Financial Results Q4 FY26

  • Consolidated revenue from operations: ₹23,681 million, representing 12.8% year-on-year growth
  • PBT before exceptional items and JV profit: ₹1,074 million (compared to ₹1,034 million in Q4 FY25)
  • EBITDA margin: 9.7% (improved from 9.3% in Q3 FY26)
  • PBT margin before JV profit: 4.5% of revenue (compared to 4.4% in Q3 FY26)
  • Revenue from EV vehicles: approximately 14% of total revenue

Financial Results Full Year FY26

  • Consolidated revenue: ₹88,900 million, representing 9.0% growth
  • EBITDA margin: 9.4%
  • PBT before JV profit margin: 4.3% (improved by 50 bps)
  • India EBITDA: 11.7%
  • India PBT: 7.2%
  • Revenue from EV vehicles: approximately 13% of total revenue
  • Net debt: ₹4,952 million (reduction of ₹2,528 million from previous year)
  • Net debt to equity: 0.27
  • Average ROCE: 24.4%

Operational Highlights

  • Achieved highest-ever net new business wins with annualized peak revenues of ₹32,889 million
  • Notable Q4 business wins include:
  • Wall-Charger from Romanian business for global EV player
  • Gears & Crankpin from ICE-Powertrain solutions
  • Some business wins from non-automotive segment
  • Company employs more than 6,100 employees (750+ R&D Engineers)
  • 37 global operating manufacturing facilities
  • 7 R&D Centres
  • More than 130 patents filed

Strategic Updates

  • Overseas businesses showing revival in revenue growth supported by strong order book
  • Overseas electronics and lighting business turnaround expected to be more visible from H2 FY27
  • Focus on accelerating revenue growth across India and international markets
  • India strategy: Leveraging customer relationships, technology capabilities, and expanding product portfolio for electrification and premiumization trends
  • Overseas strategy: Strengthening presence through customer engagement, engineering capabilities, and business wins

Capital Allocation and Dividend

  • Board recommended 150% of face value as dividend for FY26
  • Disciplined and value-accretive capital allocation strategy

Exceptional Items (Previous Periods)

  • Q3 FY26: VRS ~(₹799) million, Arbitration provision ~(₹439) million, New Labour Code: ~(₹225) million, Merger expenses ~₹83 million
  • Q4 FY25: Exceptional items mentioned but not quantified in this disclosure

Company Background

Varroc Engineering Ltd is a global tier-1 automotive component group incorporated in 1988. The group manufactures and supplies E-mobility solutions, Body systems solutions, Lighting solutions, HMI solutions, ICE powertrain and Advanced electronics to leading OEMs. Group income was ₹89,080 million from continued operations in FY26.