Bosch Q2 FY27: 1:5 Stock Split + 3:1 Bonus Issue Explained

Bosch Ltd reported Q2 FY27 net profit of ₹839 crore, up 18.6% year on year, and revenue of ₹7,655 crore, up 28.2%. Its board proposed a first-ever 1:5 stock split and a 3:1 bonus issue, so one share would become 20 shares. Both need shareholder approval by postal ballot; no record date has been announced. Bosch Ltd reported strong-looking Q2 FY27 numbers on Friday 6 November 2026, then announced a first-ever 1:5 stock split and a 3:1 bonus issue. Together, they would turn one share into twenty. But shares fell about 3–4% on Friday, and beneath the headline profit a few numbers deserve a closer look.

What Bosch reported in Q2 FY27

In Q2 FY27 (quarter ended 30 September 2026), Bosch reported net profit of ₹839 crore, up 18.6% from ₹708 crore, and revenue of ₹7,655 crore, up 28.2% from ₹5,969 crore. EBITDA was ₹1,037 crore, up 23.2% from ₹842 crore, but the margin contracted to 13.5% from 14.1%. Other income fell sharply to ₹97 crore, from ₹224 crore (down 56.7%). Profit also includes a one-time ₹130 crore exceptional gain, from reversing a provision for long-service awards — not recurring earnings. Standalone net profit rose 21.8% to ₹675 crore and revenue grew 28.6% to ₹6,164 crore. H1 FY27 revenue reached ₹14,821.8 crore, up 25.0% — yet H1 profit after tax fell 13.1% year on year.

Why the revenue jump needs context

Part of the growth is not like-for-like: Bosch Chassis Systems India became a wholly owned subsidiary from 1 July 2026, so its revenue is now consolidated into Bosch's figures, flattering the 28.2% growth.

The split: 1 share becomes 5

Bosch proposes splitting each ₹10 share into five ₹2 shares — a 1:5 split, the first in its history. A split changes the share count and price per share, not the value of a holding. A share worth about ₹50,810 becomes five at about ₹10,162 each — the same total. Market value is unchanged; the same pie is cut into more slices. Splits are often done when a price is very high: at roughly ₹50,000 a share, one Bosch share costs more than many investors' monthly SIP.

The bonus: 3 for every 1 after the split

The board also proposed three bonus shares of ₹2 for every one share held after the split — a 3:1 bonus on the post-split holding. So one share becomes five through the split, and each of those five earns three bonus shares. One share becomes twenty: 5 + 15 = 20. Bosch plans to issue about 44.24 crore bonus shares, funded from retained earnings. A bonus moves money from reserves into share capital; it brings no new cash in and does not make shareholders richer. The price adjusts down to reflect the extra shares.

Worked example: 10 shares become 200

An investor holding 10 shares at Friday's reported price of about ₹50,810 holds ₹5,08,100. After the split she would hold 50 shares; after the bonus, 200 (10 → 50 → 200). At the arithmetic adjusted price of ₹50,810 ÷ 20 — about ₹2,541 a share — her holding is still worth ₹5,08,100. That is arithmetic at Friday's price, not a forecast or target. More shares does not mean more money: the value stays the same; only the share count and per-share price change.

Why the share price fell anyway

Despite the profit growth and the two corporate actions, shares fell about 3–4% on Friday — reported at over 3% down to ₹50,810, and around ₹50,375 in afternoon trade. The market may have weighed the softer details: the margin contraction, the other-income fall, the exceptional gain inside profit, and the H1 profit decline. A split and a bonus do not change earnings; they only change the share structure. When the numbers behind the headlines are mixed, investors often look past the corporate action to the earnings.

Split vs bonus vs dividend: what changes for you

Framework dated 7 November 2026 — this describes mechanics, not recommendations. - Stock split: more shares, each worth less. Holding value unchanged. No cash changes hands. - Bonus issue: more shares, each worth less. Holding value unchanged. Funded from retained earnings. - Dividend: you receive cash. Your holding value typically falls by roughly the payout, as the price usually drops by about the dividend on the ex-date. All three look like rewards, but only a dividend puts cash in your hand.

What happens next: the postal ballot

Both are board-approved proposals, not done deals: they need shareholder approval through a postal ballot. No record date or ex-date exists yet. Bosch expects completion within about two months from 6 November 2026, subject to approvals. Shareholders should watch for the postal-ballot notice and ignore rumoured dates — there is no "buy before" date to chase. Educational content only — not financial advice. Consult a SEBI-registered investment adviser for personal guidance; investments are subject to market risk. Sources: Moneycontrol, 6 Nov 2026; Economic Times, 6 Nov 2026; NDTV Profit live blog, 6 Nov 2026; Zee Business, 6 Nov 2026; Bosch Ltd exchange filing / board meeting, 6 Nov 2026.