Bosch Q2 FY26 Results: Solid Auto Demand, Margins Under Pressure

Key Highlights: Revenue: ₹4,795 crore, up 9% YoY, driven by strong demand from auto OEMs. Net Profit: ₹554 crore, up 3.4% YoY, limited by higher input costs. Automotive Segment: Up 11.9% YoY, led by strong growth in two-wheeler and passenger vehicle components. Two-Wheeler Business: Jumped 81.8% YoY due to demand for new OBD-II compliant parts. Non-Automotive Segment: Declined 14.4% YoY due to divestment of some business units. EBITDA Margin: Stable at ~11.5%, as material cost inflation offset revenue growth. Insights: Bosch maintained steady growth supported by strong demand in the auto components sector, especially in two-wheelers and passenger cars. However, rising raw material and operating expenses weighed on profit growth. The decline in non-automotive business highlights the company’s reliance on auto-linked demand. What to Watch: Margin improvement amid input cost pressure. Contribution from non-auto businesses as Bosch expands its “Beyond Mobility” initiatives. Impact of festive demand and regulatory norms (like OBD-II) on component sales. Global supply-chain normalization and semiconductor availability. Investor Takeaway: Bosch’s results reflect steady demand recovery in India’s auto sector, but margin expansion remains key. With strong brand equity, diversified product portfolio, and growing regulatory-driven demand, Bosch remains a stable long-term play in the auto components space — though near-term growth may be moderate.