Bosch Falls 4% Despite 18.5% Rise in Q2 Profit to 8,405 Million Rupees
Key Facts
Bosch shares fell 4% to 50,375 rupees in Friday afternoon trading, November 6, 2026, after the company reported annual growth of 18.5% in consolidated profit after tax in the second quarter of fiscal 2026-27. Profit was 8,405 million rupees in the July-to-September period, compared with 7,084 million in the corresponding quarter a year earlier. The company's results also showed a 28.2% increase in consolidated operating revenue to 76,551 million rupees, from 59,694 million a year earlier. The figures were included in the company's official investor presentation, while Moneycontrol reported the share decline during the announcement session. The board approved a stock split and a bonus share issue on the same day, with both measures subject to shareholder approval.
Consolidated earnings before interest, taxes, depreciation and amortization rose 23.2% to 10,371 million rupees in the quarter, compared with 8,417 million in the corresponding period. Bosch said the absolute growth in this item was driven mainly by higher revenue, partly offset by an increase in raw material costs. Operating earnings growth thus coincided with pressure from input costs, according to the company's explanation. The investor presentation did not provide a comparison of the earnings margin in the two periods. Moneycontrol also did not link the share's afternoon decline to a specific cause, leaving the price move separate from the company's explanation of its results.
Bosch attributed revenue growth to strong demand in the passenger car and commercial vehicle segments, growth in four-wheel-drive vehicles, a favorable product mix and demand from vehicle manufacturers ahead of the festive season. It also cited continued positive market momentum during the season. Managing Director Gurupprasad Mudlapur said quarterly performance was underpinned by stable demand across vehicle segments and this momentum. The company's mobility business grew 29.8% during the quarter, driven by growth of 36.4% in energy solutions, 34.9% in vehicle movement and 13.2% in aftermarket services. These figures place the sources of growth within the company's vehicle-related businesses, alongside seasonal demand and product mix. Bosch Chassis Systems India became wholly owned by Bosch effective July 1, 2026, and the company included the second-quarter results in its financial presentation.
For the six months from April to September, consolidated operating revenue grew 25.0% year on year. Bosch said the expansion was linked to growth in the automotive segment, particularly passenger cars, as well as increased motorcycle production and consumer goods sales campaigns. Consolidated profit after tax, however, fell 13.1% in the first half compared with the same period a year earlier. The company attributed the decline mainly to the comparison with an exceptional gain from the sale of the BT business in the first half of the previous year. The second-quarter results provide a different picture from the half-year total: quarterly profit rose year on year, while cumulative net profit remained below the comparable level because of that exceptional item.
Bosch informed the stock exchanges on November 2 that the board would meet on November 6 to consider unaudited results for the quarter and half year ended September 30, along with proposals for a stock split and bonus issue. After the meeting, Moneycontrol reported that the board approved splitting each existing share with a face value of 10 rupees into five shares with a face value of 1 rupee each, then a correction: with a face value of 1 rupee? According to the correction in the company's disclosure, the face value of each share after the split is 1 rupee? It also approved issuing three bonus shares for each share after the split, at a ratio of 3:1. Both measures are subject to shareholder approval through a postal ballot, and the meeting notice did not specify a later date for that vote. The company had scheduled a call to discuss second-quarter financial performance for November 6 at 15:45 India time, with Mudlapur and Chief Financial Officer Olsen Tillmann participating.
Results for the corresponding quarter of fiscal 2025-26 show the scale of the change in annual performance: operating revenue then stood at 4,795 crore rupees, up 9.1% year on year, while profit after tax was 554 crore rupees, equivalent to 11.6% of operating revenue. In the first quarter of the current fiscal year, operating revenue rose 22.0% year on year, while profit after tax fell 37.1%. Bosch said the decline in profit in the quarterly comparison was linked to an exceptional gain from the sale of the BT business in the corresponding period a year earlier. These comparisons show that revenue continued to grow in the first and second quarters, while profit in earlier comparisons was affected by the exceptional sale item. The November 6 announcement combines profit and revenue growth in the second quarter with a potential structural decision that would change the number of outstanding shares once shareholder approvals are completed.