Varroc Engineering
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Varroc Engineering (VARROC) investor relations material

Varroc Engineering Q3 25/26 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 25/26 earnings summary5 Feb, 2026

Executive summary

  • Q3 FY26 consolidated revenue reached INR 22.9 billion (Rs. 22,875 million), up 10.2% YoY, with India operations growing 12.3% and EV segment revenue up 53% YoY, now 14.3% of total revenue.

  • Highest ever new order wins in 9M FY26, with annual peak revenue potential exceeding INR 20.6 billion, over 74% related to EV models.

  • Net debt increased to INR 4,405 million due to VRS outflow, with net debt/equity at 0.26; VRS expected to yield recurring annual benefits.

  • Over 15 patents filed in 9M FY26, total filings now exceed 130, reflecting ongoing R&D investment.

  • Board approved unaudited financial results, call option for 25,000 NCDs, and reconstitution of key board committees.

Financial highlights

  • Q3 FY26 consolidated revenue: Rs. 22,875 million (up 10.2% YoY); EBITDA: Rs. 2,122 million (9.3% margin); PBT before exceptional items: Rs. 1,007 million (4.4% margin).

  • 9M FY26 consolidated revenue: Rs. 65,224 million (up 7.7% YoY); EBITDA: Rs. 6,059 million (9.3% margin); PBT before exceptional items: Rs. 2,741 million (4.2% margin).

  • India operations revenue grew 12.3% YoY in Q3 FY26; overseas business declined 16.5%.

  • Exceptional items in Q3 FY26 included VRS and labor code costs totaling up to Rs. 1,048.81 million (consolidated).

  • Standalone and consolidated net profit margins were impacted by exceptional costs, with consolidated net loss of Rs. 113.03 million in Q3 FY26.

Outlook and guidance

  • Overseas electronics (Romania) expected to reach cash breakeven by next year, with full PBT breakeven in the following year.

  • Thailand lighting plant to ramp up in 2027; significant revenue growth expected from new orders in Romania and Thailand.

  • Focus on debt reduction, prudent capital deployment, and less capital-intensive investments; net debt reduction targeted from Q2 FY27, aiming for zero net debt by year-end FY27.

  • Anticipates significant overseas revenue growth from Q2 FY27 as new business wins ramp up post non-compete expiry.

  • Targeting 15-20% revenue growth, aiming to outperform the market by 4-5%.

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Frequently asked questions

Varroc Engineering Ltd manufactures automotive components, including exterior lighting systems, electrical and electronic parts, and polymer products. The company serves global two-wheeler and passenger vehicle manufacturers. It is headquartered in Aurangabad, India, and its shares are listed on the NSE.

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