Ladies and gentlemen, good day and welcome to Bosch Limited Q3 FY 2025- 2026 post results conference call, hosted by B&K Securities . From Bosch Management, we have with us today Mr. Guruprasad Mudlapur, Managing Director and Chief Technology Officer. Ms. Karin Gilges, Chief Financial Officer. At this point, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the management presentation and opening remarks. Over to you, sir.
Okay, thank you, and good afternoon, everyone, and welcome to our Q3 FY 2026 earnings conference call. We'll begin today with a macroeconomic overview followed by an update on the auto market. From there, I'll walk you through our financial performance for the quarter and conclude with key business highlights. We will then open the call for a Q&A session. The global economy is adjusting to a landscape reshaped by geopolitical events and realignments in the trade relationships among countries.
Sir, we could not hear you, your voice, sir. Hello? Hello? Yeah. Management is reconnecting.
Yeah, sorry. Sorry about this, sir.
Yeah, yeah. I think we missed you totally, sir. We can—I have to start from the start, sir.
Yeah, yeah, sure. I'll do that. I'll do that. Yeah, yeah. Sorry, yeah.
No problem.
Yeah, thank you. Sorry again. I'm going to start, one more time. I'm hoping this works better. Good afternoon, everyone, and welcome to our Q3 FY 2026 earnings conference call. We'll begin today with the macroeconomic overview, followed by an update on the automotive market. From there, I'll walk you through the financial performance for the quarter and conclude with key business highlights.
We will then open the call for a Q&A session. The global economy is adjusting to a landscape reshaped by geopolitical events and realignments in the trade relationships among countries. There was tempering of higher tariffs in a few cases, due to which subsequent resets in deals. However, the overall business environment remains volatile. As per the International Monetary Fund, the global growth is projected to slow down from 3.2% in 2025 to 3.1% in 2026.
To close the hour, the Indian economy continues to demonstrate powerful resilience and showcases higher growth compared to its peers. The IMF has revised upwards its estimate of India's GDP growth in the current financial year, 2025-2026, to 7.3% from its earlier prediction of 6.6%, attributed to resilient domestic demand and easing inflation. India also benefits from tailwinds to be gained from the now-agreed FTA with the E.U. and the handshake on the trade deal with the U.S. and other regions, including Australia, the U.K., and New Zealand. With the RBI maintaining a stable 5.25% repo rate, we see continued strength in domestic demand across the passenger and commercial vehicle segments, especially with the expectation of transmission of earlier rate cuts by the RBI.
The Union Budget 2026-2027 presented earlier this month sends a strong and reassuring signal of policy continuity and intent for India's manufacturing-led growth, and is set to maintain the automotive industry's growth momentum through key measures like extension of basic customs duty exemptions on lithium-ion cell components for batteries, launch of the India Semiconductor Mission 2.0, support for mineral-rich states of Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to establish dedicated rare-earth corridors to promote mining, processing, research, and manufacturing, and continued investment in infrastructure, including a new freight corridor. Building on these supportive policy tailwinds, we are confident that the automotive and other supporting industries' growth outlook remains robust. Next slide, please. India's automotive production remained robust in the October-December quarter, driven by broad-based strength across passenger vehicles, two-wheelers, and commercial segments as OEMs ramped up output to meet domestic and export demand.
Higher festive demand, rural market recovery, and improved supply chain conditions supported manufacturing activity across most vehicle categories. Production momentum was further bolstered by policy tailwinds, including GST rationalization, festive season, and new model launches. This productive phase highlighted the sector's resilience and manufacturing competitiveness through the third quarter. After a subdued start, the passenger vehicle market recovered sharply to finish 2025 on a strong note. This turnaround was driven by supportive government policies, including GST rationalization, the tax relief, which subsequently improved consumer sentiment and showroom traffic. SUVs spearheaded this recovery, with demand spurred by attractive discounts and seasonal buying ahead of anticipated price hikes. The heavy commercial vehicle production recorded steady growth, driven by robust infrastructure demand, strong freight movement, and continued momentum from GST 2.0, festive demand, the government fleet orders, and ongoing road construction and mining activity.
