About Company Earning Calls Revenue Gross Margin EBITDA Dividend Fixed Assets Intangible Assets Capex Debt Trade Receivables Inventory Trade Payables Cash Flow Risks DuPont Analysis Ratio Analysis Forecasted P&L Common Sized Valuation Bosch Limited BSE: 500530 NSE: BOSCHLTD Sector: Automobile Industry: Auto Component Summary Particulars FY25 Enterprise Value (₹ Crore) 82,074 EV/EBITDA 36 P/E 41 Revenue Growth % YoY 8.1% Gross Margin 36.6% EBITDA Margin 12.8% Net Margin 11.1% About the Company Bosch Limited (hereinafter as “Bosch“ or “The Company”) was incorporated on November 12, 1951. The company was founded by Rober Bosch in 1886 in Stuttgart, Germany. In 1951, The company officially started its operations with the name “Bosch” in India. India plays a largest role in strengthening the Group’s global strategy. Bosch operates in three segments which are Automotive Products, Consumer Goods and Others segments. The automotive segment’s business consists of diesel systems, gasoline systems and automotive aftermarket products and services. That of consumers good segment consists of trading activities in power tools and consumables. The company is also engaged in the business of Industrial technology, building technology products and services. In the automotive segment, Bosch servers all major automotive OEMs in the Passenger Car, Commercial Car, Tractors and also Two-Wheeler segments, they also serves the aftermarket through distributor network and retailers through Bosch Car Service (BCS). In consumer goods segment, they have a wide range of cordless tools and supports its various products with a comprehensive range of accessories. They also caters to retail users directly or through distributor network in both offline and online channels and as well as the companies in the construction, woodworking and metalworking industry etc. In “other” segment, Bosch offers products related to building technologies which includes a wide range of products and services for building safety, energy efficiency, and building automation and the customers are like Metro Rail, Airports, City surveillance & traffic management, Refineries, Manufacturing and Industrial complexes, sensitive high-profile buildings, educational institutes, Hospitality and Healthcare projects, Stadia and top Corporate houses through authorized Channel Network comprising of System Integrators and distributors. Bosch also offers solutions for customized energy efficiency solutions for commercial and industrial establishments under the “other” segment. Company Details State City Headquarters R&D Office Manufacturing Chandigarh Chandigarh Yes No No No Delhi New Delhi No No Yes No Gujarat Ahmedabad No No Yes No Surat No No Yes No Haryana Gurugram No No Yes No Manesar No No Yes No Himachal Pradesh Nalagarh No No No Yes Jharkhand Ranchi No No Yes No Karnataka Bengaluru No No Yes No Bidadi No No No Yes Nagathanthapura No No No Yes Mysore (inferred) No Yes No No Kerala Coimbatore No No Yes No Madhya Pradesh Indore No No Yes No Maharashtra Mumbai No No Yes No Nashik No No Yes No Pune No No Yes No Rajasthan Jaipur No No Yes No Tamil Nadu Chennai No No Yes No Telangana Hyderabad No No Yes No Secunderabad No No Yes No Uttar Pradesh Ghaziabad No No Yes No Lucknow No No Yes No West Bengal Kolkata No No Yes No Location Number of Plants Number of Offices Total National 7 36 43 International – 1 1 Grand Total 7 37 44 Locations Served by the Entity Number National (No. of States) 35 International (No. of Countries) 39 Total 74 Mobility Portfolio Segment Core Technology / Sub-category Components / Offerings 2-wheeler and powersports Engine Management System (EMS) Portfolio of EMS technologies specifically engineered for two-wheelers, encompassing: lambda sensors, fuel injectors, fuel supply modules, and Electronic Control Units (ECUs). ICE Engine Management Systems Systems for Diesel, Gasoline, and alternate fuel across vehicle segments. ICE Connected and Software Services Connected and Software services. ICE Battery Management Systems Battery Management Systems. ICE Thermal Systems Thermal systems – Hybrids. ICE H2 ICE Hydrogen Internal Combustion Engine (H2 ICE) applications. Electrification Electrification Integration Electric Axle (3-in-1, X-in-1) and Vehicle Control Units. List of Products Product & Services Sector Key Products & Categories Services Home Appliances Ovens, dishwashers, refrigerators, washing machines/dryers, air fryers, kitchen appliances (mixers, blenders, food processors), coffee machines, and vacuum cleaners. Cleaning and care products, extended warranties, and repair/spare parts support. Power & Measuring Tools Cordless and corded power tools (drills, saws, grinders, hammers), measuring tools (lasers, detectors, thermal cameras), and professional-grade accessories. Online repair services, spare parts lookup, and product connectivity apps (e.g., MeasureOn). Mobility Solutions Automotive parts, vehicle technology, software, and electronic systems for passenger cars, commercial vehicles, and two-wheelers. Workshop equipment (diagnostics, test benches), ESI[tronic] software, technical support, and workshop management programs. Industry & Trade Specialized tools, industrial technology, and building/energy solutions. Training solutions, technical consulting, and professional maintenance/repair services. Q1 FY26 Opening Context & Macroeconomic Environment The Managing Director, Mr. Guruprasad Mudlapur, began by describing the current global landscape using the term BANI (Brittle, Anxious, Nonlinear, Incomprehensible). He noted ongoing wars, US tariff discussions, supply chain challenges, and growth disparity between developed and emerging markets. Despite this, the IMF upgraded India’s 2025 growth forecast to 6.4%, reaffirming India as a key engine of global expansion. The RBI has taken easing measures (repo rate cuts, CRR reduction) to boost growth, with inflation at multi-year lows. Monsoon performance will be key for coming quarters. Indian Automotive Industry Performance (Q1 FY26) Upward trend seen in tractors and three-wheelers. Mild improvements in passenger vehicles, two-wheelers, and commercial vehicles. Heavy Commercial Vehicles (HCV): Positive growth due to pre-buying ahead of mandatory AC cabin regulation (effective October 1, 2025), driven by expected 1-2% cost increase. Bus segment: Continuing to thrive, supported by PM e-Bus Sewa scheme. Light Commercial Vehicles (LCV): Slight degrowth; goods carriers faced challenges from softening economy and competition from three-wheelers in low-tonnage category. Three-wheelers: Strong double-digit growth driven by domestic and export demand, especially EV penetration in last-mile use cases. Tractors: Robust growth due to timely sowing, favorable monsoon forecast, higher MSP, and improved farm liquidity. Two-wheelers: Domestic sales impacted by Hero MotoCorp’s plant maintenance shutdown, but electric two-wheelers gaining momentum. Financial Performance Overview (Presented by Ms. Karin Gilges, CFO) Revenue from operations: ₹4,788.6 crores, growth of 10.9% YoY (Q1 FY26 vs Q1 FY25). Driven by Power Solutions, Two-Wheeler Powersports, Mobility Aftermarket, and Consumer Goods businesses. Sequential decline: 2.5% lower than Q4 FY25, mainly due to the sale of the Video Solutions, Access & Intrusion, and Communication systems business (Building Technologies division). EBITDA: ₹639.3 crores, growth of 23% YoY. Margin improvement driven by revenue growth and improvement in material cost. Profit After Tax (PAT): 23.3% of revenue (vs 10.8% in Q1 FY25). The sharp increase is due to improved EBITDA margins plus a one-time profit on sale of the Building Technologies businesses (Video Solutions, etc.). Material cost improvement: Partly due to a favorable product mix toward manufactured goods (vs traded goods) and ongoing localization efforts. Segment-Wise Business Performance Mobility business (Power Solutions): Grew 13.7% YoY driven by higher demand for diesel components from off-highway and passenger car segments. Mobility Aftermarket: Grew 5.2% YoY driven by filters, lubricants, wiper systems, and significant growth in two-wheeler business due to OBD 2 norms implementation (exhaust gas sensors). Two-wheeler business: Very strong growth (39.2% sequential) due to OBD 2 norms. Localized production at Bidadi plant. Two-wheeler is now a very important contributor to overall mobility turnover (though segmental numbers not disclosed). Consumer Goods business: Grew 9.3% YoY driven by tools and accessories. Building Technologies: Declined 65.3% YoY due to the sale of Video Solutions, Access & Intrusion, and Communication systems business. The one-time profit on this sale was recognized in Q1. Electrification & Technology Focus Bosch is providing key EV technologies like Vehicle Control Units (VCU) – the “brain” of the vehicle managing torque and drive modes – and electric coolant pumps for battery cooling during fast charging. In the two-wheeler space, Bosch is powering multiple models and continuously improving systems to meet market and regulatory requirements. VCUs and other electronics are manufactured by a sister entity (specialized contract manufacturer) and sold through Bosch Limited. Other Key Topics Discussed MoU with Tata Electronics (Bosch Germany & Tata Electronics) This is a one-year MoU to explore potential cooperation in semiconductors and OSAT (outsourced semiconductor assembly and test) topics. It is at a very early stage; there is no direct benefit to the listed entity yet. Any future localization benefits will be communicated. Restructuring of Mobility Business This relates to commercial prudence and the shift in technologies (e.g., TRAM 5 tractors moving to common rail). Provisions are built based on volume changes and product portfolio evolution. Johnson Controls-Hitachi Acquisition (Global) This is a global Bosch acquisition (one of the largest) for HVAC (heating, ventilation, air conditioning) for residential and industrial applications. This comes as a separate division and is currently not within Bosch Limited. The India operations of this acquisition will also remain outside for now. Electronification / Electronics Manufacturing The sister entity that manufactures electronics is more or less a contract manufacturer to Bosch Limited. There is no change in structure to report at this time. Hydrogen Ecosystem for Commercial Vehicles Hydrogen is in a very early phase. Bosch is working with OEMs on technology maturity. Significant ecosystem development (generation, distribution, storage, pumping) is required before commercial exploitation. No specific timeline provided. Rare Earth Magnets Issue Bosch has implemented a task force (India and global) to manage the rare earth supply chain challenge. Current inventory coverage is until end of August. Multiple options are being explored to reduce risk. ADAS (Advanced Driver Assistance Systems) Bosch globally supplies ADAS solutions. However, this portfolio does not currently belong to Bosch Limited; it is with a sister company outside the listed entity. Export Business Outlook Bosch India exports products like NOx sensors, spark plugs, certain injectors, and has taken over the Zexel Pump portfolio from Japan (now single source, produced in Jaipur and exported to Japan). Focus remains on the Indian market first. Exports fill available capacity where landed cost (including logistics) is competitive. Continuously increasing exports is a stated target, but no specific medium-term number is provided due to volatility and technology shifts. Emission Norms (Tractors – TRAM 5) TRAM 5 norms are currently on hold. Updates will be provided as and when changes occur. Localization Progress Bosch Limited is on track with its continuous localization efforts. The intent is to steadily increase localization content, though it is not an overnight switch. Multiple factors (geopolitics, tariffs, volumes beyond India) influence decisions. Pricing & Customer Contracts Pricing is based on customer contracts and varies. Benefits from localization or material cost improvements are shared as per agreed terms with customers. Portfolio Management Approach (Group Stance) Bosch’s global principle: Be in the top 3 in every segment of operation. Portfolio actions (retain, grow, divest, merge) are taken based on this principle. The Building Technologies divestment was because significant additional investment was required to make it a top performer, which was not in focus. Key Takeaways Strong Financial Performance: Revenue grew 11% YoY, EBITDA grew 23% YoY, and PAT margin jumped to 23.3% (including a one-time gain from business divestment). Underlying operational performance is solid. One-Time Gain Distorts PAT: The sharp increase in PAT margin is partly due to the profit on sale of Building Technologies businesses (Video Solutions, Access & Intrusion). Investors should normalize for this when comparing future quarters. Two-Wheeler Business is a New Growth Engine: The OBD 2 norms drove exceptional growth in exhaust gas sensors. This business is localized at Bidadi and is now a very important contributor to mobility revenue. Volumes will stabilize after the initial ramp-up. HCV Pre-Buying Boosts Q1: Commercial vehicle growth was driven by pre-buying ahead of the October 1 AC cabin mandate. This may pull forward demand. Rare Earth Magnet Supply Risk: Inventory coverage is only until end of August. A task force is actively managing the situation, but this is a near-term risk to monitor. Electronics Manufacturing Stays Outside: VCUs and other EV electronics are manufactured by a sister entity (contract manufacturer) and sold through Bosch Limited. No structural change is planned or reported. Hydrogen and ADAS Are Long-Term Plays: Hydrogen ecosystem is very early. ADAS portfolio currently sits outside the listed entity. Near-term benefits are not expected. Export Growth is a Target, But Secondary to Domestic: Bosch Limited prioritizes the Indian market. Exports fill remaining capacity where landed cost is competitive. Successful examples include NOx sensors, spark plugs, and Zexel pumps exported to Japan. Localization on Track: The company continues to increase localization content steadily, though it is a continuous process, not an overnight achievement. No Concrete Merger or Restructuring Plans: Regarding potential mergers of sister entities or changes to the electronics manufacturing structure, management stated there is nothing concrete to report at this time. The MoU with Tata Electronics is early-stage exploration. Q2 FY26 Opening Context & Macroeconomic Environment The Managing Director, Mr. Guruprasad Mudlapur, described the past quarter as a “quarter of contrast” with mild global optimism but financial concerns at home. The IMF lifted its 2025 global GDP forecast to 3.2%, citing robust US and Indian momentum. India delivered a stellar 7.8% GDP growth in Q1 FY26. The RBI maintained rates at 5.5% but turned mildly dovish due to lower inflation estimates. Strong festive spending following GST cuts is expected to boost tax collections. Management expressed confidence in navigating cross-currents and capturing growth from India’s buoyant domestic demand. Indian Automotive Industry Performance (Q2 FY26) Overall: Steady growth across all segments. September GST reforms significantly boosted affordability and pre-festive buying. Passenger Vehicles: Started slow but saw a sharp rebound in late September driven by SUVs. Smaller cars and sedans remained under pressure. Commercial Vehicles: Robust and steady performance driven by stable production, infrastructure projects, improved financing, and lower GST rates. LCVs saw strong growth due to GST 2.0, festive season, and e-commerce demand. Three-wheelers: Record production levels driven by urban mobility and last-mile delivery demands. Tractors: Strong growth fuelled by above-normal monsoons, robust Kharif harvest, stable policy rates, improved rural cash flows, and GST revisions. Two-wheelers: Steady growth driven by good monsoon, strong rural demand, festive sentiment, and GST rate cuts triggering pent-up purchases. Financial Performance Overview (Presented by Ms. Karin Gilges, CFO) Q2 Revenue: ₹4,794.8 crores, growth of 9.1% YoY. Driven by Power Solutions and Two-Wheeler Powersports segments. H1 Revenue: ₹9,583.4 crores, growth of 10% YoY. Q2 EBITDA: ₹617.1 crores, growth of 10.1% YoY. Margin improvement driven by favorable product mix and expense optimization. H1 EBITDA: ₹1,256.4 crores, growth of 16.3% YoY. Q2 PAT: Grew 3.4% YoY. However, Q2 FY25 had an exceptional gain of ₹48.5 crores from sale of OE Diagnostics business. Excluding that, Q2 PAT grew 11.2%. H1 PAT: ₹1,669.6 crores, growth of 66.7% YoY. This significant growth is mainly due to the one-time profit on sale of Video Solutions, Access & Intrusion, and Communication systems business (Building Technologies segment) recognized earlier. Segment-Wise Business Performance Mobility business (Power Solutions): Q2 grew 9.5% YoY driven by higher demand for diesel components from passenger car and off-highway segments. Mobility Aftermarket: Q2 grew 3.7% YoY. GST 2.0 had a temporary negative impact as dealers liquidated existing stocks. Sales expected to regain momentum in Q3. Two-wheeler business: Exceptional growth of 81.8% YoY due to OBD-2 norms (exhaust gas sensors). This remains a key growth driver. Consumer Goods business: Grew only 1.8% YoY. Slowdown attributed to adverse exchange rate movements (higher material cost) and initial GST reform impact. Management sees this as temporary, not structural. Power Tools: New product launches driving expansion, especially in hand tools and outdoor garden equipment. E-channel delivered high double-digit growth. Key Business Highlights & New Technologies Two-Wheeler & Powersports Sensor-less quick shift technology made its Indian debut – smoother, smarter shifting. First for India: TVS Ntorq 150 with Bosch’s Lambda sensor (realized at Bidadi plant). Bajaj Pulsar NS400Z also deployed with this technology. Bosch received Hero MotoCorp’s Hero Premium Leader Award. Mobility Aftermarket Strong momentum expected post GST 2.0 transition in Q3. Strategy: Leverage portfolio strengths, maintain cost discipline, focus on margin stability, and expand product portfolio aligned with market demands. Awards & Recognition Received awards for excellence in on-time delivery and supply reliability. Award for pioneering innovation in hydrogen internal combustion engine technology. Marked 25th anniversary of Technical Centre India (TCI) . Electrification & EV Progress Bosch is making steady progress in four-wheeler EV space. Management promised “bigger updates” on business opportunities soon. Margin pressure will remain in EV business as it is a “tough entry business.” In electric two-wheelers, Bosch is working with a couple of the bigger manufacturers, largely in the scooter segment, supplying components. Other Key Topics Discussed ABS for Two-Wheelers (Mandate) Bosch’s sister company is a market leader in two-wheeler ABS. Capacities are very well prepared to handle increased demand if the mandate is implemented as drafted. Management declined to speculate on which way the mandate will go. Non-Ferrite Motors (Rare Earth Magnet Alternative) Bosch is exploring multiple options for motors without heavy rare earth magnets. Certain non-heavy rare earth magnet motors are already prepared for the Indian market. Work on non-ferrite magnets is in progress, with something ready “very soon.” Hybrid Systems for Passenger Vehicles Bosch has extensive hybrid technology and offers it to OEMs globally. In India, Bosch is in discussion with all OEMs locally and is very open to supplying hybrid systems. Xperia (Supply Chain Issue) The issue is resolving well based on news reports. Management remains cautious as it is still “touch and go” in terms of supplies. Hydrogen ICE (Internal Combustion Engine) Currently in technology maturity phase. Pilot vehicles are built and being tested by OEMs (labs and on-road). Hydrogen requires ecosystem development (generation at right price, distribution) beyond just vehicle technology. Management expects 8% to 15% market penetration in heavy commercial vehicles by around 2030. LNG in Heavy Commercial Vehicles Management acknowledged the question but did not provide specific numbers, offering to share data separately. Flex Fuel Engines Bosch is working with OEMs on all technology options, including flex fuel. Exports Outlook Management is cautious on exports due to geopolitical uncertainty and tariff impacts on landed costs. Long-term commitment to increase exports remains valid, but the situation is being assessed carefully. Regulatory Norms to Watch OBD-2 (already implemented, driving two-wheeler growth for next 2 quarters, then normalization). TREM V (tractor emission norms) – on the horizon for a while. Electrification – growth on the cards, not necessarily regulation-driven but due to clean mobility requirements. CAFÉ Norms & GDI Technology GDI (Gasoline Direct Injection) technology is mature and fully compliant. Continued traction expected. Key Takeaways Strong Financial Performance: Q2 revenue grew 9.1% YoY, EBITDA grew 10.1% YoY, and normalized PAT (excluding one-off gains) grew 11.2% YoY. H1 PAT includes a large one-time gain from building technologies divestment. Two-Wheeler Business is a Standout Performer: 81.8% YoY growth driven by OBD-2 norms (exhaust gas sensors). This momentum is expected to continue for the next two quarters before normalizing. GST 2.0 Had Mixed Impact: Positively boosted vehicle demand and affordability. However, it temporarily hurt Mobility Aftermarket sales as dealers liquidated existing stock. Recovery expected in Q3. Consumer Goods Slowdown is Temporary: Marginal 1.8% growth attributed to exchange rate impacts and GST transition, not structural issues. Management expects a pickup. EV Progress with Margin Caveat: Bosch is making steady progress in EV space (both four-wheeler and two-wheeler) and will share “bigger updates” soon. However, margin pressure will remain as it is a tough entry business. New Technologies Gaining Traction: Sensor-less quick shift (two-wheeler), Lambda sensor (first in India for TVS Ntorq), hydrogen ICE (pilot phase), and non-ferrite motors (work in progress) are key development areas. ABS Mandate – Ready and Waiting: Bosch is fully prepared with capacity if the two-wheeler ABS mandate is implemented. Market leader position through sister company. Hybrid Opportunity Open: Bosch has global hybrid technology and is in active discussions with all Indian OEMs. Hydrogen is a 2030 Story: Expected penetration of 8-15% in HCVs by 2030, but ecosystem development (generation, distribution) is critical and still evolving. Exports – Cautious Stance: While long-term commitment to increase exports remains, near-term caution prevails due to geopolitical uncertainty and tariff impacts on competitiveness. Q3 FY26 Opening Context & Macroeconomic Environment The Managing Director, Mr. Guruprasad Mudlapur, noted that the global economy is adjusting to geopolitical events and trade realignments. The IMF projects global growth to slow from 3.2% in 2025 to 3.1% in 2026. However, India continues to demonstrate powerful resilience, with the IMF revising India’s FY26 GDP estimate upward to 7.3% (from 6.6%), driven by resilient domestic demand and easing inflation. India also benefits from tailwinds from the recently agreed FTA with the EU and trade deals with the US, Australia, UK, and New Zealand. The RBI maintained a stable repo rate at 5.25%, and the Union Budget 2026-27 sent strong signals of policy continuity, including customs duty exemptions for lithium-ion cell components, the India Semiconductor Mission 2.0, Rare Earth Corridors in four states, and continued infrastructure investment (including a new freight corridor). Indian Automotive Industry Performance (Q3 FY26) Overall: Robust production across passenger vehicles, two-wheelers, and commercial vehicles, driven by festive demand, rural recovery, improved supply chains, GST rationalization, and new model launches. Passenger Vehicles: Subdued start but finished 2025 on a strong note. SUVs spearheaded the recovery driven by discounts and seasonal buying ahead of price hikes. Heavy Commercial Vehicles (HCV): Steady growth driven by infrastructure demand, strong freight movement, GST 2.0 momentum, government fleet orders, and road construction/mining activity. Bus segment showed notable traction from school, intercity, and institutional transport orders. Light Commercial Vehicles (LCV): Robust production fueled by GST 2.0 revival, e-commerce growth (last-mile delivery), and rising fleet utilization. Three-wheelers: Sharp production increase driven by urban mobility and last-mile cargo delivery during the festive season. Tractors: Strong momentum supported by healthy rabi sowing, robust kharif harvest liquidity, improved water availability, lower GST on tractors, and state-level subsidies. Two-wheelers: Moderate in October due to inventory adjustment, but production picked up in November and December driven by festive and wedding season demand, supported by GST reductions. FY26 Full-Year Outlook (All-Time Highs Expected) Management expects three core segments to achieve all-time high production levels in FY26: Passenger Vehicles: Record performance driven by improved affordability, easing interest rates, and GST reforms. Commercial Vehicles: Healthy growth fueled by infrastructure spending and e-commerce logistics. LCV sub-segment expected to achieve all-time high. Tractors: Record levels supported by strong rural sentiment, GST norms, and state subsidies. Two-wheelers: New peak driven by improving rural sentiment, rising disposable incomes, GST cuts, and tax rebates (up to ₹12 lakh income). Financial Performance Overview (Presented by Ms. Karin Gilges, CFO) Q3 FY26 (Oct-Dec 2025) Revenue: ₹4,885.6 crores, growth of 9.4% YoY. Driven by Power Solutions and Two-Wheeler Powersports. EBITDA: ₹612.4 crores, growth of 5.1% YoY. Margin improvement driven by favorable product mix and expense optimization. PAT: Grew 16.1% YoY. Excluding an exceptional item in Q3 FY25, PAT grew 5.3% YoY. 9M FY26 (Apr-Dec 2025) Revenue: ₹14,469 crores, growth of 9.8% YoY. EBITDA: ₹1,868.8 crores, growth of 12.4% YoY. PAT: ₹2,201.7 crores, growth of 50.8% YoY. The significant growth is mainly due to the one-time profit on sale of the Building Technologies businesses (Video Solutions, etc.) recognized earlier. Segment-Wise Business Performance Mobility Business (Power Solutions) Q3 YoY growth: 19.5% driven by passenger car and off-highway segments. 9M YoY growth: 14.1% driven by commercial vehicle and off-highway segments. Strong broad-based growth across all segments, with exceptional performance in Tractor and HCV segments boosted by GST 2.0 rollout. Mobility Aftermarket Q3 YoY growth: 5.3% driven by GST reforms, strong OE segment growth, and growth across diesel, wipers, and braking systems. 9M YoY growth: 4.8% driven by sustained momentum across diesel, wipers, braking systems, and filters. Temporary sales impact from GST 2.0 in October, but strong rebound shortly thereafter. Two-Wheeler Business Q3 YoY growth: 58.3% driven by higher sales of exhaust gas sensors due to OBD-II norms implementation. 9M YoY growth: Significantly higher due to OBD-II ramp-up. 2025 became a landmark year for mini-heated lambda sensors, achieving new sales milestones. Consumer Goods Business Q3 YoY: Declined marginally by 3.1%. 