Bosch Q1 FY27 Results Analysis: Revenue Surges 22%, COGS Margin Expands 419 bps (BOSCHLTD)

CompoundingAI Research Updated August 10, 2026 2 min read

Neutral

Bosch Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 5,841.90 Cr (+22.00% YoY) and PAT growth of +4.67% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	August 10, 2026
Quarter	Q1 FY 2026-2027
Revenue (Q1)	Rs. 5,841.90 Cr (+22.00% YoY)
PAT (Q1)	Rs. 701.80 Cr (+4.67% YoY)
EBITDA margin	14.00% (+65 bps YoY)
EPS (Q1)	Rs. 237.95
Market cap	Rs. 131,225.32 Cr
CMP	Rs. 43,505.00

Quarter Snapshot

Bosch delivered strong revenue growth of 22% YoY, the highest in five quarters, driven by broad-based automotive demand. Operating leverage helped offset a 419 bps COGS margin expansion from raw material cost inflation, keeping EBITDA margins flat sequentially. The RBIC acquisition completed post-quarter will add significant revenue from Q2 FY27, but near-term margin pressure from input costs and inventory build remains a watch item.

Key Investment Insights

Key Positives

Revenue grew 22.0% YoY to Rs.5,841.9 Cr, the strongest quarterly growth in at least five quarters.
Normalized PAT (excluding exceptional items) grew 4.7% YoY to Rs.701.8 Cr.
Automotive segment revenue grew 23.3% YoY, driven by broad-based demand.
Consumer Goods segment revenue grew 20.9% YoY and EBIT margin improved 239 bps to 10.91%.
Operating leverage visible: employee expenses fell 1.0% YoY and other expenses fell 2.8% YoY, offsetting raw material cost inflation.
EBITDA margin expanded 65 bps YoY to 14.00%.
Promoter holding increased via preferential allotment of shares.
RBIC acquisition completed on July 1, 2026, expected to add ~Rs.4,000 Cr annual revenue from Q2.

Risk Factors

COGS margin expanded 419 bps YoY to 66.54% due to raw material cost headwinds (steel, aluminium).
Inventory build of Rs.188.8 Cr suggests higher-cost inventory that may pressure margins in subsequent quarters.
2-Wheeler business growth decelerated from 69.1% (FY26) to 41.4% (Q1FY27) as expected with OBD2 normalization.
Normalized PAT growth of only 4.7% YoY, constrained by lower other income, higher D&A, and higher effective tax rate.
Other income declined 21.7% YoY to Rs.225.7 Cr.
Effective tax rate normalized to 25.24% from 19.98% in Q1FY26, reducing net profit.