be impacted by the regulations, which would be rolled out effective October 2027.

Understood. What I think I was trying to understand is that are we seeing a meaningful shift in the value of what we are supplying?

Is it possible to quantify what that shift is for us in the value per vehicle because of the regulations kicking in?

In the current business, we are already with ABS, basic ABS in all of the vehicles. In some of these vehicles we have upgraded to ESC, that delta increase is already impacting the current sales that we are having.

When it now spreads across the complete vehicle portfolio platform, we would then look at a penetration increase going from the current stage to maybe completely covering the entire portfolio of vehicles. There we will be looking to increase our value per vehicle in the ESC segment directly.

Understood. Okay.

I think the next one is, obviously, I know right now we've got some challenging macroeconomic conditions. It's very hard to really forecast where things are at.

As the environment should stabilize, how are we thinking about the long-term structural growth opportunity here? Are we looking at penetration-led growth?

How are we sort of thinking about what the next 2 years look like under more normal geopolitical conditions?

On the focus areas what we have, we have several products, like we already spoke about the safety side of the things where we are looking at braking. Then apart, there are also products under the efficiency portfolio.

We also spoke about compressors with optimized power reduction feature. These all offer fuel savings benefit to OEMs.

Then also on the AMT, where we see potential penetration increasing that will allow us to grow in the segment of offering more AMTs to market. Then there are some focus areas where we are looking at ESC as a growth for both the hydraulic as well as the pneumatic platforms.

Understood. Thank you.

Yeah. Hi, team.

Thanks for the opportunity. My first question is on the exports.

This obviously there might have been some potential dispatch issues this quarter. Can you confirm on the export side whether any such challenges you faced?

That's one. Second, connected to the exports is, obviously, that the US tariffs came in force.

There have been obviously some push and pull, and I think stabilization with OEMs might have happened on the pricing side. How does the US market set up next year?

That's my second question. Lastly, from a medium-term standpoint, obviously ZF has gone through some restructuring in some markets.

They've had long plans of larger sourcing from India. Can you give us an update in terms of where is the group now?

Also considering the backdrop of high energy costs in Europe, probably some of the challenges would have come back to the fore on manufacturing. Where are you from a localization and exports to India, medium-term 2030 standpoint?

Those are my three.

Updating you on the exports, what we see is a de-growth overall. We see a growth in Europe coupled with a de-growth in Americas.

As a trend what we saw was a reduction, or the gap in the supplies is increasing compared to last quarters up to Q3, which is not catching up. We still see a 20 22% de-growth as compared to the same period in the last financial year.

Predicting for next year, we expect since we're seeing this gap narrow down, what we would expect is an increase in the trend in the US markets as well, for the Europe markets of course, and whether that would really catch up to now 2 years back kind of volumes still to be seen, because there's still a 20% gap overall.

See, this vehicle production in the US market, we can see last 4 months there is a

There's an uptrend.

uptrend, which was going downtrend for many months. I think that gives some hope on that.

Yeah. That's the next year's cost.

With respect to sourcing from India, continuous effort to localize and also maybe potentially introduce our suppliers to be able to supply directly to our factories in the Europes, but that's not within the scope of our activity. On the R&D cost, projects are continuously evaluated and allocated to the R&D team in India, we would see some expansion of the service revenues.

Okay. As in the reason I'm asking this, I appreciate the fact that some of these decisions are at a parent level, but visibility obviously when programs have to be moved, it's typically in this sector typically it's a 24-month lead lag for programs to move.

From our FY '30 target that the parent put out and I think Mr. Reuter had reiterated that right recently in his conversations with media, somewhere down the road in the next 12, 24 months, you should be seeing some of that move, right?

Otherwise, how are we going to meet our FY '30 targets at a group level from India?

We are getting some new RFQs, I would say, and that's ongoing. What has been given out as a target for India's growth very definitely stands, so that commitment is definitely there from the group to the country.

Okay. Thank you.

for FY '26, if you could give the OE, aftermarket, and exports growth and the revenue number?

Full year.

This is for the Full year, because Yeah,

I think what was given was for quarter four, right? 25%, 21%, and -6%.

Yeah. Can you give for full year?

That was for quarter four. OE growth was 17 17.5%, aftermarket 15.5%, with export de-growth of a 11%.

Service income increased by 10%.

Can you give the absolute number as well: OE, aftermarket, and export?

Yeah. OE is 1 ₹1,978 crores.

Okay.

Aftermarket ₹583 crores.

Okay.

Exports 1,025, with service income of 509.

Okay. The other part I missed was you guys gave the aluminum, copper, and the metal content in the RM.

What was that?

No, aluminum also have some part of copper in this. It's a aluminum alloy, which because of this geopolitical situation, there has been a crisis of aluminum availability in the market in last quarter.

That has also caused the increase in the price of aluminum and some more commodity. We talk more about aluminum because that is one of our major raw material which we are using.

That is the update we have provided.