9M YoY: Grew 2.8%, attributed to new launches in entry-level and mid-price point segments, measuring tools, and outdoor garden equipment. Power Tools Division Navigated a challenging market with intense price pressure, particularly from Chinese competitors. Cordless segment continued impressive trajectory with double-digit growth for the fourth successive year. Dealer network expanded to over 1,800 partners, with 25,000 retail points across 1,600+ cities. Hand Tools launched as a new business segment, achieving ₹100 million in revenue within the first year. Key Business Highlights & Awards Operational Excellence Bidadi plant awarded at National CII SCALE Awards 2025 for digital excellence and innovation in logistics (integrated autonomous digital ecosystem automating the entire logistics value stream). At CI KAIZEN Awards 2025, the plant secured the Champions Trophy and Challengers Trophy for low-cost productivity solutions and quality improvement. Two-Wheeler & Powersports TVS Apache RTX 300 launched with advanced Bosch systems. Harley X440 T launched with deep integration of Bosch powertrain, safety systems, and high value-added features. Showcased latest innovations at EICMA 2025 in Italy. Dividend Policy Update Bosch has introduced a quantified dividend policy (55% to 80% of profits), bringing more clarity compared to the previous open policy. The Board retains final discretion. Other Key Topics Discussed Capex & Capacity Planning Capacity planning is an ongoing process based on customer and market volume forecasts. Golden rule within Bosch: Always maintain some buffer capacity. When buffer is utilized, the next capex is released. No specific capex guidance was provided for FY27-28. India-EU FTA (Free Trade Agreement) Bosch is extremely positive about the mid-to-long-term benefits. Fine print is currently being studied to understand the impact and opportunities. Imported components (from parent): Localization is an ongoing process. In 2025, Bosch localized NOx sensor components for common rails. Further localization for common rail products and NOx sensors is planned. Exports: Export volumes increased for spark plugs in 2025. Further growth expected in spark plugs, common rail components, and NOx sensors. Pumps were relocated from Japan to India, now exported back to Japan and Korea. Localization impact of FTA: Bosch’s philosophy is “local for local” regardless of FTA. Volumes are more important than import duties. The FTA is expected to have a positive effect on further localization, not a delay. Profitability & Margins Discussion A participant questioned why margins (around 13% EBITDA) are not expanding more significantly despite strong tailwinds (CV upcycle, tractor boom, OBD-II, localization). Management responded that: Product mix matters – new products enter the market as finished goods first, then assembly/testing, then localization, which takes time. Q3 included a provision for the new Labour Code, which impacted margins. Excluding this provision, operational performance was very strong (10.5% EBIT). Over the last 3 years, both profit and margins have been improving. Management declined to give a 3-4 year margin guidance but pointed to historical improvement trends. EV Four-Wheeler Strategy From Bosch Limited’s portfolio, the company will strongly aim to begin with e-axles – the largest value component in an EV (apart from batteries, which OEMs make themselves). Bosch is in advanced discussions with several OEMs and will announce specifics in coming quarters. Other EV components being supplied currently (from the electronics unit) include chargers, DC/DC converters, and power electronics. Bosch is not currently supplying e-axles to any OEM in India, but expects to soon. Hydrogen Engine Status Bosch is working very closely with virtually every commercial vehicle and bus OEM in India. Extensive vehicle testing is currently ongoing (engines and vehicles). No known specific rollout plans from OEMs yet, largely due to infrastructure (hydrogen fueling stations) not being ready. Management expects hydrogen activity to commence by 2030 once infrastructure is available on major trunk routes. TREM V (Tractor Emission Norms) At this point, there is no visibility on a precise implementation date. Things remain quite open based on discussions with OEMs. Commercial Vehicle Demand Drivers Robust demand driven by GST 2.0 changes, increased government fleet orders, construction/mining activity, and e-commerce growth (LCVs for last-mile delivery). Replacement demand is also strong. Content per vehicle is increasing due to technology additions. Management will update on additional technology introductions in the future. Export Performance Exports are growing steadily, but the main focus remains the Indian market. Growth areas: spark plugs, sensors, pumps to Japan and Korea. Consumer Goods & Power Tools Challenges Power tools division faced intense price pressure from Chinese competitors, resulting in moderate growth. However, cordless segment continues double-digit growth for the fourth consecutive year. Key Takeaways Strong Q3 Performance: Revenue grew 9.4% YoY, EBITDA grew 5.1% YoY, and normalized PAT (excluding prior year exceptional items) grew 5.3% YoY. 9M PAT includes a large one-time gain from building technologies divestment. Two-Wheeler Business Continues to Shine: 58.3% YoY growth in Q3 driven by OBD-II norms (exhaust gas sensors, lambda sensors). This remains a key growth engine. Record-Breaking FY26 Expected: Management forecasts all-time high production levels in FY26 for Passenger Vehicles, Tractors, and Two-Wheelers, with LCVs also hitting record levels. Strong macros and policy support underpin this outlook. Margins Stable, Not Expanding Dramatically – Explained: EBITDA margins have stabilized around 12-13%. The lack of dramatic expansion is due to: New products entering with lower initial margins (followed by gradual localization). Product mix shifts. One-time Labour Code provision in Q3. Management points to steady improvement over 3 years and expects continued margin development with further localization and growth. E-Axles Coming to India (Advanced Discussions): Bosch Limited is in advanced discussions with several OEMs to supply e-axles – the highest-value component in an EV. Announcements expected in coming quarters. This is a significant medium-term opportunity. FTA is a Positive for Localization, Not a Threat: The India-EU FTA is viewed positively. Bosch’s “local for local” philosophy remains unchanged. The FTA is expected to further enhance localization, not delay it. Export opportunities in spark plugs, sensors, and pumps are growing. Hydrogen is a 2030 Story: Extensive vehicle testing is ongoing with all major CV and bus OEMs. Commercial rollout depends on infrastructure (hydrogen fueling stations), which is not yet clear. Management targets 2030 for meaningful hydrogen activity. TREM V Still on Hold: No visibility on implementation date for tractor emission norms. Discussions with OEMs indicate it remains open. Power Tools Facing Pressure, But Cordless Strong: Intense Chinese competition is impacting the power tools division. However, the cordless segment continues double-digit growth for the fourth year, and hand tools achieved ₹100 crore revenue in first year. Clearer Dividend Policy: Bosch introduced a quantified dividend policy (55-80% of profits), providing better clarity to shareholders. The Board retains final discretion. Q4 FY26 Opening Context & Key Developments The Managing Director & Chief Technology Officer, Mr. Guruprasad Mudlapur, opened by providing an overview of the macroeconomic landscape and the company’s outlook. The domestic economy remained resilient in Q4 FY26, driven by robust private consumption through fiscal stimuli and stable monetary policy from the RBI, which kept inflation within the targeted range of 2% to 6%. Significant global headwinds continue to demand attention, including heightened geopolitical instability in West Asia posing material risk to energy price stability and creating volatility in key shipping and logistics routes. While semiconductor shortages have eased, the overall supply chain environment remains fragile. Key highlights include the Power Solutions division surpassing ₹130 billion in total net sales for the 2025 calendar year, the strategic joint venture announcement with Brakes India and Wheels India for advanced air systems, and the successful ramp-up of exhaust gas sensors due to OBD2 norms implementation. Revenue from operations for FY26 stood at ₹20,034 crores, growing 10.8% YoY, with EBITDA of ₹2,650 crores (14.7% growth) and PAT of ₹2,770 crores (37.6% growth, including profit from sale of Building Technologies segment). Macroeconomic & Industry Overview Domestic Economy Resilient performance in Q4 FY26 driven by robust private consumption RBI kept inflation within target range of 2% to 6% under flexible inflation targeting framework RBI lowered repo rate by cumulative 125 basis points to 5.25% during FY26 GST benefits supported demand across automotive sector Government’s continued focus on capital expenditure will bolster domestic demand Global Headwinds Heightened geopolitical instability in West Asia poses material risk to energy price stability Volatility in key shipping and logistics routes Supply chain environment remains fragile Acute semiconductor shortages have eased but new bottlenecks emerge Outlook for FY27: Cautious optimism; strategy focused on supply chain agility and managing commodity/currency risks Indian Automotive Industry – Q4 FY26 Performance Passenger Vehicles: Demand accelerated notably towards year-end; inventory normalized to healthy average of ~28 days (vs ~52 days in previous year) Light Commercial Vehicles: Healthy growth driven by e-commerce demand, 10% increase in infrastructure spending, and 125 bps repo rate cut Heavy Commercial Vehicles: Supported by 10% increase in infrastructure spending and budget utilization by fleet operators Tractors: Standout performer; supported by robust rural demand, favorable farm economics, and strong rabi sowing season (area coverage increased by 1.59 million hectares YoY) Three-Wheelers: Sharp rise supported by urban mobility demand and last mile cargo activity Two-Wheelers: Healthy growth supported by festive and wedding season demand and improved rural liquidity FY27 Industry Outlook Passenger Vehicles: Steady growth expected; geopolitical uncertainties may weigh on Q1 Commercial Vehicles: Stable growth aided by infrastructure spending and e-commerce logistics demand Tractors: Stable growth supported by healthy reservoir levels and deferment of emission norms (25 HP to 75 HP); El Nino conditions could pose downside risk Three-Wheelers: Positive growth driven by organic demand Two-Wheelers: Healthy growth expected; below normal monsoon could weigh on rural demand Financial Performance (Q4 FY26) Standalone Revenue from Operations: ₹5,566 crores, growth of 13.3% YoY EBITDA: ₹782 crores, growth of 20.8% YoY EBITDA Margin: 14.0% (improved YoY) PAT: Growth of 2.7% YoY FY26 Full-Year Standalone Revenue from Operations: ₹20,035 crores, growth of 10.8% YoY EBITDA: ₹2,650 crores, growth of 14.7% YoY EBITDA Margin: 13.2% (improved from 12.8% in FY25) PAT: ₹2,770 crores, growth of 37.6% YoY Significant PAT growth mainly due to profit on sale of Building Technologies segment (Video Solutions, Access and Intrusions, Communication Systems) Segment-Wise Performance Mobility Business Q4 Growth: 23.3% YoY (driven by Power Solutions) FY26 Growth: 16.9% YoY Key driver: Power Solutions business grew 17.6% in FY26 Power Solutions Division Landmark Achievement: Surpassed ₹130 billion in total net sales for 2025 calendar year Q4 Revenue: Over ₹14 billion Growth driven by robust overall automotive market demand CAFE Phase 3 Regulations: Actively aligning with OEMs for rollout scheduled in April 2027 ADAS in Commercial Vehicles: Spearheading adoption; regulations take effect January 2027 for new models, extending to all CVs by October 2027 Two-Wheeler & PowerSports Division Q4 Growth: 63.4% YoY (driven by OBD2 norms implementation from April 2025) FY26 Growth: 69.1% YoY Significant surge in demand following GST reforms Maintained 100% delivery commitment to all OEMs; zero production disruptions Innovation Recognition: Named one of India’s Top 50 Innovative Companies by CII New Intelligent Puncture Detection System commended this year Sensorless Quickshift technology recognized last year Mobility Aftermarket Division FY26 Growth: 3.7% YoY Independent aftermarket stagnated due to supply chain pressures Original Equipment (OE) segment witnessed robust growth (OEM Filters & Spark Plugs) Exports: Outstanding growth of ~17%, notable improvements in Nepal, Bangladesh, and Sri Lanka Broad-based growth across filters, lubricants, rotating machines, braking systems, wipers, and auto electricals Consumer Goods Business (Power Tools) Q4 Growth: 14.3% YoY FY26 Growth: 6.4% YoY Strategic Milestone: First Power Tool company in India to receive mandatory BIS certification for angle grinders, drills, and hammers New Product Launch: Magnetic drill (GBM30) – first locally sourced finished good Cordless Segment: Double-digit growth driven by Cordless 3.0 initiative (battery lock-in effect across 25 industrial clusters) Joint Venture Announcement – Advanced Air Systems Strategic Partnership Joint venture with Brakes India Private Limited and Wheels India Limited (TSF Group) Focus: Engineering, manufacturing, and sale of electronically controlled and software-driven modules for: Air Compression Air Processing Air Suspension Air Parking Brakes Key Details Registered office: Chennai Global supply chain managed by entities of Bosch, Brakes India, and Wheels India Target: Commercial vehicles (trucks and buses) – both ICE and BEVs Addresses LCV and MHCV segments New Entry for Bosch: Not currently a player in this portfolio; JV enables entry into advanced air systems market Why JV Route: Combining Bosch’s electronic control/software capabilities with TSF Group’s strong position in pneumatics and hydraulics for commercial vehicles Market: Largely global currently; Indian market nascent but expected to grow in coming years First operations: End of 2026 (subject to regulatory approvals) Series readiness: 2028 Opportunity & Outlook Content per vehicle details to be shared in future calls Market opportunity to be quantified in subsequent communications Will help Bosch scale globally in this portfolio Joint Venture – eAxle (Tata AutoComp) Update Establishment of JV: Mid-2026 (on track) SOP: Q3 FY27 (third quarter of 2027) First shipments: Q3 FY27 Orders already received from clients; details to be shared once JV is set up Robert Bosch Chassis Systems Acquisition Status Update Shareholder approval (including minority) obtained Valuation report published with postal ballot notice Waiting for regulatory approval to proceed Unable to disclose revenue, margins, profitability figures until regulatory approval is formalized Bosch Chassis Systems is meeting original plans based on market conditions Sector-Wise Sales Performance Q4 YoY Growth Mobility Business: 23.3% (driven by Power Solutions) Power Solutions: 27.4% Two-Wheeler Business: 63.4% (OBD2 norms implementation) Consumer Goods: 14.3% FY26 YoY Growth Mobility Business: 16.9% Power Solutions: 17.6% Mobility Aftermarket: 3.7% Two-Wheeler Business: 69.1% Consumer Goods: 6.4% Margin & Cost Dynamics EBITDA Improvement Drivers (Q4 & FY26) Revenue growth Material cost reduction Optimization of expenses Budgetary control Fixed cost absorption improvement Other Expenses Decline (Q4) 9% YoY decline, 10% sequential decline Key factors: Large customer project in previous year (reflected in revenue from services) Forex gains/losses due to INR fluctuation Better fixed cost absorption Cost progress initiatives Cost Management Initiatives Material cost reduction via localization, negotiation, design RPP Strong productivity progress in plants Ramping up AI in plants for productivity and efficiency Working on overall cost progress in accordance with market conditions Commodity & Energy Cost Environment Competitive market with ongoing cost challenges Focus on localization and productivity improvements Ramping up AI in plants for efficiency gains Content per Vehicle & Growth Outlook Content per Vehicle Constant increase trend continuing Expected to continue in upcoming fiscal year CAFE 3 regulations will drive meaningful content per vehicle improvement ADAS adoption in CVs will further increase content Growth Outlook – Cautiously Optimistic Current outlook: Flattish for FY27 Reason for Caution: West Asia crisis impact on crude oil prices and economy No issues ramping up beyond expectations if required Customers guiding for high single-digit to double-digit growth but company prefers conservative stance Strong Q4 performance provides momentum International Production Network Bosch operates on “production where consumption happens” principle India already does small percentage of exports Working on production architecture changes for bigger role Preconditions: Economic sense, landed cost competitiveness Current geopolitical situation (Strait of Hormuz) not supporting logistics costs NOx sensor plant in Abu Dhabi provides export share to Europe Key Strategic Priorities Technology & Innovation Preparing customers for upcoming legislation (CAFE Phase 3, OBD2, ADAS) New Intelligent Puncture Detection System (CII Top 50 Innovative Companies recognition) Sensorless Quickshift technology Electrification agnostic approach – supporting all technologies BS7 preparedness: Technologies already demonstrated; manufacturing capabilities ready Portfolio Expansion Constant endeavor for portfolio expansion and enhancement New JV for advanced air systems fills significant product gap eAxle JV with Tata AutoComp on track Continuous work on multiple aspects; details shared as and when regulatory approvals obtained Localization & Cost Competitiveness Increasing localization Ramping up AI in plants for productivity and efficiency Working on cost competitiveness in material via localization and overall efficiency Regulatory Preparedness CAFE Phase 3 Regulations Actively aligning with OEMs for rollout scheduled in April 2027 Content per vehicle will increase meaningfully ADAS in Commercial Vehicles Spearheading adoption Regulations effective January 2027 for new models Extending to all commercial vehicles by October 2027 OBD2 Norms Implementation from April 2025 Significant driver of Two-Wheeler business growth (63.4% Q4 YoY) Ramp-up in exhaust gas sensors BS7 Norms European version (Euro 7) technologies already demonstrated Manufacturing capabilities ready Well prepared for movement towards BS7 BIS Certification (Power Tools) First Power Tool company in India to receive mandatory BIS certification Key products: Angle grinders, drills, hammers Ensured uninterrupted market access Aftermarket & Export Performance Mobility Aftermarket FY26 Growth: 3.7% YoY Independent aftermarket affected by supply chain pressures OE segment robust growth (OEM Filters & Spark Plugs) Exports: Outstanding 17% growth (Nepal, Bangladesh, Sri Lanka) Broad-based growth across filters, lubricants, rotating machines, braking systems, wipers, auto electricals Export Strategy Already exporting small percentage to rest of world Exploring larger role in global production network Landed cost competitiveness key factor Key Takeaways Strong FY26 Performance with 10.8% Revenue Growth: Revenue at ₹20,035 crores; EBITDA at ₹2,650 crores (14.7% growth); PAT at ₹2,770 crores (37.6% growth, including one-off from Building Technologies sale). Q4 revenue grew 13.3% YoY. Power Solutions Division Surpassed ₹130 Billion in 2025 Calendar Year: Landmark achievement reflecting strong customer trust and market position. Q4 revenue over ₹14 billion. CAFE 3 and ADAS preparation underway for upcoming regulations. Two-Wheeler & PowerSports Division Surged 69.1% YoY in FY26: Driven by OBD2 norms implementation from April 2025. Maintained 100% delivery commitment. Recognized as Top 50 Innovative Company by CII for Intelligent Puncture Detection System. Strategic JV with Brakes India & Wheels India for Advanced Air Systems: New entry into electronically controlled software-driven modules for air compression, processing, suspension, and parking brakes. Fills significant product gap. First operations end of 2026; series readiness by 2028. Cautiously Optimistic Outlook for FY27: Customers guiding high single-digit to double-digit growth but company maintaining flattish outlook due to West Asia crisis and crude oil price uncertainty. Strong Q4 momentum provides confidence. Content per Vehicle Continues to Increase: CAFE 3 regulations will drive meaningful content per vehicle improvement. Constant focus on innovation and technology development. BS7 technologies already demonstrated. Cost Management & Productivity Focus: Material cost reduction via localization and negotiation. Strong plant productivity progress. Ramping up AI in plants for efficiency gains. Customer projects and forex impacts reflected in other expenses. Aftermarket Exports Grew Outstanding 17%: Notable improvements in Nepal, Bangladesh, and Sri Lanka. OE segment robust growth. Power Tools division first to receive BIS certification for key products. eAxle JV with Tata AutoComp on Track: SOP in Q3 FY27; orders already secured. Establishment of JV mid-2026 progressing as planned. Technology Leadership and Regulatory Preparedness: ADAS in CVs spearheading adoption. BS7 readiness demonstrated. CAFE 3 alignment with OEMs. OBD2 implementation driving growth. Power Tools BIS certification ensures uninterrupted market access. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: In FY25, Bosch has reported total revenue of ₹ 18,087 crore with 8.1% growth rate yoy, compared to previous year revenue of ₹ 16,727 crore and that of total expenses (excluding depreciation, amortization, interest and tax) is at ₹ 15,778 crore with 7.8% growth rate yoy. In FY24 that was at ₹ 14,632 crore. The Sale of Products and Sale of Services business segments contribute 97.8% of the total revenue where Sale of Products business contributes 93.6% and that of Sale of Services business contributes 4.1% of the total revenue. The Other operating revenue contributes 2.2% of the total revenue. Paticulars FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 Revenue 9,842 9,716 11,782 14,929 16,727 18,087 Total Expenses 8,358 8,556 10,319 13,123 14,632 15,778 Automotive Segment Sales Composition Particulars Geographic Mix FY25 (%) Domestic 91% Export 9% Other than Automotive Segment Sales Composition Particulars Geographic Mix FY25 (%) Domestic 97% Export 3% Business Sector Sales (bn INR) Mobility 170.7 Consumer Goods 18.4 Total Portfolio 189.1 Mobility Sub-Sector YoY Sales Growth Rate Power Solutions 17.60% 2-Wheeler 69.10% Mobility Aftermarket 3.70% This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: In FY25, Bosch has reported gross profit of ₹ 6,624 crore with a growth rate of 12.4% yoy and that of COGS (Cost of Goods Sold) is reported of ₹ 11,464 crore with a growth rate of 5.8% yoy. Materials Consumed, Purchase of Stock-in-Trade & Changes in Inventory constitutes 100.0% of the total COGS of which Materials Consumed contributes 35.4%, Purchase of Stock-in-Trade contributes 64.9% & Changes in Inventory contributes -0.3%. The total COGS % revenue, material consumed % revenue and purchase of stock in trade % revenue are 63.4%, 22.4% & 41.1% respectively. Historically, the company has posted gross margin in the range of 46.1% – 35.2% in the last 6 years. Basis on our research, the Indian Auto Component industry has reported gross margin of 38.7% in CY 25 whereas the Emerging Markets operates on a gross margin of 18.8% and the Europe, US & Global markets posted gross margins of 20.7%, 15.8% and 18.1% respectively. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: Bosch has delivered an EBITDA of ₹ 2,310 crore in FY25 with the growth rate of 10.3% over the previous year which was 2,095. The EBITDA margin historically ranges between 15.1% and 11.9% for the last 6 years and in FY25, the EBITDA margin is 12.8%. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: The Company has distributed dividend in FY25 of ₹ 512. The Dividend Payout Ratio in FY20, was 16.2.% and that of in FY25 is 25.4.% and the median of the Dividend Payout Ratio is 20.5% for the past 6 years. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: Bosch has reported Gross Fixed Assets of ₹ 4,264 crore with a growth rate of 2.0% yoy and Accumulated Depreciation of ₹ 3,243 crore which makes the Net Fixed Assets of ₹ 1,021 crore which has grown at a rate of -8.3% in FY25. In the same fiscal year, the Net Fixed Assets % Revenue and Net Fixed Assets % Total Assets are 5.6% & 5.0% respectively. From our research, we have identified 3 key items in Gross Fixed Assets viz. buildings, plant & machinery and right of use assets (included only for analysis and better clarity), which constitute 96.2% of the total Gross Fixed Assts. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: In FY25, the company has reported Gross Intangible assets of ₹ 0 crore which has grown 0.0% yoy and the Accumulated Amortization, posted by the company, is ₹ 0 crore and the net intangible assets is ₹ 0 crore which has grown 0.0% yoy and there are 2 key items in the gross intangible assets viz. Goodwill and software, based on our research, which makes 0.0% of the total gross intangible assets of which Goodwill & computer software contribute 0.0% & 0.0% respectively. In the same fiscal year, net intangible assets % revenue and net intangible assets % total assets are 0.00% & 0.00% respectively. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: Bosch has done capex in FY25 of ₹ 313 crore of which maintenance capex is ₹ 313 crore and growth capex is ₹ 0 crore. In the same fiscal year, the capex % revenue is standing at 0.0% whereas the capex % total asses is at 1.5%. Expansion Projects Summary (FY25) Project / Initiative Description Expected Timeline / Status Global VE Manufacturing (Jaipur) Strategic consolidation of all global VE pump manufacturing at the Jaipur plant, making it the sole global location for this product. Scheduled for completion by the end of 2025 Engineering Lab Hub (Adugodi) Repurposing a vacant manufacturing hangar at the Bengaluru campus into a modern lab for Bosch Global Software Technologies (BGSW). Operational by 2HY 2025 Metro Connectivity (Adugodi) Construction of an underground tunnel by BMRCL to provide seamless metro access to the Adugodi campus. Expected ready in 2HY 2026 Power Tools Plant (Chennai) Relocation of the Chennai Power Tools plant (ChiP) from rented premises to a larger, Bosch-owned facility to boost capacity. Successfully completed / operational 3D Printing Center (Jaipur) Development of metallic 3D printing competencies to serve as a hub for the entire ROIN region. In progress Employee Well-being (Adugodi) Investment in a 5,290 sqm modern in-house kitchen and dining facility serving over 10,000 associates. Fully operational Capital Commitments Total value of contracts remaining to be executed on capital accounts (net of advances). ₹ 1,044 million as of March 31, 2025 This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: The Long Term Borrowing (LTB) in FY25 is 0 crore, grown at a rate of 0.0% yoy and that of Short Term Borrowing(STB) has been reported of ₹ 0 crore with a growth rate of 0.0% yoy. In FY25, Bosch’s Total Debt (TB) is 0 crore, grown at a rate of 0.0% yoy. In FY20, LTB % TB and STB % TB were standing at 0.0% & 0.0% and that of in FY25, these are 0.0% & 0.0% respectively. Similarly, LTB % Revenue and STB % Revenue were, in FY20, 0.0% & 0.0% and that of in FY25, those are 0.0% & 0.0% respectively. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: Bosch, in FY25, has posted trade receivables of ₹ 2,365 crore with a growth rate of 8.4% compared to previous year, which was ₹ 2,182 crore. The trade receivables turnover ratio is 7.6x, trade receivables % revenue is 13.1% and the average trade receivable days is 47 in the same fiscal year. The trade receivable days, in FY20 reported, was 52 and in FY25, it is 47 days. The trade receivables % revenue in FY20 was 14.4% and in FY25, it is posted 13.1% and of the total trade receivables (pre provision of credit loss) approx. 97.9% is due for less than 6 months (incl. receivables not due), 1.2% is for more than 6 months but less 1 year, 0.2% is between 1 & 2 years, 0.3% is between 2 – 3 years and 0.4% is due for more than 3 years. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: Bosch, in FY25 has reported inventory level of ₹ 1,942 crore with a growth rate of 2.6% yoy whereas the Inventory % Total Current Assets is 18.2% and the Inventory % Total Assets is 9.6%. The average inventory turnover ratio (calculate on COGS) is standing at 6.0x, the average inventory level % revenue at 10.6% and the average inventory level % COGS at 16.7%. In FY25, the company has reported its average inventory days which is at 60 days. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: Bosch has reported trade payables in FY25 of ₹ 2,958 crore with a growth rate of 15.2% yoy whereas the payables % total current liabilites is 52.0% and the payables % total equity & liabilities is 14.6% in the same financial year. The trade payable turnover ratio (calculate on COGS) is standing at 3.9x, the trade payables level % COGS and that of % revenue are at 25.8% & 16.4% respectively. In FY25, the company has reported its inventory days which is at 93 days. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: The CF&’O (Cash Flow from Operations) in FY25 is ₹ 2,373 crore, grown at a rate of 88.6% yoy and that of EBITDA is reported of ₹ 2,310 crore with a growth rate of 10.3% yoy. In FY25, Bosch’s CF0/EBITDA is 1.0x. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Yet to write. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Paticulars (₹ Crore) FY 21 FY 22 FY 23 FY 24 FY 25 Net Profit Margin (A) 5.0% 10.3% 9.5% 14.9% 11.1% Asset Turnover Ratio (B) 69.2% 78.1% 94.3% 99.6% 96.2% Equity Multiplier (C) 147.2% 147.2% 146.0% 145.7% 145.3% Return On Equity (A*B*C) 5.1% 11.9% 13.1% 21.6% 15.6% Paticulars (₹ Crore) FY 21 FY 22 FY 23 FY 24 FY 25 Net Profit Margin (A) 5.0% 10.3% 9.5% 14.9% 11.1% Asset Turnover Ratio (B) 69.2% 78.1% 94.3% 99.6% 96.2% Return On Asset (A*B) 3.4% 8.1% 9.0% 14.8% 10.7% Paticulars (₹ Crore) FY 21 FY 22 FY 23 FY 24 FY 25 NOPAT Margin (A) -3.0% 7.2% 6.4% 7.2% 6.7% Capital Employed Turnover Ratio (B) 1320.9% 1908.9% 1641.4% 1439.1% 1881.1% Return On Capital Employed (A*B) -39.1% 137.4% 105.5% 103.1% 125.8% Paticulars (₹ Crore) FY 21 FY 22 FY 23 FY 24 FY 25 NOPAT Margin (A) -3.0% 7.2% 6.4% 7.2% 6.7% Invested Capital Turnover Ratio (B) 2526.3% 3006.1% 2346.7% 1964.0% 2439.8% Return on Invested Capial (A*B) -74.9% 216.4% 150.9% 140.6% 163.2% This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Profitability Ratios FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 Revenue Growth -1.3% 21.3% 26.7% 12.0% 8.1% Expenses Growth 2.4% 20.6% 27.2% 11.5% 7.8% Sustainable Growth Rate 1.5% 5.8% 0.1% 12.0% 3.9% Gross Profit Growth -13.0% 13.7% 21.9% 7.8% 12.4% EBITDA Growth -21.8% 26.0% 23.6% 15.9% 10.3% EBIT Growth -25.5% 38.9% 24.9% 17.2% 16.1% PBT Growth -83.2% 1673.6% 27.0% 74.4% -21.9% Net Profit Growth -25.8% 152.7% 17.0% 74.8% -19.1% Dividend Growth 47.8% -27.9% 95.3% -55.3% 68.8% Dividend Payout (%) 47.7% 70.6% 50.8% 99.3% 44.4% 74.9% Gross Margin 46.1% 40.6% 38.1% 36.6% 35.2% 36.6% EBITDA Margin 15.1% 11.9% 12.4% 12.1% 12.5% 12.8% PBT Margin 3.8% 0.6% 9.4% 9.4% 14.7% 10.6% Net Margin 6.6% 5.0% 10.3% 9.5% 14.9% 11.1% Efficiency Ratio FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 Debtor Days 52 Days 51 Days 47 Days 46 Days 47 Days 47 Days Debtor Turnover 7.0x 7.0x 7.7x 7.8x 7.7x 7.6x Avg. Inventory Days 75 Days 75 Days 69 Days 63 Days 60 Days Avg. Inventory Turnover 4.8x 4.8x 5.2x 5.7x 6.0x Trade Payable Days 109 Days 139 Days 111 Days 104 Days 85 Days 93 Days Trade Payable Turnover 3.3x 2.6x 3.3x 3.5x 4.2x 3.9x Net Fixed Asset Turnover 8.2x 8.8x 11.5x 12.4x 15.0x 17.7x Total Asset Turnover 0.7x 0.7x 0.8x 0.9x 1.0x 0.9x Average Capital Employed Turnover -39.1% 137.4% 105.5% 103.1% 125.8% Leverage Ratios FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 Debt/Equity 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x Debt/Capital 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x Debt/Assets 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x Debt/EBITDA 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x CFO/Debt 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x Debt Burden 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x Interest Coverage Ratio 107.8x 58.5x 39.4x 117.4x 32.8x 113.1x Operating Leverage 0.0x 20.0x 1.8x 0.9x 1.4x 2.0x Financial Leverage 1.4x 1.5x 1.4x 1.5x 1.4x 1.5x Cash Flow Ratios FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 Free Cash Flow to Firm 1,760 909 675 1,853 1,585 2,686 Free Cash Flow Growth -48.3% -25.7% 174.4% -14.5% 69.5% Operating Cash Flow Growth -46.5% -62.5% 352.0% 3.7% 88.6% FCFF/Revenue 17.9% 9.4% 5.7% 12.4% 9.5% 14.9% CFO/Total Assets 0.1x 0.0x 0.0x 0.1x 0.1x 0.1x CFO/Total Debt 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x Cash Interest Coverage 158.5x 58.1x 20.1x 139.1x 39.4x 181.9x CFO/Capex -3.2x -3.7x -0.7x -1.9x -3.9x -7.6x Capital Allocation Ratios FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 ROE 5.1% 11.9% 13.1% 21.6% 15.6% ROA 3.4% 8.1% 9.0% 14.8% 10.7% ROCE -39.1% 137.4% 105.5% 103.1% 125.8% ROIC -74.9% 216.4% 150.9% 140.6% 163.2% Valuation Ratios FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 Enterprise Value (EV) 23,772 38,198 39,942 54,571 90,233 82,074 EV/EBITDA 16.03 32.91 27.31 30.20 43.07 35.53 EV/Revenue 2.42 3.93 3.39 3.66 5.39 4.54 P/E 40 85 34 40 36 41 Price/Revenue 0.90 1.42 1.20 1.29 1.84 1.55 Price/CFO 6.61 19.26 52.59 15.82 24.48 11.80 Price/Book Value 0.95 1.40 1.32 1.74 2.55 2.03 This content is exclusively available to our Pro and Premium members. 