Bosch — Q4 FY25 earnings call

Call held 29 May 2025

Management summary

Bosch Limited reported strong financial results for Q4 FY25 and full FY25, driven by robust growth in the mobility business and effective cost management. Revenue from operations increased 16% QoQ and 8.1% YoY, with EBITDA margins improving to 12.8% for FY25. The company made strategic advancements with a new NOx sensor line and continued focus on localization, despite facing macroeconomic volatilities and regulatory uncertainties regarding OBD2 norms and tariffs.

Highlights

  • Revenue from operations for Jan-Mar '25 stood at INR 49,106 million, a 16% increase QoQ.

  • Revenue from operations for April-March '25 stood at INR 180,874 million, a growth of 8.1% YoY.

  • EBITDA for FY25 grew by 10.3% to INR 23,097 million, with margin improving from 12.5% to 12.8%.

  • Mobility business demonstrated strong performance with 14.9% QoQ and 7% YoY growth.

  • Successful inauguration of the NOx sensor Gen-3 line, scaling to 2.1 million sensors per year by 2027.

Concerns

  • PAT reduction for FY25 primarily due to removal of indexation benefit on long term capital gains from FY24-25 onwards.

  • Global and domestic events creating volatility due to trade issues, conflicts, and slowing economy.

  • Uncertainty regarding the implementation date of OBD2 norms and short-term tariff uncertainties.

Key financials

2 periods

Q4 FY25

  • Revenue
    49,106 Mn
    QoQ +16%
  • EBITDA
    6,469 Mn
    YoY +16.1%

FY25

  • Revenue
    1,80,874 Mn
    YoY +8.1%
  • EBITDA
    23,097 Mn
    YoY +10.3%
  • EBITDA Margin
    12.8%
  • PAT Margin
    11.1%

What they filed

Q1 FY27: revenue up 22.0%, net profit down 37.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue4,394 4,466 4,911 4,789 4,795 +9%4,886 +9%5,566 +13%5,842 +22%
EBITDA560 583 647 639 617 +10%612 +5%782 +21%818 +28%
Net profit536 458 554 1,115 554 +3%532 +16%568 +3%702 −37%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Mobility Business (Q4 FY25)
    14.9% Growth
  • Power Solutions Business (Q4 FY25)
    16.9% Growth
  • Mobility Aftermarket Business (Q4 FY25)
    7.9% Growth
  • Two-wheeler Business (Q4 FY25)
    21.4% Growth
  • Consumer Goods Business (Q4 FY25)
    2.9% Growth
  • Mobility Business (FY25)
    7% Growth
  • Power Solutions Business (FY25)
    5.8% Growth
  • Mobility Aftermarket Business (FY25)
    8.4% Growth
  • Two-wheeler Business (FY25)
    18.5% Growth
  • Consumer Goods Business (FY25)
    6.3% Growth
  • Building Technologies Business (FY25)
    8.2% Growth

Capital allocation

medium confidence
  • Debt Debt disclosed
    So therefore, if I look at or if we look at Bosch Limited overall, we had a very successful year, 8.1% revenue increase in the operations, EBIT growth from 10% to 10.7%. We have a stable or a good market outlook. So on the other side, we also know how the overall world market had a decreased in the shares in the market. And looking into the future, we also see our balance sheet. We also have strong balance sheet, nearly debt free, substantial liquidity.
  • Liquidity Liquidity disclosed Company has a strong balance sheet, is nearly debt free, and has substantial liquidity.
    And looking into the future, we also see our balance sheet. We also have strong balance sheet, nearly debt free, substantial liquidity.

Guidance & targets

Capacity

  • NOx sensor production capacity Capacity · by 2027 · High confidence 2.1 million sensors per year
    With a series of production underway, we are scaling to a capacity of 2.1 million sensors per year by 2027.

    — Guruprasad Mudlapur

Export

  • Export business growth Export · next year · Medium confidence slight increase
    So, overall, we will see for the next year a slight increase.

    — Karin Gilges

Revenue

  • Growth beyond industry rates Revenue · ongoing · Medium confidence grow beyond the typical industry growth rates
    I think we always aim to grow beyond the typical industry growth rates driven by primarily topics like premiumization which help us get into advanced technologies which get introduced.

    — Guruprasad Mudlapur

What to watch in Q1 FY26

OBD2 Norms Implementation Status

next quarter
Current Uncertain, current dates may not happen
Target Implementation as planned or revised date announced

Why it matters

The implementation of OBD2 norms directly impacts the two-wheeler business, especially exhaust gas sensor sales, and any delay could affect revenue timelines.

Although it looks more and more certain that the current dates may not happen, so we are also crossing our fingers that rates do hold on and happen as planned.

Risks & concerns

  • Global and domestic macroeconomic volatility

    medium

    Volatility due to trade issues, conflicts, and slowing economy.

    Management acknowledged

  • Geopolitical risks, talent scarcity, and AI impact on productivity

    medium

    Key themes in the global labour market currently.

    Management acknowledged

  • Inflation and weak consumer sentiment

    medium

    Challenges impacting the industry, despite optimism for continued growth.

    Management acknowledged

  • Uncertainty regarding OBD2 norms implementation date

    medium

    Current dates for implementation may not happen, impacting two-wheeler business.

    Management acknowledged

  • Short-term uncertainties related to tariffs

    medium

    Impacts export business and overall market dynamics.

    Management acknowledged

Q&A highlights

5 direct
Nox plant PLI eligibility Direct
No, this plant does not qualify under PLI and we did not apply.

