Bosch

The global economy is adjusting to geopolitical events, with IMF projecting global growth to slow from 3.2% in 2025 to 3.1% in 2026. In contrast, the Indian economy demonstrates strong resilience, with IMF revising India's GDP growth estimate for FY25-26 upwards to 7.3% from 6.6%. The RBI maintained a stable 5.25% repo rate, supporting domestic demand. The Union budget for 2026-27 signals policy continuity, with measures like customs duty exemptions for lithium-ion cell components and support for dedicated Rare Earth Corridors, bolstering the automotive industry's growth momentum.

Bosch reported revenue from operations of INR48,856 million for October-December 2025, marking a 9.4% growth over the same period in 2024. For the nine months ending December 2025, revenue reached INR1,44,690 million, a 9.8% increase from the previous year. EBITDA for Q3 FY26 was INR6,124 million, growing 5.1% YoY, driven by favorable product mix and expense optimization. Profit after tax (PAT) for Q3 FY26 grew 16.1% YoY (5.3% adjusted for an exceptional item^📎 in 2024), and for the nine months, PAT surged 50.8% to INR22,017 million, primarily due to the sale of the Video solutions business.

The Mobility business demonstrated strong performance, growing 18.5% in Q3 FY26. This was largely propelled by the Power Solutions business, which grew 19.5%, benefiting from strong demand in Passenger Cars and Off-highway segments. The Mobility Aftermarket segment also saw a 5.3% growth, supported by GST reforms and robust demand across key product groups. The 2-Wheeler business experienced exceptional growth of 58.3%, primarily due to the ramp-up of exhaust gas sensors for OBD-II norms implementation from April 2025.

The Commercial Vehicle (CV) segment, including Heavy Commercial Vehicles (HCV) and Light Commercial Vehicles (LCV), showed robust growth driven by infrastructure demand, GST 2.0, and e-commerce growth. The 3-wheeler segment also saw a sharp production increase due to urban mobility and last-mile delivery demand. Tractor production maintained strong momentum, supported by healthy rabi sowing and farmer confidence. In contrast, the Consumer Goods business declined marginally by 3.1%, while the Power Tools division experienced moderate growth due to intense price pressure from Chinese competitors, though its Cordless segment achieved double-digit growth.

Bosch continues its 'local for local' philosophy, with ongoing localization efforts for components like NOx sensors for common rail products. For the EV 4-wheeler segment, Bosch Limited aims to supply e-axles, which are the largest value component, and is in advanced discussions with OEMs. Regarding hydrogen, the company is working closely with commercial vehicle and bus OEMs on engine testing, anticipating significant hydrogen activity by 2030, though infrastructure development remains a key uncertainty. The company also showcased innovations at EICMA 2025 for its 2-Wheeler & Powersports segment.

Management clarified its dividend policy, stating a new range of 55% to 80% of profit. This provides more specific guidance compared to the previous 'open policy' which had no set limits or ranges. The Board discussed this to offer a clearer view on how dividends will be distributed, though the final call on dividends will always rest with the Board.