ZF Steering Gear (India) Limited has successfully completed the assignment of leasehold rights between its wholly owned subsidiaries, following approval from the Maharashtra Industrial Development Corporation (MIDC) and execution of the lease deed on March 18, 2026.

Transaction Completion Details

The company has finalized the assignment of leasehold rights for Plot No. E-3/2, MIDC Supa Parner Industrial Park, Ahilyanagar, Maharashtra, along with the factory building constructed thereon. The transaction involved the transfer of rights from NexSteer Systems Private Limited to DriveSys Systems Private Limited, both wholly owned subsidiaries of ZF Steering Gear India.

MIDC Approval and Lease Execution

Following earlier intimations to BSE Limited dated January 1, 2026 and July 26, 2025, the Maharashtra Industrial Development Corporation granted permission for the assignment of leasehold rights. Subsequently, DriveSys executed the lease deed with MIDC on March 18, 2026, with NexSteer joining as the confirming party.

Regulatory Compliance

The transaction has been executed at arm's length price in accordance with applicable laws. This development follows the company's disclosure in its Board Report for FY 2024-25 regarding the proposed assignment of leasehold rights between the subsidiaries.

This strategic realignment of leasehold rights between subsidiaries represents an important operational milestone for ZF Steering Gear India, enhancing the company's asset management and operational efficiency across its subsidiary network.

ZF Steering Gear (India) Limited has delivered exceptional financial performance for Q3FY26, with remarkable growth across all key metrics. The company's board meeting held on January 31, 2026, concluded with the approval of outstanding quarterly results that demonstrate significant operational leverage and enhanced market positioning in the automotive steering systems segment.

Outstanding Financial Performance

The company reported exceptional growth across all major financial parameters for the quarter ended December 31, 2025, showcasing enhanced operational performance and improved market strength:

The remarkable improvement across all financial metrics reflects the company's enhanced operational efficiency and strong market positioning. The revenue growth of 20% year-on-year indicates healthy demand for the company's products, while the substantial EBITDA margin expansion demonstrates improved cost management and operational leverage.

Segment-wise Performance Analysis

The company operates through two primary business segments, both contributing to the strong overall performance:

The auto components segment, which forms the core business, demonstrated robust growth with revenue increasing from ₹116.71 crores to ₹139.31 crores. The renewable energy segment also showed positive momentum, contributing ₹2.76 crores in revenue compared to ₹2.21 crores in the previous year.

Nine-Month Performance Highlights

The company's nine-month performance for the period ended December 31, 2025, further reinforces the strong operational momentum:

Exceptional Items and Regulatory Compliance

The company reported exceptional items of ₹0.64 crores related to the statutory impact of new Labour Codes notified by the Government of India on November 21, 2025. This represents incremental gratuity expenses arising from the consolidation of 29 existing labour laws into four labour codes. The board meeting was conducted in compliance with SEBI Listing Regulations 30 and 33, with Company Secretary and Compliance Officer Satish Mehta overseeing the regulatory requirements.

Corporate Governance and Audit Compliance

The financial results were reviewed and recommended by the Audit Committee before approval by the Board of Directors. Statutory auditors Joshi Apte & Co. conducted a limited review of the standalone and consolidated financial results, issuing unmodified opinions on both statements. The results are available on the company's website at www.zfindia.com and BSE Limited's platform.