Good afternoon, everyone, and welcome to our Q1 FY27 earnings conference call. We'll begin with an overview of the current macroeconomic landscape and our outlook.

The domestic economy remained resilient in the first quarter of fiscal 2027. This stability was driven by robust private consumption and stable monetary policy from the Reserve Bank of India, which held the benchmark policy repo rate steady at 5.25% under a neutral stance at its August 2026 meeting.

While food and energy volatility pushed the June headline retail inflation to 4.38%, reaching the RBI's 4% medium-term target for the first time in 17 months, it remains comfortably within the central bank's 2% to 6% flexible inflation targeting framework. This policy flexibility is critical for India's macro stability in FY27, allowing the RBI to manage price stability amidst external volatility while prioritizing steady economic growth to avoid policy-induced slowdowns.

Given this context, our outlook for the remainder of fiscal 2027 is anchored in strategic resilience. We are highly encouraged by RBI's decision to raise its real GDP growth forecast for FY26-27 to 6.7%, up from its previous estimate of 6.6%, backed by strong capital expenditure momentum outlined in the budget, keeping India positioned as the fastest-growing major economy.

Our strategy is built to thrive amidst external market dynamics. Our key priorities will remain focused on strengthening our operational resilience in the face of ongoing external uncertainties, enhancing supply chain agility through diversified sourcing, and managing commodity and currency risks proactively.

Next slide, please. The Indian automotive industry concluded Q1 FY27 on a resilient note despite geopolitical disruptions in West Asia, supported by strong domestic demand, lower GST rates, and a favorable base effect compared to Q1 FY26.

The passenger vehicle demand remained strong during quarter under review despite geopolitical tensions in West Asia, elevated inflation within the RBI's target band, and heat waves across select regions. Demand was supported by sustained preference for SUVs and healthy consumer sentiment.

The HCV segment maintained healthy demand despite the ₹7.5 per liter increase in diesel prices. The HCV segment maintained its momentum supported by a combination of stable freight activity, steady replacement demand, and sustained spending in construction and infrastructure.

Continued momentum in key sectors, specifically steel and cement, provided a strong foundation for further growth. LCV demand remained robust, driven by healthy last-mile logistics, sustained e-commerce and FMCG demand, and a low base effect that supported growth momentum.

The three-wheeler sales maintained strong growth momentum, supported by steady passenger mobility demand and increasing last-mile connectivity. The EV segment continued to expand its market share, driven by attractive operating economics and lower running costs.

The tractor demand remained resilient despite concerns over an uneven monsoon across parts of the country, supported by healthy farm cash flows from a strong rabi harvest and pre-kharif farm activities. The two-wheeler market recorded robust growth supported by low base effect and resilient rural demand.

Next quarter, we expect a resilient 8% growth, driven by festive demand, stronger rural cash flows, and ongoing infrastructure activity. However, monsoon variability, potential El Niño effect, and geopolitical tensions remain key downside risks.

Next slide, please. Quarter-on-quarter, the Mobility business has grown 25.7% in April-June '26 as compared to April-June '25, driven mainly from the Power Solutions business, which grew by 29%, mainly on account of growth in passenger cars and off-highway segments.

The Mobility Aftermarket recorded a growth of 9.6%, driven by strategic price positioning and rollout of new schemes for key product categories, including lubricants and spark plugs. The Two-Wheeler business grew by 41.4%, mainly on account of growth in value-added EMS products, increased sales to premium motorcycle platforms, and steady demand from major domestic OEMs.

The Consumer Goods business grew by 20.9%, driven by strong demand for tools, supported by marketing campaigns. Sequentially, the Mobility business has grown 7.5% in April-June '26 as compared to Jan-March '26, driven mainly from the Power Solutions business, which grew by 5.8%, mainly on account of growth in passenger cars and off-highway segments.

The Mobility Aftermarket business, which grew by 8.7%, mainly on account of strong growth in lubricants, wiper systems, and spark plugs. The Two-Wheeler business has grown significantly by 20.5%, mainly on account of higher production volumes from two-wheeler OEMs, supported by channel inventory replenishments.

The Consumer Goods business declined by 15.7% due to seasonal factors. Next slide, please.

Quarter-on-quarter, revenue from operations in April-June '26 stood at 58,419 million INR, which grew by 22% over April-June '25. The growth was driven mainly by higher sales in Power Solutions and Two-Wheeler Power Sports segments, as seen in the previous slide.

