Guruprasad Mudlapur and Karin Gilges
A consistent focus on innovation, sustainability, and long-term value creation has helped Bosch remain resilient, maintaining strong performance globally and in India despite a challenging global environment marked by wars, trade tensions, and energy uncertainties, Guruprasad Mudlapur, President of the Bosch Group in India, and Managing Director, Bosch Limited, has said.
At a global level, the Bosch Group reported revenues of €90.3 billion for FY 2024–25 with EBIT margin from operations of 3.5%. Even in these tough times, the global company has kept up its strong investments in research and development, spending €7.8 billion in R&D and €5.1 billion in capital expenditure during the year. This focus on technology and innovation is a major reason why Bosch continues to grow even as many other companies struggle, he explained.
In India, the company reported a turnover of INR 37,345.7 crore for the financial year 2024-25. The company’s revenue from operations grew by 8.1% while operating profit (EBIT) rose by 16.1%. Bosch India also continued to invest in its future, spending INR 526 crore on R&D and INR 127 crore on capital expenditure during the year.
All major business divisions in India showed positive momentum, he said, adding that the Power Solutions, the largest division locally, grew by 5.8%. Mobility Aftermarket registered a growth of 8.4%, while the two-wheeler segment performed exceptionally well with 18.5% growth. The Beyond Mobility division grew by 6.3%, and Building Technologies recorded an 8.2% increase in sales.
In the first quarter of FY 2025–26, Bosch India reported a revenue growth of 10.9% over the same quarter last year. Operating profit stood at 11.6% of total revenue. The company’s Profit Before Tax reached 29.1% and Profit After Tax came in at 23.3%, reflecting a strong start to the year.
Favourable Product Mix & Localisation Strategy
Profit Before Tax in Q1 FY26 (excluding exceptional items) stood at INR 838 crore (86 million euros), accounting for 17.5% of revenue and marking a sharp 37.2% year-on-year increase. This growth was primarily driven by a favourable product mix and improved material cost efficiency. Elaborating on those favourable product mix and improved material cost efficiency, Karin Gilges, Executive Vice President, Finance & Administration and Chief Financial Officer (CFO), Bosch Limited, said, some products have achieved high levels of localisation in India, leading to reduced material costs and more control over supply chains. Products still in the localisation phase may not offer the same benefit yet, so the product mix in any given quarter affects the results. Bosch aims to increase localisation further for cost efficiency and supply chain flexibility.
Material Cost Management Despite Global Volatility
By sourcing locally, the company avoids high logistics costs and gains shorter lead times. Additionally, as part of the global Bosch network, India operations “benefit from shared resources and crisis response mechanisms. Task forces within the global group coordinate supply chain challenges swiftly, including shifting transport modes or diverting supplies as needed,” she said.
The India operations gain stability by being part of Bosch’s international production network. This global muscle provides access to expertise, alternative sourcing options, and faster problem-solving during supply chain disruptions, Gilges added.
Rare Earth Challenges, Global Coordination
The global rare earth supply crisis has affected industries across the world, including Bosch. Bosch is currently working on getting government approvals for importing rare earth materials, while also managing the situation through its global task forces. Collaboration with Bosch’s Chinese arm is helping the Indian operations navigate complex applications and sourcing challenges, Mudlapur said.
Exports / Global Integration
Bosch India’s operations are also integrated into the Bosch Group’s export plans. For example, the recently ramped-up NOx sensor production will include a share for exports. However, the priority remains serving the Indian market, given the strong domestic growth, Gilges added.
Mudlapur observed that while several flashpoints across the world have turned into prolonged conflicts, the global economy is expected to grow modestly—about 3% in 2025 and 3.1% in 2026. India, however, stands out as one of the few major economies still growing at a healthy pace of around 6.5%, although this too may come under pressure if global volatility continues.
In terms of recent business shifts, Bosch completed the global carve-out of its Building Technologies business, including in India. At the same time, it has made a global acquisition in the HVAC segment to strengthen its home comfort solutions portfolio. Although these changes may not directly impact Bosch Limited's operations at present, they signal the Group’s strategic direction globally, he explained.
Bosch has also made significant strides in sustainability. As of now, 99.5% of the electricity the group purchases come from renewable sources, and work is underway to reduce emissions across its entire value chain, including Scope 3. In India, the company continues to use 100% green electricity and has reported low accident rates with a 4% reduction even in incidents. Water consumption and contributions to the circular economy are being carefully monitored, and compliance with internal codes of conduct remains strong.
Hydrogen & Electrification R&D In India
Bosch India is actively contributing to global R&D efforts. For hydrogen ICE (internal combustion engines), Bosch has set up a local Centre of Competence in Bengaluru, with complete testing infrastructure. The company is also working on hydrogen injection technology and partners with BGSW for software and engineering. It continues to support global OEMs with development work on electrification as well.
Mobility Aftermarket Growth Drivers
The 8.4% growth in Bosch’s aftermarket business in India was not due to any particular trend but was supported by an expanding vehicle base and increased usage. Maintenance product demand like wipers, tyres, batteries, and oils is closely linked to kilometres driven rather than the sheer vehicle parc. As people drive more, especially post-pandemic, the need for aftermarket products rises, he added.
Impending regulations will be one of the key drivers for growth for the company in the near future. “We have solutions ready for all kinds of regulations even before they are implemented, since Bosch is a global player and has responsibilities for few key markets around the world. In India we start working with OEMs much before the indicative timelines for implementing regulations,” Mudlapur added.
Even with an unpredictable global outlook, the global company and its India operations remain confident in its strategy. By investing steadily in technology, sustainability, and talent, they are positioning themselves to stay ahead in a rapidly changing world.
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