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Pariculars (₹ Crore) FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 FY 32 FY 33 FY 34 FY 35 Revenue 21,705 26,046 31,255 37,506 45,007 53,559 63,199 73,943 85,774 98,640 Less: Cost of Goods Sold 4,558 5,470 6,564 7,876 9,452 11,247 13,272 15,528 18,013 20,714 Gross Profit 17,147 20,576 24,691 29,630 35,556 42,311 49,927 58,415 67,761 77,926 Gross Margin 79.0% 79.0% 79.0% 79.0% 79.0% 79.0% 79.0% 79.0% 79.0% 79.0% Less: SG&A Expenses Employee Expense 8,031 9,724 11,773 14,252 17,253 20,709 24,648 29,084 34,024 39,456 Power & Fuel Expense 434 492 556 625 700 774 843 904 953 986 General & Administration Expnese 1,411 1,650 1,927 2,250 2,625 3,035 3,476 3,944 4,432 4,932 Selling & Distribution Expnese 977 1,129 1,302 1,500 1,725 1,964 2,212 2,465 2,716 2,959 Miscellaneous Expnese 434 492 556 625 700 774 843 904 953 986 EBITDA 5,860 7,090 8,578 10,377 12,552 15,056 17,906 21,115 24,684 28,606 EBITDA Margin 27.0% 27.2% 27.4% 27.7% 27.9% 28.1% 28.3% 28.6% 28.8% 29.0% Less: Depreciation & Amortization 1,122 1,960 2,912 4,002 5,259 6,702 8,340 10,180 12,225 14,471 EBIT 4,739 5,130 5,666 6,374 7,293 8,354 9,566 10,934 12,459 14,134 EBIT Margin 21.8% 19.7% 18.1% 17.0% 16.2% 15.6% 15.1% 14.8% 14.5% 14.3% Less: Interest Expense – – – – – – – – – – Add: Other Income 217 260 313 375 450 536 632 739 858 986 Add: Exceptional Item – – – – – – – – – – Add: Profit/(Loss) of Associates, JV – – – – – – – – – – PBT 4,956 5,391 5,978 6,750 7,743 8,890 10,198 11,674 13,316 15,121 Less: Taxes 1,185 1,283 1,416 1,594 1,823 2,089 2,392 2,734 3,115 3,534 Net Income 3,771 4,108 4,562 5,156 5,920 6,801 7,807 8,940 10,202 11,587 Net Margin 17.4% 15.8% 14.6% 13.7% 13.2% 12.7% 12.4% 12.1% 11.9% 11.7% Earnings Per Share (EPS) ₹ 1279 ₹ 1393 ₹ 1547 ₹ 1748 ₹ 2007 ₹ 2306 ₹ 2647 ₹ 3031 ₹ 3459 ₹ 3929 Note: EPS is calculated on current reported year outstanding shares This content is exclusively available to our Pro and Premium members. 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Income Statement FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% COGS 53.9% 59.4% 61.9% 63.4% 64.8% 63.4% Gross Margin 46.1% 40.6% 38.1% 36.6% 35.2% 36.6% Employee Cost 12.9% 9.6% 9.1% 7.7% 8.0% 8.3% Power and Fuel Cost 1.0% 0.9% 0.8% 0.7% 0.6% 0.6% Administration and General Cost 9.5% 8.2% 7.3% 7.3% 6.5% 7.1% Selling and Distribution Cost 2.6% 2.8% 2.9% 2.5% 2.5% 2.5% Miscellaneous Cost 5.1% 7.2% 5.6% 6.3% 5.1% 5.3% EBITDA 15.1% 11.9% 12.4% 12.1% 12.5% 12.8% Depreciation & Amortization 3.9% 3.5% 2.8% 2.6% 2.6% 2.1% Interest 0.1% 0.1% 0.2% 0.1% 0.3% 0.1% Profit Before Tax 3.8% 0.6% 9.4% 9.4% 14.7% 10.6% Other Income 5.6% 5.2% 3.3% 3.2% 4.3% 4.5% Tax 2.7% 0.9% 2.4% 3.1% 4.1% 4.0% Net Profit 6.6% 5.0% 10.3% 9.5% 14.9% 11.1% Paticulars (₹ Crore) FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 ASSETS Non Current Assets Property, plant and equipment 7.3% 6.2% 5.6% 6.5% 5.7% 4.0% Right-of-Use Assets 1.7% 1.4% 1.1% 0.9% 0.8% 1.0% Investment Property 1.1% 0.9% 1.2% 3.3% 3.8% 3.0% Capital work-in-progress 3.7% 3.3% 3.9% 2.2% 1.3% 2.0% Goodwill 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Other Intabgible assets 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Intangible assets under development 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Investment in Associates/ Joint Venture 28.8% 23.5% 28.8% 26.7% 25.5% 32.5% Investments 0.0% 0.0% 0.2% 0.1% 0.7% 1.6% Loans 3.4% 3.4% 2.7% 2.3% 1.7% 0.6% Other financial assets 0.7% 1.3% 1.7% 1.4% 1.6% 1.1% Deferred tax asset (net) 0.4% 0.1% 1.6% 1.8% 2.1% 0.5% Income Tax Assets 0.4% 0.1% 0.2% 0.1% 0.0% 0.0% Other non-current assets 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total non-current assets 47% 40% 47% 45% 42% 45% Current Assets Inventories 8.4% 8.8% 11.2% 11.7% 10.9% 9.6% Trade receivables 10.6% 9.4% 10.0% 11.7% 12.6% 11.7% Cash 16.9% 16.6% 11.1% 12.7% 3.5% 2.5% Loans 4.6% 3.6% 6.0% 6.5% 8.6% 6.8% Investments 2.2% 11.7% 7.2% 4.2% 4.6% 4.3% Other financial assets 6.8% 6.3% 4.5% 3.8% 13.4% 16.9% Current Income Tax Assets 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Other current assets 2.0% 1.9% 1.5% 1.6% 1.2% 0.9% Total current assets 52% 58% 52% 52% 55% 53% Total Asset 99% 98% 98% 97% 97% 97% Equity & Liabilities Equity Total Shareholders’ Equity 70% 66% 69% 68% 69% 68% Non Controlling Interest 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total Equity 70% 66% 69% 68% 69% 68% Non Current Liabilitiee Borrowings 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Lease liabilities 0.4% 0.2% 0.3% 0.2% 0.1% 0.5% Other financial liabilities 0.0% 1.3% 0.8% 0.5% 0.3% 0.0% Provisions 2.5% 1.6% 0.7% 0.7% 0.7% 0.6% Deferred tax liabilities (net) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Other non-current liabilities 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total Non-current liabilities 3% 3% 2% 1% 1% 1% Current Liabilities Borrowings 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Lease Liabilities 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% Trade Payables 12.1% 15.1% 14.5% 16.8% 14.8% 14.6% Other financial liabilities 3.6% 5.0% 2.9% 3.0% 2.9% 2.8% Provisions 9.7% 7.3% 8.2% 7.0% 7.7% 7.9% Current tax liabilities (net) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Other current liabilities 2.1% 3.0% 3.1% 4.1% 3.8% 2.7% Total current liabilities 28% 30% 29% 31% 29% 28% Total Equity and Liabilities 100% 100% 100% 100% 100% 97% This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Particulars FY 25 Bosch Limited Revenue 18,087 EBITDA 2,310 PAT 2,015 Valuation Multiple P/E P/E 26.3x Equity Value 53,039 Equity Value for Shareholders 53,039 Market Cap 110,734 Valuation Conclusion Overvalued Donwside Risk -52.1% Stock Price Based on Valuation 17,983 Commentary: By performing the Relative Pricing on the company, Bosch Limited, we found the Equity Value of the company is ₹ 53,039 crore and the Market Value of the company is ₹ 110,734 crore (calculated using current year’s outstanding number of shares. After performing the Relative Pricing on the company through P/E method, we can conclude that, the company is Overvalued. Disclaimer: The research report (content on this post) presented here is for informational and research purposes only. It reflects our own views, assumptions and analysis and is not intended as a recommendation, offer or solicitation to buy, sell or hold any security or asset. Please conduct your own due diligence and consult a qualified financial advisor before making any investment decision. Please check our Terms & Conditions page before investing. Bosch Limited BSE: 500530 NSE: BOSCHLTD Sector: Automobile Industry: Auto Component Summary Particulars FY25 Enterprise Value (₹ Crore) 82,074 EV/EBITDA 36 P/E 41 Revenue Growth % YoY 8.1% Gross Margin 36.6% EBITDA Margin 12.8% Net Margin 11.1% About the Company Bosch Limited (hereinafter as “Bosch“ or “The Company”) was incorporated on November 12, 1951. The company was founded by Rober Bosch in 1886 in Stuttgart, Germany. In 1951, The company officially started its operations with the name “Bosch” in India. India plays a largest role in strengthening the Group’s global strategy. Bosch operates in three segments which are Automotive Products, Consumer Goods and Others segments. The automotive segment’s business consists of diesel systems, gasoline systems and automotive aftermarket products and services. That of consumers good segment consists of trading activities in power tools and consumables. The company is also engaged in the business of Industrial technology, building technology products and services. In the automotive segment, Bosch servers all major automotive OEMs in the Passenger Car, Commercial Car, Tractors and also Two-Wheeler segments, they also serves the aftermarket through distributor network and retailers through Bosch Car Service (BCS). In consumer goods segment, they have a wide range of cordless tools and supports its various products with a comprehensive range of accessories. They also caters to retail users directly or through distributor network in both offline and online channels and as well as the companies in the construction, woodworking and metalworking industry etc. In “other” segment, Bosch offers products related to building technologies which includes a wide range of products and services for building safety, energy efficiency, and building automation and the customers are like Metro Rail, Airports, City surveillance & traffic management, Refineries, Manufacturing and Industrial complexes, sensitive high-profile buildings, educational institutes, Hospitality and Healthcare projects, Stadia and top Corporate houses through authorized Channel Network comprising of System Integrators and distributors. Bosch also offers solutions for customized energy efficiency solutions for commercial and industrial establishments under the “other” segment. Company Details State City Headquarters R&D Office Manufacturing Chandigarh Chandigarh Yes No No No Delhi New Delhi No No Yes No Gujarat Ahmedabad No No Yes No Surat No No Yes No Haryana Gurugram No No Yes No Manesar No No Yes No Himachal Pradesh Nalagarh No No No Yes Jharkhand Ranchi No No Yes No Karnataka Bengaluru No No Yes No Bidadi No No No Yes Nagathanthapura No No No Yes Mysore (inferred) No Yes No No Kerala Coimbatore No No Yes No Madhya Pradesh Indore No No Yes No Maharashtra Mumbai No No Yes No Nashik No No Yes No Pune No No Yes No Rajasthan Jaipur No No Yes No Tamil Nadu Chennai No No Yes No Telangana Hyderabad No No Yes No Secunderabad No No Yes No Uttar Pradesh Ghaziabad No No Yes No Lucknow No No Yes No West Bengal Kolkata No No Yes No Location Number of Plants Number of Offices Total National 7 36 43 International - 1 1 Grand Total 7 37 44 Locations Served by the Entity Number National (No. of States) 35 International (No. of Countries) 39 Total 74 Mobility Portfolio Segment Core Technology / Sub-category Components / Offerings 2-wheeler and powersports Engine Management System (EMS) Portfolio of EMS technologies specifically engineered for two-wheelers, encompassing: lambda sensors, fuel injectors, fuel supply modules, and Electronic Control Units (ECUs). ICE Engine Management Systems Systems for Diesel, Gasoline, and alternate fuel across vehicle segments. ICE Connected and Software Services Connected and Software services. ICE Battery Management Systems Battery Management Systems. ICE Thermal Systems Thermal systems – Hybrids. ICE H2 ICE Hydrogen Internal Combustion Engine (H2 ICE) applications. Electrification Electrification Integration Electric Axle (3-in-1, X-in-1) and Vehicle Control Units. List of Products Product & Services Sector Key Products & Categories Services Home Appliances Ovens, dishwashers, refrigerators, washing machines/dryers, air fryers, kitchen appliances (mixers, blenders, food processors), coffee machines, and vacuum cleaners. Cleaning and care products, extended warranties, and repair/spare parts support. Power & Measuring Tools Cordless and corded power tools (drills, saws, grinders, hammers), measuring tools (lasers, detectors, thermal cameras), and professional-grade accessories. Online repair services, spare parts lookup, and product connectivity apps (e.g., MeasureOn). Mobility Solutions Automotive parts, vehicle technology, software, and electronic systems for passenger cars, commercial vehicles, and two-wheelers. Workshop equipment (diagnostics, test benches), ESI[tronic] software, technical support, and workshop management programs. Industry & Trade Specialized tools, industrial technology, and building/energy solutions. Training solutions, technical consulting, and professional maintenance/repair services. Q1 FY26 Opening Context & Macroeconomic Environment The Managing Director, Mr. Guruprasad Mudlapur, began by describing the current global landscape using the term BANI (Brittle, Anxious, Nonlinear, Incomprehensible). He noted ongoing wars, US tariff discussions, supply chain challenges, and growth disparity between developed and emerging markets. Despite this, the IMF upgraded India’s 2025 growth forecast to 6.4%, reaffirming India as a key engine of global expansion. The RBI has taken easing measures (repo rate cuts, CRR reduction) to boost growth, with inflation at multi-year lows. Monsoon performance will be key for coming quarters. Indian Automotive Industry Performance (Q1 FY26) Upward trend seen in tractors and three-wheelers. Mild improvements in passenger vehicles, two-wheelers, and commercial vehicles. Heavy Commercial Vehicles (HCV): Positive growth due to pre-buying ahead of mandatory AC cabin regulation (effective October 1, 2025), driven by expected 1-2% cost increase. Bus segment: Continuing to thrive, supported by PM e-Bus Sewa scheme. Light Commercial Vehicles (LCV): Slight degrowth; goods carriers faced challenges from softening economy and competition from three-wheelers in low-tonnage category. Three-wheelers: Strong double-digit growth driven by domestic and export demand, especially EV penetration in last-mile use cases. Tractors: Robust growth due to timely sowing, favorable monsoon forecast, higher MSP, and improved farm liquidity. Two-wheelers: Domestic sales impacted by Hero MotoCorp’s plant maintenance shutdown, but electric two-wheelers gaining momentum. Financial Performance Overview (Presented by Ms. Karin Gilges, CFO) Revenue from operations: ₹4,788.6 crores, growth of 10.9% YoY (Q1 FY26 vs Q1 FY25). Driven by Power Solutions, Two-Wheeler Powersports, Mobility Aftermarket, and Consumer Goods businesses. Sequential decline: 2.5% lower than Q4 FY25, mainly due to the sale of the Video Solutions, Access & Intrusion, and Communication systems business (Building Technologies division). EBITDA: ₹639.3 crores, growth of 23% YoY. Margin improvement driven by revenue growth and improvement in material cost. Profit After Tax (PAT): 23.3% of revenue (vs 10.8% in Q1 FY25). The sharp increase is due to improved EBITDA margins plus a one-time profit on sale of the Building Technologies businesses (Video Solutions, etc.). Material cost improvement: Partly due to a favorable product mix toward manufactured goods (vs traded goods) and ongoing localization efforts. Segment-Wise Business Performance Mobility business (Power Solutions): Grew 13.7% YoY driven by higher demand for diesel components from off-highway and passenger car segments. Mobility Aftermarket: Grew 5.2% YoY driven by filters, lubricants, wiper systems, and significant growth in two-wheeler business due to OBD 2 norms implementation (exhaust gas sensors). Two-wheeler business: Very strong growth (39.2% sequential) due to OBD 2 norms. Localized production at Bidadi plant. Two-wheeler is now a very important contributor to overall mobility turnover (though segmental numbers not disclosed). Consumer Goods business: Grew 9.3% YoY driven by tools and accessories. Building Technologies: Declined 65.3% YoY due to the sale of Video Solutions, Access & Intrusion, and Communication systems business. The one-time profit on this sale was recognized in Q1. Electrification & Technology Focus Bosch is providing key EV technologies like Vehicle Control Units (VCU) – the “brain” of the vehicle managing torque and drive modes – and electric coolant pumps for battery cooling during fast charging. In the two-wheeler space, Bosch is powering multiple models and continuously improving systems to meet market and regulatory requirements. VCUs and other electronics are manufactured by a sister entity (specialized contract manufacturer) and sold through Bosch Limited. Other Key Topics Discussed MoU with Tata Electronics (Bosch Germany & Tata Electronics) This is a one-year MoU to explore potential cooperation in semiconductors and OSAT (outsourced semiconductor assembly and test) topics. It is at a very early stage; there is no direct benefit to the listed entity yet. Any future localization benefits will be communicated. Restructuring of Mobility Business This relates to commercial prudence and the shift in technologies (e.g., TRAM 5 tractors moving to common rail). Provisions are built based on volume changes and product portfolio evolution. Johnson Controls-Hitachi Acquisition (Global) This is a global Bosch acquisition (one of the largest) for HVAC (heating, ventilation, air conditioning) for residential and industrial applications. This comes as a separate division and is currently not within Bosch Limited. The India operations of this acquisition will also remain outside for now. Electronification / Electronics Manufacturing The sister entity that manufactures electronics is more or less a contract manufacturer to Bosch Limited. There is no change in structure to report at this time. Hydrogen Ecosystem for Commercial Vehicles Hydrogen is in a very early phase. Bosch is working with OEMs on technology maturity. Significant ecosystem development (generation, distribution, storage, pumping) is required before commercial exploitation. No specific timeline provided. Rare Earth Magnets Issue Bosch has implemented a task force (India and global) to manage the rare earth supply chain challenge. Current inventory coverage is until end of August. Multiple options are being explored to reduce risk. ADAS (Advanced Driver Assistance Systems) Bosch globally supplies ADAS solutions. However, this portfolio does not currently belong to Bosch Limited; it is with a sister company outside the listed entity. Export Business Outlook Bosch India exports products like NOx sensors, spark plugs, certain injectors, and has taken over the Zexel Pump portfolio from Japan (now single source, produced in Jaipur and exported to Japan). Focus remains on the Indian market first. Exports fill available capacity where landed cost (including logistics) is competitive. Continuously increasing exports is a stated target, but no specific medium-term number is provided due to volatility and technology shifts. Emission Norms (Tractors – TRAM 5) TRAM 5 norms are currently on hold. Updates will be provided as and when changes occur. Localization Progress Bosch Limited is on track with its continuous localization efforts. The intent is to steadily increase localization content, though it is not an overnight switch. Multiple factors (geopolitics, tariffs, volumes beyond India) influence decisions. Pricing & Customer Contracts Pricing is based on customer contracts and varies. Benefits from localization or material cost improvements are shared as per agreed terms with customers. Portfolio Management Approach (Group Stance) Bosch’s global principle: Be in the top 3 in every segment of operation. Portfolio actions (retain, grow, divest, merge) are taken based on this principle. The Building Technologies divestment was because significant additional investment was required to make it a top performer, which was not in focus. Key Takeaways Strong Financial Performance: Revenue grew 11% YoY, EBITDA grew 23% YoY, and PAT margin jumped to 23.3% (including a one-time gain from business divestment). Underlying operational performance is solid. One-Time Gain Distorts PAT: The sharp increase in PAT margin is partly due to the profit on sale of Building Technologies businesses (Video Solutions, Access & Intrusion). Investors should normalize for this when comparing future quarters. Two-Wheeler Business is a New Growth Engine: The OBD 2 norms drove exceptional growth in exhaust gas sensors. This business is localized at Bidadi and is now a very important contributor to mobility revenue. Volumes will stabilize after the initial ramp-up. HCV Pre-Buying Boosts Q1: Commercial vehicle growth was driven by pre-buying ahead of the October 1 AC cabin mandate. This may pull forward demand. Rare Earth Magnet Supply Risk: Inventory coverage is only until end of August. A task force is actively managing the situation, but this is a near-term risk to monitor. Electronics Manufacturing Stays Outside: VCUs and other EV electronics are manufactured by a sister entity (contract manufacturer) and sold through Bosch Limited. No structural change is planned or reported. Hydrogen and ADAS Are Long-Term Plays: Hydrogen ecosystem is very early. ADAS portfolio currently sits outside the listed entity. Near-term benefits are not expected. Export Growth is a Target, But Secondary to Domestic: Bosch Limited prioritizes the Indian market. Exports fill remaining capacity where landed cost is competitive. Successful examples include NOx sensors, spark plugs, and Zexel pumps exported to Japan. Localization on Track: The company continues to increase localization content steadily, though it is a continuous process, not an overnight achievement. No Concrete Merger or Restructuring Plans: Regarding potential mergers of sister entities or changes to the electronics manufacturing structure, management stated there is nothing concrete to report at this time. The MoU with Tata Electronics is early-stage exploration. Q2 FY26 Opening Context & Macroeconomic Environment The Managing Director, Mr. Guruprasad Mudlapur, described the past quarter as a “quarter of contrast” with mild global optimism but financial concerns at home. The IMF lifted its 2025 global GDP forecast to 3.2%, citing robust US and Indian momentum. India delivered a stellar 7.8% GDP growth in Q1 FY26. The RBI maintained rates at 5.5% but turned mildly dovish due to lower inflation estimates. Strong festive spending following GST cuts is expected to boost tax collections. Management expressed confidence in navigating cross-currents and capturing growth from India’s buoyant domestic demand. Indian Automotive Industry Performance (Q2 FY26) Overall: Steady growth across all segments. September GST reforms significantly boosted affordability and pre-festive buying. Passenger Vehicles: Started slow but saw a sharp rebound in late September driven by SUVs. Smaller cars and sedans remained under pressure. Commercial Vehicles: Robust and steady performance driven by stable production, infrastructure projects, improved financing, and lower GST rates. LCVs saw strong growth due to GST 2.0, festive season, and e-commerce demand. Three-wheelers: Record production levels driven by urban mobility and last-mile delivery demands. Tractors: Strong growth fuelled by above-normal monsoons, robust Kharif harvest, stable policy rates, improved rural cash flows, and GST revisions. Two-wheelers: Steady growth driven by good monsoon, strong rural demand, festive sentiment, and GST rate cuts triggering pent-up purchases. Financial Performance Overview (Presented by Ms. Karin Gilges, CFO) Q2 Revenue: ₹4,794.8 crores, growth of 9.1% YoY. Driven by Power Solutions and Two-Wheeler Powersports segments. H1 Revenue: ₹9,583.4 crores, growth of 10% YoY. Q2 EBITDA: ₹617.1 crores, growth of 10.1% YoY. Margin improvement driven by favorable product mix and expense optimization. H1 EBITDA: ₹1,256.4 crores, growth of 16.3% YoY. Q2 PAT: Grew 3.4% YoY. However, Q2 FY25 had an exceptional gain of ₹48.5 crores from sale of OE Diagnostics business. Excluding that, Q2 PAT grew 11.2%. H1 PAT: ₹1,669.6 crores, growth of 66.7% YoY. This significant growth is mainly due to the one-time profit on sale of Video Solutions, Access & Intrusion, and Communication systems business (Building Technologies segment) recognized earlier. Segment-Wise Business Performance Mobility business (Power Solutions): Q2 grew 9.5% YoY driven by higher demand for diesel components from passenger car and off-highway segments. Mobility Aftermarket: Q2 grew 3.7% YoY. GST 2.0 had a temporary negative impact as dealers liquidated existing stocks. Sales expected to regain momentum in Q3. Two-wheeler business: Exceptional growth of 81.8% YoY due to OBD-2 norms (exhaust gas sensors). This remains a key growth driver. Consumer Goods business: Grew only 1.8% YoY. Slowdown attributed to adverse exchange rate movements (higher material cost) and initial GST reform impact. Management sees this as temporary, not structural. Power Tools: New product launches driving expansion, especially in hand tools and outdoor garden equipment. E-channel delivered high double-digit growth. Key Business Highlights & New Technologies Two-Wheeler & Powersports Sensor-less quick shift technology made its Indian debut – smoother, smarter shifting. First for India: TVS Ntorq 150 with Bosch’s Lambda sensor (realized at Bidadi plant). Bajaj Pulsar NS400Z also deployed with this technology. Bosch received Hero MotoCorp’s Hero Premium Leader Award. Mobility Aftermarket Strong momentum expected post GST 2.0 transition in Q3. Strategy: Leverage portfolio strengths, maintain cost discipline, focus on margin stability, and expand product portfolio aligned with market demands. Awards & Recognition Received awards for excellence in on-time delivery and supply reliability. Award for pioneering innovation in hydrogen internal combustion engine technology. Marked 25th anniversary of Technical Centre India (TCI) . Electrification & EV Progress Bosch is making steady progress in four-wheeler EV space. Management promised “bigger updates” on business opportunities soon. Margin pressure will remain in EV business as it is a “tough entry business.” In electric two-wheelers, Bosch is working with a couple of the bigger manufacturers, largely in the scooter segment, supplying components. Other Key Topics Discussed ABS for Two-Wheelers (Mandate) Bosch’s sister company is a market leader in two-wheeler ABS. Capacities are very well prepared to handle increased demand if the mandate is implemented as drafted. Management declined to speculate on which way the mandate will go. Non-Ferrite Motors (Rare Earth Magnet Alternative) Bosch is exploring multiple options for motors without heavy rare earth magnets. Certain non-heavy rare earth magnet motors are already prepared for the Indian market. Work on non-ferrite magnets is in progress, with something ready “very soon.” Hybrid Systems for Passenger Vehicles Bosch has extensive hybrid technology and offers it to OEMs globally. In India, Bosch is in discussion with all OEMs locally and is very open to supplying hybrid systems. Xperia (Supply Chain Issue) The issue is resolving well based on news reports. Management remains cautious as it is still “touch and go” in terms of supplies. Hydrogen ICE (Internal Combustion Engine) Currently in technology maturity phase. Pilot vehicles are built and being tested by OEMs (labs and on-road). Hydrogen requires ecosystem development (generation at right price, distribution) beyond just vehicle technology. Management expects 8% to 15% market penetration in heavy commercial vehicles by around 2030. LNG in Heavy Commercial Vehicles Management acknowledged the question but did not provide specific numbers, offering to share data separately. Flex Fuel Engines Bosch is working with OEMs on all technology options, including flex fuel. Exports Outlook Management is cautious on exports due to geopolitical uncertainty and tariff impacts on landed costs. Long-term commitment to increase exports remains valid, but the situation is being assessed carefully. Regulatory Norms to Watch OBD-2 (already implemented, driving two-wheeler growth for next 2 quarters, then normalization). TREM V (tractor emission norms) – on the horizon for a while. Electrification – growth on the cards, not necessarily regulation-driven but due to clean mobility requirements. CAFÉ Norms & GDI Technology GDI (Gasoline Direct Injection) technology is mature and fully compliant. Continued traction expected. Key Takeaways Strong Financial Performance: Q2 revenue grew 9.1% YoY, EBITDA grew 10.1% YoY, and normalized PAT (excluding one-off gains) grew 11.2% YoY. H1 PAT includes a large one-time gain from building technologies divestment. Two-Wheeler Business is a Standout Performer: 81.8% YoY growth driven by OBD-2 norms (exhaust gas sensors). This momentum is expected to continue for the next two quarters before normalizing. GST 2.0 Had Mixed Impact: Positively boosted vehicle demand and affordability. However, it temporarily hurt Mobility Aftermarket sales as dealers liquidated existing stock. Recovery expected in Q3. Consumer Goods Slowdown is Temporary: Marginal 1.8% growth attributed to exchange rate impacts and GST transition, not structural issues. Management expects a pickup. EV Progress with Margin Caveat: Bosch is making steady progress in EV space (both four-wheeler and two-wheeler) and will share “bigger updates” soon. However, margin pressure will remain as it is a tough entry business. New Technologies Gaining Traction: Sensor-less quick shift (two-wheeler), Lambda sensor (first in India for TVS Ntorq), hydrogen ICE (pilot phase), and non-ferrite motors (work in progress) are key development areas. ABS Mandate – Ready and Waiting: Bosch is fully prepared with capacity if the two-wheeler ABS mandate is implemented. Market leader position through sister company. Hybrid Opportunity Open: Bosch has global hybrid technology and is in active discussions with all Indian OEMs. Hydrogen is a 2030 Story: Expected penetration of 8-15% in HCVs by 2030, but ecosystem development (generation, distribution) is critical and still evolving. Exports – Cautious Stance: While long-term commitment to increase exports remains, near-term caution prevails due to geopolitical uncertainty and tariff impacts on competitiveness. Q3 FY26 Opening Context & Macroeconomic Environment The Managing Director, Mr. Guruprasad Mudlapur, noted that the global economy is adjusting to geopolitical events and trade realignments. The IMF projects global growth to slow from 3.2% in 2025 to 3.1% in 2026. However, India continues to demonstrate powerful resilience, with the IMF revising India’s FY26 GDP estimate upward to 7.3% (from 6.6%), driven by resilient domestic demand and easing inflation. India also benefits from tailwinds from the recently agreed FTA with the EU and trade deals with the US, Australia, UK, and New Zealand. The RBI maintained a stable repo rate at 5.25%, and the Union Budget 2026-27 sent strong signals of policy continuity, including customs duty exemptions for lithium-ion cell components, the India Semiconductor Mission 2.0, Rare Earth Corridors in four states, and continued infrastructure investment (including a new freight corridor). Indian Automotive Industry Performance (Q3 FY26) Overall: Robust production across passenger vehicles, two-wheelers, and commercial vehicles, driven by festive demand, rural recovery, improved supply chains, GST rationalization, and new model launches. Passenger Vehicles: Subdued start but finished 2025 on a strong note. SUVs spearheaded the recovery driven by discounts and seasonal buying ahead of price hikes. Heavy Commercial Vehicles (HCV): Steady growth driven by infrastructure demand, strong freight movement, GST 2.0 momentum, government fleet orders, and road construction/mining activity. Bus segment showed notable traction from school, intercity, and institutional transport orders. Light Commercial Vehicles (LCV): Robust production fueled by GST 2.0 revival, e-commerce growth (last-mile delivery), and rising fleet utilization. Three-wheelers: Sharp production increase driven by urban mobility and last-mile cargo delivery during the festive season. Tractors: Strong momentum supported by healthy rabi sowing, robust kharif harvest liquidity, improved water availability, lower GST on tractors, and state-level subsidies. Two-wheelers: Moderate in October due to inventory adjustment, but production picked up in November and December driven by festive and wedding season demand, supported by GST reductions. FY26 Full-Year Outlook (All-Time Highs Expected) Management expects three core segments to achieve all-time high production levels in FY26: Passenger Vehicles: Record performance driven by improved affordability, easing interest rates, and GST reforms. Commercial Vehicles: Healthy growth fueled by infrastructure spending and e-commerce logistics. LCV sub-segment expected to achieve all-time high. Tractors: Record levels supported by strong rural sentiment, GST norms, and state subsidies. Two-wheelers: New peak driven by improving rural sentiment, rising disposable incomes, GST cuts, and tax rebates (up to ₹12 lakh income). Financial Performance Overview (Presented by Ms. Karin Gilges, CFO) Q3 FY26 (Oct-Dec 2025) Revenue: ₹4,885.6 crores, growth of 9.4% YoY. Driven by Power Solutions and Two-Wheeler Powersports. EBITDA: ₹612.4 crores, growth of 5.1% YoY. Margin improvement driven by favorable product mix and expense optimization. PAT: Grew 16.1% YoY. Excluding an exceptional item in Q3 FY25, PAT grew 5.3% YoY. 9M FY26 (Apr-Dec 2025) Revenue: ₹14,469 crores, growth of 9.8% YoY. EBITDA: ₹1,868.8 crores, growth of 12.4% YoY. PAT: ₹2,201.7 crores, growth of 50.8% YoY. The significant growth is mainly due to the one-time profit on sale of the Building Technologies businesses (Video Solutions, etc.) recognized earlier. Segment-Wise Business Performance Mobility Business (Power Solutions) Q3 YoY growth: 19.5% driven by passenger car and off-highway segments. 