The bus segment showed notable traction, driven by school, intercity, institutional transport orders, alongside steady fleet additions by state and private operators. The outlook remained strong, with demand expected to be further bolstered by ongoing government CapEx and fleet replacement cycles. The LCV production remained robust, fueled by GST rationalization and a visible revival in demand following GST 2.0. The fleet continues to benefit significantly from growth of e-commerce, which drives high demand for last-mile delivery and urban logistics. This positive momentum was sustained through the end of the year, reflected in rising fleet utilization and increased short-haul freight activity. The three-wheeler segment saw a sharp production increase, driven by strong demand for both urban mobility and last-mile delivery cargo delivery during the festive season.
Supported by favorable government policies, OEMs ramped up production to meet this demand, allowing the segment to maintain healthy momentum through the end of the period. Tractor production showed strong momentum, supported by healthy Rabi sowing activity and carryover liquidity from a robust Kharif harvest, which improved farmer confidence and cash flows. Improved water availability and healthy reservoir levels further aided demand. Supportive government measures, including lower GST on tractors and state-level subsidies, enhanced affordability, while rising mechanization and steady non-agricultural demand from construction and haulage provided additional support.
With positive rural sentiment, the tractor market remains well-positioned to sustain its growth. The two-wheeler production was moderate in October as OEMs adjusted output following earlier inventory buildup. Production picked up in November and December as manufacturers ramped up output to meet festive and pre-wedding season demand, a recovery that was supported by favorable GST reductions. Next slide, please.
Looking ahead to fiscal year 2026, we anticipate a period of steady and robust growth for the Indian automotive industry. The outlook is very positive, as we expect three of the core segments, the passenger cars, tractors, and two-wheelers, to achieve all-time high production levels. This growth is broad-based, underpinned by strong economic fundamentals and supportive policies. In passenger vehicles, we expect record performance driven by improved affordability, thanks to easing interest rates and favorable GST reforms, which will stimulate strong consumer demand.
The commercial vehicle segment is poised for healthy growth, fueled by sustained infrastructure spending and continued expansion of e-commerce logistics. We expect the LCV subsegment to be a standout performer, achieving its all-time high levels. The tractor business is also projected to hit a record, supported by strong rural sentiment, GST norms, and ongoing state subsidies. And finally, the two-wheeler segment is set to scale a new peak. This will be driven by a powerful combination of improving rural sentiment, rising disposable incomes, improved affordability, and recent GST cuts and tax rebates for individuals earning up to 12 lakh, oosting consumer confidence. Next slide, please. Now, I'm going to go through the sector-wise sales performance.
Quarter-over-quarter, the Mobility business has shown 18.5% in October-December 2025 as compared to October-December 2024, driven mainly from the Power Solutions business, which grew by 19.5% mainly on account of growth in passenger cars and off-highway segments. The Mobility Aftermarket recorded a growth of 5.3% mainly on account of GST reforms, strong growth in the OE segment, and growth across key product groups of diesel, wipers, and braking systems. The two-wheeler business grew by 58.3% mainly on account of higher sales of exhaust gas sensors due to ramp-up for OBD-II norms implementation from 1 April 2025.
The Consumer Goods business declined marginally by 3.1%. The Mobility business has grown by 14.9% in April-December 2025 as compared to April-December 2024, driven mainly from the Power Solutions business, which grew by 14.1% mainly on account of growth in commercial vehicles and off-highway segments. The Mobility Aftermarket business grew 4.8% mainly on account of sustained momentum across key product categories, including diesel, wipers, braking systems, and filters. This overall growth was further reinforced by robust momentum in the OE segment. As already seen in quarter-on-quarter growth, the two-wheeler business has grown significantly due to the ramp-up of exhaust sensors resulting from OBD-II norms implementation from April 1st, 2025. The Consumer Goods business grew by 2.8%. The growth is attributed to new launches in entry-level mid-price point segment measuring tools and outdoor garden equipment. Next slide, please.
