Bosch India (BOSCHLTD) Q2 25/26 earnings summary

Executive summary

• Indian economy demonstrated resilience with 7.8% GDP growth in Q1 FY 2026, supported by policy measures and strong domestic demand, especially in the auto sector.

• Revenue from operations increased 9.1% year-over-year in Q2 FY 2025-26, reaching INR 47,948 million, driven by strong demand in passenger cars, off-highway, and two-wheeler segments.

• EBITDA rose 10.1% year-over-year, reflecting a favorable product mix and expense optimization.

• Profit after tax for July-September 2025 grew 3.4% year-over-year; six-month PAT surged 66.7% to INR 16,696 million, mainly due to a one-time gain from a business sale.

• Global macroeconomic environment remains challenging due to tariff pressures and geopolitical unrest, but India is benefiting from GST reforms and festive demand.

Financial highlights

• Revenue from operations for July-September 2025 was INR 47,948 million, up 9.1% year-over-year; April-September 2025 revenue grew 10% to INR 95,834 million.

• EBITDA for July-September 2025 was INR 6,171 million, up 10.1% year-over-year; six-month EBITDA rose 16.3% to INR 12,564 million.

• Profit after tax for July-September 2025 was INR 5,542 million, or 11.6% of revenue; six-month PAT surged 66.7% to INR 16,696 million, mainly due to a one-time gain from a business sale.

• Earnings per share (basic and diluted) for the quarter were INR 187.89, up from INR 181.70 year-over-year.

• Exceptional gain of INR 5,560 million recognized from the sale of the Video solutions, Access and Intrusions, and Communication systems business.

Outlook and guidance

• Passenger cars, two-wheelers, and tractors are projected to reach all-time highs in FY 2026, driven by new launches, GST reforms, and strong rural sentiment.

• Management anticipates healthy demand in the next quarter, supported by the festive season and GST rationalization.

• Commercial vehicles and three-wheelers expect steady growth, supported by infrastructure development and EV adoption.

• Mobility Aftermarket expects momentum recovery post-GST 2.0 transition, with continued focus on portfolio expansion and margin stability.

• Optimism is driven by a strong portfolio and customer-first approach, with expectations of continued growth in key automotive segments.