9M YoY growth: 14.1% driven by commercial vehicle and off-highway segments. Strong broad-based growth across all segments, with exceptional performance in Tractor and HCV segments boosted by GST 2.0 rollout. Mobility Aftermarket Q3 YoY growth: 5.3% driven by GST reforms, strong OE segment growth, and growth across diesel, wipers, and braking systems. 9M YoY growth: 4.8% driven by sustained momentum across diesel, wipers, braking systems, and filters. Temporary sales impact from GST 2.0 in October, but strong rebound shortly thereafter. Two-Wheeler Business Q3 YoY growth: 58.3% driven by higher sales of exhaust gas sensors due to OBD-II norms implementation. 9M YoY growth: Significantly higher due to OBD-II ramp-up. 2025 became a landmark year for mini-heated lambda sensors, achieving new sales milestones. Consumer Goods Business Q3 YoY: Declined marginally by 3.1%. 9M YoY: Grew 2.8%, attributed to new launches in entry-level and mid-price point segments, measuring tools, and outdoor garden equipment. Power Tools Division Navigated a challenging market with intense price pressure, particularly from Chinese competitors. Cordless segment continued impressive trajectory with double-digit growth for the fourth successive year. Dealer network expanded to over 1,800 partners, with 25,000 retail points across 1,600+ cities. Hand Tools launched as a new business segment, achieving ₹100 million in revenue within the first year. Key Business Highlights & Awards Operational Excellence Bidadi plant awarded at National CII SCALE Awards 2025 for digital excellence and innovation in logistics (integrated autonomous digital ecosystem automating the entire logistics value stream). At CI KAIZEN Awards 2025, the plant secured the Champions Trophy and Challengers Trophy for low-cost productivity solutions and quality improvement. Two-Wheeler & Powersports TVS Apache RTX 300 launched with advanced Bosch systems. Harley X440 T launched with deep integration of Bosch powertrain, safety systems, and high value-added features. Showcased latest innovations at EICMA 2025 in Italy. Dividend Policy Update Bosch has introduced a quantified dividend policy (55% to 80% of profits), bringing more clarity compared to the previous open policy. The Board retains final discretion. Other Key Topics Discussed Capex & Capacity Planning Capacity planning is an ongoing process based on customer and market volume forecasts. Golden rule within Bosch: Always maintain some buffer capacity. When buffer is utilized, the next capex is released. No specific capex guidance was provided for FY27-28. India-EU FTA (Free Trade Agreement) Bosch is extremely positive about the mid-to-long-term benefits. Fine print is currently being studied to understand the impact and opportunities. Imported components (from parent): Localization is an ongoing process. In 2025, Bosch localized NOx sensor components for common rails. Further localization for common rail products and NOx sensors is planned. Exports: Export volumes increased for spark plugs in 2025. Further growth expected in spark plugs, common rail components, and NOx sensors. Pumps were relocated from Japan to India, now exported back to Japan and Korea. Localization impact of FTA: Bosch’s philosophy is “local for local” regardless of FTA. Volumes are more important than import duties. The FTA is expected to have a positive effect on further localization, not a delay. Profitability & Margins Discussion A participant questioned why margins (around 13% EBITDA) are not expanding more significantly despite strong tailwinds (CV upcycle, tractor boom, OBD-II, localization). Management responded that: Product mix matters – new products enter the market as finished goods first, then assembly/testing, then localization, which takes time. Q3 included a provision for the new Labour Code, which impacted margins. Excluding this provision, operational performance was very strong (10.5% EBIT). Over the last 3 years, both profit and margins have been improving. Management declined to give a 3-4 year margin guidance but pointed to historical improvement trends. EV Four-Wheeler Strategy From Bosch Limited’s portfolio, the company will strongly aim to begin with e-axles – the largest value component in an EV (apart from batteries, which OEMs make themselves). Bosch is in advanced discussions with several OEMs and will announce specifics in coming quarters. Other EV components being supplied currently (from the electronics unit) include chargers, DC/DC converters, and power electronics. Bosch is not currently supplying e-axles to any OEM in India, but expects to soon. Hydrogen Engine Status Bosch is working very closely with virtually every commercial vehicle and bus OEM in India. Extensive vehicle testing is currently ongoing (engines and vehicles). No known specific rollout plans from OEMs yet, largely due to infrastructure (hydrogen fueling stations) not being ready. Management expects hydrogen activity to commence by 2030 once infrastructure is available on major trunk routes. TREM V (Tractor Emission Norms) At this point, there is no visibility on a precise implementation date. Things remain quite open based on discussions with OEMs. Commercial Vehicle Demand Drivers Robust demand driven by GST 2.0 changes, increased government fleet orders, construction/mining activity, and e-commerce growth (LCVs for last-mile delivery). Replacement demand is also strong. Content per vehicle is increasing due to technology additions. Management will update on additional technology introductions in the future. Export Performance Exports are growing steadily, but the main focus remains the Indian market. Growth areas: spark plugs, sensors, pumps to Japan and Korea. Consumer Goods & Power Tools Challenges Power tools division faced intense price pressure from Chinese competitors, resulting in moderate growth. However, cordless segment continues double-digit growth for the fourth consecutive year. Key Takeaways Strong Q3 Performance: Revenue grew 9.4% YoY, EBITDA grew 5.1% YoY, and normalized PAT (excluding prior year exceptional items) grew 5.3% YoY. 9M PAT includes a large one-time gain from building technologies divestment. Two-Wheeler Business Continues to Shine: 58.3% YoY growth in Q3 driven by OBD-II norms (exhaust gas sensors, lambda sensors). This remains a key growth engine. Record-Breaking FY26 Expected: Management forecasts all-time high production levels in FY26 for Passenger Vehicles, Tractors, and Two-Wheelers, with LCVs also hitting record levels. Strong macros and policy support underpin this outlook. Margins Stable, Not Expanding Dramatically – Explained: EBITDA margins have stabilized around 12-13%. The lack of dramatic expansion is due to: New products entering with lower initial margins (followed by gradual localization). Product mix shifts. One-time Labour Code provision in Q3. Management points to steady improvement over 3 years and expects continued margin development with further localization and growth. E-Axles Coming to India (Advanced Discussions): Bosch Limited is in advanced discussions with several OEMs to supply e-axles – the highest-value component in an EV. Announcements expected in coming quarters. This is a significant medium-term opportunity. FTA is a Positive for Localization, Not a Threat: The India-EU FTA is viewed positively. Bosch’s “local for local” philosophy remains unchanged. The FTA is expected to further enhance localization, not delay it. Export opportunities in spark plugs, sensors, and pumps are growing. Hydrogen is a 2030 Story: Extensive vehicle testing is ongoing with all major CV and bus OEMs. Commercial rollout depends on infrastructure (hydrogen fueling stations), which is not yet clear. Management targets 2030 for meaningful hydrogen activity. TREM V Still on Hold: No visibility on implementation date for tractor emission norms. Discussions with OEMs indicate it remains open. Power Tools Facing Pressure, But Cordless Strong: Intense Chinese competition is impacting the power tools division. However, the cordless segment continues double-digit growth for the fourth year, and hand tools achieved ₹100 crore revenue in first year. Clearer Dividend Policy: Bosch introduced a quantified dividend policy (55-80% of profits), providing better clarity to shareholders. The Board retains final discretion. Q4 FY26 Opening Context & Key Developments The Managing Director & Chief Technology Officer, Mr. Guruprasad Mudlapur, opened by providing an overview of the macroeconomic landscape and the company’s outlook. The domestic economy remained resilient in Q4 FY26, driven by robust private consumption through fiscal stimuli and stable monetary policy from the RBI, which kept inflation within the targeted range of 2% to 6%. Significant global headwinds continue to demand attention, including heightened geopolitical instability in West Asia posing material risk to energy price stability and creating volatility in key shipping and logistics routes. While semiconductor shortages have eased, the overall supply chain environment remains fragile. Key highlights include the Power Solutions division surpassing ₹130 billion in total net sales for the 2025 calendar year, the strategic joint venture announcement with Brakes India and Wheels India for advanced air systems, and the successful ramp-up of exhaust gas sensors due to OBD2 norms implementation. Revenue from operations for FY26 stood at ₹20,034 crores, growing 10.8% YoY, with EBITDA of ₹2,650 crores (14.7% growth) and PAT of ₹2,770 crores (37.6% growth, including profit from sale of Building Technologies segment). Macroeconomic & Industry Overview Domestic Economy Resilient performance in Q4 FY26 driven by robust private consumption RBI kept inflation within target range of 2% to 6% under flexible inflation targeting framework RBI lowered repo rate by cumulative 125 basis points to 5.25% during FY26 GST benefits supported demand across automotive sector Government’s continued focus on capital expenditure will bolster domestic demand Global Headwinds Heightened geopolitical instability in West Asia poses material risk to energy price stability Volatility in key shipping and logistics routes Supply chain environment remains fragile Acute semiconductor shortages have eased but new bottlenecks emerge Outlook for FY27: Cautious optimism; strategy focused on supply chain agility and managing commodity/currency risks Indian Automotive Industry – Q4 FY26 Performance Passenger Vehicles: Demand accelerated notably towards year-end; inventory normalized to healthy average of ~28 days (vs ~52 days in previous year) Light Commercial Vehicles: Healthy growth driven by e-commerce demand, 10% increase in infrastructure spending, and 125 bps repo rate cut Heavy Commercial Vehicles: Supported by 10% increase in infrastructure spending and budget utilization by fleet operators Tractors: Standout performer; supported by robust rural demand, favorable farm economics, and strong rabi sowing season (area coverage increased by 1.59 million hectares YoY) Three-Wheelers: Sharp rise supported by urban mobility demand and last mile cargo activity Two-Wheelers: Healthy growth supported by festive and wedding season demand and improved rural liquidity FY27 Industry Outlook Passenger Vehicles: Steady growth expected; geopolitical uncertainties may weigh on Q1 Commercial Vehicles: Stable growth aided by infrastructure spending and e-commerce logistics demand Tractors: Stable growth supported by healthy reservoir levels and deferment of emission norms (25 HP to 75 HP); El Nino conditions could pose downside risk Three-Wheelers: Positive growth driven by organic demand Two-Wheelers: Healthy growth expected; below normal monsoon could weigh on rural demand Financial Performance (Q4 FY26) Standalone Revenue from Operations: ₹5,566 crores, growth of 13.3% YoY EBITDA: ₹782 crores, growth of 20.8% YoY EBITDA Margin: 14.0% (improved YoY) PAT: Growth of 2.7% YoY FY26 Full-Year Standalone Revenue from Operations: ₹20,035 crores, growth of 10.8% YoY EBITDA: ₹2,650 crores, growth of 14.7% YoY EBITDA Margin: 13.2% (improved from 12.8% in FY25) PAT: ₹2,770 crores, growth of 37.6% YoY Significant PAT growth mainly due to profit on sale of Building Technologies segment (Video Solutions, Access and Intrusions, Communication Systems) Segment-Wise Performance Mobility Business Q4 Growth: 23.3% YoY (driven by Power Solutions) FY26 Growth: 16.9% YoY Key driver: Power Solutions business grew 17.6% in FY26 Power Solutions Division Landmark Achievement: Surpassed ₹130 billion in total net sales for 2025 calendar year Q4 Revenue: Over ₹14 billion Growth driven by robust overall automotive market demand CAFE Phase 3 Regulations: Actively aligning with OEMs for rollout scheduled in April 2027 ADAS in Commercial Vehicles: Spearheading adoption; regulations take effect January 2027 for new models, extending to all CVs by October 2027 Two-Wheeler & PowerSports Division Q4 Growth: 63.4% YoY (driven by OBD2 norms implementation from April 2025) FY26 Growth: 69.1% YoY Significant surge in demand following GST reforms Maintained 100% delivery commitment to all OEMs; zero production disruptions Innovation Recognition: Named one of India’s Top 50 Innovative Companies by CII New Intelligent Puncture Detection System commended this year Sensorless Quickshift technology recognized last year Mobility Aftermarket Division FY26 Growth: 3.7% YoY Independent aftermarket stagnated due to supply chain pressures Original Equipment (OE) segment witnessed robust growth (OEM Filters & Spark Plugs) Exports: Outstanding growth of ~17%, notable improvements in Nepal, Bangladesh, and Sri Lanka Broad-based growth across filters, lubricants, rotating machines, braking systems, wipers, and auto electricals Consumer Goods Business (Power Tools) Q4 Growth: 14.3% YoY FY26 Growth: 6.4% YoY Strategic Milestone: First Power Tool company in India to receive mandatory BIS certification for angle grinders, drills, and hammers New Product Launch: Magnetic drill (GBM30) – first locally sourced finished good Cordless Segment: Double-digit growth driven by Cordless 3.0 initiative (battery lock-in effect across 25 industrial clusters) Joint Venture Announcement – Advanced Air Systems Strategic Partnership Joint venture with Brakes India Private Limited and Wheels India Limited (TSF Group) Focus: Engineering, manufacturing, and sale of electronically controlled and software-driven modules for: Air Compression Air Processing Air Suspension Air Parking Brakes Key Details Registered office: Chennai Global supply chain managed by entities of Bosch, Brakes India, and Wheels India Target: Commercial vehicles (trucks and buses) – both ICE and BEVs Addresses LCV and MHCV segments New Entry for Bosch: Not currently a player in this portfolio; JV enables entry into advanced air systems market Why JV Route: Combining Bosch’s electronic control/software capabilities with TSF Group’s strong position in pneumatics and hydraulics for commercial vehicles Market: Largely global currently; Indian market nascent but expected to grow in coming years First operations: End of 2026 (subject to regulatory approvals) Series readiness: 2028 Opportunity & Outlook Content per vehicle details to be shared in future calls Market opportunity to be quantified in subsequent communications Will help Bosch scale globally in this portfolio Joint Venture – eAxle (Tata AutoComp) Update Establishment of JV: Mid-2026 (on track) SOP: Q3 FY27 (third quarter of 2027) First shipments: Q3 FY27 Orders already received from clients; details to be shared once JV is set up Robert Bosch Chassis Systems Acquisition Status Update Shareholder approval (including minority) obtained Valuation report published with postal ballot notice Waiting for regulatory approval to proceed Unable to disclose revenue, margins, profitability figures until regulatory approval is formalized Bosch Chassis Systems is meeting original plans based on market conditions Sector-Wise Sales Performance Q4 YoY Growth Mobility Business: 23.3% (driven by Power Solutions) Power Solutions: 27.4% Two-Wheeler Business: 63.4% (OBD2 norms implementation) Consumer Goods: 14.3% FY26 YoY Growth Mobility Business: 16.9% Power Solutions: 17.6% Mobility Aftermarket: 3.7% Two-Wheeler Business: 69.1% Consumer Goods: 6.4% Margin & Cost Dynamics EBITDA Improvement Drivers (Q4 & FY26) Revenue growth Material cost reduction Optimization of expenses Budgetary control Fixed cost absorption improvement Other Expenses Decline (Q4) 9% YoY decline, 10% sequential decline Key factors: Large customer project in previous year (reflected in revenue from services) Forex gains/losses due to INR fluctuation Better fixed cost absorption Cost progress initiatives Cost Management Initiatives Material cost reduction via localization, negotiation, design RPP Strong productivity progress in plants Ramping up AI in plants for productivity and efficiency Working on overall cost progress in accordance with market conditions Commodity & Energy Cost Environment Competitive market with ongoing cost challenges Focus on localization and productivity improvements Ramping up AI in plants for efficiency gains Content per Vehicle & Growth Outlook Content per Vehicle Constant increase trend continuing Expected to continue in upcoming fiscal year CAFE 3 regulations will drive meaningful content per vehicle improvement ADAS adoption in CVs will further increase content Growth Outlook – Cautiously Optimistic Current outlook: Flattish for FY27 Reason for Caution: West Asia crisis impact on crude oil prices and economy No issues ramping up beyond expectations if required Customers guiding for high single-digit to double-digit growth but company prefers conservative stance Strong Q4 performance provides momentum International Production Network Bosch operates on “production where consumption happens” principle India already does small percentage of exports Working on production architecture changes for bigger role Preconditions: Economic sense, landed cost competitiveness Current geopolitical situation (Strait of Hormuz) not supporting logistics costs NOx sensor plant in Abu Dhabi provides export share to Europe Key Strategic Priorities Technology & Innovation Preparing customers for upcoming legislation (CAFE Phase 3, OBD2, ADAS) New Intelligent Puncture Detection System (CII Top 50 Innovative Companies recognition) Sensorless Quickshift technology Electrification agnostic approach – supporting all technologies BS7 preparedness: Technologies already demonstrated; manufacturing capabilities ready Portfolio Expansion Constant endeavor for portfolio expansion and enhancement New JV for advanced air systems fills significant product gap eAxle JV with Tata AutoComp on track Continuous work on multiple aspects; details shared as and when regulatory approvals obtained Localization & Cost Competitiveness Increasing localization Ramping up AI in plants for productivity and efficiency Working on cost competitiveness in material via localization and overall efficiency Regulatory Preparedness CAFE Phase 3 Regulations Actively aligning with OEMs for rollout scheduled in April 2027 Content per vehicle will increase meaningfully ADAS in Commercial Vehicles Spearheading adoption Regulations effective January 2027 for new models Extending to all commercial vehicles by October 2027 OBD2 Norms Implementation from April 2025 Significant driver of Two-Wheeler business growth (63.4% Q4 YoY) Ramp-up in exhaust gas sensors BS7 Norms European version (Euro 7) technologies already demonstrated Manufacturing capabilities ready Well prepared for movement towards BS7 BIS Certification (Power Tools) First Power Tool company in India to receive mandatory BIS certification Key products: Angle grinders, drills, hammers Ensured uninterrupted market access Aftermarket & Export Performance Mobility Aftermarket FY26 Growth: 3.7% YoY Independent aftermarket affected by supply chain pressures OE segment robust growth (OEM Filters & Spark Plugs) Exports: Outstanding 17% growth (Nepal, Bangladesh, Sri Lanka) Broad-based growth across filters, lubricants, rotating machines, braking systems, wipers, auto electricals Export Strategy Already exporting small percentage to rest of world Exploring larger role in global production network Landed cost competitiveness key factor Key Takeaways Strong FY26 Performance with 10.8% Revenue Growth: Revenue at ₹20,035 crores; EBITDA at ₹2,650 crores (14.7% growth); PAT at ₹2,770 crores (37.6% growth, including one-off from Building Technologies sale). Q4 revenue grew 13.3% YoY. Power Solutions Division Surpassed ₹130 Billion in 2025 Calendar Year: Landmark achievement reflecting strong customer trust and market position. Q4 revenue over ₹14 billion. CAFE 3 and ADAS preparation underway for upcoming regulations. Two-Wheeler & PowerSports Division Surged 69.1% YoY in FY26: Driven by OBD2 norms implementation from April 2025. Maintained 100% delivery commitment. Recognized as Top 50 Innovative Company by CII for Intelligent Puncture Detection System. Strategic JV with Brakes India & Wheels India for Advanced Air Systems: New entry into electronically controlled software-driven modules for air compression, processing, suspension, and parking brakes. Fills significant product gap. First operations end of 2026; series readiness by 2028. Cautiously Optimistic Outlook for FY27: Customers guiding high single-digit to double-digit growth but company maintaining flattish outlook due to West Asia crisis and crude oil price uncertainty. Strong Q4 momentum provides confidence. Content per Vehicle Continues to Increase: CAFE 3 regulations will drive meaningful content per vehicle improvement. Constant focus on innovation and technology development. BS7 technologies already demonstrated. Cost Management & Productivity Focus: Material cost reduction via localization and negotiation. Strong plant productivity progress. Ramping up AI in plants for efficiency gains. Customer projects and forex impacts reflected in other expenses. Aftermarket Exports Grew Outstanding 17%: Notable improvements in Nepal, Bangladesh, and Sri Lanka. OE segment robust growth. Power Tools division first to receive BIS certification for key products. eAxle JV with Tata AutoComp on Track: SOP in Q3 FY27; orders already secured. Establishment of JV mid-2026 progressing as planned. Technology Leadership and Regulatory Preparedness: ADAS in CVs spearheading adoption. BS7 readiness demonstrated. CAFE 3 alignment with OEMs. OBD2 implementation driving growth. Power Tools BIS certification ensures uninterrupted market access. Opening Context & Macroeconomic Environment The Managing Director, Mr. Guruprasad Mudlapur, began by describing the current global landscape using the term BANI (Brittle, Anxious, Nonlinear, Incomprehensible). He noted ongoing wars, US tariff discussions, supply chain challenges, and growth disparity between developed and emerging markets. Despite this, the IMF upgraded India’s 2025 growth forecast to 6.4%, reaffirming India as a key engine of global expansion. The RBI has taken easing measures (repo rate cuts, CRR reduction) to boost growth, with inflation at multi-year lows. Monsoon performance will be key for coming quarters. Indian Automotive Industry Performance (Q1 FY26) Upward trend seen in tractors and three-wheelers. Mild improvements in passenger vehicles, two-wheelers, and commercial vehicles. Heavy Commercial Vehicles (HCV): Positive growth due to pre-buying ahead of mandatory AC cabin regulation (effective October 1, 2025), driven by expected 1-2% cost increase. Bus segment: Continuing to thrive, supported by PM e-Bus Sewa scheme. Light Commercial Vehicles (LCV): Slight degrowth; goods carriers faced challenges from softening economy and competition from three-wheelers in low-tonnage category. Three-wheelers: Strong double-digit growth driven by domestic and export demand, especially EV penetration in last-mile use cases. Tractors: Robust growth due to timely sowing, favorable monsoon forecast, higher MSP, and improved farm liquidity. Two-wheelers: Domestic sales impacted by Hero MotoCorp’s plant maintenance shutdown, but electric two-wheelers gaining momentum. Financial Performance Overview (Presented by Ms. Karin Gilges, CFO) Revenue from operations: ₹4,788.6 crores, growth of 10.9% YoY (Q1 FY26 vs Q1 FY25). Driven by Power Solutions, Two-Wheeler Powersports, Mobility Aftermarket, and Consumer Goods businesses. Sequential decline: 2.5% lower than Q4 FY25, mainly due to the sale of the Video Solutions, Access & Intrusion, and Communication systems business (Building Technologies division). EBITDA: ₹639.3 crores, growth of 23% YoY. Margin improvement driven by revenue growth and improvement in material cost. Profit After Tax (PAT): 23.3% of revenue (vs 10.8% in Q1 FY25). The sharp increase is due to improved EBITDA margins plus a one-time profit on sale of the Building Technologies businesses (Video Solutions, etc.). Material cost improvement: Partly due to a favorable product mix toward manufactured goods (vs traded goods) and ongoing localization efforts. Segment-Wise Business Performance Mobility business (Power Solutions): Grew 13.7% YoY driven by higher demand for diesel components from off-highway and passenger car segments. Mobility Aftermarket: Grew 5.2% YoY driven by filters, lubricants, wiper systems, and significant growth in two-wheeler business due to OBD 2 norms implementation (exhaust gas sensors). Two-wheeler business: Very strong growth (39.2% sequential) due to OBD 2 norms. Localized production at Bidadi plant. Two-wheeler is now a very important contributor to overall mobility turnover (though segmental numbers not disclosed). Consumer Goods business: Grew 9.3% YoY driven by tools and accessories. Building Technologies: Declined 65.3% YoY due to the sale of Video Solutions, Access & Intrusion, and Communication systems business. The one-time profit on this sale was recognized in Q1. Electrification & Technology Focus Bosch is providing key EV technologies like Vehicle Control Units (VCU) – the “brain” of the vehicle managing torque and drive modes – and electric coolant pumps for battery cooling during fast charging. In the two-wheeler space, Bosch is powering multiple models and continuously improving systems to meet market and regulatory requirements. VCUs and other electronics are manufactured by a sister entity (specialized contract manufacturer) and sold through Bosch Limited. Other Key Topics Discussed MoU with Tata Electronics (Bosch Germany & Tata Electronics) This is a one-year MoU to explore potential cooperation in semiconductors and OSAT (outsourced semiconductor assembly and test) topics. It is at a very early stage; there is no direct benefit to the listed entity yet. Any future localization benefits will be communicated. Restructuring of Mobility