Quarter on quarter, revenue from operations in October-December 2025 stood at INR 48,856 million, which grew by 9.4% over October-December 2024. The growth was driven mainly by higher sales in Power Solutions and Two-Wheeler and Powersports segments, as seen in the previous slide. Likewise, revenue for the period April-December 2025 grew by 9.8% over April-December 2024, from INR 131,768 million to INR 144,690 million. This growth was also driven by strong performance in Power Solutions and Two-Wheeler and Powersports segments. The EBITDA for October-December 2025 was INR 6,124 million, which grew by 5.1% over the same quarter of the previous year. The improvement in EBITDA margin was primarily driven on account of favorable product mix and optimization of expenses. The EBITDA for the period April-December 2025 was INR 18,688 million as compared to INR 16,628 million in April-December 2024, which grew by 12.4%.
The increase in EBITDA is on account of growth in revenue accompanied by favorable product mix. The profit after tax for October-December 2025 grew by 16.1% over the same quarter of the previous year. October-December 2024 had an exceptional item, which you all know. The growth in profit after tax without this exceptional item in October-December quarter comes to 5.3%. The profit after tax for nine months ending December 2025 stood at INR 22,017 million, which is a growth of 50.8% over the same period of the previous year. The significant growth in PAT is mainly due to the profit on sale of the video systems, access control, and intrusion detection and communication systems business under the Building Technologies segment. Next slide, please. I'll now walk you through key highlights for each of our business divisions this quarter.
The Power Solutions division delivered strong growth this quarter on the back of broad-based growth across all segments, with exceptional performance in tractor and heavy commercial vehicle segments, boosted by a successful rollout of GST 2.0. In a significant achievement that underscores Bosch's leadership in operational excellence, our Bidadi plant was recently awarded at the prestigious National CII SCALE Awards 2025 for Digital Excellence and Innovation in Logistics for developing an integrated autonomous digital ecosystem that automates our entire logistics value stream, setting a new industry benchmark. Further, at the CII Kaizen Awards 2025, the plant secured the Champions Trophy and the Challengers Trophy for developing low-cost solutions in productivity by improving overall equipment effectiveness in assembly lines and quality improvement by human error prevention to reduce internal and external complaints.
Turning now to our Two-Wheeler and Powersports , our strategy is centered on providing advanced technology that empowers our OEMs to enhance end-user experience. Our solutions truly showed this past year, playing a key role in the successful launch of new vehicles by several well-known two-wheeler OEMs. The launch of the new TVS Apache RTX 300, powered by advanced Bosch systems, marked a significant new chapter for the iconic Apache brand. In addition, we further demonstrated our role as a key technology partner with the launch of the Harley X440 T, which deeply integrates Bosch powertrain and safety systems, along with our high-value-added features. These partnerships underscore the trust the major global brands place in our technology to deliver performance and safety. Beyond these launches, we continue to shape the future of mobility by developing next-generation technology.
Building on the successful production ramp-up of OBD-II requirements, 2025 became a landmark year for our mini-heated Lambda sensors, allowing us to achieve new significant sales milestones for the product line. True to our "bike riders, four riders" philosophy, we showcased our latest innovations at the EICMA 2025 event in Italy, demonstrating our unwavering commitment to creating value for both our partners and the end user. The Mobility Aftermarket began with a temporary sales impact from the GST 2.0 implementation in October, but we saw a strong rebound shortly thereafter. This recovery was supported by a synchronized upturn in the automotive sector, which was itself driven by festive seasonal demand, GST reduction, and improved consumer confidence. The primary driver of our performance was the original equipment or the OE/OES block, which effectively leveraged these favorable market conditions.
In addition to the strong results in the OE block, we also saw healthy growth across other core product groups. Specifically, our diesel systems, wiper systems, and braking systems all contributed positively to the quarter's performance. For our Power Tools division, the past year was one of navigating a challenging market characterized by intense price pressure, particularly from competitors in China. This resulted in moderate growth for the division in both our quarterly and year-to-date results. However, on the product front, our quarterly segment continued its impressive trajectory, achieving double-digit growth for the fourth successive year. In addition, successful new product launches were significant contributors to our overall sales performance. This product success is amplified by our market expansion efforts.
