BOSCHLTD — earnings call

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Prepared remarks

Moderator · Conference Operator

MR. ANNAMALAI JAYARAJ – 360 ONE CAPITAL

MARKET

Bosch Limited August 11, 2026

Annamalai Jayaraj

Ladies and gentlemen, good day, and welcome to Bosch Limited 1Q FY 2026-'27 Post Results Conference Call hosted by 360 ONE Capital Market Research.

From Bosch management, we have with us today Mr. Guruprasad Mudlapur, Managing Director; Mr. Tillmann Olsen, Chief Financial Officer.

For Mr. Tillmann Olsen, this will be the first investor call, and welcome, sir.

At this point, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the management presentation and opening remarks.

Over to you, sir.

Questions and answers

“Bosch Limited 1Q FY26-27 Post Results Conference Call” August 11, 2026

V Srinivasan · Research Analyst

Congratulations on the wonderful numbers.

This is Mukul Yudhveer 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 alike or growing much faster.

Five 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 going, would you also be working to make ICE engine more cleaner and better for the future, also from a revenue standpoint?

Guruprasad Mudlapur

Okay, 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.

So 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.

Bosch Limited August 11, 2026 This progression will continue in the next many years to come.

So 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 way and we will continue to support.

So overall, as a technology company for us, these are all base technologies, which we support based on whatever the OEMs demand or whatever the registration demands or market demands.

V Srinivasan · Research Analyst

Just one more follow-up question on this.

A lot of OEMs now increasingly want to own software and electronics architecture themselves.

This trend is only picking up, right?

Does -- 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?

Guruprasad Mudlapur

Yes.

I mean today, it's an earnings call.

I would be happy to engage with you on this kind of a conversation separately.

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.

V Srinivasan · Research Analyst

And once again, congratulations on the wonderful numbers from...

Guruprasad Mudlapur

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

Annamalai Jayaraj

Mr. Ronak Mehta, you can please unmute and ask your question.

Ronak Mehta

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?

Guruprasad Mudlapur

You are referring specifically to Power Solutions?

Ronak Mehta

Yes.

Guruprasad Mudlapur

Okay.

So 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.

We've -- I think it's -- the effect is largely volume effect and maybe also some new introductions that we did over the last 2 quarters, which have helped us.

I think what we look forward to moving forward are the upcoming legislations on 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.

So a lot of preparation going on towards that.

That's another area where we look forward to sustaining this already good growth path.

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

Ronak Mehta

Perfect, sir.

And my second question is on the 2-wheeler segment.

So you indicated that you started supplying to premium 2-wheeler platforms starting this quarter.

Does that mean that you have gained market share?

Or it is more to do with the mix of content?

Bosch Limited August 11, 2026

Guruprasad Mudlapur

We've gained market share, yes.

There are some new products introduced to new OEMs.

So we've gained market share.

Ronak Mehta

Perfect, sir.

And also just a clarification.

So 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?

Guruprasad Mudlapur

We can share that separately.

I don't have the exact number right now, and I don't want to speculate on a value.

So I can -- we can share that.

Annamalai Jayaraj

Yes.

If anybody has any question, please raise your hand.

But in the meantime, some question on the chat box, some housekeeping questions.

Like this time the employee cost, even in absolute year-on-year, there is no big change.

Is there any one-offs in the employee expenses, sir?

Guruprasad Mudlapur

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

Annamalai Jayaraj

And on the other expenses, any one-off, sir?

Guruprasad Mudlapur

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

Annamalai Jayaraj

you can unmute and ask your question.

Questioner

Yes.

I had a couple of questions on the Bosch Chassis acquisition.

So first is, is there any goodwill or amortization expense for the same acquisition?

Guruprasad Mudlapur

No, there is nothing.

Questioner

Okay.

And the Bosch Chassis will be operated as a separate subsidiary.

So 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?

Guruprasad Mudlapur

Yes.

So the Chassis Systems business, which we've acquired was a Bosch sister company.

And 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.

And that's the bigger focus, and there is -- the company operates with a very good performance characteristics right now, very good projects acquired for the next several years.

So 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.

Questioner

Okay.

And so what are the sale numbers for FY26 for Bosch Chassis?

And also if you can provide us the breakup of the same for 2-wheeler, 4-wheeler, CV, tractors export or aftermarket, et cetera?

Bosch Limited August 11, 2026

Guruprasad Mudlapur

Yes.

So the consolidation of Chassis Systems is underway right now.

The sale was completed in July.