Business This relates to commercial prudence and the shift in technologies (e.g., TRAM 5 tractors moving to common rail). Provisions are built based on volume changes and product portfolio evolution. Johnson Controls-Hitachi Acquisition (Global) This is a global Bosch acquisition (one of the largest) for HVAC (heating, ventilation, air conditioning) for residential and industrial applications. This comes as a separate division and is currently not within Bosch Limited. The India operations of this acquisition will also remain outside for now. Electronification / Electronics Manufacturing The sister entity that manufactures electronics is more or less a contract manufacturer to Bosch Limited. There is no change in structure to report at this time. Hydrogen Ecosystem for Commercial Vehicles Hydrogen is in a very early phase. Bosch is working with OEMs on technology maturity. Significant ecosystem development (generation, distribution, storage, pumping) is required before commercial exploitation. No specific timeline provided. Rare Earth Magnets Issue Bosch has implemented a task force (India and global) to manage the rare earth supply chain challenge. Current inventory coverage is until end of August. Multiple options are being explored to reduce risk. ADAS (Advanced Driver Assistance Systems) Bosch globally supplies ADAS solutions. However, this portfolio does not currently belong to Bosch Limited; it is with a sister company outside the listed entity. Export Business Outlook Bosch India exports products like NOx sensors, spark plugs, certain injectors, and has taken over the Zexel Pump portfolio from Japan (now single source, produced in Jaipur and exported to Japan). Focus remains on the Indian market first. Exports fill available capacity where landed cost (including logistics) is competitive. Continuously increasing exports is a stated target, but no specific medium-term number is provided due to volatility and technology shifts. Emission Norms (Tractors – TRAM 5) TRAM 5 norms are currently on hold. Updates will be provided as and when changes occur. Localization Progress Bosch Limited is on track with its continuous localization efforts. The intent is to steadily increase localization content, though it is not an overnight switch. Multiple factors (geopolitics, tariffs, volumes beyond India) influence decisions. Pricing & Customer Contracts Pricing is based on customer contracts and varies. Benefits from localization or material cost improvements are shared as per agreed terms with customers. Portfolio Management Approach (Group Stance) Bosch’s global principle: Be in the top 3 in every segment of operation. Portfolio actions (retain, grow, divest, merge) are taken based on this principle. The Building Technologies divestment was because significant additional investment was required to make it a top performer, which was not in focus. Key Takeaways Strong Financial Performance: Revenue grew 11% YoY, EBITDA grew 23% YoY, and PAT margin jumped to 23.3% (including a one-time gain from business divestment). Underlying operational performance is solid. One-Time Gain Distorts PAT: The sharp increase in PAT margin is partly due to the profit on sale of Building Technologies businesses (Video Solutions, Access & Intrusion). Investors should normalize for this when comparing future quarters. Two-Wheeler Business is a New Growth Engine: The OBD 2 norms drove exceptional growth in exhaust gas sensors. This business is localized at Bidadi and is now a very important contributor to mobility revenue. Volumes will stabilize after the initial ramp-up. HCV Pre-Buying Boosts Q1: Commercial vehicle growth was driven by pre-buying ahead of the October 1 AC cabin mandate. This may pull forward demand. Rare Earth Magnet Supply Risk: Inventory coverage is only until end of August. A task force is actively managing the situation, but this is a near-term risk to monitor. Electronics Manufacturing Stays Outside: VCUs and other EV electronics are manufactured by a sister entity (contract manufacturer) and sold through Bosch Limited. No structural change is planned or reported. Hydrogen and ADAS Are Long-Term Plays: Hydrogen ecosystem is very early. ADAS portfolio currently sits outside the listed entity. Near-term benefits are not expected. Export Growth is a Target, But Secondary to Domestic: Bosch Limited prioritizes the Indian market. Exports fill remaining capacity where landed cost is competitive. Successful examples include NOx sensors, spark plugs, and Zexel pumps exported to Japan. Localization on Track: The company continues to increase localization content steadily, though it is a continuous process, not an overnight achievement. No Concrete Merger or Restructuring Plans: Regarding potential mergers of sister entities or changes to the electronics manufacturing structure, management stated there is nothing concrete to report at this time. The MoU with Tata Electronics is early-stage exploration. Opening Context & Macroeconomic Environment The Managing Director, Mr. Guruprasad Mudlapur, described the past quarter as a “quarter of contrast” with mild global optimism but financial concerns at home. The IMF lifted its 2025 global GDP forecast to 3.2%, citing robust US and Indian momentum. India delivered a stellar 7.8% GDP growth in Q1 FY26. The RBI maintained rates at 5.5% but turned mildly dovish due to lower inflation estimates. Strong festive spending following GST cuts is expected to boost tax collections. Management expressed confidence in navigating cross-currents and capturing growth from India’s buoyant domestic demand. Indian Automotive Industry Performance (Q2 FY26) Overall: Steady growth across all segments. September GST reforms significantly boosted affordability and pre-festive buying. Passenger Vehicles: Started slow but saw a sharp rebound in late September driven by SUVs. Smaller cars and sedans remained under pressure. Commercial Vehicles: Robust and steady performance driven by stable production, infrastructure projects, improved financing, and lower GST rates. LCVs saw strong growth due to GST 2.0, festive season, and e-commerce demand. Three-wheelers: Record production levels driven by urban mobility and last-mile delivery demands. Tractors: Strong growth fuelled by above-normal monsoons, robust Kharif harvest, stable policy rates, improved rural cash flows, and GST revisions. Two-wheelers: Steady growth driven by good monsoon, strong rural demand, festive sentiment, and GST rate cuts triggering pent-up purchases. Financial Performance Overview (Presented by Ms. Karin Gilges, CFO) Q2 Revenue: ₹4,794.8 crores, growth of 9.1% YoY. Driven by Power Solutions and Two-Wheeler Powersports segments. H1 Revenue: ₹9,583.4 crores, growth of 10% YoY. Q2 EBITDA: ₹617.1 crores, growth of 10.1% YoY. Margin improvement driven by favorable product mix and expense optimization. H1 EBITDA: ₹1,256.4 crores, growth of 16.3% YoY. Q2 PAT: Grew 3.4% YoY. However, Q2 FY25 had an exceptional gain of ₹48.5 crores from sale of OE Diagnostics business. Excluding that, Q2 PAT grew 11.2%. H1 PAT: ₹1,669.6 crores, growth of 66.7% YoY. This significant growth is mainly due to the one-time profit on sale of Video Solutions, Access & Intrusion, and Communication systems business (Building Technologies segment) recognized earlier. Segment-Wise Business Performance Mobility business (Power Solutions): Q2 grew 9.5% YoY driven by higher demand for diesel components from passenger car and off-highway segments. Mobility Aftermarket: Q2 grew 3.7% YoY. GST 2.0 had a temporary negative impact as dealers liquidated existing stocks. Sales expected to regain momentum in Q3. Two-wheeler business: Exceptional growth of 81.8% YoY due to OBD-2 norms (exhaust gas sensors). This remains a key growth driver. Consumer Goods business: Grew only 1.8% YoY. Slowdown attributed to adverse exchange rate movements (higher material cost) and initial GST reform impact. Management sees this as temporary, not structural. Power Tools: New product launches driving expansion, especially in hand tools and outdoor garden equipment. E-channel delivered high double-digit growth. Key Business Highlights & New Technologies Two-Wheeler & Powersports Sensor-less quick shift technology made its Indian debut – smoother, smarter shifting. First for India: TVS Ntorq 150 with Bosch’s Lambda sensor (realized at Bidadi plant). Bajaj Pulsar NS400Z also deployed with this technology. Bosch received Hero MotoCorp’s Hero Premium Leader Award. Mobility Aftermarket Strong momentum expected post GST 2.0 transition in Q3. Strategy: Leverage portfolio strengths, maintain cost discipline, focus on margin stability, and expand product portfolio aligned with market demands. Awards & Recognition Received awards for excellence in on-time delivery and supply reliability. Award for pioneering innovation in hydrogen internal combustion engine technology. Marked 25th anniversary of Technical Centre India (TCI) . Electrification & EV Progress Bosch is making steady progress in four-wheeler EV space. Management promised “bigger updates” on business opportunities soon. Margin pressure will remain in EV business as it is a “tough entry business.” In electric two-wheelers, Bosch is working with a couple of the bigger manufacturers, largely in the scooter segment, supplying components. Other Key Topics Discussed ABS for Two-Wheelers (Mandate) Bosch’s sister company is a market leader in two-wheeler ABS. Capacities are very well prepared to handle increased demand if the mandate is implemented as drafted. Management declined to speculate on which way the mandate will go. Non-Ferrite Motors (Rare Earth Magnet Alternative) Bosch is exploring multiple options for motors without heavy rare earth magnets. Certain non-heavy rare earth magnet motors are already prepared for the Indian market. Work on non-ferrite magnets is in progress, with something ready “very soon.” Hybrid Systems for Passenger Vehicles Bosch has extensive hybrid technology and offers it to OEMs globally. In India, Bosch is in discussion with all OEMs locally and is very open to supplying hybrid systems. Xperia (Supply Chain Issue) The issue is resolving well based on news reports. Management remains cautious as it is still “touch and go” in terms of supplies. Hydrogen ICE (Internal Combustion Engine) Currently in technology maturity phase. Pilot vehicles are built and being tested by OEMs (labs and on-road). Hydrogen requires ecosystem development (generation at right price, distribution) beyond just vehicle technology. Management expects 8% to 15% market penetration in heavy commercial vehicles by around 2030. LNG in Heavy Commercial Vehicles Management acknowledged the question but did not provide specific numbers, offering to share data separately. Flex Fuel Engines Bosch is working with OEMs on all technology options, including flex fuel. Exports Outlook Management is cautious on exports due to geopolitical uncertainty and tariff impacts on landed costs. Long-term commitment to increase exports remains valid, but the situation is being assessed carefully. Regulatory Norms to Watch OBD-2 (already implemented, driving two-wheeler growth for next 2 quarters, then normalization). TREM V (tractor emission norms) – on the horizon for a while. Electrification – growth on the cards, not necessarily regulation-driven but due to clean mobility requirements. CAFÉ Norms & GDI Technology GDI (Gasoline Direct Injection) technology is mature and fully compliant. Continued traction expected. Key Takeaways Strong Financial Performance: Q2 revenue grew 9.1% YoY, EBITDA grew 10.1% YoY, and normalized PAT (excluding one-off gains) grew 11.2% YoY. H1 PAT includes a large one-time gain from building technologies divestment. Two-Wheeler Business is a Standout Performer: 81.8% YoY growth driven by OBD-2 norms (exhaust gas sensors). This momentum is expected to continue for the next two quarters before normalizing. GST 2.0 Had Mixed Impact: Positively boosted vehicle demand and affordability. However, it temporarily hurt Mobility Aftermarket sales as dealers liquidated existing stock. Recovery expected in Q3. Consumer Goods Slowdown is Temporary: Marginal 1.8% growth attributed to exchange rate impacts and GST transition, not structural issues. Management expects a pickup. EV Progress with Margin Caveat: Bosch is making steady progress in EV space (both four-wheeler and two-wheeler) and will share “bigger updates” soon. However, margin pressure will remain as it is a tough entry business. New Technologies Gaining Traction: Sensor-less quick shift (two-wheeler), Lambda sensor (first in India for TVS Ntorq), hydrogen ICE (pilot phase), and non-ferrite motors (work in progress) are key development areas. ABS Mandate – Ready and Waiting: Bosch is fully prepared with capacity if the two-wheeler ABS mandate is implemented. Market leader position through sister company. Hybrid Opportunity Open: Bosch has global hybrid technology and is in active discussions with all Indian OEMs. Hydrogen is a 2030 Story: Expected penetration of 8-15% in HCVs by 2030, but ecosystem development (generation, distribution) is critical and still evolving. Exports – Cautious Stance: While long-term commitment to increase exports remains, near-term caution prevails due to geopolitical uncertainty and tariff impacts on competitiveness. Opening Context & Macroeconomic Environment The Managing Director, Mr. Guruprasad Mudlapur, noted that the global economy is adjusting to geopolitical events and trade realignments. The IMF projects global growth to slow from 3.2% in 2025 to 3.1% in 2026. However, India continues to demonstrate powerful resilience, with the IMF revising India’s FY26 GDP estimate upward to 7.3% (from 6.6%), driven by resilient domestic demand and easing inflation. India also benefits from tailwinds from the recently agreed FTA with the EU and trade deals with the US, Australia, UK, and New Zealand. The RBI maintained a stable repo rate at 5.25%, and the Union Budget 2026-27 sent strong signals of policy continuity, including customs duty exemptions for lithium-ion cell components, the India Semiconductor Mission 2.0, Rare Earth Corridors in four states, and continued infrastructure investment (including a new freight corridor). Indian Automotive Industry Performance (Q3 FY26) Overall: Robust production across passenger vehicles, two-wheelers, and commercial vehicles, driven by festive demand, rural recovery, improved supply chains, GST rationalization, and new model launches. Passenger Vehicles: Subdued start but finished 2025 on a strong note. SUVs spearheaded the recovery driven by discounts and seasonal buying ahead of price hikes. Heavy Commercial Vehicles (HCV): Steady growth driven by infrastructure demand, strong freight movement, GST 2.0 momentum, government fleet orders, and road construction/mining activity. Bus segment showed notable traction from school, intercity, and institutional transport orders. Light Commercial Vehicles (LCV): Robust production fueled by GST 2.0 revival, e-commerce growth (last-mile delivery), and rising fleet utilization. Three-wheelers: Sharp production increase driven by urban mobility and last-mile cargo delivery during the festive season. Tractors: Strong momentum supported by healthy rabi sowing, robust kharif harvest liquidity, improved water availability, lower GST on tractors, and state-level subsidies. Two-wheelers: Moderate in October due to inventory adjustment, but production picked up in November and December driven by festive and wedding season demand, supported by GST reductions. FY26 Full-Year Outlook (All-Time Highs Expected) Management expects three core segments to achieve all-time high production levels in FY26: Passenger Vehicles: Record performance driven by improved affordability, easing interest rates, and GST reforms. Commercial Vehicles: Healthy growth fueled by infrastructure spending and e-commerce logistics. LCV sub-segment expected to achieve all-time high. Tractors: Record levels supported by strong rural sentiment, GST norms, and state subsidies. Two-wheelers: New peak driven by improving rural sentiment, rising disposable incomes, GST cuts, and tax rebates (up to ₹12 lakh income). Financial Performance Overview (Presented by Ms. Karin Gilges, CFO) Q3 FY26 (Oct-Dec 2025) Revenue: ₹4,885.6 crores, growth of 9.4% YoY. Driven by Power Solutions and Two-Wheeler Powersports. EBITDA: ₹612.4 crores, growth of 5.1% YoY. Margin improvement driven by favorable product mix and expense optimization. PAT: Grew 16.1% YoY. Excluding an exceptional item in Q3 FY25, PAT grew 5.3% YoY. 9M FY26 (Apr-Dec 2025) Revenue: ₹14,469 crores, growth of 9.8% YoY. EBITDA: ₹1,868.8 crores, growth of 12.4% YoY. PAT: ₹2,201.7 crores, growth of 50.8% YoY. The significant growth is mainly due to the one-time profit on sale of the Building Technologies businesses (Video Solutions, etc.) recognized earlier. Segment-Wise Business Performance Mobility Business (Power Solutions) Q3 YoY growth: 19.5% driven by passenger car and off-highway segments. 9M YoY growth: 14.1% driven by commercial vehicle and off-highway segments. Strong broad-based growth across all segments, with exceptional performance in Tractor and HCV segments boosted by GST 2.0 rollout. Mobility Aftermarket Q3 YoY growth: 5.3% driven by GST reforms, strong OE segment growth, and growth across diesel, wipers, and braking systems. 9M YoY growth: 4.8% driven by sustained momentum across diesel, wipers, braking systems, and filters. Temporary sales impact from GST 2.0 in October, but strong rebound shortly thereafter. Two-Wheeler Business Q3 YoY growth: 58.3% driven by higher sales of exhaust gas sensors due to OBD-II norms implementation. 9M YoY growth: Significantly higher due to OBD-II ramp-up. 2025 became a landmark year for mini-heated lambda sensors, achieving new sales milestones. Consumer Goods Business Q3 YoY: Declined marginally by 3.1%. 9M YoY: Grew 2.8%, attributed to new launches in entry-level and mid-price point segments, measuring tools, and outdoor garden equipment. Power Tools Division Navigated a challenging market with intense price pressure, particularly from Chinese competitors. Cordless segment continued impressive trajectory with double-digit growth for the fourth successive year. Dealer network expanded to over 1,800 partners, with 25,000 retail points across 1,600+ cities. Hand Tools launched as a new business segment, achieving ₹100 million in revenue within the first year. Key Business Highlights & Awards Operational Excellence Bidadi plant awarded at National CII SCALE Awards 2025 for digital excellence and innovation in logistics (integrated autonomous digital ecosystem automating the entire logistics value stream). At CI KAIZEN Awards 2025, the plant secured the Champions Trophy and Challengers Trophy for low-cost productivity solutions and quality improvement. Two-Wheeler & Powersports TVS Apache RTX 300 launched with advanced Bosch systems. Harley X440 T launched with deep integration of Bosch powertrain, safety systems, and high value-added features. Showcased latest innovations at EICMA 2025 in Italy. Dividend Policy Update Bosch has introduced a quantified dividend policy (55% to 80% of profits), bringing more clarity compared to the previous open policy. The Board retains final discretion. Other Key Topics Discussed Capex & Capacity Planning Capacity planning is an ongoing process based on customer and market volume forecasts. Golden rule within Bosch: Always maintain some buffer capacity. When buffer is utilized, the next capex is released. No specific capex guidance was provided for FY27-28. India-EU FTA (Free Trade Agreement) Bosch is extremely positive about the mid-to-long-term benefits. Fine print is currently being studied to understand the impact and opportunities. Imported components (from parent): Localization is an ongoing process. In 2025, Bosch localized NOx sensor components for common rails. Further localization for common rail products and NOx sensors is planned. Exports: Export volumes increased for spark plugs in 2025. Further growth expected in spark plugs, common rail components, and NOx sensors. Pumps were relocated from Japan to India, now exported back to Japan and Korea. Localization impact of FTA: Bosch’s philosophy is “local for local” regardless of FTA. Volumes are more important than import duties. The FTA is expected to have a positive effect on further localization, not a delay. Profitability & Margins Discussion A participant questioned why margins (around 13% EBITDA) are not expanding more significantly despite strong tailwinds (CV upcycle, tractor boom, OBD-II, localization). Management responded that: Product mix matters – new products enter the market as finished goods first, then assembly/testing, then localization, which takes time. Q3 included a provision for the new Labour Code, which impacted margins. Excluding this provision, operational performance was very strong (10.5% EBIT). Over the last 3 years, both profit and margins have been improving. Management declined to give a 3-4 year margin guidance but pointed to historical improvement trends. EV Four-Wheeler Strategy From Bosch Limited’s portfolio, the company will strongly aim to begin with e-axles – the largest value component in an EV (apart from batteries, which OEMs make themselves). Bosch is in advanced discussions with several OEMs and will announce specifics in coming quarters. Other EV components being supplied currently (from the electronics unit) include chargers, DC/DC converters, and power electronics. Bosch is not currently supplying e-axles to any OEM in India, but expects to soon. Hydrogen Engine Status Bosch is working very closely with virtually every commercial vehicle and bus OEM in India. Extensive vehicle testing is currently ongoing (engines and vehicles). No known specific rollout plans from OEMs yet, largely due to infrastructure (hydrogen fueling stations) not being ready. Management expects hydrogen activity to commence by 2030 once infrastructure is available on major trunk routes. TREM V (Tractor Emission Norms) At this point, there is no visibility on a precise implementation date. Things remain quite open based on discussions with OEMs. Commercial Vehicle Demand Drivers Robust demand driven by GST 2.0 changes, increased government fleet orders, construction/mining activity, and e-commerce growth (LCVs for last-mile delivery). Replacement demand is also strong. Content per vehicle is increasing due to technology additions. Management will update on additional technology introductions in the future. Export Performance Exports are growing steadily, but the main focus remains the Indian market. Growth areas: spark plugs, sensors, pumps to Japan and Korea. Consumer Goods & Power Tools Challenges Power tools division faced intense price pressure from Chinese competitors, resulting in moderate growth. However, cordless segment continues double-digit growth for the fourth consecutive year. Key Takeaways Strong Q3 Performance: Revenue grew 9.4% YoY, EBITDA grew 5.1% YoY, and normalized PAT (excluding prior year exceptional items) grew 5.3% YoY. 9M PAT includes a large one-time gain from building technologies divestment. Two-Wheeler Business Continues to Shine: 58.3% YoY growth in Q3 driven by OBD-II norms (exhaust gas sensors, lambda sensors). This remains a key growth engine. Record-Breaking FY26 Expected: Management forecasts all-time high production levels in FY26 for Passenger Vehicles, Tractors, and Two-Wheelers, with LCVs also hitting record levels. Strong macros and policy support underpin this outlook. Margins Stable, Not Expanding Dramatically – Explained: EBITDA margins have stabilized around 12-13%. The lack of dramatic expansion is due to: New products entering with lower initial margins (followed by gradual localization). Product mix shifts. One-time Labour Code provision in Q3. Management points to steady improvement over 3 years and expects continued margin development with further localization and growth. E-Axles Coming to India (Advanced Discussions): Bosch Limited is in advanced discussions with several OEMs to supply e-axles – the highest-value component in an EV. Announcements expected in coming quarters. This is a significant medium-term opportunity. FTA is a Positive for Localization, Not a Threat: The India-EU FTA is viewed positively. Bosch’s “local for local” philosophy remains unchanged. The FTA is expected to further enhance localization, not delay it. Export opportunities in spark plugs, sensors, and pumps are growing. Hydrogen is a 2030 Story: Extensive vehicle testing is ongoing with all major CV and bus OEMs. Commercial rollout depends on infrastructure (hydrogen fueling stations), which is not yet clear. Management targets 2030 for meaningful hydrogen activity. TREM V Still on Hold: No visibility on implementation date for tractor emission norms. Discussions with OEMs indicate it remains open. Power Tools Facing Pressure, But Cordless Strong: Intense Chinese competition is impacting the power tools division. However, the cordless segment continues double-digit growth for the fourth year, and hand tools achieved ₹100 crore revenue in first year. Clearer Dividend Policy: Bosch introduced a quantified dividend policy (55-80% of profits), providing better clarity to shareholders. The Board retains final discretion. Opening Context & Key Developments The Managing Director & Chief Technology Officer, Mr. Guruprasad Mudlapur, opened by providing an overview of the macroeconomic landscape and the company’s outlook. The domestic economy remained resilient in Q4 FY26, driven by robust private consumption through fiscal stimuli and stable monetary policy from the RBI, which kept inflation within the targeted range of 2% to 6%. Significant global headwinds continue to demand attention, including heightened geopolitical instability in West Asia posing material risk to energy price stability and creating volatility in key shipping and logistics routes. While semiconductor shortages have eased, the overall supply chain environment remains fragile. Key highlights include the Power Solutions division surpassing ₹130 billion in total net sales for the 2025 calendar year, the strategic joint venture announcement with Brakes India and Wheels India for advanced air systems, and the successful ramp-up of exhaust gas sensors due to OBD2 norms implementation. Revenue from operations for FY26 stood at ₹20,034 crores, growing 10.8% YoY, with EBITDA of ₹2,650 crores (14.7% growth) and PAT of ₹2,770 crores (37.6% growth, including profit from sale of Building Technologies segment). Macroeconomic & Industry Overview Domestic Economy Resilient performance in Q4 FY26 driven by robust private consumption RBI kept inflation within target range of 2% to 6% under flexible inflation targeting framework RBI lowered repo rate by cumulative 125 basis points to 5.25% during FY26 GST benefits supported demand across automotive sector Government’s continued focus on capital expenditure will bolster domestic demand Global Headwinds Heightened geopolitical instability in West Asia poses material risk to energy price stability Volatility in key shipping and logistics routes Supply chain environment remains fragile Acute semiconductor shortages have eased but new bottlenecks emerge Outlook for FY27: Cautious optimism; strategy focused on supply chain agility and managing commodity/currency risks Indian Automotive Industry – Q4 FY26 Performance Passenger Vehicles: Demand accelerated notably towards year-end; inventory normalized to healthy average of ~28 days (vs ~52 days in previous year) Light Commercial Vehicles: Healthy growth driven by e-commerce demand, 10% increase in infrastructure spending, and 125 bps repo rate cut Heavy Commercial Vehicles: Supported by 10% increase in infrastructure spending and budget utilization by fleet operators Tractors: Standout performer; supported by robust rural demand, favorable farm economics, and strong rabi sowing season (area coverage increased by 1.59 million hectares YoY) Three-Wheelers: Sharp rise supported by urban mobility demand and last mile cargo activity Two-Wheelers: Healthy growth supported by festive and wedding season demand and improved rural liquidity FY27 Industry Outlook Passenger Vehicles: Steady growth expected; geopolitical uncertainties may weigh on Q1 Commercial Vehicles: Stable growth aided by infrastructure spending and e-commerce logistics demand Tractors: Stable growth supported by healthy reservoir levels and deferment of emission norms (25 HP to 75 HP); El Nino conditions could pose downside risk Three-Wheelers: Positive growth driven by organic demand Two-Wheelers: Healthy growth expected; below normal monsoon could weigh on rural demand Financial Performance (Q4 FY26) Standalone Revenue from Operations: ₹5,566 crores, growth of 13.3% YoY EBITDA: ₹782 crores, growth of 20.8% YoY EBITDA Margin: 14.0% (improved YoY) PAT: Growth of 2.7% YoY FY26 Full-Year Standalone Revenue from Operations: ₹20,035 crores, growth of 10.8% YoY EBITDA: ₹2,650 crores, growth of 14.7% YoY EBITDA Margin: 13.2% (improved from 12.8% in FY25) PAT: ₹2,770 crores, growth of 37.6% YoY Significant PAT growth mainly due to profit on sale of Building Technologies segment (Video Solutions, Access and Intrusions, Communication Systems) Segment-Wise Performance Mobility Business Q4 Growth: 23.3% YoY (driven by Power Solutions) FY26 Growth: 16.9% YoY Key driver: Power Solutions business grew 17.6% in FY26 Power Solutions Division Landmark Achievement: Surpassed ₹130 billion in total net sales for 2025 calendar year Q4 Revenue: Over ₹14 billion Growth driven by robust overall automotive market demand CAFE Phase 3 Regulations: Actively aligning with OEMs for rollout scheduled in April 2027 ADAS in Commercial Vehicles: Spearheading adoption; regulations take effect January 2027 for new models, extending to all CVs by October 2027 Two-Wheeler & PowerSports Division Q4 Growth: 63.4% YoY (driven by OBD2 norms implementation from April 2025) FY26 Growth: 69.1% YoY Significant surge in demand following GST reforms Maintained 100% delivery commitment to all OEMs; zero production disruptions Innovation Recognition: Named one of India’s Top 50 Innovative Companies by CII New Intelligent Puncture Detection System commended this year Sensorless Quickshift technology recognized