Varroc Engineering Limited held an earnings conference call on Wednesday, May 27, 2026, to discuss its audited financial results for Q4 and full year FY26 ended March 31, 2026. The call was hosted by Investec Capital Services and included a comprehensive presentation of financial performance and business outlook.

Management Participants:

  • Mr. Tarang Jain, Chairman and Managing Director
  • Mr. Arjun Jain, Whole Time Director and CEO, Business I
  • Mr. Dhruv Jain, Whole Time Director and CEO, Business II
  • Mr. K Mahendra Kumar, Group CFO
  • Mr. Bikash Dugar, Head Investor Relations and Finance Controller, Business II
  • Mr. Vishal Raval, Group Finance Controller, Business I

Key Financial Highlights:

  • Q4 FY26 consolidated revenue: INR 23.68 billion (12.8% YoY growth)
  • Q4 EBITDA margin: 9.7% (vs 9.3% in Q3 FY26)
  • Q4 PBT margin: 4.5% (vs 4.4% in Q3 FY26)
  • Full year FY26 revenue: INR 88.91 billion (9% growth)
  • Full year EBITDA margin: 9.4%
  • Full year PBT margin: 4.3% (50 bps improvement)
  • EV revenue contribution: 14% in Q4, 13% for full year
  • Net debt: INR 495 crore with net debt-to-equity at 0.27
  • ROC: 24.4% for FY26
  • Dividend: Board recommended 150% of face value for FY26

Business Performance:

  • India operations grew 12% in Q4 with strong EBITDA of 11.7% and PBT of 7.2% for FY26
  • Overseas operations grew 24% in Q4, showing significant revival
  • Highest-ever net new business wins of INR 32.89 billion annualized peak revenue
  • 65% of new business wins related to EV models
  • Notable wins include wall chargers for global EV player from Romanian business

Outlook and Guidance:

  • Management expects mid-to-high teen growth in FY27
  • Overseas electronics and lighting business turnaround expected from H2 FY27
  • Target: Overseas business EBITDA breakeven by Q4 FY27
  • Zero debt status targeted by FY28
  • FY27 CapEx guidance: INR 450-500 crores, primarily for EV and electronics capacity expansion
  • FY28 CapEx expected to be lower at INR 300-400 crores

Operational Updates:

  • Continuing to win significant orders in overseas markets
  • Strengthening presence through customer engagement and enhanced engineering capabilities
  • Focus on high-growth technology-led segments including lighting, EVs, and electronics
  • Disciplined capital allocation strategy with focus on optimal returns

Additional Notes Section

The company included a standard disclaimer that the discussion may include forward-looking statements addressing expectations about strategy, growth, business development, market position, expenditure and financial results, based on certain assumptions and expectations of future events.