Bosch India (BOSCHLTD) Q1 25/26 earnings summary

Executive summary

• India's growth outlook remains strong with IMF projecting 6.4% GDP growth for 2025, supported by domestic reforms and infrastructure spending, despite global economic uncertainty.

• The Indian automotive sector is recovering, with robust growth in tractors, three-wheelers, and moderate improvements in passenger and commercial vehicles, aided by early monsoon and regulatory changes.

• Revenue from operations for Q1 FY 2025-26 increased by 10.9% year-over-year, driven by higher demand in off-highway, passenger car, Power Solutions, and Mobility Aftermarket segments.

• Profit after tax surged to 23.3% of revenue, up 139.6% quarter-over-quarter and 101.5% sequentially, mainly due to a one-time profit from the sale of business units.

• Regulatory changes, such as new emission norms and air conditioning mandates, are influencing pre-buying and market dynamics.

Financial highlights

• Revenue from operations for April–June 2025 was INR 47,886 million, up 10.9% year-over-year, with standalone net profit at INR 11,154 million, up from INR 4,655 million year-over-year.

• EBITDA for April–June 2025 was INR 6,393 million, a 23% increase year-over-year, but a 1.2% decline sequentially.

• Profit before tax (including exceptional items) reached INR 13,939 million, up from INR 6,108 million year-over-year.

• Standalone EPS was INR 378.19, compared to INR 157.83 in the same quarter last year.

• Consolidated net profit was INR 11,161 million, up from INR 4,663 million year-over-year.

Outlook and guidance

• Passenger vehicle growth in FY 2026 is expected to be moderate due to high inventory and muted demand, with potential EV component shortages from Chinese export restrictions.

• Two-wheeler and three-wheeler segments are projected to reach all-time highs, supported by festive demand, favorable monsoon, and rising EV adoption.

• Management remains optimistic, focusing on investments in hydrogen, electrification, and digital services to drive sustainable mobility.

• Market outlook remains positive, with FY2026 vehicle production expected to reach up to 26.5 million units.

• Focus on strengthening core businesses and future-ready technologies.