Varroc Engineering Q4 FY26 Net Profit Rises 207% YoY

Revenue from operations: ₹23,681 million, increased 3.5% QoQ from ₹22,875 million and 12.8% YoY from ₹20,992 million
EBITDA: ₹2,305 million with EBITDA margin of 9.7%, improved 40 bps QoQ from 9.3% but declined 50 bps YoY from 10.2%
PBT before JV and exceptional items: ₹1,074 million (4.5% margin), improved 10 bps QoQ from 4.4% but declined 40 bps YoY from 4.9%
Exceptional Items: None in Q4 FY26 (compared to ₹564 million in Q4 FY25 which included arbitration provision of ₹439 million and merger expenses of ₹83 million)
PBT (incl. JV profits) after exceptional items: ₹1,088 million (4.6% margin), compared to -₹33 million in Q3 FY26 and ₹473 million in Q4 FY25
PAT: ₹705 million, compared to -₹113 million in Q3 FY26 and ₹230 million in Q4 FY25

Revenue from operations: ₹89,080 million, increased 9.0% YoY from ₹81,680 million
EBITDA: ₹8,634 million with EBITDA margin of 9.4%, declined 10 bps YoY from 9.5%
PBT before JV and exceptional items: ₹3,814 million (4.3% margin), improved 50 bps YoY from 3.8% (₹3,129 million)
Exceptional Items: Net positive ₹437 million comprising FCTR released on disposal of China JV investment (₹611 million), offset by VRS (₹799 million) and New Labour Code provisions (₹225 million)
PBT (incl. JV profits) after exceptional items: ₹3,415 million (3.8% margin), compared to ₹1,693 million (2.1%) in FY25
PAT: ₹2,298 million, compared to ₹697 million in FY25

India Operations Revenue: Growth of 12% YoY
Global Operations Revenue: Growth of 24% YoY
Overseas business comprises 2W lighting (profitable despite revenue decline), Advanced Electronics, and Forging
Advanced Electronics and Lighting 4W R&D (including China team) positioned to support growth after expiry of non-compete restrictions in October 2025

Net Debt as of March 31, 2026: ₹4,952 million, reduced from ₹7,480 million as of March 31, 2025
Equity: ₹18,182 million as of March 31, 2026
Net Debt/Equity: 0.27x (improved from 0.5x in March 2025)
Net Debt/EBITDA: 0.54x (improved from 0.96x in March 2025)
Annualized Adjusted EBITDA: ₹9,219 million as of March 2026

Global R&D footprint with centers in Italy, India, China, and Poland focusing on interior/exterior lighting, smart mobility, ADAS, DMS, and intelligent cockpit technologies
Manufacturing locations in Romania, Vietnam, Thailand, India, and Italy producing electronics, exterior lighting, and interior lighting
Recent technology wins include interior ambient lighting products, front drive & rear drive inverter electronics for electric passenger vehicles, and bidirectional L2V2 chargers
Product portfolio spans E-Mobility, ICE Powertrain Solutions, Lighting Solutions, HMI Solutions, Body System Solutions, and Aftermarket products
14 manufacturing facilities in India, 2 facilities in Italy

Indian automotive production showed strong growth in Q4 FY26: 2W grew 20.7% YoY, 3W grew 32.4% YoY, PV grew 11.3% YoY, CV grew 19.5% YoY
EV 2W volume grew 54% YoY in Q4 FY26
For FY26, all segments saw growth: 2W grew 11.8%, 3W grew 23.9%, PV grew 9.4%, CV grew 13.1%

Implementation of Occupational Health & Safety Management System across all manufacturing plants with ISO 14001 & ISO 45001 certification
47 energy efficiency projects implemented in FY26, saving 22 Million KWH electricity units (equivalent to 16,186 tCO2e)
36% renewable energy contribution, commitment to increase to 50% in coming years
78 Million units of renewable energy generated in FY26 (avoiding 55,380 tonnes of CO2e emissions)
Over 90% waste recycled across plants, zero liquid discharge with water evaporation technology
Kham River Restoration Project in Chhatrapati Sambhajinagar receiving multiple awards and recognitions
Social initiatives include Varroc Vengsarkar Cricket Academy, partnership with Abhinav Bindra Foundation, and women's empowerment programs