Okay. Sir, one clarification.

In the truck segment, the ESC which is being sold is a voluntary fit-outs right now, or any particular category of CVs the mandatory fit-outs have picked up?

As of now, there is fitment happening voluntarily, primarily in the POL, that is the petroleum and oil tanker segment, where they see the application in the hazardous goods type of usage environment. There we see a voluntary fitment.

The regulation kicks in from 2027.

Just for a clarification. The first deliveries for us which is as per the mandated 2027 should begin from which quarter?

October '27.

Okay. Thank you, sir.

Hello. Thank you for taking my question.

Could you share Q3 FY '26 and Q4 FY '26 quarterly average content per vehicle for our OEM segment?

Divide by volume.

The Q4, you're referring the Q4 financial year '26 versus the previous year, or what is it that you are

No. Q3 FY '26 versus Q4 FY '26, Q-o-Q trend.

The Q3 FY '26 we saw a value per vehicle of approximately 45 1/2k, and in the Q4 it was around 40, 39.5. Yeah.

Why is there a decline? There were some one-timers that happened in the close of the previous quarter.

Those are the ones that contributed to this delta increase in the value content per vehicle in October to December, whereas those were nullified in the quarter four.

Can you please point out that?

Could you please repeat the question? What were the what?

What were the one-off in last quarter?

It was related to certain selling price variances that we got from customers. Those were some one-timers that were got in the close of the quarter.

That led to the increase in value per vehicle, which was recorded as part of the sales that was

retrospectively

realized in the quarter three.

If you remove those one-timers, we would be more or less flattish on the value per vehicle.

Okay. Sure, thank you.

Yeah. Two questions: see, one is that we are seeing an increase in the tonnage of vehicles.

In addition to it, there is also a movement of multi-axle towards tractor-trailer. Now, in these two accounts, either when the tonnage increases, whether the component which you are actually placing in the vehicle, does it also increase in terms of value as the tonnage increases or it is the same whether the tonnage is X or even X

plus Y? The tonnage increase is directly proportional to the number of axles that are there at the vehicle level.

When you talk about a multi-axle, we have different configurations. We have 4x2, we have 6x4, 8x2, 10x2, and so on.

These multiple configurations which are there, those are the ones that contribute to any kind of a increase in our content per vehicle, because each axle we have the components that are fitted. Maybe it's an actuator, maybe it's a wheel speed sensor, maybe it's the foundation brake side of things.

These are all the contributing factors contributing to an increase in the content per vehicle. The basic tonnage increase doesn't really add that much of a value except for the fact that maybe the customer may switch to a higher duty compressor whereas a lighter duty compressor from maybe an ICV to a M&HCV segment.

That's the kind of a difference we would see.

Got it, got it. The other question is that, there has been free trade agreement between India and and and and UK or India and Europe.

Right? Sorry, India and Europe.

Now, what does that mean for our exports? Does it actually enhance visibility and also gives better value proposition for us in the in the in the relevant markets?

I think this is already if you see announced, but it is in the draft stage, and it may take some more time, maybe about one or two more years to get it finalized. That also will have a slow ramp-up.

Definitely whenever it is implemented, we will definitely have advantage because we have many plants across Europe and there will be better competitiveness from India to Europe and vice versa.

Okay. Sir, if I look at our Chennai facility for exports, we have a large land and we always had a large plan for exports to the US markets.

We also can add with higher level of automation and modularity in terms of manufacturing. Now, there has been some kind of slow down the last 1 year in terms of the US markets driven by uncertainty in tariffs.

Leaving the current Gulf crisis, is there a possibility that it can give a good tailwind for our revenues and therefore margins as we step into the next 3 years?

I think it's a very difficult question to answer, but looking at ZF focus for India, we are definitely exploring more RFQs are coming to us for quoting for export from India. Not only Mahindra World City, we have a big plant in Oragadam.

Mahindra World City, I would say the overall plant utilization is at almost peak level, and further expansions we will be doing in Oragadam.

Got it. You are saying that, if I understand right, it's still uncertain and in terms of the tariffs or it is uncertain because of the Gulf crisis?

Gulf crisis, I would say. Tariff, I think now it is getting tapered down.

As we said that our sales is almost 50-50, I would say, for America and Europe. Overall if you see, it is -11% in spite of tariff in place for many months now.

That way, I would say that effect of tariff is tapering down slowly.

Got it, sir. Thank you so much.

On closing comment, I would say that when we see this quarter after having a very good quarter of last year, April volumes are also better as compared to if we see comparing with the previous years, with no special aspects, and even May volumes are looking good, whereas generally first month of the year is not so high volume historically. We do see a good quarter this year also.

Only aspect of geopolitical situation we have to closely watch and ensure that in case of any issue we do the flexing of our cost. With that, I would like to thanks all for giving the support to have this historical performance, and we will continue to improve our efficiencies and ensure that we continue to monitor our overall performance.

Thank you.