Bosch Q1 FY27 earnings call

Bosch Limited reported robust financial results for Q1 FY27 (April-June 2026). Revenue from operations grew 22% year-on-year to ₹58,419 million, and EBITDA increased by 28% year-on-year to ₹8,180 million. While reported PAT declined 37.1% YoY due to an exceptional item^📎 in the prior year, underlying PAT (excluding this item) grew 9.9%. Sequentially, revenue grew 5% and EBITDA grew 4.7% over the Jan-March '26 quarter.

The Indian automotive industry demonstrated resilience in Q1 FY27, supported by strong domestic demand and favorable GST rates, despite geopolitical disruption^🌐s. Passenger vehicle demand remained strong, driven by SUV preference and healthy consumer sentiment. The HCV segment maintained momentum due to stable freight activity and construction spending, while LCV and 2-wheeler segments also recorded robust growth, the latter supported by a low base effect and resilient rural demand.

The mobility business saw significant growth, with a 25.7% QoQ increase (April-June '26 vs April-June '25). This was primarily driven by the Power Solutions business, which grew 29% QoQ, and the 2-wheeler business, which surged 41.4% QoQ. The mobility aftermarket business also performed strongly, growing 9.6% QoQ and achieving its highest ever monthly sales in June, attributed to strategic pricing, new schemes, and product rollouts like lubricants and spark plugs.

EBITDA margins improved, with management attributing this to continuous operational excellence, increased localization content, favorable volume growth, improved productivity, and a positive product mix. The company expressed confidence in sustaining these margins, noting an upward trend and the benefits derived from its worldwide purchasing organization in navigating volatile sourcing markets.

Bosch continues to focus on navigating the evolving regulatory landscape, including CAFE Phase 3 and ADAS implementation in commercial vehicles. The company is actively introducing new products, such as Tulix LED lights and PC clutch/suspension systems for HCVs, and expanding its workshop programs. It remains committed to supporting various technologies demanded by the market, including SDVs, electrification, and alternate fuels.

The acquisition of Bosch Chassis Systems was completed in July 2026, with consolidated results expected from the next quarter. Management confirmed no goodwill or amortization expense for this acquisition, viewing it as a strategic portfolio addition. Joint ventures with TACO (for e-axles) and TSF Group (for air systems) are in the final stages of regulatory approvals, with revenue from the TACO JV expected by late next year and customer engagement for the TSF Group JV starting in September.

Bosch aims to continuously increase its export revenue contribution, which currently stands at 8-8.5% of total revenue, over the next few years. Key growth drivers for the coming 3-5 years include significantly increasing volume growth across its mobility portfolio, new product introductions, and new technology adoptions like commercial vehicle ADAS, which is expected to be a significant growth driver in regulated markets.