Bosch Q2 FY27: PAT +19% boosted by one-off; margins compress despite 28% revenue surge

Bosch Limited's consolidated revenue for Q2 FY27 (Jul-Sep 2026) rose 28.2% YoY to ₹7,655 Cr, comfortably above the ₹5,600-5,900 Cr range flagged in our pre-result preview, with standalone-only revenue (unaffected by this quarter's RBIC consolidation) up a near-identical 28.6% YoY to ₹6,164 Cr — confirming the growth is largely organic rather than a consolidation artifact. Reported consolidated PAT rose 18.6% YoY to ₹839.4 Cr, at the upper edge of the 12-18% YoY PAT growth the Street had pencilled in. But ₹130.4 Cr of that profit came from a one-off: RBIN's reversal of a long-term service-award provision after discontinuing the benefit (Note 5b). Stripping it out, adjusted PAT grew only ~4.7% YoY (standalone adjusted growth was nearly identical at ~5.0%), and sequentially adjusted PAT was actually down ~8.8% versus Q1 FY27's restated ₹813.6 Cr — the headline +3.3% QoQ print is almost entirely the one-off. The gap between 28% revenue growth and ~5% underlying profit growth sits in the margins. EBITDA margin (profit before exceptional items plus finance cost and depreciation, over revenue) came in at 14.8% this quarter, down from 16.9% a year ago and 16.9% last quarter — a roughly 200bps compression on both counts. That's still above the "14% sustainable" floor management cited on the Q1 call, but confirms the "profit growth not yet evident" caveat management itself flagged then: material costs, employee expense and other expenses all grew roughly in line with or ahead of revenue, leaving operating leverage largely absent this quarter. Automotive products remained the core driver, contributing ₹7,001 Cr of consolidated segment revenue (+28.6% YoY) and ₹968.5 Cr of segment profit. The print also folds in Bosch Chassis Systems India (RBIC), which Bosch Limited acquired in full for ₹9,024 Cr effective July 1, 2026; under common-control accounting the company restated all comparative periods back to April 2025, which is why this card's YoY/QoQ figures diverge from previously tracked comparators. No company press release was available this quarter to corroborate management's own framing of the print. Alongside results, the Board approved a 1:5 stock split and a 3:1 bonus issue (pending shareholder postal ballot, targeted within two months) — a significant concurrent corporate action; this quarter's basic EPS of ₹284.97 (consolidated) is on the pre-split, pre-bonus share base. Management's prior guidance pointed to 8% revenue growth this quarter on festive demand and rural cash flows; the actual 28%+ print far exceeds that, while CAFE Phase 3 (April 2027) and CV ADAS (October 2027) remain the structural tailwinds management has flagged for the medium term.