Bosch Home Comfort Q1 FY27 Results (NSE: BOSCH-HCIL)
Signal: Steady quarter
The read
The operating inflection is revenue growth accelerating to +28.5% YoY and PAT growth to +49.4%, led by cooling products, but gross margin fell 115bps YoY to 27.7% as material and inventory-related costs rose faster than revenue; sustained earnings improvement therefore depends on cost recovery or mix improvement.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹109.55 Cr | +28.5% | +13.5% |
| EBIT | ₹3.36 Cr | N/A | |
| Net profit | ₹2.28 Cr | +49.4% | |
| EPS | ₹8.3 | +48.2% | |
| EBIT margin | 4.3% |
P&L walk
Standalone revenue was ₹1095.52 million, +28.5% YoY and +13.5% QoQ, with PAT at ₹22.79 million, +49.4% YoY; however, gross margin compressed to 27.7% from 28.9% as material and inventory-related costs rose faster than revenue.
Segments
Cooling products drove the group with revenue of ₹10747.7 million, +28.3% YoY, and EBIT of ₹301.8 million, +27.9% YoY, while design and development services grew faster at +31.4% revenue and +37.8% EBIT but remained smaller at ₹315.0 million revenue.
Key positives
- Revenue reached ₹1095.52 million, +28.5% YoY and +13.5% QoQ, with the cooling-products segment contributing ₹10747.7 million, +28.3% YoY.
- Design and development services revenue rose 31.4% YoY to ₹315.0 million and EBIT rose 37.8% to ₹34.6 million.
- PAT increased 49.4% YoY to ₹22.79 million and EPS rose 48.2% to ₹8.3, with EPS broadly tracking PAT.
Key concerns
- Gross margin compressed 115bps YoY to 27.7%, while cost of materials consumed increased 70.1% YoY versus revenue growth of 28.5%, indicating material-cost absorption; the filing does not disclose the driver or pass-through response.
- Cooling-products EBIT fell 43.1% QoQ to ₹301.8 million despite revenue rising 13.7% QoQ, showing substantial sequential margin volatility in the core business.
- Finance costs increased 21.1% YoY to ₹19.5 million, although they declined 31.8% QoQ.
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