And starting next -- this quarter onwards, we will be able to produce all the numbers.

We will share more details in the upcoming quarter's 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 and 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.

Questioner

Okay.

And 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?

Guruprasad Mudlapur

So offhand, I won't be able to give you a good number because this cuts across different domains.

But this is something we can work towards and we can share more data to you independently.

Annamalai Jayaraj

Mr. Niril, you can unmute and ask your question.

Niril

Am I audible?

Annamalai Jayaraj

Yes.

Niril

So 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?

Guruprasad Mudlapur

Yes.

So currently, we see high single-digit trend.

We are in that space today.

And 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.

So over the next couple of years, this is on an increasing trend.

Niril

And 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 their demand sustain?

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

Guruprasad Mudlapur

Yes.

I mean this is sort of a crystal ball question.

The first 2 quarters after the GST, everybody expected the demand to sort of normalize after the GST effect, but it's not happened that way.

There has been sustained growth.

And I think the -- maybe in 1 or 2 more quarters, the GST- related things may normalize, but the demand and the consumption-led growth is continuing quite sustainably.

And we hope this momentum will also be added by the lower GST rates, which we already have.

So overall we….

Annamalai Jayaraj

Mr. Anand Chandrasekar, you can unmute and ask your question.

Anand Chandrasekar

Am I audible?

Annamalai Jayaraj

Yes.

Anand Chandrasekar

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?

Bosch Limited August 11, 2026

Guruprasad Mudlapur

Just hold on.

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

Anand Chandrasekar

Okay.

All right.

Sure.

Also, I wanted to understand, do you expect the current product mix to remain favorable through FY27?

Or could margins normalize as the year progresses?

Guruprasad Mudlapur

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

Anand Chandrasekar

All right.

If I could just squeeze in one more -- one final question.

How quickly do you expect EVs to become a meaningful part of your mobility business?

Guruprasad Mudlapur

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.

So 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.

Annamalai Jayaraj

Mr. Vedant, you can unmute and ask your question.

V Srinivasan · Research Analyst

So just wanted to ask on the both of these JVs, one with Wheel and Brakes India, and the second with TACO.

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

Guruprasad Mudlapur

Thank you for the question.

The JVs are in the process of getting set up.

The JV with -- or both JVs are in the 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.

So there is some of these 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.

And the e-axles JV, revenue should be coming out of the JV by late next year.

V Srinivasan · Research Analyst

And sir, if you can disclose like any sort of order wins or any sort of details on that?

Guruprasad Mudlapur

Sorry, I couldn't hear you at all.

Could you repeat, Vedant?

V Srinivasan · Research Analyst

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

Guruprasad Mudlapur

Okay.

So yes, I mean, 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.

So 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.

And from then on, we should start to discuss real business.

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

V Srinivasan · Research Analyst

And just if I can squeeze in one last question.

So sir, overall commodity outlook like going forward, how do you see that standing forward?

Bosch Limited August 11, 2026

Guruprasad Mudlapur

Sorry, could you repeat?

V Srinivasan · Research Analyst

Sir, the overall commodity outlook now...

Guruprasad Mudlapur

Commodity outlook, okay.

Yes, 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 it, again, is dependent on global conditions, geopolitics, supply chain issues, logistics issues.

So 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.

Annamalai Jayaraj

Sir, I will take a question from the chat box.

It's a very generic question.

So what would be our growth drivers for the next 3 to 5 years?

Guruprasad Mudlapur

Okay.

So 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.

So there, we see quite a lot of new things.

In every one of our product areas, power solutions, 2-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.

So our new products -- product mix changes will see significant -- will give us significant support on volume growth -- I mean our revenue growth.

We also see new technology introductions, which will happen in the coming years.

And for example, commercial vehicle ADAS is a 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.

So overall, the premiumization of vehicles, the volume increase in vehicles, new technology in vehicles, all of which are growth drivers for us.

Annamalai Jayaraj

Sir, there are no more questions.

Any closing comments you want to make, sir?

Guruprasad Mudlapur

No, thank you.

I just want to say thank you...

Annamalai Jayaraj

Sir, only one minute, sir, one question has come.

But he is unable to unmute, sir.

We can go ahead, sir, for closing comments.

Guruprasad Mudlapur

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

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.

And the trend is looking good and positive for us as we go into the next quarter.

So yes, thank you very much, and looking forward to further growth opportunity in the coming quarter.

Bosch Limited August 11, 2026

Annamalai Jayaraj

Thanks, sir.

All participants can disconnect our lines.

Thanks for participating.

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