last year Mobility Aftermarket Division FY26 Growth: 3.7% YoY Independent aftermarket stagnated due to supply chain pressures Original Equipment (OE) segment witnessed robust growth (OEM Filters & Spark Plugs) Exports: Outstanding growth of ~17%, notable improvements in Nepal, Bangladesh, and Sri Lanka Broad-based growth across filters, lubricants, rotating machines, braking systems, wipers, and auto electricals Consumer Goods Business (Power Tools) Q4 Growth: 14.3% YoY FY26 Growth: 6.4% YoY Strategic Milestone: First Power Tool company in India to receive mandatory BIS certification for angle grinders, drills, and hammers New Product Launch: Magnetic drill (GBM30) – first locally sourced finished good Cordless Segment: Double-digit growth driven by Cordless 3.0 initiative (battery lock-in effect across 25 industrial clusters) Joint Venture Announcement – Advanced Air Systems Strategic Partnership Joint venture with Brakes India Private Limited and Wheels India Limited (TSF Group) Focus: Engineering, manufacturing, and sale of electronically controlled and software-driven modules for: Air Compression Air Processing Air Suspension Air Parking Brakes Key Details Registered office: Chennai Global supply chain managed by entities of Bosch, Brakes India, and Wheels India Target: Commercial vehicles (trucks and buses) – both ICE and BEVs Addresses LCV and MHCV segments New Entry for Bosch: Not currently a player in this portfolio; JV enables entry into advanced air systems market Why JV Route: Combining Bosch’s electronic control/software capabilities with TSF Group’s strong position in pneumatics and hydraulics for commercial vehicles Market: Largely global currently; Indian market nascent but expected to grow in coming years First operations: End of 2026 (subject to regulatory approvals) Series readiness: 2028 Opportunity & Outlook Content per vehicle details to be shared in future calls Market opportunity to be quantified in subsequent communications Will help Bosch scale globally in this portfolio Joint Venture – eAxle (Tata AutoComp) Update Establishment of JV: Mid-2026 (on track) SOP: Q3 FY27 (third quarter of 2027) First shipments: Q3 FY27 Orders already received from clients; details to be shared once JV is set up Robert Bosch Chassis Systems Acquisition Status Update Shareholder approval (including minority) obtained Valuation report published with postal ballot notice Waiting for regulatory approval to proceed Unable to disclose revenue, margins, profitability figures until regulatory approval is formalized Bosch Chassis Systems is meeting original plans based on market conditions Sector-Wise Sales Performance Q4 YoY Growth Mobility Business: 23.3% (driven by Power Solutions) Power Solutions: 27.4% Two-Wheeler Business: 63.4% (OBD2 norms implementation) Consumer Goods: 14.3% FY26 YoY Growth Mobility Business: 16.9% Power Solutions: 17.6% Mobility Aftermarket: 3.7% Two-Wheeler Business: 69.1% Consumer Goods: 6.4% Margin & Cost Dynamics EBITDA Improvement Drivers (Q4 & FY26) Revenue growth Material cost reduction Optimization of expenses Budgetary control Fixed cost absorption improvement Other Expenses Decline (Q4) 9% YoY decline, 10% sequential decline Key factors: Large customer project in previous year (reflected in revenue from services) Forex gains/losses due to INR fluctuation Better fixed cost absorption Cost progress initiatives Cost Management Initiatives Material cost reduction via localization, negotiation, design RPP Strong productivity progress in plants Ramping up AI in plants for productivity and efficiency Working on overall cost progress in accordance with market conditions Commodity & Energy Cost Environment Competitive market with ongoing cost challenges Focus on localization and productivity improvements Ramping up AI in plants for efficiency gains Content per Vehicle & Growth Outlook Content per Vehicle Constant increase trend continuing Expected to continue in upcoming fiscal year CAFE 3 regulations will drive meaningful content per vehicle improvement ADAS adoption in CVs will further increase content Growth Outlook – Cautiously Optimistic Current outlook: Flattish for FY27 Reason for Caution: West Asia crisis impact on crude oil prices and economy No issues ramping up beyond expectations if required Customers guiding for high single-digit to double-digit growth but company prefers conservative stance Strong Q4 performance provides momentum International Production Network Bosch operates on “production where consumption happens” principle India already does small percentage of exports Working on production architecture changes for bigger role Preconditions: Economic sense, landed cost competitiveness Current geopolitical situation (Strait of Hormuz) not supporting logistics costs NOx sensor plant in Abu Dhabi provides export share to Europe Key Strategic Priorities Technology & Innovation Preparing customers for upcoming legislation (CAFE Phase 3, OBD2, ADAS) New Intelligent Puncture Detection System (CII Top 50 Innovative Companies recognition) Sensorless Quickshift technology Electrification agnostic approach – supporting all technologies BS7 preparedness: Technologies already demonstrated; manufacturing capabilities ready Portfolio Expansion Constant endeavor for portfolio expansion and enhancement New JV for advanced air systems fills significant product gap eAxle JV with Tata AutoComp on track Continuous work on multiple aspects; details shared as and when regulatory approvals obtained Localization & Cost Competitiveness Increasing localization Ramping up AI in plants for productivity and efficiency Working on cost competitiveness in material via localization and overall efficiency Regulatory Preparedness CAFE Phase 3 Regulations Actively aligning with OEMs for rollout scheduled in April 2027 Content per vehicle will increase meaningfully ADAS in Commercial Vehicles Spearheading adoption Regulations effective January 2027 for new models Extending to all commercial vehicles by October 2027 OBD2 Norms Implementation from April 2025 Significant driver of Two-Wheeler business growth (63.4% Q4 YoY) Ramp-up in exhaust gas sensors BS7 Norms European version (Euro 7) technologies already demonstrated Manufacturing capabilities ready Well prepared for movement towards BS7 BIS Certification (Power Tools) First Power Tool company in India to receive mandatory BIS certification Key products: Angle grinders, drills, hammers Ensured uninterrupted market access Aftermarket & Export Performance Mobility Aftermarket FY26 Growth: 3.7% YoY Independent aftermarket affected by supply chain pressures OE segment robust growth (OEM Filters & Spark Plugs) Exports: Outstanding 17% growth (Nepal, Bangladesh, Sri Lanka) Broad-based growth across filters, lubricants, rotating machines, braking systems, wipers, auto electricals Export Strategy Already exporting small percentage to rest of world Exploring larger role in global production network Landed cost competitiveness key factor Key Takeaways Strong FY26 Performance with 10.8% Revenue Growth: Revenue at ₹20,035 crores; EBITDA at ₹2,650 crores (14.7% growth); PAT at ₹2,770 crores (37.6% growth, including one-off from Building Technologies sale). Q4 revenue grew 13.3% YoY. Power Solutions Division Surpassed ₹130 Billion in 2025 Calendar Year: Landmark achievement reflecting strong customer trust and market position. Q4 revenue over ₹14 billion. CAFE 3 and ADAS preparation underway for upcoming regulations. Two-Wheeler & PowerSports Division Surged 69.1% YoY in FY26: Driven by OBD2 norms implementation from April 2025. Maintained 100% delivery commitment. Recognized as Top 50 Innovative Company by CII for Intelligent Puncture Detection System. Strategic JV with Brakes India & Wheels India for Advanced Air Systems: New entry into electronically controlled software-driven modules for air compression, processing, suspension, and parking brakes. Fills significant product gap. First operations end of 2026; series readiness by 2028. Cautiously Optimistic Outlook for FY27: Customers guiding high single-digit to double-digit growth but company maintaining flattish outlook due to West Asia crisis and crude oil price uncertainty. Strong Q4 momentum provides confidence. Content per Vehicle Continues to Increase: CAFE 3 regulations will drive meaningful content per vehicle improvement. Constant focus on innovation and technology development. BS7 technologies already demonstrated. Cost Management & Productivity Focus: Material cost reduction via localization and negotiation. Strong plant productivity progress. Ramping up AI in plants for efficiency gains. Customer projects and forex impacts reflected in other expenses. Aftermarket Exports Grew Outstanding 17%: Notable improvements in Nepal, Bangladesh, and Sri Lanka. OE segment robust growth. Power Tools division first to receive BIS certification for key products. eAxle JV with Tata AutoComp on Track: SOP in Q3 FY27; orders already secured. Establishment of JV mid-2026 progressing as planned. Technology Leadership and Regulatory Preparedness: ADAS in CVs spearheading adoption. BS7 readiness demonstrated. CAFE 3 alignment with OEMs. OBD2 implementation driving growth. Power Tools BIS certification ensures uninterrupted market access. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: In FY25, Bosch has reported total revenue of ₹ 18,087 crore with 8.1% growth rate yoy, compared to previous year revenue of ₹ 16,727 crore and that of total expenses (excluding depreciation, amortization, interest and tax) is at ₹ 15,778 crore with 7.8% growth rate yoy. In FY24 that was at ₹ 14,632 crore. The Sale of Products and Sale of Services business segments contribute 97.8% of the total revenue where Sale of Products business contributes 93.6% and that of Sale of Services business contributes 4.1% of the total revenue. The Other operating revenue contributes 2.2% of the total revenue. Paticulars FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 Revenue 9,842 9,716 11,782 14,929 16,727 18,087 Total Expenses 8,358 8,556 10,319 13,123 14,632 15,778 Automotive Segment Sales Composition Particulars Geographic Mix FY25 (%) Domestic 91% Export 9% Other than Automotive Segment Sales Composition Particulars Geographic Mix FY25 (%) Domestic 97% Export 3% Business Sector Sales (bn INR) Mobility 170.7 Consumer Goods 18.4 Total Portfolio 189.1 Mobility Sub-Sector YoY Sales Growth Rate Power Solutions 17.60% 2-Wheeler 69.10% Mobility Aftermarket 3.70% This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: In FY25, Bosch has reported gross profit of ₹ 6,624 crore with a growth rate of 12.4% yoy and that of COGS (Cost of Goods Sold) is reported of ₹ 11,464 crore with a growth rate of 5.8% yoy. Materials Consumed, Purchase of Stock-in-Trade & Changes in Inventory constitutes 100.0% of the total COGS of which Materials Consumed contributes 35.4%, Purchase of Stock-in-Trade contributes 64.9% & Changes in Inventory contributes -0.3%. The total COGS % revenue, material consumed % revenue and purchase of stock in trade % revenue are 63.4%, 22.4% & 41.1% respectively. Historically, the company has posted gross margin in the range of 46.1% – 35.2% in the last 6 years. Basis on our research, the Indian Auto Component industry has reported gross margin of 38.7% in CY 25 whereas the Emerging Markets operates on a gross margin of 18.8% and the Europe, US & Global markets posted gross margins of 20.7%, 15.8% and 18.1% respectively. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: Bosch has delivered an EBITDA of ₹ 2,310 crore in FY25 with the growth rate of 10.3% over the previous year which was 2,095. The EBITDA margin historically ranges between 15.1% and 11.9% for the last 6 years and in FY25, the EBITDA margin is 12.8%. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: The Company has distributed dividend in FY25 of ₹ 512. The Dividend Payout Ratio in FY20, was 16.2.% and that of in FY25 is 25.4.% and the median of the Dividend Payout Ratio is 20.5% for the past 6 years. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: Bosch has reported Gross Fixed Assets of ₹ 4,264 crore with a growth rate of 2.0% yoy and Accumulated Depreciation of ₹ 3,243 crore which makes the Net Fixed Assets of ₹ 1,021 crore which has grown at a rate of -8.3% in FY25. In the same fiscal year, the Net Fixed Assets % Revenue and Net Fixed Assets % Total Assets are 5.6% & 5.0% respectively. From our research, we have identified 3 key items in Gross Fixed Assets viz. buildings, plant & machinery and right of use assets (included only for analysis and better clarity), which constitute 96.2% of the total Gross Fixed Assts. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: In FY25, the company has reported Gross Intangible assets of ₹ 0 crore which has grown 0.0% yoy and the Accumulated Amortization, posted by the company, is ₹ 0 crore and the net intangible assets is ₹ 0 crore which has grown 0.0% yoy and there are 2 key items in the gross intangible assets viz. Goodwill and software, based on our research, which makes 0.0% of the total gross intangible assets of which Goodwill & computer software contribute 0.0% & 0.0% respectively. In the same fiscal year, net intangible assets % revenue and net intangible assets % total assets are 0.00% & 0.00% respectively. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: Bosch has done capex in FY25 of ₹ 313 crore of which maintenance capex is ₹ 313 crore and growth capex is ₹ 0 crore. In the same fiscal year, the capex % revenue is standing at 0.0% whereas the capex % total asses is at 1.5%. Expansion Projects Summary (FY25) Project / Initiative Description Expected Timeline / Status Global VE Manufacturing (Jaipur) Strategic consolidation of all global VE pump manufacturing at the Jaipur plant, making it the sole global location for this product. Scheduled for completion by the end of 2025 Engineering Lab Hub (Adugodi) Repurposing a vacant manufacturing hangar at the Bengaluru campus into a modern lab for Bosch Global Software Technologies (BGSW). Operational by 2HY 2025 Metro Connectivity (Adugodi) Construction of an underground tunnel by BMRCL to provide seamless metro access to the Adugodi campus. Expected ready in 2HY 2026 Power Tools Plant (Chennai) Relocation of the Chennai Power Tools plant (ChiP) from rented premises to a larger, Bosch-owned facility to boost capacity. Successfully completed / operational 3D Printing Center (Jaipur) Development of metallic 3D printing competencies to serve as a hub for the entire ROIN region. In progress Employee Well-being (Adugodi) Investment in a 5,290 sqm modern in-house kitchen and dining facility serving over 10,000 associates. Fully operational Capital Commitments Total value of contracts remaining to be executed on capital accounts (net of advances). ₹ 1,044 million as of March 31, 2025 This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: The Long Term Borrowing (LTB) in FY25 is 0 crore, grown at a rate of 0.0% yoy and that of Short Term Borrowing(STB) has been reported of ₹ 0 crore with a growth rate of 0.0% yoy. In FY25, Bosch’s Total Debt (TB) is 0 crore, grown at a rate of 0.0% yoy. In FY20, LTB % TB and STB % TB were standing at 0.0% & 0.0% and that of in FY25, these are 0.0% & 0.0% respectively. Similarly, LTB % Revenue and STB % Revenue were, in FY20, 0.0% & 0.0% and that of in FY25, those are 0.0% & 0.0% respectively. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: Bosch, in FY25, has posted trade receivables of ₹ 2,365 crore with a growth rate of 8.4% compared to previous year, which was ₹ 2,182 crore. The trade receivables turnover ratio is 7.6x, trade receivables % revenue is 13.1% and the average trade receivable days is 47 in the same fiscal year. The trade receivable days, in FY20 reported, was 52 and in FY25, it is 47 days. The trade receivables % revenue in FY20 was 14.4% and in FY25, it is posted 13.1% and of the total trade receivables (pre provision of credit loss) approx. 97.9% is due for less than 6 months (incl. receivables not due), 1.2% is for more than 6 months but less 1 year, 0.2% is between 1 & 2 years, 0.3% is between 2 – 3 years and 0.4% is due for more than 3 years. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: Bosch, in FY25 has reported inventory level of ₹ 1,942 crore with a growth rate of 2.6% yoy whereas the Inventory % Total Current Assets is 18.2% and the Inventory % Total Assets is 9.6%. The average inventory turnover ratio (calculate on COGS) is standing at 6.0x, the average inventory level % revenue at 10.6% and the average inventory level % COGS at 16.7%. In FY25, the company has reported its average inventory days which is at 60 days. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: Bosch has reported trade payables in FY25 of ₹ 2,958 crore with a growth rate of 15.2% yoy whereas the payables % total current liabilites is 52.0% and the payables % total equity & liabilities is 14.6% in the same financial year. The trade payable turnover ratio (calculate on COGS) is standing at 3.9x, the trade payables level % COGS and that of % revenue are at 25.8% & 16.4% respectively. In FY25, the company has reported its inventory days which is at 93 days. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: The CF&’O (Cash Flow from Operations) in FY25 is ₹ 2,373 crore, grown at a rate of 88.6% yoy and that of EBITDA is reported of ₹ 2,310 crore with a growth rate of 10.3% yoy. In FY25, Bosch’s CF0/EBITDA is 1.0x. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Yet to write. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Paticulars (₹ Crore) FY 21 FY 22 FY 23 FY 24 FY 25 Net Profit Margin (A) 5.0% 10.3% 9.5% 14.9% 11.1% Asset Turnover Ratio (B) 69.2% 78.1% 94.3% 99.6% 96.2% Equity Multiplier (C) 147.2% 147.2% 146.0% 145.7% 145.3% Return On Equity (A*B*C) 5.1% 11.9% 13.1% 21.6% 15.6% Paticulars (₹ Crore) FY 21 FY 22 FY 23 FY 24 FY 25 Net Profit Margin (A) 5.0% 10.3% 9.5% 14.9% 11.1% Asset Turnover Ratio (B) 69.2% 78.1% 94.3% 99.6% 96.2% Return On Asset (A*B) 3.4% 8.1% 9.0% 14.8% 10.7% Paticulars (₹ Crore) FY 21 FY 22 FY 23 FY 24 FY 25 NOPAT Margin (A) -3.0% 7.2% 6.4% 7.2% 6.7% Capital Employed Turnover Ratio (B) 1320.9% 1908.9% 1641.4% 1439.1% 1881.1% Return On Capital Employed (A*B) -39.1% 137.4% 105.5% 103.1% 125.8% Paticulars (₹ Crore) FY 21 FY 22 FY 23 FY 24 FY 25 NOPAT Margin (A) -3.0% 7.2% 6.4% 7.2% 6.7% Invested Capital Turnover Ratio (B) 2526.3% 3006.1% 2346.7% 1964.0% 2439.8% Return on Invested Capial (A*B) -74.9% 216.4% 150.9% 140.6% 163.2% This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Profitability Ratios FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 Revenue Growth -1.3% 21.3% 26.7% 12.0% 8.1% Expenses Growth 2.4% 20.6% 27.2% 11.5% 7.8% Sustainable Growth Rate 1.5% 5.8% 0.1% 12.0% 3.9% Gross Profit Growth -13.0% 13.7% 21.9% 7.8% 12.4% EBITDA Growth -21.8% 26.0% 23.6% 15.9% 10.3% EBIT Growth -25.5% 38.9% 24.9% 17.2% 16.1% PBT Growth -83.2% 1673.6% 27.0% 74.4% -21.9% Net Profit Growth -25.8% 152.7% 17.0% 74.8% -19.1% Dividend Growth 47.8% -27.9% 95.3% -55.3% 68.8% Dividend Payout (%) 47.7% 70.6% 50.8% 99.3% 44.4% 74.9% Gross Margin 46.1% 40.6% 38.1% 36.6% 35.2% 36.6% EBITDA Margin 15.1% 11.9% 12.4% 12.1% 12.5% 12.8% PBT Margin 3.8% 0.6% 9.4% 9.4% 14.7% 10.6% Net Margin 6.6% 5.0% 10.3% 9.5% 14.9% 11.1% Efficiency Ratio FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 Debtor Days 52 Days 51 Days 47 Days 46 Days 47 Days 47 Days Debtor Turnover 7.0x 7.0x 7.7x 7.8x 7.7x 7.6x Avg. Inventory Days 75 Days 75 Days 69 Days 63 Days 60 Days Avg. Inventory Turnover 4.8x 4.8x 5.2x 5.7x 6.0x Trade Payable Days 109 Days 139 Days 111 Days 104 Days 85 Days 93 Days Trade Payable Turnover 3.3x 2.6x 3.3x 3.5x 4.2x 3.9x Net Fixed Asset Turnover 8.2x 8.8x 11.5x 12.4x 15.0x 17.7x Total Asset Turnover 0.7x 0.7x 0.8x 0.9x 1.0x 0.9x Average Capital Employed Turnover -39.1% 137.4% 105.5% 103.1% 125.8% Leverage Ratios FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 Debt/Equity 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x Debt/Capital 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x Debt/Assets 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x Debt/EBITDA 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x CFO/Debt 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x Debt Burden 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x Interest Coverage Ratio 107.8x 58.5x 39.4x 117.4x 32.8x 113.1x Operating Leverage 0.0x 20.0x 1.8x 0.9x 1.4x 2.0x Financial Leverage 1.4x 1.5x 1.4x 1.5x 1.4x 1.5x Cash Flow Ratios FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 Free Cash Flow to Firm 1,760 909 675 1,853 1,585 2,686 Free Cash Flow Growth -48.3% -25.7% 174.4% -14.5% 69.5% Operating Cash Flow Growth -46.5% -62.5% 352.0% 3.7% 88.6% FCFF/Revenue 17.9% 9.4% 5.7% 12.4% 9.5% 14.9% CFO/Total Assets 0.1x 0.0x 0.0x 0.1x 0.1x 0.1x CFO/Total Debt 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x Cash Interest Coverage 158.5x 58.1x 20.1x 139.1x 39.4x 181.9x CFO/Capex -3.2x -3.7x -0.7x -1.9x -3.9x -7.6x Capital Allocation Ratios FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 ROE 5.1% 11.9% 13.1% 21.6% 15.6% ROA 3.4% 8.1% 9.0% 14.8% 10.7% ROCE -39.1% 137.4% 105.5% 103.1% 125.8% ROIC -74.9% 216.4% 150.9% 140.6% 163.2% Valuation Ratios FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 Enterprise Value (EV) 23,772 38,198 39,942 54,571 90,233 82,074 EV/EBITDA 16.03 32.91 27.31 30.20 43.07 35.53 EV/Revenue 2.42 3.93 3.39 3.66 5.39 4.54 P/E 40 85 34 40 36 41 Price/Revenue 0.90 1.42 1.20 1.29 1.84 1.55 Price/CFO 6.61 19.26 52.59 15.82 24.48 11.80 Price/Book Value 0.95 1.40 1.32 1.74 2.55 2.03 This content is exclusively available to our Pro and Premium members. 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Pariculars (₹ Crore) FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 FY 32 FY 33 FY 34 FY 35 Revenue 21,705 26,046 31,255 37,506 45,007 53,559 63,199 73,943 85,774 98,640 Less: Cost of Goods Sold 4,558 5,470 6,564 7,876 9,452 11,247 13,272 15,528 18,013 20,714 Gross Profit 17,147 20,576 24,691 29,630 35,556 42,311 49,927 58,415 67,761 77,926 Gross Margin 79.0% 79.0% 79.0% 79.0% 79.0% 79.0% 79.0% 79.0% 79.0% 79.0% Less: SG&A Expenses Employee Expense 8,031 9,724 11,773 14,252 17,253 20,709 24,648 29,084 34,024 39,456 Power & Fuel Expense 434 492 556 625 700 774 843 904 953 986 General & Administration Expnese 1,411 1,650 1,927 2,250 2,625 3,035 3,476 3,944 4,432 4,932 Selling & Distribution Expnese 977 1,129 1,302 1,500 1,725 1,964 2,212 2,465 2,716 2,959 Miscellaneous Expnese 434 492 556 625 700 774 843 904 953 986 EBITDA 5,860 7,090 8,578 10,377 12,552 15,056 17,906 21,115 24,684 28,606 EBITDA Margin 27.0% 27.2% 27.4% 27.7% 27.9% 28.1% 28.3% 28.6% 28.8% 29.0% Less: Depreciation & Amortization 1,122 1,960 2,912 4,002 5,259 6,702 8,340 10,180 12,225 14,471 EBIT 4,739 5,130 5,666 6,374 7,293 8,354 9,566 10,934 12,459 14,134 EBIT Margin 21.8% 19.7% 18.1% 17.0% 16.2% 15.6% 15.1% 14.8% 14.5% 14.3% Less: Interest Expense - - - - - - - - - - Add: Other Income 217 260 313 375 450 536 632 739 858 986 Add: Exceptional Item - - - - - - - - - - Add: Profit/(Loss) of Associates, JV - - - - - - - - - - PBT 4,956 5,391 5,978 6,750 7,743 8,890 10,198 11,674 13,316 15,121 Less: Taxes 1,185 1,283 1,416 1,594 1,823 2,089 2,392 2,734 3,115 3,534 Net Income 3,771 4,108 4,562 5,156 5,920 6,801 7,807 8,940 10,202 11,587 Net Margin 17.4% 15.8% 14.6% 13.7% 13.2% 12.7% 12.4% 12.1% 11.9% 11.7% Earnings Per Share (EPS) ₹ 1279 ₹ 1393 ₹ 1547 ₹ 1748 ₹ 2007 ₹ 2306 ₹ 2647 ₹ 3031 ₹ 3459 ₹ 3929 Note: EPS is calculated on current reported year outstanding shares This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Income Statement FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% COGS 53.9% 59.4% 61.9% 63.4% 64.8% 63.4% Gross Margin 46.1% 40.6% 38.1% 36.6% 35.2% 36.6% Employee Cost 12.9% 9.6% 9.1% 7.7% 8.0% 8.3% Power and Fuel Cost 1.0% 0.9% 0.8% 0.7% 0.6% 0.6% Administration and General Cost 9.5% 8.2% 7.3% 7.3% 6.5% 7.1% Selling and Distribution Cost 2.6% 2.8% 2.9% 2.5% 2.5% 2.5% Miscellaneous Cost 5.1% 7.2% 5.6% 6.3% 5.1% 5.3% EBITDA 15.1% 11.9% 12.4% 12.1% 12.5% 12.8% Depreciation & Amortization 3.9% 3.5% 2.8% 2.6% 2.6% 2.1% Interest 0.1% 0.1% 0.2% 0.1% 0.3% 0.1% Profit Before Tax 3.8% 0.6% 9.4% 9.4% 14.7% 10.6% Other Income 5.6% 5.2% 3.3% 3.2% 4.3% 4.5% Tax 2.7% 0.9% 2.4% 3.1% 4.1% 4.0% Net Profit 6.6% 5.0% 10.3% 9.5% 14.9% 11.1% Paticulars (₹ Crore) FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 ASSETS Non Current Assets Property, plant and equipment 7.3% 6.2% 5.6% 6.5% 5.7% 4.0% Right-of-Use Assets 1.7% 1.4% 1.1% 0.9% 0.8% 1.0% Investment Property 1.1% 0.9% 1.2% 3.3% 3.8% 3.0% Capital work-in-progress 3.7% 3.3% 3.9% 2.2% 1.3% 2.0% Goodwill 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Other Intabgible assets 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Intangible assets under development 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Investment in Associates/ Joint Venture 28.8% 23.5% 28.8% 26.7% 25.5% 32.5% Investments 0.0% 0.0% 0.2% 0.1% 0.7% 1.6% Loans 3.4% 3.4% 2.7% 2.3% 1.7% 0.6% Other financial assets 0.7% 1.3% 1.7% 1.4% 1.6% 1.1% Deferred tax asset (net) 0.4% 0.1% 1.6% 1.8% 2.1% 0.5% Income Tax Assets 0.4% 0.1% 0.2% 0.1% 0.0% 0.0% Other non-current assets 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total non-current assets 47% 40% 47% 45% 42% 45% Current Assets Inventories 8.4% 8.8% 11.2% 11.7% 10.9% 9.6% Trade receivables 10.6% 9.4% 10.0% 11.7% 12.6% 11.7% Cash 16.9% 16.6% 11.1% 12.7% 3.5% 2.5% Loans 4.6% 3.6% 6.0% 6.5% 8.6% 6.8% Investments 2.2% 11.7% 7.2% 4.2% 4.6% 4.3% Other financial assets 6.8% 6.3% 4.5% 3.8% 13.4% 16.9% Current Income Tax Assets 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Other current assets 2.0% 1.9% 1.5% 1.6% 1.2% 0.9% Total current assets 52% 58% 52% 52% 55% 53% Total Asset 99% 98% 98% 97% 97% 97% Equity & Liabilities Equity Total Shareholders' Equity 70% 66% 69% 68% 69% 68% Non Controlling Interest 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total Equity 70% 66% 69% 68% 69% 68% Non Current Liabilitiee Borrowings 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Lease liabilities 0.4% 0.2% 0.3% 0.2% 0.1% 0.5% Other financial liabilities 0.0% 1.3% 0.8% 0.5% 0.3% 0.0% Provisions 2.5% 1.6% 0.7% 0.7% 0.7% 0.6% Deferred tax liabilities (net) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Other non-current liabilities 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total Non-current liabilities 3% 3% 2% 1% 1% 1% Current Liabilities Borrowings 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Lease Liabilities 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% Trade Payables 12.1% 15.1% 14.5% 16.8% 14.8% 14.6% Other financial liabilities 3.6% 5.0% 2.9% 3.0% 2.9% 2.8% Provisions 9.7% 7.3% 8.2% 7.0% 7.7% 7.9% Current tax liabilities (net) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Other current liabilities 2.1% 3.0% 3.1% 4.1% 3.8% 2.7% Total current liabilities 28% 30% 29% 31% 29% 28% Total Equity and Liabilities 100% 100% 100% 100% 100% 97% This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Particulars FY 25 Bosch Limited Revenue 18,087 EBITDA 2,310 PAT 2,015 Valuation Multiple P/E P/E 26.3x Equity Value 53,039 Equity Value for Shareholders 53,039 Market Cap 110,734 Valuation Conclusion Overvalued Donwside Risk -52.1% Stock Price Based on Valuation 17,983 Commentary: By performing the Relative Pricing on the company, Bosch Limited, we found the Equity Value of the company is ₹ 53,039 crore and the Market Value of the company is ₹ 110,734 crore (calculated using current year’s outstanding number of shares. After performing the Relative Pricing on the company through P/E method, we can conclude that, the company is Overvalued. Disclaimer: The research report (content on this post) presented here is for informational and research purposes only. It reflects our own views, assumptions and analysis and is not intended as a recommendation, offer or solicitation to buy, sell or hold any security or asset. Please conduct your own due diligence and consult a qualified financial advisor before making any investment decision. Please check our Terms & Conditions page before investing. This content is exclusively available to our Pro and Premium members. Please upgrade your membership to unlock this content. Click here to view our plans. Financial Highlights: The Long Term Borrowing (LTB) in FY25 is 4,417 crore, grown at a rate of 97.6% yoy and that of Short Term Borrowing(STB) has been reported of ₹ 858 crore with a growth rate of -7.4% yoy. In FY25, Apollo’s Total Debt (TB) is 5,275 crore, grown at a rate of 66.8% yoy. In FY19, LTB % TB and STB % TB were standing at 85.6% & 14.4% and that of in FY25, these are 83.7% & 16.3% respectively. Similarly, LTB % Revenue and STB % Revenue were, in FY19, 30.7% & 5.2% and that of in FY25, those are 20.3% & 3.9% respectively Opinion: From the historical borrowings analysis, the LTB % TB is reducing and STB% TB is increasing unitll FY23 and after that period, LTB % TB is increasing and STB% TB is decreasing which is largely because of capex. We assume the long term debt will be increasing and short term will be decreasing in future years to finance the capex and acquisition of new hospitals. Expected Commissioning: FY26 Location Nature Total Beds Census Beds Project Cost (₹ Cr) Balance Cost (₹ Cr) Royal Mudhol, Pune Hospital Asset Acquisition 400 325 630 260 Sonarpur, Kolkata Hospital Asset Acquisition 270 220 310 130 Gachibowli, Hyderabad Greenfield - Asset Light 375 300 515 390 Gurgaon, NCR Hospital Asset Acquisition 510 420 1,190 585 Defence Colony, Delhi Brownfield 42 27 65 25 Sarjapur-1 Acquisition - Leased facility 200 160 285 278 Malleswaram & Mysore Brownfield (Expansion) 140 125 170 165 Subtotal 1937 1577 3165 1833 Expected Commissioning: Next 3-4 Years Location Nature Total Beds Census Beds Project Cost (₹ Cr) Balance Cost (₹ Cr) OMR, Chennai Greenfield 600 500 945 690 Varanasi, U.P Greenfield 400 300 640 540 Worli, Mumbai Greenfield 575 500 1,315 1,215 Lucknow (Expansion), U.P Brownfield 200 160 320 235 Sarjapur-2 Greenfield 500 400 944 734 Jubilee Hills (Expansion) Brownfield 80 70 220 220 Secunderabad (Expansion) Brownfield 80 70 54 54 Subtotal 2435 2000 4438 3688 Grand Total 4372 3577 7603 5521 You may also like these skip render: ucaddon_uc_card_post_carousel

