BOSCHLTD - Bosch Ltd Share Price

In the earnings call held on February 9, 2026, Bosch Limited management, led by Managing Director Guruprasad Mudlapur and CFO Karin Gilges, expressed a positive outlook for the automotive industry and the company's performance. The Indian economy's GDP growth forecast has been revised upwards to 7.3% for FY 2025-26. The company anticipates strong growth across key segments: Passenger Cars, Tractors, and 2-Wheelers are expected to achieve all-time high production levels due to robust economic fundamentals and favorable policies.

Key highlights include:

• Passenger Vehicles: Anticipated strong performance driven by improved affordability from easing interest rates and GST reforms.
• Commercial Vehicles (CV): Projected healthy growth due to sustained infrastructure spending and e-commerce logistics expansion. The LCV sub-segment is expected to achieve record levels.
• Tractors: Forecasted to hit record production levels, supported by favorable rural sentiment and ongoing state subsidies.
• 2-Wheelers: Expected to reach new peaks driven by rising incomes and improved affordability.

For Q3 FY 2025-26, revenue from operations stood at INR 48,856 million, reflecting a 9.4% growth year-on-year, while EBITDA increased by 5.1% to INR 6,124 million. The profit after tax grew by 16.1% compared to the same quarter the previous year. The overall performance signals a strong momentum in the automotive market, with Bosch aiming for growth in all its product segments while addressing cost structures and product mix for margin improvements.

Management emphasized the importance of ongoing investments in capacity as demand grows, aligning with localization efforts, especially in light of the recent India-EU trade deal. They expressed optimism regarding built-up momentum in the automotive and supporting industries driven by government initiatives and consumer demand.

Here are the major questions from the Q&A section of Bosch's earnings transcript and their corresponding detailed answers:

1. Question: "In every cycle or this is an ongoing process in our company that we check the forwarding volumes. So in that context, are you relooking at your capacities and also the capex requirement for the FY '27-'28?" Answer: "Yes, we continuously evaluate our capacities based on predicted customer volumes. It's a fundamental process at Bosch. Whenever we approach our capacity limits, we consider future capex to extend our capabilities, ensuring we remain agile in meeting demand."

2. Question: "What is your thought process in terms of imported components? Also, what opportunities do you see for exporting from India?" Answer: "We are localizing components from our parent company and are committed to further localization where feasible. Regarding exports, we've increased volumes for spark plugs and expect growth for common rail products and sensors, particularly as we have relocated certain products to enhance our competitive edge."

3. Question: "Why are we not seeing a movement on the margins despite growth and localization?" Answer: "Despite growth, margins are impacted by product mix and market demands. While we've seen increased profitability, factors like new product introductions and their stabilization affect margins. However, we are optimistic about future localization efforts improving margins as we scale."

4. Question: "What is Bosch's plan for the EV 4-wheeler vehicles in India?" Answer: "We plan to focus on e-axles, which are critical components of electric vehicles. Currently, we are in discussions with multiple OEMs, and while we don't supply e-axles yet, we are working towards significant project collaborations in the near future."

5. Question: "How is demand from the Commercial Vehicle segment shaping for Bosch?" Answer: "Demand for both HCV and LCV segments has been robust, fueled by increased infrastructure activity and government orders. We foresee strong demand continuing, particularly in the context of economic growth, which supports both HCV and LCV activities."

6. Question: "What is the progress on alternate fuel technologies?" Answer: "Bosch is actively developing various alternate fuel technologies, including flex fuels. While the content per vehicle may not change significantly compared to ICE vehicles, we are fully committed to supporting OEMs in India as they transition to these new systems."

7. Question: "Will the new trade deal impact localization timelines?" Answer: "Our strategy has always been to localize production in line with demand. While the FTA could offer advantages, our commitment to localization will not change. We will evaluate the potential of the FTA and adapt our strategies accordingly."

8. Question: "Could you comment on your export performance for this year?" Answer: "We have seen consistent growth in our exports, particularly in spark plugs and sensors, especially to Japan and Korea. While our focus remains on the Indian market, we aim to steadily increase our export volumes to support performance."