Shares of Bosch Ltd. were trading lower on Monday, November 9, after the auto components maker reported its September quarter (Q2FY27) results and outlined a cautious outlook for the second half of the current financial year.
Bosch reported an 18.6% year-on-year increase in net profit to ₹839.4 crore in Q2FY27, compared with ₹708 crore in the corresponding quarter of the previous fiscal year. The profit figure includes a one-time gain of ₹130 crore.
Revenue from operations rose 28.2% year-on-year to ₹7,655 crore from ₹5,969 crore in Q2FY26.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 23.2% year-on-year to ₹1,037 crore, compared with ₹842 crore in the year-ago quarter. However, EBITDA margin contracted to 13.5% from 14% a year earlier.
The company’s board has also approved a bonus issue in the ratio of 3:1, under which shareholders will receive three bonus shares for every one share held. Additionally, the board has approved a stock split, whereby each equity share with a face value of ₹10 will be subdivided into five shares with a face value of ₹2 each.
Bosch management commentary and outlook
During its earnings call, Bosch indicated that business conditions could remain challenging in the second half of FY27, with inflationary pressures, weak monsoons and tightening interest rates likely to weigh on demand.
The company expects the two-wheeler market to witness flat to modest growth in Q3FY27, partly due to a high base of comparison.
Bosch also indicated that margins at its RBIC business are likely to improve after potentially one more quarter. However, the recovery of higher input costs through price increases could take time, given the lag in passing on additional costs to customers. While the company will attempt to recover the entire cost increase, a 100% recovery is not guaranteed.
On capital expenditure, management highlighted that spending typically follows a seasonal pattern, with Q3 accounting for a particularly high level of capex.
Bosch shares ended 3.19% lower at ₹50,800 during Muhurat trading. Despite the decline, the stock has gained over 40% so far in 2026.
Bosch shares fall after management cites a ‘modest’ outlook for second half of the year