Greenply Industries Limited

BSE: 526797
NSE: GREENPLY

Sector: Consumer Durables

Industry: Plywood Boards/ Laminates

Summary

Particulars	FY25
Enterprise Value (₹ Crore)	4,061
EV/EBITDA	17
P/E	39

Revenue Growth % YoY	14.1%
Gross Margin	40.3%
EBITDA Margin	9.6%
Net Margin	3.7%

About the Company

Greenply Industries Limited (hereinafter as “Greenply“ or “The Company”) was incorporated on 28th November, 1990. The company was initially established as Green Timber Industries Private Limited in 1984. The company’s growth was led by Mr. Rajesh Mittal, often referred to as the ‘plywood manufacturing baron of India’. In 1994, Greenply underwent a strategic change by merging with Mittal Laminates Limited, which expanded its product range and market share.

Greenply is one of the leading manufacturer of integrated interior infrastructure solutions. It offers products such as Plywood and allied products (including blockboards, flush doors and specialty plywood for railways and automobiles), Medium Density Fibreboard (MDF) and Furniture hardware which offers premium slide systems, hinges and lift-up mechanisms through its joint venture with Samet. Grennply caters to customers such as OEM, trade customers (i.e. the dealers/distributers, super stockist and wholesaler in the supply chain who have a crucial role in distributing Company’s products to end-users or consumers), end-users and other customers (such as builders, contractors along with government departments).

Company Details

Location	Number of plants	Number of offices	Total
National	3	60	63
International	0	0	0

Locations	Number
National (No. of States)	28
International (No. of Countries)	1

Category	Location	State	Entity Type
Plywood and Allied Products	Tizit	Nagaland	Wholly Owned Subsidiary
Plywood and Allied Products	Kriparampur	West Bengal	Wholly Owned Subsidiary
Plywood and Allied Products	Sandila	Uttar Pradesh	Wholly Owned Subsidiary
Plywood and Allied Products	Bamanbore	Gujarat	-
MDF Manufacturing Facility	Sherpura	Gujarat	Wholly Owned Subsidiary
Furniture and Fittings (Joint Venture)	Vadodara	Gujarat	Joint Venture

Category	Details / Count	Description
Registered Office	1	Located at Madgul Lounge, Kolkata, West Bengal
Branch Offices	60	Spread across 1,100+ cities, towns, and villages in 28 states
Manufacturing Units	5 Operating	Includes three units under the parent company and two managed as subsidiaries/JVs
Distribution Network	3,000+ Dealers	A robust nationwide network supporting pan-India reach

State	Facility Location	Principal Product(s)	Annual Capacity	Ownership / Status
Gujarat	Bamanbore	Plywood and Allied Products	20.20 Mn SqM	Operational
	Sherpura, Vadodara	MDF and Allied Products	2,40,000 CBM	Wholly Owned Subsidiary
	Sherpura, Vadodara	Furniture Hardware Products	-	Joint Venture (Greenply Samet)
Uttar Pradesh	Sandila, Hardoi	Plywood and Allied Products	13.50 Mn SqM	Wholly Owned Subsidiary
West Bengal	Kriparampur	Plywood and Allied Products	11.00 Mn SqM	Operational
Nagaland	Tizit	Plywood and Allied Products	8.10 Mn SqM	Operational
Odisha	Semiliguda	Plywood and Allied Products	13.5 MSM	Proposed / Expansion

Brands	Portfolio	Applications	Utility
Green	A premium range of zero-emission, structural-grade plywood that is fire- and water-resistant, manufactured using advanced Penta Tech and a 4-press process	Safe modern interiors	High-strength, emission-safe panels
Ecotec	Value-for-money product range with 10-point quality checks	Cost-effective projects	Value-focused durability
Optima G	Range of plywood and doors with guaranteed performance	Long-term interior use	Consistent performance
Green Ndure	Lead-free PVC/WPC boards that are waterproof and fire-retardant	Multi-sector fit-outs	Eco-safe, quick-fix solutions
Woodcrest	Veneers crafted from European forests for luxury finish	Aesthetic living spaces	Natural elegance and finish
Greenply MDF	AI-powered, precision boards across multiple variants including HDMR and zero-emission MDF	Interior and exterior paneling	Technological superiority
Club Crests	Premium laminates with niche-inspired finishes	Designer-led environments	Bespoke craftsmanship

Q1 FY26

Opening Context & Performance Overview

The Joint Managing Director & CEO, Mr. Manoj Tulsian, began by noting that the company continued to face some liquidity challenges, which also resulted in a delay in commencement of a few new projects.
While performance in April and May aligned with expectations, June was relatively subdued compared to historical trends of the last 4-5 years. Even some regular channel partners faced challenges and could not pay on time in June.
July has seen a decent recovery, and management is confident that Q2 FY26 will outperform Q1 FY26.

Consolidated Financial Highlights (Q1 FY26 vs Q1 FY25)

Revenue: ₹601 crores, growth of 2.9% year-on-year.
Core EBITDA: ₹62 crores, growth of 6.4% year-on-year.
Core EBITDA Margin: 10.3% (vs 9.9% in Q1 FY25).
PBT (before losses on equity accounted investees, forex, and exceptional item): ₹50 crores, growth of 33% year-on-year (vs ₹38 crores). Note: Q1 FY25 had a one-off income tax refund of ₹12 crores.

Net Debt

Stood at ₹538 crores during the quarter, primarily elevated due to inventory build-up (plywood in response to import restrictions, MDF ahead of plant shutdown). Expected to be liquidated by end of H1 FY26. Management confident net debt will return to guided level of 0.5 by end of the year.

Segment-Wise Performance

Plywood Segment

Volume: Marginal degrowth of 3.1% year-on-year (June was subdued).
Realization: Grew 4.1% YoY to ₹255 per sqm.
Core EBITDA Margin: 7.9% (vs 7.8% in Q1 FY25), improvement of 10 bps.
Inventory: Doubled to ~₹400 crores (due to import restrictions and building stock). Expect liquidation in Q2.
Growth Guidance: Double-digit volume growth for the full year now looks difficult. Management will provide better guidance after Q2. However, even with decent volume growth, double-digit margin in plywood is achievable due to operating efficiencies.
TV Campaign: Launched first-ever television commercial for Ecotec (‘Kaam Sahi. Daam Sahi’) to drive brand preference in plywood, targeting budget-conscious yet quality-seeking consumers, especially in Tier 2/3 markets.

MDF Segment

Revenue: ₹147.3 crores.
Volume: 46,350 CBM.
Realization: ₹31,763 per CBM, increase of 3.1% YoY.
EBITDA Margin: 17.4% (improved from 15% in previous quarter).
Performance: Exceptionally well. Sales showed 11.7% YoY improvement in value terms. Margin improvement due to increase in sales and optimizing operating overheads.
Capacity Utilization: Vadodara plant operating at full capacity (90%+ depending on product mix). With current product mix, almost 90% utilization.
Capacity Expansion: Planned for August 2025. Small capex (₹10-12 crores) to increase output by 25% (expanding the press). Existing line already planned for 1,000 CBM; balancing equipment already in place.
HDF Flooring Line: Construction completed; trials ongoing. Production to start in September 2025.
Timber Prices (MDF): Slightly reduced in Q1 by around 2-3%.
Growth Guidance: Double-digit volume growth and 16%+ EBITDA margin for FY26. Internal target is higher double-digit (closer to 15-20%), but official guidance remains double-digit.

Furniture & Fittings JV (Hardware Business)

Revenue: ₹6.5 crores (minimalistic, first quarter of sales).
PAT Loss: ₹10.8 crores for the quarter; Greenply’s share of loss: ₹5.4 crores.
Progress: Onboarded 200+ dealers. Phase 1 manufacturing started; Phase 2 and 3 (machines) will be set up over next 12 months.
Loss Guidance for FY26: Expected to be ₹15-18 crores (max ₹18-20 crores).
Product Acceptability: Very good in the market (quality, life cycle). Encouraging feedback from dealers and some OEMs.

Greenply Middle East Limited (Gabon) – Stake Reduction

Successfully reduced stake from 49% to 19%.
Corporate guarantee reduced from $6.1 million to $3.8 million.
Contingent liability in rupee terms reduced from ₹50 crores to ₹32 crores.
Equity carrying value now ~₹2.8 crores. No further operating losses will be booked from Q2 onwards. The “sword hanging” risk is over.

WPC/PVC Business (Doors, Profiles, Foam Board)

Greenply is not entering this category newly; already selling ~₹65 crores annually of PVC products.
Idea is to have in-house manufacturing to give dealer network confidence in quality and increase sales.
PVC foam board is replacing plywood to a small extent; Greenply wants to capture any conversion happening in plywood or flush door segment.
Target (3 years): ₹200-225 crores top line. Machines at peak should give ~₹170 crores; balance from continued outsourcing.
Capex is very small.

Industry & Raw Material Trends

Plywood Timber Prices

More or less stable. Last year, most of the time stable except Q3 bump-up and Q4 softening. Currently in same range (~₹9.5 per kg).
Expectation: Prices will stabilize or start coming down, likely in Q3 and Q4 of this year. Q2 may see slight increase due to rainy season, but by end of quarter, prices return to same levels.

MDF Timber Prices

Reduced by around 2-3% in Q1 (~₹6 per kg).

MDF Industry Oversupply & Margin Outlook

Industry capacity vs utilization gap exists. When margins start going up, new capacity commitments come in (as happened 1.5-2 years ago).
25% EBITDA margins are “history” (seller’s market when only 2-3 large players existed). Now, anything between 20-21% EBITDA gives healthy ROCE of ~20%.
Over a 5-year cycle, margins will straddle between 15-16% and 23-25%, averaging 18-20%.
Management does not see price increases in MDF in immediate future, but also does not see current scenario as a challenge for Greenply (smallest capacity among peers, strong brand, large distribution network).

BIS & QCO Implementation

Management is bullish on BIS/QCO implementation. Government intent is clear (Make in India hub for furniture for export purpose).
Raids being conducted in market and factories. Things moving in positive direction. BIS on furniture from February 2026.

Plywood Volume Degrowth (Q1)

June was a big surprise (poor June not seen in last 4-5 years). July has picked up.
Premium product sales were not exciting in Q1 (though premium housing sales are showing upward trend in real estate data, not reflected in Greenply’s Q1 numbers).
Trading volumes higher because certain products are still outsourced; premium products (manufactured in-house) sales were not exciting.

SAMET JV (Turkey) & Export Opportunity

SAMET JV manufacturing facility is in India. Lira depreciation/appreciation not a major concern.
Export opportunity: SAMET has placed a trial order; manufacturing cost in India is much cheaper than in Turkey. Expect export side to grow significantly.

Capex & Other Guidance

Capex for FY26

Includes Odisha plant upgradation, WPC, etc.
Total capex: ₹100-140 crores (some spillover from Odisha plant).

MDF Capacity Expansion

Capex: ₹10-12 crores (to increase output by 25%).

Hardware Business (Furniture & Fittings JV)

Loss guidance for FY26: ₹15-18 crores (max ₹18-20 crores).

Net Debt Guidance

Expected to return to guided level of 0.5 by end of the year (after inventory liquidation in H1).

Corporate Guarantees (Other than Gabon)

SAMET JV: ₹55 crores (remains same).
Singapore entity: $3 million guarantee (no outstanding against it; expected to be released).

B2B vs Retail Split

Historically, focus on retail was very high; B2B focus was much smaller.
With hardware and MDF, OEM segment is growing. In coming years, B2B proportion on consolidated Greenply business will increase substantially.
As trend moves towards ready-made furniture, materials will move through OEMs to end consumer instead of shops. Company is gearing up for that.

MDF Channel Partners

Management is never satisfied; long way to go in terms of penetration, appointing dealers, and setting up many lines.

Cross-selling Advantage

Strong brand allows channel partners to reduce transaction cost by dealing with fewer companies for multiple product segments. Plywood dealers can now also sell MDF, stock hardware, and vice versa. This opens up opportunity for cross-selling.

Key Takeaways

Q1 Performance Impacted by Weak June (Liquidity Challenges, Subdued Demand): Revenue grew 2.9% YoY; EBITDA grew 6.4% YoY (margin 10.3%). July has recovered; Q2 expected to outperform Q1.
Plywood: Double-Digit Volume Growth for Full Year Now Difficult: Management will provide better guidance after Q2. Margins expected to remain double-digit due to operating efficiencies. Inventories built up (import restrictions) to be liquidated in H1.
MDF: Strong Q1 (17.4% EBITDA Margin), Capacity Expansion in August (25% Output Increase with ₹10-12 Crores Capex): HDF flooring line to start production in September. Guidance: double-digit volume growth + 16%+ EBITDA margin for FY26. Industry oversupply persists; 25% margins are history; 20-21% EBITDA gives healthy ROCE.
Hardware Business (JV) – Early Stages, Expected Loss of ₹15-18 Crores in FY26: Revenue of ₹6.5 crores in Q1. 200+ dealers onboarded. Product quality feedback very good. Will take 4-6 quarters to show decent numbers.
Gabon Risk Resolved (Stake Reduced to 19%, Corporate Guarantee Reduced, No Further Operating Losses): Contingent liability reduced from ₹50 crores to ₹32 crores. The “sword hanging” is over.
Timber Prices Stable to Softening: Plywood timber stable (~₹9.5/kg); MDF timber down 2-3% (~₹6/kg). Expect further softening/ stabilization in H2.
BIS/QCO Implementation – Management Bullish: Government intent clear. Raids being conducted. Positive for organized players.
PVC/WPC Business – Target ₹200-225 Crores Top Line in 3 Years: Already selling ~₹65 crores annually. In-house manufacturing to increase sales and capture conversion from plywood.
Net Debt Elevated at ₹538 Crores (Inventory Buildup), Expected to Return to 0.5 by Year-End: Working capital days increased; liquidity expected to improve in Q2.
Capex for FY26: ₹100-140 Crores (Odisha Plant Upgradation, WPC, etc.): MDF capacity expansion capex only ₹10-12 crores. Cross-selling opportunities across product segments (plywood, MDF, hardware) will improve traction as product basket matures.

Q2 FY26

Opening Context & Performance Overview

The Joint Managing Director & CEO, Mr. Manoj Tulsian, began by noting that the company has been able to grow over Q1 FY26 in both segments. Revenue growth on a YoY basis has been achieved, and the same momentum is expected to continue in H2.
Gradual progress in BIS implementation and steady timber prices continue to provide a favourable environment for organized and branded players.

Marketing Strategy Update

Greenply campaigns previously focused primarily on the premium green range, but communication has now been extended to the value segment with Ecotec (“Kaam Sahi. Daam Sahi.”), which has witnessed remarkable traction.
Advertising has also commenced for the MDF category to build stronger awareness.
This 3-brand communication approach (premium green range, value-focused Ecotec, and MDF) has strategically enhanced visibility across key market segments.

Consolidated Financial Highlights (Q2 FY26 vs Q2 FY25)

Revenue: ₹688.6 crores, growth of 7.5% year-on-year.
Core EBITDA: ₹56.8 crores (8.2% margin), decline of 80 bps YoY (from 9%).
PBT (before losses on equity accounted investees, forex, and exceptional items): grew 15% YoY (H1).

H1 FY26 Consolidated Performance

Revenue: ₹1,289.4 crores, growth of 5.3% year-on-year.
Core EBITDA: ₹118.4 crores, growth of 2.5% year-on-year.
Core EBITDA Margin: 9.2% (vs 9.4% in H1 FY25).
PBT (before adjustments): ₹83 crores, growth of 15% YoY.
PAT: ₹44.4 crores.

Net Debt

Stood at ₹510 crores at the end of Q2. Expected to further reduce with liquidation of excess inventory (started this quarter). Confident debt-equity ratio will be in the range of 0.5x despite further capex in H2.

