ZF Steering Gear Q2 Net Profit Soars Over 300% to Rs 16.88 Crore

Revenue grew 50% year-on-year to Rs 175.47 crore, alongside a favorable tax tribunal order for Rs 8.20 crore.

Reader Takeaway: Strong operational growth and a significant tax windfall strengthen the balance sheet, though subsidiary ramp-up remains crucial.

What just happened

ZF Steering Gear India Limited posted strong financial results for the quarter ending September 30, 2026. The company’s standalone net profit surged to Rs 16.88 crore, compared to Rs 4.14 crore in the same period last year. Revenue from operations climbed to Rs 175.47 crore from Rs 116.64 crore, marking a robust 50% year-on-year increase. Basic earnings per share (EPS) rose significantly to Rs 18.61, up from Rs 4.56 in Q2 of the previous fiscal year.

Why this matters

The company’s performance highlights improved operational efficiency and market demand. Beyond core operations, the Income Tax Tribunal ruled in favor of the company regarding tax disputes dating back to the late 1990s and early 2000s. This victory grants the company an expected refund of Rs 8.20 crore plus interest, providing a non-operational liquidity boost. Furthermore, the commercial production launch at the subsidiary DriveSys Systems’ Electrical Division in Ahilyanagar marks a new growth vertical.

Risks to watch

Investors should track how quickly the company realizes the Rs 8.20 crore tax refund and the speed at which the new Electrical Division reaches its full production capacity. Market conditions affecting automotive demand could impact future revenue scaling.

What to track next

The primary focus remains the realization of the tax refund following the September 28, 2026 application and the performance contribution of the new subsidiary production facility moving into the second half of the fiscal year.