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.

ZF Steering Gear (India)'s subsidiary Drivesys Systems has announced significant expansion initiatives through strategic business partnerships and facility acquisitions. The company has entered into deals with two key partners while simultaneously expanding its manufacturing footprint in Maharashtra.

Strategic Partnership Agreements

Drivesys Systems has successfully signed deals with Om Tejshree and Microtech, marking important collaborative agreements that are expected to strengthen the company's operational capabilities. These partnerships represent strategic moves to enhance the subsidiary's market position and business operations.

Manufacturing Expansion in Maharashtra

The company has acquired two factory locations on a sub-lease basis in Maharashtra, demonstrating its commitment to expanding its manufacturing infrastructure. This expansion move indicates Drivesys Systems' focus on strengthening its production capabilities in one of India's key industrial states.

Business Development Impact

These developments reflect Drivesys Systems' strategic approach to business growth through both partnerships and infrastructure expansion. The combination of new business deals and facility acquisitions positions the subsidiary for enhanced operational capacity and market reach.

The expansion in Maharashtra, known for its robust industrial ecosystem, provides Drivesys Systems with access to skilled workforce and established supply chains. The sub-lease arrangements offer flexibility while enabling the company to establish its presence in strategic locations within the state.