Likewise, the revenue for the period April-June '26 grew by 5% over Jan-March '26 from 55,657 million INR to 58,419 million INR. This growth was driven by strong performance in Power Solutions and Mobility Aftermarket segments.

The EBITDA for April-June '26 was 8,180 million INR, which grew by 28% over same quarter of previous year. The improvement in EBITDA margin was primarily driven on account of growth in revenue and optimization of expenses.

EBITDA for period April-June '26 was 8,180 million INR as compared to 7,816 million INR in Jan-March '26, which grew by 4.7%. The increase in EBITDA was due to revenue growth.

The profit after tax for April-June '26 declined by 37.1% over the same quarter of previous year. April-June '25 had an exceptional item of profit on sale of video solutions, access and intrusion, and communication systems under the Building Technology segment.

The profit after tax without this exceptional item in April-June '25 quarter has grown by 9.9%. The profit after tax for 3 months ending June '26 stood at 7,018 million INR, which is a growth of 23.4% over sequential quarter.

The growth in PAT is mainly due to revenue growth and higher mutual fund gains, which are taxed at a lesser rate. Next slide, please.

I now will walk you through the key highlights from our business divisions for the first quarter of the fiscal year 2026-27. From our Power Solutions division, it achieved strong growth, significantly outperforming the broader automotive market.

This performance was driven by robust demand across all our key segments, including passenger cars, commercial vehicles, and tractors. Our focus continues on navigating the evolving regulatory landscape.

We are actively engaged with our partners to address upcoming regulations like CAFE 3, phase 3, CAFE Phase 3, and implementation of ADAS in commercial vehicles. Our commitment to quality and innovation continues to be recognized across the industry.

This quarter, multiple OEMs honored us for our performance. We received a Delivery Excellence Award from a leading commercial vehicle manufacturer, and a prominent tractor and utility vehicle maker awarded us for best quality performance, best in technology and innovation, and named us as their Business Partner of the Year.

Moving to our Two-Wheeler and Powersports division, the business successfully met a surge in market demand, ensuring zero production disruptions for our customers despite ongoing geopolitical and supply chain complexities. Bosch's advanced safety systems were recently integrated into the first electric motorcycle from a leading two-wheeler manufacturer for its commercial launch.

We also showcased our latest innovations across powertrain, safety, and electrification at the ACMA Mobility Foundation technology show. Furthermore, we were honored by a leading global two-wheeler manufacturer for providing exceptional development speed and engineering support for one of their flagship scooter platforms, a testament to our strong collaborative partnership.

In our Mobility Aftermarket division, the independent aftermarket business was a standout performer, achieving its highest-ever monthly sales in June. The original equipment segment also delivered robust growth.

This performance was driven by strong contributions from our core product categories, including lubricants, batteries, spark plugs, and braking systems. Strategically, we are accelerating our workshop programs and expanding our portfolio with new product launches such as Tilligs LED range of advanced lighting solutions, Prithvi a heavy-duty commercial vehicle battery, PC clutches, and suspension, which will further strengthen our market position.

In our Power Tools division, we saw strong sequential growth and accelerated demand in the construction and automotive sectors, with our online sales channels continuing to expand its share of total sales. Our strategic focus remains centered on driving cordless conversion, extending our product portfolio, and expanding our market reach to key users and small to medium enterprises.

Next slide, please. Thank you all for your contribution and listening patiently through the call.

We will now address your queries. Thank you, and we are open for questions.

Hello?

Thanks for this opportunity and congrats for good set of numbers. The first question is, the aftermarket segment seems to have come back into a high single-digit growth after languishing in the low single-digit.

Wanted to get your comments how sustainable is this momentum, what you have done differently from now onwards, because it's a large legacy business to be addressed.

Thank you, Pramod. Yes, we've had some low-growth period last year with our Mobility Aftermarket, and we've recognized that and made quite some corrections in our strategy and our approach to market.

Specifically to address your question, the independent aftermarket business did very, very robust growth. A lot of contribution from lubricants, batteries, spark plugs, braking systems, and rotating machines.

We've also sort of continued our expansion of the workshop program, which we are expanding at a very, very rapid pace now. We've also introduced quite some new product launches: Tilligs, the LED lights, then for the heavy commercial vehicle, HCV, batteries, we've brought in new products like the PC clutch and suspension systems.

