| P/E TTM | 34.61Sector 31.32 |
|---|---|
| Day RSI | 65.49Neutral Zone |
| Promoter Holding | 62.82%Stable holding |
| 1-Year Return | -23.86%Price change |
| Metric | Q2-27 | Q1-27 | Q2-26 |
|---|---|---|---|
| Revenue from Operations | 184 | 143 | 121 |
| Other Income | 4.7 | 14.8 | 0.9 |
| Total Income | 189 | 158 | 122 |
| Profit Before Tax | 17.6 | 15.7 | 0.1 |
| Net Profit | 11.7 | 11.4 | -1.5 |
| Operating Margin | 9.3% | 9.9% | 0.1% |
| Net Profit QoQ | +2.6% | ||
| Net Profit YoY | +880.0% | ||
| Adj. Profit QoQ | +1,333.3% | ||
| Adj. Profit YoY | +1,712.5% | ||
Key highlights
- Net profit reached ₹11.7 crore in Q2 FY27, reversing a loss of ₹1.5 crore in the year-ago quarter
- Consolidated revenue from operations grew 52% year-on-year to ₹184 crore
- Operating margins expanded significantly to 9.3% from 0.1% in Q2 FY26
- The company is entitled to a ₹8.20 crore tax refund plus interest following a favorable Income Tax Tribunal order
- Subsidiary DriveSys Systems commenced commercial production at its Electrical Division on September 7, 2026
Consolidated Turnaround and Revenue Momentum
ZF Steering Gear India reported consolidated revenue from operations of ₹184 crore for the quarter ended September 30, 2026, marking a 52% increase compared to ₹121 crore in the same period last year. The company achieved a net profit of ₹11.7 crore, a substantial recovery from the net loss of ₹1.5 crore recorded in Q2 FY26. Operating margins improved significantly to 9.3% from nearly flat levels of 0.1% a year ago.
On a sequential basis, revenue grew by 28.7% from ₹143 crore in Q1 FY27, while net profit remained relatively steady with a 2.6% increase despite a drop in other income from ₹14.8 crore to ₹4.7 crore.
Operational Milestones and Segment Performance
- Automotive components segment generated ₹180.91 crore in consolidated revenue for the July-September quarter
- Renewable energy operations contributed ₹4.44 crore to total income during the period
- DriveSys Systems' Electrical Division commenced commercial production at its Ahilyanagar facility on September 7, 2026
- Total capital employed in the company grew to ₹504.64 crore, with the automotive segment accounting for ₹259.77 crore
- The project cost for the Aluminium business under subsidiary DriveSys Systems was recently revised to ₹150 crore
Favorable Income Tax Tribunal Order for Refund
A significant non-operational development during the quarter involved the Hon'ble Delhi Income Tax Tribunal's order dated September 3, 2026. The tribunal ruled in favor of the company regarding deduction claims under Sections 80-IA and 80-IB for a 10-year period between AY 1995-96 and AY 2004-05. Following this order, the company filed applications with the Assessing Officer on September 28, 2026.
ZF Steering Gear India is now entitled to a tax refund of ₹8.20 crore plus applicable interest, which is expected to strengthen the company's cash position in upcoming periods.
Market Context and Technical Indicators
The company currently maintains a market capitalization of ₹685.31 crore with a price-to-earnings (P/E) ratio of 34.61, which sits below the industry average of 42.45. Technical indicators show a Relative Strength Index (RSI) of 65.49, suggesting the stock is maintaining positive momentum. Promoter holding remained stable at 62.82% during the quarter.
While the stock has faced a 23.86% decline over the past year, it has recently seen a week-over-week gain of 22.45%. The consolidated balance sheet reflects asset growth, with total assets rising to ₹759.77 crore from ₹672.56 crore in March 2026.
| Date | Announcement | Amount |
|---|---|---|
| 24 Jul 2026 | Q1 FY27 consolidated revenue from operations (net profit: Rs 12.37 Cr)Source: economictimes.indiatimes.com | ₹143.06 Cr |
| 12 May 2026 | Q4 FY26 consolidated revenue from operations (net loss: Rs 0.03 Cr)Source: economictimes.indiatimes.com | ₹174.30 Cr |
| 31 Jan 2026 | Q3 FY26 consolidated revenue from operations (net profit: Rs 7.84 Cr)Source: livemint.com | ₹143.23 Cr |
| 06 Nov 2025 | Q2 FY26 standalone revenue from operations (consolidated PAT: Rs 4.00 Cr)Source: BSE filing | ₹116.41 Cr |
| 26 Jul 2025 | Q1 FY26 standalone revenue from operations (standalone PAT: Rs 11.95 Cr)Source: BSE filing | ₹130.93 Cr |
| 17 May 2025 | Q4 FY25 standalone revenue from operations (net profit: Rs 3.87 Cr)Source: market data.com | ₹136.60 Cr |
What to watch next
- Realization of the ₹8.20 crore tax refund and associated interest following the ITAT order
- Production ramp-up at the DriveSys Systems Electrical Division following its September 7, 2026 launch
- Execution progress of the ₹151 crore renewable energy order secured by DriveSys Systems
- Commissioning of the Aluminium Division project under DriveSys Systems following its upward capex revision
| Share price | ₹755.3 |
|---|---|
| Market capitalisation | ₹685.31 Cr |
| Revenue (annual) | ₹571.06 Cr |
| Net profit (annual) | ₹15.39 Cr |
| Revenue (latest quarter) | ₹143.06 Cr-17.94% vs previous quarter |
| Net profit (latest quarter) | ₹12.38 Cr+41366.67% vs previous quarter |
| P/E (TTM) | 34.61×Sector 31.32× |
| Promoter holding | 62.82%+0.07% QoQ |
| FII holding | 0%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by ZF Steering Gear India Ltd announcing the Unaudited Financial Results for the quarter and half year ended September 30, 2026. Market figures from a third-party data provider.
