ZF Steering Gear (India) Limited 's Board of Directors has approved the reclassification of three promoters' shareholdings from the 'Promoter/Promoter Group' category to 'Public Shareholder(s)' category. This decision, made during a board meeting on September 8, 2025, marks a significant change in the company's shareholding structure.

Details of the Reclassification

The three promoters seeking reclassification are:

1. Mrs. Amita Jinendra Munot, holding 1,47,215 shares (1.62% shareholding)
2. Mr. Piyush Jinendra Munot, holding 1,16,235 shares (1.28% shareholding)
3. Mr. Yash Munot, holding 1,12,350 shares (1.24% shareholding)

Collectively, these promoters hold 3,75,800 shares, representing 4.14% of the company's total equity.

Regulatory Compliance

The Board determined that all three promoters meet the regulatory conditions set by SEBI (LODR) Regulations, 2015, including:

• Holding less than 10% of the total voting rights in the company
• Not exercising control over the company's affairs, directly or indirectly
• Having no special rights through formal or informal arrangements
• Not holding any board positions or acting as key managerial personnel
• Not being declared as 'wilful defaulters' or 'fugitive economic offenders'
• Having no pending regulatory actions against them

Next Steps

The reclassification is subject to approval from:

1. BSE Limited (the Stock Exchange)
2. Shareholders/Members of the company

Impact on Shareholding Structure

If approved, this reclassification will result in a reduction of the promoter group's shareholding in ZF Steering Gear (India) Limited. The move could potentially increase the public float of the company's shares, which may have implications for market liquidity and institutional investment thresholds.

Company Background

ZF Steering Gear (India) Limited is a key player in the automotive sector, specializing in steering systems. The company recently held its 45th Annual General Meeting on September 8, 2025, where it discussed its financial performance, new projects, and industry outlook.

This reclassification request comes at a time when the company is focusing on growth and expansion, as evidenced by the updates on new projects being undertaken through its subsidiaries, mentioned during the recent AGM.

The board's decision to approve this reclassification request demonstrates the company's commitment to maintaining transparency and adhering to regulatory requirements in its corporate governance practices.

ZF Steering Gear (India) Limited , a leading manufacturer of steering systems for commercial vehicles and tractors, has reported mixed financial results for the fiscal year 2024-25. While the company saw modest revenue growth, profitability declined due to higher costs and lower other income.

Key Financial Highlights

• Revenue from operations increased by 1.05% to Rs. 492.86 crore, compared to Rs. 477.87 crore in the previous year.
• Net profit declined by 28.98% to Rs. 33.89 crore, down from Rs. 47.72 crore in FY 2023-24.
• Earnings per share (EPS) decreased to Rs. 37.35 from Rs. 52.59 in the previous year.
• The company's board did not recommend any dividend for FY 2024-25, citing the need to conserve resources for ongoing expansion and diversification plans.

Segment Performance

Operational Highlights

• Sales of power steering systems grew by 4.2% to Rs. 468.45 crore.
• Mechanical steering sales increased marginally by 1.4% to Rs. 19.37 crore.
• The company's 5 MW solar power project in Gujarat generated 0.69 crore units of electricity, with sales revenue of Rs. 4.50 crore.
• Wind energy operations generated 1.17 crore units, with 0.98 crore units used for captive consumption.

Expansion and Diversification

Chairman Dinesh Munot stated, "We are pursuing strategic initiatives for backward integration through our subsidiaries. Additionally, we have planned diversification into aluminum extrusion and manufacturing of certain electric equipment components."

The company has allocated approximately Rs. 94.00 crore towards its subsidiaries:

• Rs. 22.00 crore for expansion of existing businesses
• Rs. 72.00 crore for new business lines

Challenges

The decline in profitability was attributed to:

• Lower other income
• Increased fixed costs
• Higher finance costs

The company's finance cost rose to Rs. 2.86 crore, compared to Rs. 0.91 crore in the previous year, due to higher utilization of working capital limits.

Outlook

While facing near-term challenges, ZF Steering Gear (India) Limited remains focused on its expansion and diversification strategy. The company's investments in subsidiaries and new business lines are expected to drive future growth and create additional revenue streams.