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

Thanks. The second question is with regard to margins.

Compared to post-COVID EBITDA margin range of 12-13%, last two quarters you have successfully delivered 14% margin, and even in the annual report you talked about holding on to the margins. In that context, wanted to know how sticky these margins or are there any one-offs which have helped you, and going forward how confident you are to maintaining these type of margins?

I'll give you my perspective and maybe Tillmann can add on this. I think we've done quite a few things over the last several years, maybe at least two years or so consistently, which has led to a sustained improvement in our margins.

The first thing is continuous improvement in our operational excellence, so that has led to a sustained change. We've had continued increase in our localization content, so that's contributed quite a bit.

The volume growth has been favorable, which is also very good one. We've had improvements in productivity overall, that has been also a major contributor.

The product mix has also been quite favorable going forward, so that's also a good addition to our margin base. Overall, I would say we are on an upward trend, and we would say that we will sustain this.

Tillmann, if you want to add anything, please feel free to comment. I would also like to say that Tillmann is not feeling very well, that's why he is on the call from home.

Only when required, he can join in. Otherwise, I'll chip in for him.

I'm here, Guru. Just maybe one one addition.

I think we also profit from the worldwide purchasing organization. As you are all aware, the sourcing market is in quite a turmoil.

I think we are blessed with a worldwide purchasing organization, which helps us to maneuver this very volatile situation and maintain best as possible our margin in this situation via also our sourcing activities. That's the only thing I would add.

Sure, thanks. If I can ask one more question based on your annual report, you have successfully delivered in terms of reducing the broader purchased goods as a percentage of sales over the last 2-3 years by reducing it from whatever 40% plus by around 200 basis points.

If I have to look at the mix of it, the sourcing from parent continues to go up. It's now almost in that basket, 53% is a mix, which is I think a decadal high, versus the local subsidiaries' proportion has come down.

How should we look at directionally the imports from parent will come down, or new technology still demand this proportion to remain high? Thanks.

There has been a sudden surge in volumes, which have also led to this effect. All I can state is that our localization plans are well on track and consistently increasing localization content, and we will continue to go in this path and continue to increase our localization content.

As you go by in the coming quarters, we will continue to share our localization updates, and this is on a very good path as far as I can see.

Sure. Thanks and all the best.

Go ahead, please.

Thank you and congratulations on the wonderful numbers. This is Mukul Yuvraj Singh from Autocar Professional.

Everybody is focusing on SDVs, electronics, and everything else, but India's share of CNG vehicles and alternative fuels is growing much faster. 5 years from today, if I wanted to understand in terms of incremental revenue, would Bosch want to have that increased share from the technologies that have to do something with the engine or not with the engine?

In other words, would you also be working for the way India is growing, would you also be working to make ICE engine more cleaner and better for the future, also from revenue standpoint?

Mukul. I think the answer is pretty straightforward for us.

We are a technology company, and we will support and continue to support whatever technology that the market demands. You listed a few: SDVs, electrification, CNG.

There are plenty others: ADAS and everything else. Every one of this is in our portfolio, and we continue to offer that to our OEMs.

That said, there is also a momentum which will carry the combustion technologies forward and including maybe some alternate fuels. This progression will continue in the next many years to come.

This is something that's not stopping. We see this including volume growth in combustion technologies continuing to happen.

There is possibly also upgraded legislation in combustion technologies as we move forward, and we are certainly leading that wave and we will continue to support. Overall as a technology company, for us, these are all base technologies which we support based on whatever the OEMs demand, or whatever the legislation demands or market demands.

Thank you, sir. Just one more follow-up question on this.

A lot of OEMs now increasingly want to own software and electronics architecture themselves, and this trend is only picking up, right? Do you see a risk of losing some of the value Bosch traditionally captured as a Tier 1, or do you actually see Bosch's content per vehicle only increasing from here?

Today it's an earnings call. I would be happy to engage with you on this kind of a conversation separately.

Sure, sir. Thank you, sir.

The quick answer to this is, no, we don't see this as a negative phenomenon at all. We are happy to engage with OEMs on different models, and we already do.

Perfect. Thank you, sir, and once again congratulations on the wonderful numbers.

If you would like to engage specifically on these topics, feel free to let us know, and we can have a conversation.

