Bosch India (BOSCHLTD) Q1 25/26 earnings summary

Executive summary

• Revenue from operations increased 10.9% year-over-year for Q1 FY 2025-26, driven by strong growth in Power Solutions, Mobility Aftermarket, two-wheeler, and off-highway segments.

• Profit after tax surged 139.6% year-over-year, reaching 23.3% of revenue, primarily due to a one-time gain from the sale of the Video solutions, Access and Intrusions, and Communication systems business.

• The automotive sector in India is recovering, with robust growth in tractors, three-wheelers, and moderate improvements in passenger and commercial vehicles.

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

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

Financial highlights

• Revenue from operations for April–June 2025 was INR 47,886 million, up 10.9% year-over-year but down 2.5% sequentially.

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

• Profit after tax for the quarter was INR 11,154 million, up from INR 4,655 million year-over-year.

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

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

Outlook and guidance

• The Indian auto industry is expected to maintain strong growth, supported by early monsoon benefits in tractors, EV momentum in three-wheelers, and HCV pre-buying ahead of new mandates.

• 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.

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

• Production outlook for FY2026 projects continued growth, with high and low scenarios for key vehicle segments.

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