We have significantly broadened our reach, expanding our dealer network to over 8,800 partners, which gives us a footprint of 25,000 retail points across more than 1,600 cities. A key part of our market expansion is the Standard Line, a product range developed for artisans in India, offering Bosch quality at an accessible price point. To facilitate this, we have established a new distribution network with over 100 distributors. In addition, we successfully launched the Hand Tools as a new business segment. This initiative demonstrates strong market acceptance, achieving INR 100 million in revenues within the past year. Next slide, yeah. Thank you for all your contributions and for listening patiently through the call. We will now address your queries. Thank you, and open for questions, please.
Yeah, thank you, sir. We'll now begin in the Q&A session. For the participants who wish to ask a question, please raise your hand. Alternatively, participants can also type in their questions in the chat box directly to me. We'll wait for a moment as the questions assemble. Yeah. The first question is from Mr. Pramod Amthe. Please unmute and ask your question.
Yeah, thanks for taking my question. So, the first question is with regard to the CapEx. You alluded to saying that many of your user segments may hit historic high volumes. So, in that context, are you relooking at your capacities and also the CapEx requirement for the FY 2027-20 28?
Okay. Karin, do you want to take that?
Yes, it's my pleasure. Yes, you are, of course, fully right. In every cycle, or this is an ongoing process in our company, that we check the forwarding volumes predicted by the customers and by the market. We look at our technical capabilities and capacities, and then we adjust our investments in accordance.
So, a golden rule within Bosch: we all the time have some buffer left, and as soon as we drive into the buffer, we release the next CapEx for extension. So, will you color out the numbers, what it can be next year after or compared to this year? We are currently under or in consideration, and we do not want to give guidance here. Thank you.
Thanks. The second question is with regard to the India-EU deal. I wanted to check your thought process in terms of, first, the imported components. Because in terms of purchase goods, there's a large chunk which comes from parent. What is the understanding with the clients? Usually, when duties drop, in such cases, usually it's a pass-through to the client. Second, what are the medium-term opportunities you look at exporting from India to global markets, and what are the duties there for such products in the current state?
Yeah. Perhaps the first part of your question, which is regarding imports. So, we are importing mainly components from the parent, and it's also an ongoing process of localization. So, this year, in 2025, we have a localized NOx sensor for the component for the Common Rails . We are going ahead with more localization for the Common Rail products. We will go ahead in the perspective of also localizing a DeNOx sensor. So, this is a permanent review whenever commercially feasible we are doing the localization. Your second part is in regards to the exports.
We have increased already our exports volume for the spark plugs in 2025, and we expect also further good development of volumes in the spark plugs and in components for the Common Rail products. We also expect an increase in export volumes in sensors, NOx sensors. And what we have relocated in the last, let's say, one and a half years was pumps from Japan to India. So, we deliver these pumps also back to India, sorry, back to Japan and Korea.
Yeah, thanks, Karin.
So, maybe just to add, I think you should keep in mind that the FTA is just signed, and we are extremely positive about what it is likely to bring in the mid- and long term for India and, of course, also for our operations in India. So, there, we are very, very positive. The fine print, as you know, needs to be studied in detail, and the impact of what happens and how we can benefit from that is currently under study. We are looking into every aspect of how we can benefit from this.
Thanks. Will you call out what your current import duty rates are?
Do you have the numbers, Karin? I think we'll have to get back to you on that.
Yes, exactly.
Sure. Thanks, and you're the best.
Thanks, Pramod. Mr. Mayur, you can unmute and ask your question.
Good afternoon. Thank you for taking the questions. I hope I'm audible clearly.
Yes, you are.
Thank you. Actually, over the last couple of quarters now, we have, this is a question more on the profitability and margins, we have stabilized in the region of around 13% ±. What I wanted to understand is we are having a very strong tailwind across our portfolio. The CV industries are on an upcycle. The tractor is doing phenomenal. We have OBD-II on the two-wheelers. The passenger vehicle outlook is strong. Despite so much of operating leverage and despite localization, why is it that we are not seeing a movement on the margins despite the growth coming and the narrative on the localization and other aspects?
You want to take it, Karin?
So, I take this question. So, yeah, if you look at the overall result for the last three years, then, of course, we had a tailwind with the growth, which helped us. But we also did a lot of cost improvement and localization. So, you see the EBIT, or profit after tax, is going up. So, we are improving also the margins.