Sure, sir. Thanks once again and congratulations from Autocar Professional.

Thank you, Mukul.

Hi. Thank you for the opportunity.

Congratulations on strong growth and resilient margin performance. My first question is on the Power Solutions business.

Can you help us understand, was there any content increase or new program execution that would have drove this outperformance, and how sustainable is this?

You are referring specifically to Power Solutions?

Yes.

Okay. In the Power Solutions business, we've sort of outperformed the growth across all our segments, right from passenger cars to off-highway and tractors.

I think the effect is largely volume effect, and maybe also some new introductions that we did over the last two quarters or so, which have helped us. I think what we look forward to moving forward are the upcoming legislations on CAFE 3, CAFE Phase 3, which will come up in April, which should be an even better boost.

We also have the CV ADAS coming up in October of next year, a lot of preparation going on towards that. That's another area where we look forward to sustaining this already good growth path.

Overall, I think Power Solutions is on a very, very good path.

Perfect, sir. Thank you.

Thank you. My second question is on the two-wheeler segment.

You indicated that you started supplying to premium two-wheeler platforms starting this quarter. Does that mean that you have gained market share or it is more to do with mix or content?

We've gained market share, yes. There are some new products introduced to new OEMs, we've gained market share here.

Perfect, sir. Also just clarification.

When you talked about upcoming regulations, specifically CAFE 3 norms from next year, what is the content opportunity for Bosch, any color on that, segment-wise content opportunity?

We can share that separately. I don't have the exact number right now and I don't want to speculate on a value.

We can share that with you.

Perfect, sir. Thank you.

Thank you so much. All the best.

Thank you, Ronak.

No, to answer that, no, there are no one-offs.

No, we don't have any one-offs.

I had a couple of questions on the Bosch Chassis acquisition. First is, is there any goodwill or amortization expense for the same acquisition?

No, there is nothing. ]:

Okay. The Bosch Chassis will be operated as a separate subsidiary.

How are the synergies on cost and revenue going to play out if we don't really merge it with our business? Can you just give a sense from the synergy point of view for the next 2 years?

The Chassis Systems business, which we've acquired, was a Bosch sister company. In terms of synergy effects, we see very minimal improvements in costs and synergy effects.

There will be some small improvements, but I don't see that as a big benefit. It's a great portfolio addition for Bosch Limited that we add sort of a powertrain-agnostic product line, which comes into Bosch Limited.

That's the bigger focus, and the company operates with a very good performance characteristics right now, very good projects acquired for the next several years. It's a very profitable, good growth, good market share company, and that should help Bosch Limited significantly moving forward.

Already starting next quarter, we will publish consolidated results and you will start to see the impact of this. ]:

Okay. What are the sale numbers for FY26 for Bosch Chassis, and also if you can provide us the break-up of the same for two-wheeler, four-wheeler, CV, tractor, export, or aftermarket, etc.?

Yeah.

The consolidation of Chassis Systems is underway right now. The sale was completed in July, and starting this quarter onwards, we will be able to produce all the numbers.

We will share more details in the upcoming quarters' conference call. I would also like to state that we are planning an investor meet at Chassis Systems location, Chakan, Pune in November, and we will send out invites.

Please feel free to come over, and we can share a lot more information, including a site visit and a plant visit when you're there. ]:

Okay. If I could just squeeze one last question is, if you can just let me know what is our business share of which is fuel-agnostic right now at a consolidated level?

Offhand, I won't be able to give you a good number because this cuts across different domains. This is something we can work towards and we can share more data to you independently.

]:

Sure. Thank you.

That's all from my side.

Hi, am I audible?

Okay. Sir, my first question is, how do you see the export trends over the next 2 to 3 years, and what percentage of revenue it contributes?

Yeah. Currently we see high single-digit trend.

We are in that space today. Over the next few years, our aim is to continuously increase this number.

We are probably at 8% now, if I'm not wrong, 8-8.5%, and we will continue to increase this moving forward. Over the next couple of years, this is on an increasing trend.

Okay. Sir, just one last question, which is as the base effect comes into the picture after the GST, how do you see the CV and PV cycle?

Will the demand sustain or do you see a significant decline in or subdued growth in the volumes of the overall industry?

This is sort of a crystal ball question. The first two quarters after the GST, everybody expected the demand to sort of normalize after the GST effects, but it's not happened that way.