Clarifies that the newly inaugurated NOx sensor plant is not part of any PLI scheme, impacting potential government incentives.

Asked by Pramod Amte

PLI related plants timeline Partial
we are screening of course all the PLI schemes constantly. Currently, as already mentioned, this plant is not ready for the PLI, but we are screening all the time and we are in close contact to the legislations and rules and regulations.

Indicates that while Bosch is actively monitoring PLI schemes, there are no immediate plans for new PLI-eligible plants or financial accounting from them.

Asked by Pramod Amte

Purchase goods cost reduction and localization strategy Direct
What has helped us is our constantly work on the localization, and not only on the finished goods, but what we mentioned in the last quarter also that we strongly work on the localization of components, and whatever is possible in India.

Explains the company's strategy of localizing components and finished goods as a key driver for cost reduction and margin improvement.

Asked by Pramod Amte

OBD2 new clients and two-wheeler growth Direct
we are more or less serving all the major OEMs in the two wheeler spectrum, and this we continue to do as we go along. So, I mean, I do not think we have any OEM who's not in our scope right now.

Highlights Bosch's extensive market coverage in the two-wheeler segment, suggesting broad participation in the OBD2 transition.

Asked by Pramod Amte

Scope of EV business, specifically eAxles Direct
the eAxles, which are the largest components in the eAxle business, will stay within Bosch Limited and that's how it is. ... And eAxle as a product includes everything.

Clearly defines Bosch Limited's core offering and strategic focus within the EV segment, confirming full ownership of eAxle development and production.

Asked by Sriram

Trump tariff specification implementation update Partial
Although it looks more and more certain that the current dates may not happen, so we are also crossing our fingers that rates do hold on and happen as planned.

Reveals uncertainty and potential delays in the implementation of Trump tariffs, which could impact export strategies and costs.

Asked by Annamalai Jayaraj

eAxle order status from OEMs Partial
we are working with all the OEMs, talking to them, and looking at their platforms. We are in several stages of negotiation with different OEMs, and I cannot be more specific than that in a forum like this right now.

Indicates ongoing discussions and negotiations for eAxle orders, but no confirmed wins yet, suggesting future potential but current lack of firm commitments.

Asked by Iqbal Khan

Hydrogen engine development update with Indian OEMs Direct
we have been working with almost all OEMs and also quite a lot of non-mobility players, and even ecosystem players on the hydrogen topic. And that work continues.

Confirms broad engagement in hydrogen technology development across various players, but emphasizes that ecosystem development is still in progress.

Asked by Annamalai Jayaraj

3 min read 7 chapters

Detailed narrative

Strong Financial Performance in Q4 FY25 and FY25

Bosch Limited reported robust financial results, with revenue from operations increasing 16% QoQ to INR 49,106 million in Jan-Mar 2025. For the full FY25, revenue grew 8.1% YoY to INR 180,874 million. EBITDA for FY25 also saw a 10.3% growth, with the margin improving from 12.5% in FY24 to 12.8% in FY25, driven by higher revenue and reduced material costs. However, PAT for FY25 was 11.1% of revenue, down from 14.9% in FY24, primarily due to the removal of indexation benefit on long-term capital gains.

Segmental Growth Drivers and Market Trends

The mobility business was a key growth driver, achieving 14.9% QoQ and 7% YoY growth, primarily fueled by power solutions (16.9% QoQ, 5.8% YoY) and the two-wheeler business (21.4% QoQ, 18.5% YoY). The two-wheeler segment benefited from increased exhaust gas sensor sales ahead of OBD2 norms. Consumer goods and building technologies also contributed positively with 2.9% and 8.2% growth respectively. The Indian auto industry witnessed moderate growth, largely fueled by strong demand for SUVs, premium bikes, and three-wheelers.

Strategic Focus on Localization and Innovation

Management emphasized its ongoing efforts in localization of components and finished goods, which contributed to easing purchase goods costs. The company inaugurated a new NOx sensor Gen-3 line at its Bidadi plant, achieved in just 67 days, with plans to scale capacity to 2.1 million sensors per year by 2027. This initiative enhances India's role in the global value chain and supports cleaner emissions, and the plant does not qualify for PLI benefits.

EV Transition & eAxle Strategy

Bosch Limited is actively engaged in the EV space, with eAxles identified as a core offering that will remain within Bosch Limited, encompassing all components. The company is in various stages of negotiation with multiple OEMs for eAxle orders, indicating a strategic push into electrification, though no specific order wins were announced during the call. The company aims for good breakthroughs in electrification in the coming years.

Macroeconomic Headwinds and Regulatory Uncertainty

The company acknowledged global and domestic macroeconomic volatility due to trade issues, conflicts, and slowing economies, alongside challenges like inflation and weak consumer sentiment. Management also highlighted uncertainty regarding the implementation date of OBD2 norms, which could impact the two-wheeler business, and short-term uncertainties related to tariffs. Despite these, the industry remains optimistic for continued growth.

Hydrogen Ecosystem Development

Bosch Limited continues to work with various OEMs and ecosystem players on hydrogen technology, focusing on electrolyzer development, hydrogen generation, distribution, and cost optimization. While the technology is maturing and solutions are being offered to OEMs, the overall ecosystem development is still ongoing, with no immediate commercialization timelines provided.

Shareholder Returns and Financial Strength

The company highlighted its commitment to shareholder returns, noting an increase in dividends over the past few years, reflecting a successful FY25. Bosch maintains a strong balance sheet, described as 'nearly debt free' with 'substantial liquidity,' positioning it well for future strategic investments. This financial strength allows the company to pursue growth opportunities and maintain competitiveness.

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