Nevertheless, we also, of course, have to consider a certain product mix, which the market demands. And therefore, you sometimes see a growth, but please also consider that we have to look at the product mix itself. The second thing is, but this was for this quarter and was already mentioned, that we had already, again, a very strong quarter with a very good 10.5% EBIT. And we also did already the first provision for the new labor code. So, therefore, product mix going forward, further localization, working on the costs or on the structural costs also together with the growth, we see a good margin development.
So, you believe that over the next three to four years, the margins should start ticking up or should be meaningfully different directionally compared to current margins?
Well, I would not give guidance for the next three and four years. I only can show you what we have delivered in the last three years, and then you can see in which cycles of margin improvement we are.
So, because it was quite for the last almost eight to nine quarters, I'm talking of more from an EBITDA margin. I understand you talk about EBIT margin. From more or less, nothing much difference was coming. I understand two years we are comparing from around there is a 100 basis point movement. But given the tailwinds which we have, I was just thinking that shouldn't the operating leverage also now play out over the last three or four quarters? Any specific product mix you want to call out which is lower than our average margins, just as a qualitative understanding so that we are able to track the developments?
So, look, it is the margin. Of course, if new products are coming in, we are usually starting with we first bring the finished goods into the market, then we start the assembly and testing. Then, if this is stabilized, we start with the localization. That means with every new product coming into India and coming into the market, we start a new localization round. So, therefore, yes, the tractor is good. The tractor is stable. But, of course, we have also the Common Rail. We have now the new exhaust gas components. And with this, we are following the localization path also.
But this is the product mix in the technical cycles which we introduce into the market. There is no specific product. It is more technology is developing. And we are following the technology path, and we are following with the localization. With more localization, of course, you have then the improvement in the margins as well.
Okay. Last question from my side is, from your vantage point and your discussion with the OEMs, is there any incremental discussion and development around TREM V possibility? We are in February 2026, so just wanted to have your understanding. Well, there are certain things in the public domain and understanding. But what is your understanding of the implementation? How gradual, where we are, and anything you want to—if you can give your insights on that?
Yeah, I mean, maybe I can answer that. At least at this point of time, there is no visibility of a precise date of TREM V implementation. So things are still quite open as far as we know with our discussions with the OEMs.
Okay. Thank you. Thank you.
Thank you, Mayur.
Thank you, Mayur. Mr. Hitesh Sharma, you can unmute and ask your question. Mr. Hitesh Sharma? I don't know. Anyhow, we'll go to the next caller. Mr. Nikhil Ravi, you can unmute and ask your question.
Hello. Can you hear me now?
Yeah, yeah, yeah. Very good.
I just wanted to check up, what is Bosch's plan for the EV four-wheeler vehicles in India? What sort of per car component you are targeting to supply?
Okay. Maybe this is a very broad question. We need to distinguish also from the portfolio of Bosch Limited versus the portfolio of Bosch Group in general. Of course, from the Bosch Group, a lot of components go into an electric car as well. That continues. From the portfolio of Bosch Limited, we will strongly aim to bring in e-axles. And that would be the biggest component that comes into an electric vehicle.
So we are in advanced discussions with several OEMs. And as we go forward in the coming quarters, we will let you know the exact nature of these things. Which component do you say? E-axles. E-axles is, by far value-wise, it's the largest value component which goes into an electric vehicle apart from, of course, batteries and other things which the OEMs make themselves. So you don't see right now, you are not supplying anything to any OEM right now? We are supplying in India, we are not supplying e-axles to any OEM right now. We are in advanced discussions on several projects with OEMs, and we will come out in the open soon. The other components we are supplying are chargers or DC/DC converters, power electronics basically. That's going from our electronics unit.
Thank you. My question is over.
Yeah. So can I go ahead?
Yeah, please.
Yeah. So could you help us understand how demand from the commercial vehicle segment is shaping up for Bosch? And roughly, how much of your CV offtake is currently driven by the replacement demand?
Yeah. So, as I mentioned in my initial talk when I explained the slides, the commercial vehicle demand both for HCV and LCVs has been very robust in the last quarters. And it's connected to, in my overview, good demand following the GST 2.0 changes and, of course, increased offtake on government fleet orders and ongoing activities around construction and mining. And, of course, the LCV demand has also been quite robust. And this is primarily connected to last-mile delivery, urban logistics, and in-city transportation, and so on, or short-haul delivery activities. But this also remains very, very robust at this point of time.