There has been sustained growth. I think maybe in one or two more quarters the GST-related things may normalize, but the demand and the consumption-led growth is continuing quite sustainably.

We hope this momentum will only be added by the lower GST rates which we already have. Overall, we

Hi, am I audible?

yeah. Thank you for taking my question.

This is Anand from Informist. I wanted to understand how much of your revenue growth is currently coming from underlying volume growth versus content per vehicle and product mix?

I would say we've outperformed the volume growth in the market by a few percentage points.

All right, sure. I wanted to understand do you expect the current product mix to remain favorable through FY27, or could margins normalize as the year progresses?

No, I think it is quite favorable through the year.

All right. If I could just squeeze in one final question, how quickly do you expect EVs to become a meaningful part of your mobility business?

EVs are already part of our mobility business, maybe not showing up in terms of turnover, but in terms of technology, in terms of product, and in terms of what we plan to do. We also, as you are aware, we announced a joint venture with TACO, where we will produce e-axles moving forward.

EVs are certainly an integral part of our overall mobility offering, and in terms of revenue addition, we will get back to you as the quarters go by.

Sure. Thank you.

Hello?

Sir, thanks for the opportunity. Just wanted to ask on both of these JVs, one with Wheels and Brakes India and the second with TACO.

Where are we in terms of the overall regulatory approvals and when will the revenue start flowing in from these JVs?

Thank you for the question. The JVs are in the process of getting set up.

Both JVs are in their final stages of merger controls, which are ongoing. We need both, for example, the Bosch Group and the Tata Group are operational worldwide and we need merger control clearances from many places.

There is some of this admin or procedural work that's ongoing. The JV with TACO will be set up at Nashik, or will be operational out of Nashik.

The JV with TSF Group will be operational out of Chennai. The e-axle JV revenue should be coming out of the JV by late next year.

Thank you, quite clear. Sir, if you can disclose any sort of order wins or any sort of details on that?

Sorry, I couldn't hear you at all. Could you repeat?

Sir, if you can disclose any sort of order wins in these JVs as of now? Order wins in the JVs.

Okay. At this point of time, I would not like to disclose, but we got into the JV only after we have a healthy order book from our side and from the TACO side, we are doing quite good there.

On the TSF joint venture for air systems, we are now starting to talk to customers starting September in the auto show, IAA auto show. From then on, we should start to discuss real business.

Give us a quarter, and then we will update you more on the order book and further details.

Just if I can squeeze in one last question. Sir, overall commodity outlook going forward, how do you see that spanning forward?

Sorry, could you repeat?

Sir, the overall commodity outlook now going forward.

Commodity outlook, okay. We've seen pretty strong increase over the last several quarters, which has sort of leveled off a little bit at this point of time.

A lot of that again is dependent on global conditions, geopolitics, supply chain issues, logistics issues. It's a pretty volatile environment at this point of time.

We have some impact, we have contained some impact, and at this point of time it looks a little stable, but I wouldn't want to give you any guidance on how this is going because it's so dynamic and externally oriented.

Thank you and best wishes, sir.

Thank you.

Okay. The first growth driver as always is volume, and we see significantly increasing volume growth in all our mobility portfolio over the next 3 to 5 years.

There we see quite a lot of new things. In every one of our product areas: Power Solutions, two-wheelers, and of course also on Mobility Aftermarket, Power Tools, and now the complete Chassis Systems area, we have quite a lot of new product introductions coming up, which will see offtake in the market over the years.

New products, product mix changes will give us significant support on our revenue growth. We also see new technology introductions, which will happen in the coming years.

For example, commercial vehicle ADAS is whole new technology, a regulated market, where we will see quite some action happening starting next year, and that should also be a good growth driver. Overall, the premiumization of vehicles, the volume increase in vehicles, new technology in vehicles, all of which are growth drivers for us.

No, thank you. Just want to say thank you.

If there are any other questions, please feel free to send it to us, Annamalai, and we can answer, not an issue. Yes, sir.

The closing remark I would say is thank you all for your support and being with us all this time. We've had a good quarter, exceptionally good quarter, and overall, I would say a very good year which we closed.

The trend is looking good and positive for us as we go into the next quarter. Thank you very much and looking forward to a further growth opportunity in the coming quarter, too.

Thank you very much.