Bosch Limited submitted the transcript of its Q4 FY 2025-2026 post-results conference call held on May 21, 2026, to the stock exchanges in compliance with SEBI LODR Regulations.

The conference call was hosted by 360 ONE Capital Market and featured management representatives Mr. Guruprasad Mudlapur (Managing Director and Chief Technology Officer) and Ms. Karin Gilges (Chief Financial Officer).

Macroeconomic Context and Outlook

Management noted that the domestic economy remained resilient in Q4 FY26, driven by robust private consumption supported by fiscal stimuli and stable monetary policy from RBI, which has maintained inflation within the 2% to 6% target range. Significant global headwinds were highlighted, including geopolitical instability in West Asia posing material risks to energy price stability and creating volatility in shipping and logistics routes. While semiconductor shortages have eased, the overall supply chain environment remains fragile. The outlook for FY27 was described as "cautious optimism" with priorities on enhancing supply chain agility and managing commodity/currency risks.

Automotive Segment Performance

Q4 FY26 saw broad-based production growth across all major automotive segments:

  • Passenger vehicle demand accelerated notably towards year-end, driven by strong SUV traction, leaner dealer inventories (normalized to ~28 days vs ~52 days in previous year), and robust consumer sentiment
  • Light commercial vehicle production recorded healthy growth driven by e-commerce demand during festive season, 10% increase in infrastructure spending, and stable credit conditions with cumulative 125 basis points repo rate cut
  • Heavy commercial vehicles growth supported by infrastructure spending, stronger goods movement, and demand for school buses
  • Tractor segment was a standout performer supported by robust rural demand, favorable farm economics, and strong rabi sowing season (total area coverage increased by ~1.59 million hectares YoY)
  • Three-Wheeler production rose sharply supported by urban mobility demand and last mile cargo activity
  • Two-Wheeler segment posted healthy growth supported by festive/wedding season demand and improved rural liquidity

Financial Performance

Quarterly Results (Jan-March 2026):

  • Revenue from operations: ₹55,657 million, growing 13.3% over Jan-March 2025
  • EBITDA: ₹7,815 million, growing 20.8% YoY
  • Profit after tax: Increased by 2.7% over same quarter previous year

Annual Results (April 2025-March 2026):

  • Revenue from operations: ₹200,347 million, growing 10.8% over ₹180,874 million in previous year
  • EBITDA: ₹26,503 million, growing 14.7% over ₹23,097 million in previous year
  • Profit after tax: ₹27,702 million, growing 37.6% over previous year

The significant annual profit growth was mainly due to profit on sale of the Video Solutions, Access and Intrusions and Communication Systems under the Building Technologies segment.

Business Division Highlights

Power Solutions Division:

  • Achieved landmark results surpassing ₹130 billion total net sales for 2025 calendar year
  • Q4 delivery of over ₹14 billion
  • Preparing customers for CAFE Phase 3 regulations rollout scheduled for April 30, 2027
  • Spearheading adoption of ADAS in commercial vehicles (regulation effective Jan 2027 for new models, all vehicles by October 2027)

Two-Wheeler and PowerSports Division:

  • Significant surge in demand following recent GST reforms
  • Maintained 100% delivery commitment to all OEMs with zero production disruptions
  • Bosch Limited named one of India's top 50 innovative companies by CII
  • New Intelligent Puncture Detection System commended

Mobility Aftermarket Division:

  • Independent aftermarket stagnated due to supply chain pressures
  • Original Equipment segment witnessed robust growth, particularly in OEM Filters & Spark Plugs
  • Exports delivered outstanding growth of ~17%, with improvements in Nepal, Bangladesh and Sri Lanka markets

Power Tools Division:

  • Became first Power Tool company in India to receive mandatory BIS certification for key products (angle grinders, drills, hammers)
  • Expanded professional tool portfolio with launch of new magnetic drill GBM30 (first locally sourced finished good)
  • Cordless segment continued double-digit growth driven by Cordless 3.0 initiative across 25 industrial clusters

Joint Venture Announcement

Bosch announced a joint venture with Brakes India Private Limited and Wheels India Limited to focus on engineering, manufacturing and sale of electronically controlled and software-driven modules for:

  • Air compression
  • Air processing
  • Air suspension
  • Air parking brakes

The JV will have registered office in Chennai and manage global supply chain including India. Operations aim to commence late 2026, with samples in 2027 and series readiness by 2028.

Other Business Updates

  • The joint venture with Tata AutoComp for eAxles is on track for establishment in mid-2026, with first shipments expected in Q3 of next calendar year
  • The acquisition of Robert Bosch Chassis Systems is pending regulatory approvals after obtaining minority shareholder approval
  • Management emphasized continuous work on portfolio expansion, decluttering and enhancement

FY27 Outlook

Management provided segment-wise outlook:

  • Passenger vehicle segment: Expected steady growth, though geopolitical uncertainties may weigh on Q1 demand
  • Commercial vehicle segment: Projected stable growth aided by infrastructure spending and e-commerce logistics demand
  • Tractor segment: Expected stable growth supported by healthy reservoir levels and stable prices, though potential El Nino conditions could pose downside risk
  • Three-Wheeler segment: Likely positive growth driven by passenger mobility and last mile cargo demand
  • Two-Wheeler segment: Expected healthy growth, though below normal monsoon could weigh on rural demand

Q&A Session Highlights

Analysts questioned the joint venture strategy, with management explaining that partnering with established players (TSF Group) allows quicker market entry in areas where Bosch doesn't currently operate. Content per vehicle is expected to continue increasing. Management declined to share specific financials for the chassis systems acquisition pending regulatory approvals. Cost outlook for FY27 remains competitive with focus on localization, negotiation, and productivity improvements through AI implementation in plants.