Based on the trends of what the budget came up with right now and also our talks with the HCV and LCV manufacturers or OEMs, we see that this trend is likely to continue. We expect strong infrastructure activity to continue. Further in line with the GDP growth, we also expect HCV and LCV activity to be strong in the coming quarters.
Okay. You're seeing good traction from the replacement side as well, right?
Yes, yes.
Okay. Are you also seeing an increase in your content per vehicle contribution or a more favorable product mix with CVs?
Yes. There are, of course, technology additions happening in the CV world, and that's quite favorable. There are also other talks on what we can do which are maybe very preliminary at this point of time in terms of technology to be discussed in a forum like this. But at some point of time, we will update you on additional technology introductions that are likely to come up in the CV/HCV world.
Okay. Thank you very much. That's all from my part.
I'll be ready to take the next question. Mr. Hemant Singhania, please unmute yourself and go ahead. Mr. Mahajan , would you like to go ahead and ask your question?
Hello? Yeah. Am I audible?
Y es, you are, go ahead.
Yeah. Yeah. I just had a couple of questions. Bosch has been working on alternate fuel technologies. So just wanted to know what is the progress on that? And will there be a significant increase in content per vehicle compared to ICE vehicles, or how is it? Just wanted to get some clarity on that.
Yeah. So, I mean, Bosch has a very wide portfolio options also for alternate fuels, flex fuels, and so on. We've been offering this all over the world. And, of course, we also do that to our OEMs in India. The content per vehicle is not a major change in my view. We'll have to get the precise numbers, but it's not a very significant change. But the development, I mean, the support to the OEMs is always there in the Indian context.
Understood. So thanks for the clarity. My follow-up question would be, I think we had received some pilot order on hydrogen fuel engine. So what is the status on that? And is there any future potential for that?
Yeah. So, on the hydrogen activity, we are working very closely with virtually every commercial vehicle and bus OEM in India. And as you've probably seen in the press or in media, there's a lot of vehicle testing activity that's currently ongoing. All OEMs are testing their engines, testing the vehicles for readiness. This is the phase it is in. There are currently at least no known plans of rollout from any OEMs very specifically. It's most likely also connected to how the infrastructure on hydrogen comes up. There are other stakeholders involved, other players involved. We'll have to get more clarity. But I think all OEMs are working towards readiness of hydrogen vehicles from their side. We are fully in touch with all of them, offering our technology and solutions and working very closely with most of them.
Just to add, if you can clarify, by when in India you expect that hydrogen engine will be commercially launched?
See, it's maybe better to take this question in two parts. One part is when would vehicles and technology mature? That's the thing we can control quite well. And there, I would say it's going well on plan. And OEMs and us are working very closely together towards this. The other side of this equation is when would infrastructure come up? When would we have hydrogen fuel stations, filling stations, and availability on at least major trunk routes or right corridors be available with hydrogen? And this seems to be still not very clear at this point of time. So we assume that by 2030, definitely, there will be quite some hydrogen activity happening. And we are working towards that right now.
Yeah. Thank you. Thank you very much.
Yeah. Thank you.
Yeah. Thanks for that clarity. We just have one question from one participant, Hemant Singhania. So his question is, will the new trade deal make the material versus import math unfavorable for localization and might see some delays in localization? So if you can address that too.
Karin, you want to take that?
Yes. What was the question? Can you repeat, please?
Yeah. Sure.
The impact of-
localization and if there is some delay in localization.
What was the first part? What is it to what do you refer to that localization could come to a delay?
No. I assume he refers it to as a consequence of the FTA.
Oh. Of the FTA?
Yeah. The FTA. Yeah. Would there be a delay in localization because there is now an FTA, and there is no motivation to do any localization here. See, maybe I can start, and Karin can give you some more specifics. The Bosch approach with or without FTA has always been to have localized production wherever the demand is. And our international production network always operates on that theme of producing in the region where it's relevant and where it's consumed. So that's how we operate around the world. And this has been the practice with or without the FTA. So FTA, we will have to see what is the actual impact. And do we really need to recalibrate this approach and do something?
