Bosch Limited reported a 37.6% surge in profit after tax (PAT) to ₹27,702 million for the fiscal year ended March 31, 2026, driven by robust operational performance and a one-time gain from the sale of assets in the Building Technologies segment. For the fourth quarter, revenue from operations increased by 13.3% year-on-year to ₹55,657 million, supported by higher sales in the Power Solutions and Two-Wheeler PowerSports segments. The disclosure was made in compliance with Regulation 30 and 46(2)(oa) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

The company’s full-year revenue grew by 10.8% to ₹200,347 million from ₹180,874 million in the previous year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter stood at ₹7,815 million, a rise of 20.8% compared to the same period last year, while full-year EBITDA increased by 14.7% to ₹26,503 million. The significant annual growth in PAT was attributed to the profit on the sale of the Video Solutions, Access and Intrusions and Communication Systems under the Building Technologies segment.

Operational Highlights

The Mobility business grew by 23.3% in the quarter, with the Two-Wheeler business recording a 63.4% increase due to the ramp-up of exhaust gas sensors following OBD2 norms implementation. The Consumer Goods business grew by 14.3% during the quarter. Management noted that inventory levels normalized to a healthy average of approximately 28 days compared to 52 days in the previous year.

Strategic Developments

Management announced a joint venture with Brakes India Private Limited and Wheels India Limited to focus on electronically controlled and software-driven modules for air compression, air processing, air suspension, and air parking brakes. The joint venture is expected to commence operations by the end of 2026, with series readiness targeted for 2028. Additionally, the company is preparing customers for the upcoming CAFE Phase 3 regulations scheduled for April 30, 2027.

Bosch has shared a comprehensive guidance update through a concall, outlining its outlook for the upcoming fiscal year, segment-wise growth expectations, and key strategic developments including a new joint venture and the anticipated impact of CAFE Phase 3 regulations.

FY27 Outlook: Cautious Optimism

Bosch's overall outlook for fiscal year 2027 is characterised by "cautious optimism," with the company anticipating "flattish" overall growth. Key headwinds include the West Asia crisis impacting crude oil prices, though the company remains confident in the government's capital expenditure as a driver of domestic demand. The Indian automotive industry is expected to see steady growth in FY27, with segment-specific projections detailed below.

CAFE Phase 3 to Drive Content Per Vehicle

Bosch expects content per vehicle to constantly increase in the upcoming fiscal year. A significant catalyst for this growth is the upcoming CAFE Phase 3 regulations, scheduled for April 2027, which are expected to meaningfully improve content per vehicle. This regulatory development is anticipated to be a structural tailwind for the company's automotive components business.

New Joint Venture With Brakes India and Wheels India

In addition to its previously announced joint venture with Tata Autocomp — expected to turn earnings-accretive beginning Q3 FY28 — Bosch has provided guidance on a new collaboration. The joint venture with Brakes India Private Limited and Wheels India Limited, focused on advanced air systems, is expected to commence operations by the end of 2026, with samples anticipated in 2027 and series readiness targeted for 2028.

These concall updates collectively reflect Bosch's strategic positioning across multiple growth vectors — regulatory compliance, new joint ventures, and segment-level demand trends — as it navigates a cautiously optimistic environment for the Indian automotive sector.