Segment-Wise Performance

Plywood Segment

Q2 Revenue: Part of consolidated (not separately stated, but H1 revenue ₹995.5 crores, growth 3.1% YoY).
Volume Growth (H1): 2.5% YoY.
Average Realization: ₹242 per sqm, decrease of 3.5% YoY (due to significant demand for mid-value segments).
Core EBITDA Margin (Q2): 8.2% (vs 7.9% in Q1), improvement of 30 bps QoQ.
H1 Core EBITDA: ₹80.6 crores, growth 2.9% YoY; margin 8.1%.
Volume Growth Expectation (H2): Double-digit (10%+). Management very confident.
Margin Expectation (H2): H2 margins will be better than H1. If growth is higher double-digit (15%+), could touch 10% margin in H2. For full year, margin expected around 8.5%.

MDF Segment

Q2 Revenue: ₹146.8 crores, growth of 16.1% YoY.
Volume: 47,018 CBM, growth of 15.9% YoY.
Capacity Expansion: Successfully expanded from 800 CBM per day to 1,000 CBM per day during Q2.
Production Impact: Temporarily impacted by expansion-related shutdown (took more than 40 days), resulting in moderate margins of 8.3%.

Margin Decline (Q2) – One-off, due to 3 factors:

Reduction in finished goods inventory → under absorption of overheads.
Liquidation of old and non-moving inventory (B-grade, unique sizes/thicknesses from learning curve) at higher discount → lower realization.
Outsourced material consumption to temporarily balance market needs.
H2 Outlook: Operations normalized with enhanced capacity. Confident of strong rebound in H2 with double-digit volume growth and return to 16%+ EBITDA margins.
Full Year Margin Expectation: ~14.5-15%.

Furniture & Fittings JV (Hardware Business)

Q2 Revenue: ₹11.4 crores (H1 revenue ₹17.9 crores).
Q2 PAT Loss: ₹11.8 crores (Greenply’s share: ₹5.9 crores). H1 PAT loss ₹22.6 crores (Greenply’s share: ₹11.3 crores).
Run Rate: ~₹4 crores per month. Expect ₹5 crores per month in H2.
Target for FY27: ₹100 crores turnover.
Current Losses: Planned; will continue to invest significantly in brand building to compete with premium brands.

Greenply Middle East Limited (Gabon) – Further Reduction

Corporate guarantee reduced from USD 3.8 million to USD 2.7 million.
Contingent liability reduced from ₹32 crores to ~₹24 crores.

BIS Implementation & Industry Impact

Imports have reduced significantly (this year compared to last year, imports in both MDF and plywood are like 3-4% of last year’s number). This is the first level of improvement.
BIS is continuously conducting raids not only at manufacturing locations but also at dealer points, sending a strong message to trade and manufacturers.
It’s a continuous process; will take time for larger benefits to show up for branded goods players. Management very hopeful.

Plywood Demand & Outlook

Despite degrowth in residential real estate data compared to last year (both Q1 and Q2), Greenply has grown by around 7% in volume.
Optimistic about Q3 and Q4: expects 10%+ volume growth due to:
BIS helping
Improvements in own processes (hired consulting service ~1 year ago; corrected back-end supply chain, production availability, sales management initiatives).
Indian story remains very strong. Sector still to fire the residential sector again.

MDF Competitive Landscape & Pricing

Competitors with large capacities are undercutting prices, particularly in industrial/interior grade segments to achieve volume.
Realizations have slightly gone down.
However, Greenply is confident of maintaining 16% margin in H2 because:
Fixed cost remains almost the same (25% capacity increase with hardly any cost addition).
Operating efficiencies will cover the loss from resin price increase and realization pressure.
No price hikes are factored into guidance.

HDF Flooring Update

Machine fully installed; trials ongoing. Making samples and displays.
Expected to start commercial selling in early December 2025.
Capex is very small (exact number to be shared separately).

Samet JV (Turkey) – Update

Improving every day. Adding dealers incrementally every month. Increasing sales team force.
Run rate ~₹4 crores per month; expect to move to ₹5 crores per month in H2.

Capex Guidance

FY26 Total Capex:

~₹155-160 crores (includes investment in JV).
H1 spent: ~₹56 crores.
H2 expected: ~₹100-110 crores.

H2 Capex Components:

Plywood process improvement / innovation (new line)
Plywood line balancing
Odisha plant construction
PVC plant
Maintenance capex
Further investment in JV

FY27 Capex:

Balance capex for Odisha plant
Maintenance capex
Next leg of MDF capacity expansion (to be finalized in next 5-6 months; needed for FY28 growth)

Cross-selling & Bundling

Overlap between plywood and MDF dealer networks is only around 25-30%.
Plywood sales team already handles 6-7 sub-brands; adding cross-selling is challenging.
Management has used consulting services to bring in better measurables, detailed sales plans, accountability, and visibility. This is just the first quarter of implementation.
Once verticals are optimized, cross-vertical bundling will be considered.

Key Takeaways

Q2 Revenue Growth 7.5% YoY; H1 Revenue Growth 5.3% YoY: H1 PBT (before adjustments) grew 15% YoY. Net debt reduced to ₹510 crores; target debt-equity of 0.5x despite H2 capex.
MDF Capacity Expansion Completed (800 → 1,000 CBM/Day): Q2 margins (8.3%) were a one-off (plant shutdown, inventory liquidation, outsourcing). Expect 16%+ margins in H2. Full year margin ~14.5-15%.
Plywood H2 Volume Growth Target: 10%+: H1 volume growth was 2.5%. H2 margins will be better than H1. If growth is higher double-digit (15%+), could touch 10% margin in H2. Full year margin expected ~8.5%.
BIS Implementation – Imports Down to 3-4% of Last Year’s Levels: Continuous raids at manufacturing and dealer points. Positive for organized players. Will take time for larger benefits.
New Marketing Strategy (3-Brand Approach – Premium Green, Ecotec, MDF): Ecotec campaign (“Kaam Sahi. Daam Sahi.”) has seen remarkable traction. MDF advertising commenced.
HDF Flooring to Start Commercial Sales in Early December: Machine fully installed; trials ongoing. Small capex.
Hardware JV (Furniture & Fittings) – Run Rate ~₹4 Crores/Month: Expect ₹5 crores/month in H2. Target ₹100 crores turnover for FY27. Current losses planned; will continue brand building.
Gabon Exposure Further Reduced (Guarantee Now USD 2.7 Million, Contingent Liability ~₹24 Crores): Risk continues to reduce.
FY26 Capex ~₹155-160 Crores (Including JV Investment): H2 capex ~₹100-110 crores (plywood process improvement, Odisha plant, PVC plant, JV, maintenance). Next MDF line decision in 5-6 months (needed for FY28 growth).
Samet JV Improving (Adding Dealers, Increasing Sales Team): No bundling strategy yet (only 25-30% dealer overlap). Consulting-led sales transformation showing early results. Management excited about H2 performance in both plywood and MDF.

Q3 FY26

Opening Context & Performance Overview

The Joint Managing Director & CEO, Mr. Manoj Tulsian, began by noting that the three-brand communication strategy (premium Greenply, value-focused Ecotec, and MDF) is working well and showing very encouraging initial outcomes.
The company has delivered consistent growth in plywood and MDF on a YoY basis, as well as steady ramp-up in the hardware business.
The guided double-digit volume growth in H2 FY26 across both segments is on track, having delivered double-digit YoY growth in Q3 FY26 in both plywood and MDF.

MDF Capacity Expansion Update

Successfully expanded capacity from 800 to 1,000 CBM per day.
Initial operational challenges in October/November impacted growth, but these issues have been fully addressed.
The plant is currently stable and operating efficiently. Production in January was the highest ever.

Consolidated Financial Highlights (Q3 FY26 vs Q3 FY25)

Revenue: ₹673.4 crores, growth of 9.6% year-on-year.
Core EBITDA: ₹58.9 crores (8.7% margin), increase of 50 bps YoY (from 8.2%).
PBT (before adjustments): grew 13% YoY (9-month).

9M FY26 Consolidated Performance

Revenue: ₹1,962.8 crores, growth of 6.7% year-on-year.
Core EBITDA: ₹177.3 crores, growth of 4.5% year-on-year.
Core EBITDA Margin: 9.0% (vs 9.2% in 9M FY25).
PBT (before adjustments): ₹117 crores, growth of 13% YoY (vs ₹104 crores).

Net Debt

Stood at ₹528 crores at the end of Q3 (in line with guided capex plans).
Confident debt-to-equity ratio will be within guided range of 0.5-0.6x by year-end despite new capex announcement.

Segment-Wise Performance

Plywood Segment

Volume Growth (Q3): 12.5% YoY (double-digit achieved).
Revenue (Q3): ₹521.7 crores, value growth of 8.9% YoY.
Average Realization: ₹244 per sqm, 4.9% decrease YoY (due to continued demand for mid-value products), but marginal increase QoQ (from ₹242 to ₹244).
Core EBITDA Margin (Q3): 8.4% (same as Q3 FY25), despite drop in realization YoY.
9M Revenue: ₹1,517 crores, growth 5% YoY.
9M Volume Growth: 5.8% YoY (despite negative 3.1% growth in Q1).
9M Core EBITDA: ₹124 crores, growth 4.7% YoY; margin 8.2% (same as last year).

Growth Drivers (Plywood)

Consulting house support for over 18-21 months. First focused on factory-side supply chain (correcting gaps in availability). Then moved to sales-side initiatives (reach, distribution, SFA/metrics/KPIs).
Change management was very smooth; team adapted well.
Investment in Ecotec as a brand (mid-segment) has shown positive green shoots.
Expecting mid-teens growth going forward.

MDF Segment

Q3 Revenue: ₹152 crores, growth of 11.7% YoY.
Q3 Volume: 48,383 CBM, growth of 14.5% YoY.
Q3 EBITDA Margin: 10.1% (moderated due to trading activities – had to resort to limited trading to fulfill orders because of production deficit in October/November). Could have been ~12% otherwise.
January production was highest ever. Expect strong rebound in Q4.
Q4 Guidance: Expect growth of more than 20% in sales YoY, supported by improved margins (back to 16%+).

New MDF Capacity Announcement (Second Line at Vadodara)

Capacity: 700 CBM per day.
Capex: ₹425 crores (including GST). The difference between ₹400 crores (operating team calculation) and ₹425 crores is GST, which will be capitalized (cash flow item).
Revenue Potential: ₹600 crores.
Commissioning Timeline: Expected in next 15 months; commercial operations in next 18 months (Q2 FY28).
Strategy: Dedicate existing line for thick boards, new line for thin boards to maximize output and operating efficiencies (reduce changeovers). Fixed cost advantage (manpower, management) and raw material advantage.
Brownfield optionality: After MDF 2, no spare land for further large expansion at Vadodara.

HDF Flooring Line

Trial production started in December; executed a few orders.
Faced some glitches; currently in correction phase.
Confident of starting commercial production by March 2026.

PVC/WPC Plant

Construction going as per plan. Commercial production expected by March 2026.

Furniture & Fittings JV (Hardware Business)

Q3 Revenue: ₹13.4 crores (9-month revenue ₹31 crores).
Q3 PAT Loss: ₹15 crores (Greenply’s share: ₹7.7 crores). 9-month PAT loss ₹37.9 crores (Greenply’s share: ₹19 crores).
Losses increased sequentially due to increased marketing spend (participated in 2 exhibitions).
Ramp-up: Good. Expect 30-35% growth next year, but will not make profits yet.
Profitability timeline: FY28 for sure, due to:
Another 35-40% growth.
Phase 2 expansion (manufacturing currently imported products from Turkey in India) – margins improve significantly.

Greenply Middle East Limited (Gabon) – Further Reduction

Corporate guarantee reduced from USD 2.7 million to USD 1 million.
Contingent liability reduced from INR24 crores to INR10 crores (down from USD 6.1 million at time of divestment).

Odisha Plywood Facility

Work in progress. All major orders placed. Project on track.
Expected commissioning: Q4 FY27 (January-March 2027).
Total investment: ~₹130 crores. Already invested ~₹25-30 crores.

Capex & Debt Guidance

FY27 Capex Plans

Major plan: Odisha plywood unit (balance investments).
MDF second line investment will start from Q4 FY26 and continue up to Q1/Q2 FY28.

Net Debt Outlook

Expect debt-to-equity ratio to be within 0.5-0.6x by year-end despite new capex.
Net debt to EBITDA will not be more than 2 (even for the coming year), and that will be only for 1 year.
Most of the new investment (MDF second line) should come out of internal accruals. Cash generation over next 3 years will take care of existing debt as well as new investments.

Working Capital Efficiency

Working capital utilization is very low. Initiatives taken:
Introducing dealer finance to reduce dealers’ working capital and increase their ROI.
Focus on improving working capital cycle of dealers.
Board-level discussion to become more efficient on working capital and take out money to invest more efficiently in the business.

Incremental Capital Output Ratio (ICOR)

Management looks at ICOR – investment should go into pockets where better returns are generated.
Investment in second MDF line justified by efficiencies (first plant efficiency can improve from 88-89% to 93-94% with second line).

Timber & Raw Material Costs

Timber costs remained stable in the last quarter.
Slightly bumped up in December for some period, but back to October-November levels in January.
Expectation was for prices to start coming down; they have remained stable (not started coming down yet).

ROCE & Margin Debate (MDF Investment Justification)

Management acknowledges that ROCE was better with only plywood business, but being in a single product carries risk.
Last 4-5 years were formative years – no capital raised, no equity dilution.
MDF is a future-led business. Without investing in MDF, ROCE would continue to drop (only alternative would be distributing more dividends).
MDF margins will see a seesaw – times of 20-21% and times of 13-14%. Over a 3-5-7 year period, ROCE will come to a respectable level.
The second line will provide:
Regional strength (only player in Western India – advantage).
Fixed cost advantage (manpower, management).
Dedicated lines for thin vs thick boards to maximize output and reduce changeovers.

Export Opportunity (MDF)

Currently, exports are not an option – most players export at cost or lower than cost to keep plants running.
Focus is on domestic market.
Greenply’s current MDF market share is only ~7.5%. With brand and distribution strength, selling the capacity is not a concern.

Realization & Margin Assumptions for New MDF Line

Assuming similar realization as current (₹244 per sqm for plywood; MDF realization comparable).
If market sees price increase of 4-6% in next 12 months, realizations will change.
ROCE on new line expected around 16-18%.

Key Takeaways

Q3 Performance: Double-Digit Volume Growth Achieved (Plywood 12.5%, MDF 14.5%): Revenue grew 9.6% YoY; EBITDA margin improved 50 bps to 8.7%. 9M PBT grew 13% YoY. Net debt at ₹528 crores; confident debt/equity will be 0.5-0.6x by year-end.
MDF Capacity Expansion Complete (800 → 1,000 CBM/Day); January Production Highest Ever: Q3 margins at 10.1% (vs potential 12%) due to trading activities. Q4 guidance: >20% sales growth + return to 16%+ margins.
New MDF Line Announced (₹425 Crores Capex, 700 CBM/Day, Revenue Potential ₹600 Crores): Commissioning in 18 months (Q2 FY28). Dedicated lines for thin vs thick boards to maximize efficiency. Located in Vadodara (Western India) – regional advantage.
Plywood Growth Drivers: Consulting-Led Transformation Paying Off (Double-Digit Volume Growth Achieved): Expecting mid-teens growth going forward. Ecotec brand investment showing green shoots. Working capital efficiency initiatives underway.
Hardware JV (Furniture & Fittings) – Ramping Up Well (Q3 Revenue ₹13.4 Crores): Losses increased due to marketing spend (2 exhibitions). Expect 30-35% growth next year. Profitability expected in FY28 (Phase 2 expansion + growth).
HDF Flooring: Commercial Production by March 2026 (Currently in Correction Phase): PVC/WPC plant also on track for March 2026.
Gabon Exposure Further Reduced (Guarantee Now USD 1 Million, Contingent Liability ₹10 Crores): Down from USD 6.1 million at time of divestment. Risk significantly reduced.
Odisha Plywood Facility on Track for Q4 FY27 Commissioning (~₹130 Crores Capex): Already invested ~₹25-30 crores.
Capex Funding to Come from Internal Accruals; Net Debt/EBITDA <2 (Only for 1 Year): Company has not raised capital or diluted equity. Cash generation over next 3 years to take care of existing debt and new investments.
MDF Industry: Installed Capacity Gap (Plants Don’t Operate at 100% Due to Mix); Expect Capacity Utilization in 12 Months: MDF industry expected to grow at 15% CAGR. Greenply’s second line is a long-term strategic decision to dominate wood panel space. ROCE over 3-5-7 years will be satisfactory. Management confident in the decision.

Q4 FY26

Opening Context & Key Developments

The Joint Managing Director, Mr. Sanidhya Mittal, began by noting that FY26 closed on a strong and positive note, in line with growth guidance. The momentum is being carried forward into FY27 with even greater ambition and focus on growth. Q1 FY27 has started strongly, with confidence in sustaining the trajectory supported by margin improvement.

Leadership Transition

Mr. Manoj Tulsian has resigned as JMD and CEO to prioritize personal commitments. He will continue as an advisor to the company.
Management expressed deep appreciation for his leadership over the last 6 years. A seamless transition is ensured with Mr. Sanidhya Mittal and the existing team in place. No immediate replacement is planned, but the company remains open to bringing in someone at a later stage.

Income Tax Search & Seizure (Feb 26 – Mar 2, 2026)

A search and seizure operation was conducted by the Income Tax Department at certain business premises.
No order, notice of demand, or penalty order has been received. The matter is at a preliminary stage.
No liability is expected. The company and books of accounts are clear.

Gabon Exposure (GMEL) – Fully Provided For

A one-time exceptional item of ₹15.16 crores has been taken for impairments to investment, financial guarantees, and advances to GMEL (Dubai entity) due to geopolitical challenges.
All potential liability on invested equity, corporate guarantees, and loan advances have been fully provided for in the books.
This is a proactive measure to safeguard financial integrity and does not impact underlying operating cash flow or long-term growth strategy.

Geopolitical Crisis & Raw Material Impact

Chemicals (constituting ~30% of MDF raw material cost) saw a sharp increase of over 50% due to supply chain disruptions.
Elevated fuel charges and war risk insurance premiums created a volatile logistics environment.
Mitigation steps:
1. Price increases implemented: 4-5% in Plywood and 15% in MDF (effective April).
2. Actively evaluating domestic sourcing of chemicals to reduce import reliance.
Prices remain elevated but have stabilized and are not expected to rise further.

Financial Performance (Q4 FY26)

Consolidated

Revenue: ₹776.2 crores (highest ever quarterly), growth of 19.6% year-on-year.
Core EBITDA: ₹93.2 crores (12% margin), growth of 150 bps YoY (from 10.5%).
Core EBITDA margin improved 330 bps QoQ (from 8.7% in Q3).

FY26 Full-Year Consolidated

Revenue: ₹2,739 crores, growth of 10.1% year-on-year.
Core EBITDA: ₹270.5 crores (9.9% margin), growth of 13.8% year-on-year.
PBT (before adjustments & exceptional): ₹186 crores, growth of 21% YoY (vs ₹153 crores).
Net Debt: ₹461 crores.
Debt-to-Equity Ratio: 0.52 (within guided range of 0.5-0.6).
Dividend: Recommended 50% (₹0.50 per share), subject to shareholder approval.

Segment-Wise Performance

Plywood Segment

Q4 Volume Growth: 15.6% year-on-year.
Q4 Revenue: ₹588.5 crores, value growth of 14.6% YoY.
Q4 Core EBITDA Margin: 10.4% (improvement of 120 bps YoY).
FY26 Revenue: ₹2,105.7 crores, growth of 7.5% YoY.
FY26 Volume Growth: 8.3% YoY.
FY26 Core EBITDA: ₹185.4 crores (8.8% margin), growth of 11.7% YoY.
Growth Drivers:
1. Shift from unorganized to organized players (smaller players shut down due to raw material payment challenges).
2. Strong strategy execution and distribution initiatives.
3. Ecotec brand gaining traction (quality issues resolved).
4. OEM business growing (furniture factories replacing carpenters).
New Technology Implementation: “ContiRoll” technology (Continuous assembly table) being implemented in plywood plants. Already implemented in 2 facilities; remaining 2 to be implemented in FY27. Improves quality, reduces cost, and makes plywood more acceptable to OEMs.

MDF Segment

Q4 Revenue: ₹189.4 crores (highest ever quarterly), growth of 39.6% YoY.
Q4 Volume: 62,000 CBM, growth of 45.3% YoY.
Q4 Core EBITDA Margin: 17% (supported by higher sales and operating leverage).
FY26 Revenue: ₹635.6 crores, growth of 19.9% YoY.
FY26 EBITDA Margin: 13.4%.
Margin Sustainability: 17% margin is sustainable. Price increase of 15% passed on without impacting demand. Operating leverage from higher volumes (fixed costs remain same post-extension) is the key driver.
Flooring Business: Peak capacity top line of ~₹70-75 crores. To be fully operational in Q2 FY27 (will add incremental margins).

Furniture & Fittings JV (Hardware Business)

Q4 Revenue: ₹13 crores (FY26 total ₹44.3 crores).
Q4 PAT Loss: ₹13 crores (Greenply’s share: ₹6.5 crores). FY26 PAT loss: ₹50.8 crores (Greenply’s share: ₹25.4 crores).
Breakeven Timeline: Expected to breakeven by middle of FY28 (year after next). Phase 2 expansion will enable manufacturing of currently imported products in India, improving gross margins significantly.

PVC/WPC Plant (New)

Commercial production commenced in April 2026.
Annual installed capacity: 6 million kgs for doors, 3 million kgs for door frames.
Peak revenue potential: ₹75-80 crores.

Capex & Debt Guidance

FY27 Capex Plan (~₹480 crores)

MDF second line: ~₹300 crores (total project cost ₹425 crores; balance ~₹125 crores in FY28).
Odisha Plywood plant: ~₹130 crores (total project cost ~₹130 crores).
Plywood technology improvement (2 remaining plants): ~₹45-50 crores.
Total FY27 capex: ~₹480 crores.

Debt Outlook

Current debt-to-equity: 0.52.
Peak debt-to-equity during capex: 0.7 to 0.72 (next year end or year after).
Immediately following year, will come back to 0.5-0.55 level due to strong operating cash flow.
Management aims to keep debt/equity within this range; any additional capex will be evaluated keeping balance sheet in mind.

Odisha Plywood Plant

Construction progressing at full pace; all major orders placed.
Expected commissioning: Q4 FY27 (January-March 2027).

MDF Second Line

Civil construction underway; key machinery ordered.
Operationalization on track as per planned timelines.

Margin & Growth Guidance

FY27 Outlook

Plywood Volume Growth Target: 10%+ (backed by strong brand equity, new technology, and market share gains).
MDF Volume Growth Target: 25-30% (capitalizing on rising demand).
EBITDA Margins: Expected to remain consistent with Q4 FY26 performance (Plywood ~10.4%, MDF ~17%).
MDF Price Increase: 15% passed on effectively. Plywood price increase: 4-5%.
Consolidated Margin: Q4 exit margins (12% consolidated core EBITDA) are expected to be the new norm for Greenply going forward.

Industry Growth

MDF industry growth: 15-20% annualized.
Plywood industry growth: ~3-4% (but Greenply’s opportunity is in market share gains, not just industry growth).
Greenply’s MDF market share: ~7-8% at current levels; at peak capacity ~8.5%.

Plywood Market Share Gains

Unorganized players hit hard by raw material payment challenges (suppliers demanding advance payments). This has created significant leeway for organized players.
BIS implementation has reduced import nuisance (especially in MDF and premium plywood grades).

Other Key Discussions

Working Capital (Receivable Days)

Increased from 47 to 54 days YoY.
Reasons: (a) Growth in OEM business (higher debtor days but payments protected by LC), (b) Strategic focus on B2B/OEM furniture makers (fundamental shift from carpenters to factories).
Channel credit policy remains unchanged; no incentivizing by increasing credit days.
Management is not satisfied with current debtor days and is working to improve.

Timber Prices Outlook

Stable in Q4 and expected to remain flat in FY27.
Wishful thinking: prices may come down (windfall gain), but planning assumes flat prices.

MDF Gross Margin Volatility (Historical)

Historical volatility due to: (a) plant line extension disruption (Q2 & Q3), (b) product mix changes, (c) trading activity (now stopped).
Sustainable gross margin: Q4 FY26 levels can be considered the base.

One-offs (Gabon) – Fully Behind

All potential liabilities on invested equity, corporate guarantees, and loan advances have been fully provided for. No further challenges expected.

New Technology in Plywood (ContiRoll)

Continuous assembly table technology (used in Vietnam and China).
Benefits: improved quality, reduced manpower cost, reduced material waste, more consistent product, better acceptability by OEMs.
Investor/analyst day planned at Sandila facility to demonstrate the technology.

Competition & Capacity (MDF)

No new major MDF capacity announcements beyond already announced projects.
Some smaller players have shut down; larger players’ plans are either under construction or nearing completion.
With Greenply’s brand strength, first 2-3 lines should have no issue in selling.

Key Takeaways

Strong Q4 & FY26 Performance (Revenue ₹776 Crores in Q4, Highest Ever): Consolidated revenue grew 19.6% YoY in Q4; EBITDA margin improved to 12% (up 330 bps QoQ). Full-year PBT grew 21% YoY to ₹186 crores.
Q1 FY27 Started Strongly; Double-Digit Growth Momentum Sustained: Price increases (15% MDF, 4-5% Plywood) have been passed on without impacting demand. Q4 exit margins are expected to be the new norm.
MDF Margins Sustainable at 17% (Q4); Volume Growth Target 25-30% in FY27: Operating leverage from increased capacity utilization (fixed costs remain same) is the primary driver. MDF price increase of 15% has been accepted by the market.
Plywood Margins at 10.4% (Q4) Sustainable with 10%+ Volume Growth: New “ContiRoll” technology in plywood plants (already in 2 plants, 2 more in FY27) will improve quality and cost. Shift from unorganized to organized players is a significant tailwind.
Gabon Exposure Fully Provided For (Exceptional Item ₹15.16 Crores): All potential liabilities on invested equity, corporate guarantees, and loan advances have been fully provided for. No further one-offs expected.
Capex of ~₹480 Crores in FY27 (MDF Second Line, Odisha Plywood, Technology Upgrades): Debt-to-equity may peak at 0.7-0.72, then come back to 0.5-0.55. Management is conscious of balance sheet and aims to keep leverage within guided range.
Furniture & Fittings JV (Hardware): Expected Breakeven by Middle of FY28: Phase 2 expansion (manufacturing currently imported products in India) will improve gross margins significantly. Top line growing, products accepted.
PVC/WPC Plant Commercial Production Started (April 2026): Peak revenue potential ₹75-80 crores. Odisha plywood plant expected commissioning Q4 FY27. MDF second line on track.
Receivable Days Increased (47 to 54) Due to OEM Growth: Channel credit policy unchanged. OEM business has higher debtor days but payments are protected by LC. Management is not satisfied and is working to improve.
Income Tax Search – No Demand or Penalty Received; Matter at Preliminary Stage: No liability expected. Management transition (Manoj Tulsian resigns, remains advisor) is smooth; team and strategic direction remain intact.