Bosch India bets on CAFE III, ADAS, localisation to power next growth phase

Managing Director Guruprasad Mudlapur

Bosch Ltd expects its EBITDA margin of around 14 per cent to sustain after moving above its post-Covid range of 12-13 per cent as the auto-component and technology major bets on localisation, operating efficiencies, premiumisation and regulation-led technology adoption to drive growth over the next three to five years, Managing Director Guruprasad Mudlapur told analysts during the company’s post-results investor call on Tuesday.

“We have done quite a few things over the last several years… which has led to a sustained improvement in our margins,” said Mudlapur, citing operational excellence, higher localisation, volume growth, productivity and a favourable product mix. “Overall, I would say we are on an upward trend, and we would say that we will sustain this.”

Growth outlook

Bosch Ltd’s standalone revenue from operations rose 22 per cent year-on-year to ₹5,841.9 crore in the June quarter and was 5 per cent higher sequentially. EBITDA increased 28 per cent to ₹818 crore, translating into a 14 per cent margin.

Profit after tax stood at ₹701.8 crore, down 37.1 per cent due to an exceptional gain in the year-earlier quarter. Excluding the exceptional item, PAT grew 9.9 per cent. For the second quarter, Mudlapur expects the automotive market to grow about 8 per cent, supported by festival demand, stronger rural cash flows and continued infrastructure activity. He, however, flagged monsoon variability, a potential El Niño effect and geopolitical tensions as key downside risks.

A key part of Bosch’s next growth leg could come from regulatory changes. Its power solutions business grew 29 per cent year-on-year, outperforming the market across passenger vehicles, off-highway vehicles and tractors. Mudlapur said upcoming CAFE Phase III regulations “should be an even better boost”, while commercial-vehicle ADAS represents “a whole new technology, a regulated market” that could emerge as another growth driver.

Bosch expects higher vehicle volumes, new products, technology adoption and premiumisation to drive revenue over the next three to five years.

Two-wheelers’ share

Two-wheelers emerged as another growth engine, with revenue surging 41.4 per cent year-on-year. The management confirmed Bosch gained market share through new products supplied to new OEMs, including premium motorcycle platforms.

“We’ve gained market share,” said Mudlapur, attributing the improvement to new products introduced to new OEMs.

Bosch does not expect the transition towards electrification to end growth opportunities in combustion technologies.

“We are a technology company, and we will support and continue to support whatever technology that the market demands,” said Mudlapur, pointing to electrification, CNG, software-defined vehicles and ADAS. The company expects combustion technologies, including alternative fuels, to continue recording volume growth as regulations evolve.

At the same time, its e-axle joint venture with Tata AutoComp Systems is expected to operate from Nashik and generate revenue by late next year. The management said the partners entered the venture with a “healthy order book”.

Bosch’s recently acquired chassis systems business will start contributing to consolidated results from the current quarter. The management sees the acquisition primarily as adding a profitable, growing and powertrain-agnostic portfolio, rather than as a cost-synergy play.

“Bosch’s recently acquired chassis systems business, bought from a fellow Bosch group entity, will start contributing to consolidated results from the current quarter,” the company said

Exports, currently around 8-8.5 per cent of revenue, are also expected to increase over the next few years, providing another growth lever.

Published on August 12, 2026