Bosch shares jump over 6%; here is why the stock is buzzing

The stock settled at ₹34,170, soaring 6.03% on the NSE. The Nifty Auto index also closed 0.44% higher.

The rally in the stock could be attributed to the government order regarding two-wheelers.

This week, the government notified that all L2 category two-wheelers (vehicles above 50cc or with speeds over 50 km/h) must include an anti-braking system (ABS) compliant with Indian Standard IS14664:2010. This will come into effect from January 1, 2026.

The government cited accident statistics and safety research to support this move. According to the Ministry of Road Transport & Highways (MoRTH), 44.5% of total road fatalities in 2022 involved two-wheelers. India had over 26.4 crore registered two-wheelers at the end of 2022, and nearly 45% of them lacked ABS.

Bosch is in the spotlight as the company is deeply involved in anti-braking technology, specifically focusing on Anti-lock Braking Systems (ABS) and Automatic Emergency Braking (AEB). It has been a prominent player in developing and manufacturing these safety systems for vehicles. 

Hence, the government order is likely to benefit Bosch and other auto ancillary players such as Minda Corporation and ASK Automotive.

Further, OEMs and dealers will have to provide two BIS-certified helmets per vehicle, one for the rider and one for the pillion. This is intended to eliminate the use of substandard helmets, which has been a concern in India.

Bosch’s consolidated profit after tax for the fourth quarter ending March 31, 2025, declined 2% to ₹554 crore amid challenging business environments. The company had reported a profit after tax (PAT) of ₹564 crore for the January-March period of the 2023-24 fiscal year.

Its revenue from operations had risen to ₹4,911 crore from ₹4,233 crore a year ago.

For FY25, the firm had reported a 19% fall in consolidated PAT at ₹2,013 crore as against ₹2,490 crore in FY24. Revenue rose to ₹18,087 crore from ₹16,727 crore.

“In the coming years, we expect substantial growth in India as a strategic market, with an accelerated shift towards digitalisation, electrification and sustainable mobility," Bosch MD Guruprasad Mudlapur had said during Q4 FY5 earnings.

The MD further stated that India was poised to become a leading automotive powerhouse with high levels of engineering and manufacturing excellence.