Or do we positively benefit from this approach and then enhance further localization? In all probability, this will only lead to further increased localization for us as years go by. And we will continue to be on this localization track. Karin, if you have anything specific to add, please.
Yeah. Thanks. As you mentioned, the most important thing or the philosophy of Bosch is we try to do local for local. Therefore, volumes are much more important than an FTA or import duties whatsoever. In addition, often, localization goes along with a strategic approach which we would like to do in a region. Therefore, yes, of course, there could be a positive effect. We see it positive. Nevertheless, our localization roadmap has different directions. See, even if there is an FTA and there is zero duty on a certain item, just the logistics may impact the landed cost. There is always more sense when there are good volumes to have it fully localized. That's always been our endeavor.
All right. Thanks. Just one follow-up question from the same participant. On the quarter performance, we have seen dip in margins for the automotive product segment on sequential basis. Can you give some color on that front?
Well, if you look on the quarterly basis, we have put in the provision for the labor code. If I correct this condition, we have, again, a very strong performance out of operations.
Sure. Going forward, the next question is from Darshan Bhandari from Banyan Tree . Darshan, you can unmute and ask your question. No, Darshan, you're not audible. Okay. Darshan has put it in the chat box. His question is, why is the auto segment growth so much lower than CV tractor and PV growth rate? Hello? Am I audible?
Yeah. You are audible.
Yeah. Could you take this?
No, you can take it, Karin. I don't think.
No. The question is why the CV are better in the growth than the passenger cars?
No. His question is, why is the auto segment growth lower than the CV tractor and PV growth rate?
No. Do you mean our growth or?
Yes. Yes. Bosch. Bosch.
Okay.
Bosch is auto sector.
I think our auto sector growth has been especially Power Solution s and aftermarket Power Solutions as a whole. Aftermarket has been ahead of the sector growth.
Okay. Sure. The next question is from Gokul Maheshwari. Gokul, you can unmute and ask your question.
Yeah. Hi. Thank you for the opportunity, team. My question is just relating to the previous question. You supply products to various segments of the automotive industry, whether it's two-wheeler, passenger cars, tractors, and CV. In which of the areas are we growing ahead of the underlying industry? Where are the segments where we are actually undergrowing the industry growth?
Broadly, I would say in every one of the auto sector segments, we have been going above the industry growth rates for all our products. The only area I would say we have not performed maybe so well in the last quarter has been our Power Tools division, which is the non-auto part. And there, we know what corrective steps we need to take. And we are on it right now. But apart from that, CV, two-wheeler, passenger cars, all of them, we are ahead of the sector growth.
Okay. Great. Great. Just on the dividend policy, when I read that, there is a change where you have now quantified, if I read it correctly, when you get 65%-80% of profit. Is this a higher number than the previous policy, or it's a lower number?
Okay. So I think we have just brought a lot more clarity into our dividend policy right now. If you looked at our previous one, it was an open policy. There were no limits or ranges set. And it was completely left open. And the board discussed this and said it may be better to give it a clear view and, therefore, clear guidance on how this is going to work. And that's what we've endeavored to do. Of course, the final dividends, irrespective of this policy, can always lie with the board. And they take the final call on how this goes.
Okay. Fair. And lastly, could you comment on your export performance for this year? How is the quarter or the nine months shaping up? Just a qualitative comment in terms of how do you see the outlook for the export?
Well, we are. Yeah. So in the exports, we are steadily grow. Of course, we are looking forward to do more. I mentioned it already, especially in spark plugs, sensors, pumps to Japan and Korea. And therefore, in the last year, stepwise, we increased our exports. But again, main focus for us is the Indian market.
Okay. Great. Thank you so much and all the best.
Yeah. Thanks, Gokul. Due to lack of time, that was the last question. On behalf of B&K Securities, we thank all the participants for joining the call. And thanks to Bosch Management for taking time out for the call and giving us the opportunity to host the call. Have a good day.
Thank you, everyone. And we are happy that the market momentum has been positive. We expect this to continue in the coming quarter. We are looking forward to much better performance as we go forward. Thank you.