Automotive components maker Bosch is facing customer pushback on passing through higher input costs, as rising aluminium prices and rupee depreciation put pressure on its cost structure. The company is seeking to recover the entire increase from customers but cannot be certain of a full pass-through, as automakers are also grappling with rising costs.
Speaking during a post-quarter analyst call, Guruprasad Mudlapur, President, Bosch Group in India and Managing Director, Bosch Ltd, said there was a time lag between the increase in input costs and their recovery from customers, depending on contractual arrangements.
“We are trying to recuperate the whole amount, but you will understand that in the market there is also a certain pushback, as our customers are suffering on multiple fronts, including the increase in material prices,” he said.
The company also expects business growth to moderate in the second half of FY27, following a strong run over several quarters, as inflationary pressures, uneven monsoon conditions and tighter interest rates weigh on demand.
Bosch expects some moderation across automotive segments, citing a high base in the corresponding period last year and a record performance in the second quarter. Tractor demand has already seen relatively modest growth, while other segments are likely to follow a similar trajectory, Mudlapur said.
“A little more modest second half is a likely outcome as we go forward,” he said, pointing to the combined impact of inflation, weak monsoons and interest rate tightening.
Bosch Ltd on Friday reported an 18.6 per cent year-on-year increase in consolidated net profit to ₹839.4 crore in Q2 FY27, compared with ₹708 crore in the corresponding quarter last year.
Revenue from operations increased 28.2 per cent to ₹7,655.1 crore during the quarter, against ₹5,969.4 crore in Q2 FY26. Profit before tax (PBT) rose 19.6 per cent to ₹1,122 crore from ₹937.8 crore a year earlier.
The company reported an exceptional credit of ₹130.4 crore during the quarter following the reversal of provisions for long-term service awards after Bosch globally discontinued the employee benefit.
On its electric vehicle business, Bosch said its participation in the segment would be supported largely through a joint venture that is currently being set up. The company has acquired several projects that will be taken forward through the proposed joint venture.
While it did not disclose further details, management said Bosch Ltd and other group companies, including Bosch Chassis Systems India, are also supplying components for electric vehicles. These include specialised braking systems for electric vehicles.
Published on November 10, 2026
