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Informist, Tuesday, Aug. 11, 2026

 

--Bosch: Festive demand, rural cash flows to drive growth in Q2
--CONTEXT: Comments by Bosch mgmt in post-earnings analyst call
--Bosch: Changed approach for mobility aftermarket ops to strengthen it
--Bosch: Expect sustainable growth for mobility aftermarket ops hereon
--Bosch: Commodity cost spikes have levelled out recently but is volatile

 

By Anand JC and Ashutosh Pati

 

MUMBAI – Bosch Ltd. sees volume growth as a key driver of its overall growth in the coming years. The company said on Tuesday that it expects "significant" volume growth across its mobility portfolio over the next three to five years. "We see quite a lot of new things in every one of our product areas: power solutions, two wheelers, and of course also on mobility aftermarket power tools, and now the complete chassis systems area," a senior company official told analysts in a post-earnings conference call.

 

In the chassis systems business, the company has new product introductions that are expected to gain traction in the coming years. "New products, product mix changes will give us significant support on our revenue growth. We also see new technology introductions, which will happen in the coming years," the official said. 

 

These new technologies include advanced driver assistance systems for commercial vehicles, which may gain traction starting next year. "Overall, premiumisation of vehicles, volume increase in vehicles, new technology in vehicles are all growth drivers for us," the company said.

 

Bosch had detailed its June quarter earnings late Monday. The company reported a net profit of INR 7.02 billion on revenues of INR 58.42 billion.

 

Bosch's mobility aftermarket segment grew almost 10% year-on-year on the back of strategic price positioning and rollout of new schemes for key product categories such as lubricants and spark plugs. Following weaker growth registered by the segment last year, Bosch tweaked its approach to the market, expanded its workshop programme at a rapid pace, and introduced new products. 

 

"Overall, the aftermarket portfolio is much, much stronger now. Our approach to market, which is even more significant, has started to produce results," the official said. "We believe that this is a sustainable path over the coming period. We should see sustained growth moving forward," the official said. 

 

"Next quarter, we expect resilient 8% growth, driven by festive demand, stronger rural cash flows and ongoing infrastructure activity," the company said. Risks to this outlook include monsoon variability, potential El Nio effect, and geopolitical tensions.

 

The company's earnings before interest, tax, depreciation, and amortisation margin has hovered around 14% over the last two quarters, compared to 12-13% reported before the COVID-19 pandemic. Bosch said its margin growth over the last few quarters had gained from increased localisation. "Our localisation plans are well on track, (we are) consistently increasing localisation content. And we will continue to go in this path," the company said.
 

Bosch is focusing on electric vehicles as part of its mobility business. "Maybe not showing up in terms of turnover, but in terms of technology, in terms of product, and in terms of what we plan to do...EVs are an integral part of our overall mobility offering," the company said. 

 

In March, Bosch had announced setting up of a joint venture with Tata AutoComp Systems to engineer, manufacture, and sell e-Axle systems and electric motors in India. The JV is in the process of being set up and in the final stages of merger control, the company said. It will be operational in Nashik.

 

On commodity costs, the company said it has seen a strong increase over the last several quarters but has levelled off a little currently. "A lot of it is dependent on global conditions, geopolitics, supply chain issues, logistics issues. So it's a pretty volatile environment at this point of time," the official said. "We have some impact, we contained some impact. But at this point of time, it looks a little stable," the official said.

 

On Tuesday, its shares closed almost 4% higher at INR 45,185 on the National Stock Exchange.  End

 

Edited by Avishek Dutta

 

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