Varroc Engineering

VARROC

NSE

BSE

SectorAutomobiles

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Company insights, generated from the most recent coverage.

Q1FY27 revenue grew 30% YoY with highest-ever PBT before exceptional items.
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The Quarter story

The two most recent quarterly results, compared side-by-side.

Varroc shows strong revenue growth and a robust order pipeline, with profitability recovering despite margin pressure and rising leverage.

Consolidated revenue grows from ₹20,276 Cr in Q1 FY26 to ₹26,342 Cr in Q1 FY27, driven by strong domestic and overseas sales.

EBITDA margin slips from 9.5% in Q1 FY26 to 8.5% in Q1 FY27, signaling pricing or product mix pressure.

Outstanding order book rebounds from ₹16,933 Cr in Q2 FY26 to ₹36,092 Cr in Q1 FY27, securing robust near-term revenue visibility.

Net debt increases from ₹4,478 Cr in Q1 FY26 to ₹5,268 Cr in Q1 FY27, reflecting higher leverage to fund growth initiatives.

EV vehicle revenue mix expands from 11.0% in Q1 FY26 to 16% in Q1 FY27, reflecting a steady shift toward electrification.

Overseas EBITDA improves from -₹212 Cr in Q3 FY26 to -₹85 Cr in Q1 FY27 but remains in the red, requiring continued margin focus.

India business EBITDA rises from ₹2,405 Cr in Q2 FY26 to ₹2,552 Cr in Q1 FY27, confirming resilient domestic profitability.

Net debt to EBITDA climbs from 0.52x in Q3 FY26 to 0.59x in Q1 FY27, indicating a gradual rise in financial leverage.

PAT recovers from -₹113 Cr in Q3 FY26 to ₹777 Cr in Q1 FY27, restoring bottom-line earnings after a temporary dip.

About the company

Varroc Engineering Limited is a global tier-1 automotive component supplier incorporated in 1988. The company designs, manufactures, and supplies exterior lighting systems, plastic and polymer components, electrical-electronics components, and precision metallic components to various vehicle OEMs worldwide. It has a global footprint of 37 manufacturing facilities and is a leading supplier of passenger car lighting and two-wheeler automotive components. Varroc has expanded through organic growth, joint ventures, and acquisitions. The company's product portfolio includes valves, transmission parts, engine components, forging components, air filters, mirror assemblies, door trims, central consoles, traction motors and controllers, and telematics control units. In 2022, Varroc divested its 4-wheeler lighting system operations to Compagnie Plastic Omnium SE. The company has also launched various EV product lines and continues to expand its capabilities in automotive technology.

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