Press Release
VARROC · price
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Varroc Engineering reported consolidated revenue of ₹23,681 million in Q4 FY26, up 12.8% YoY, marking its highest-ever quarterly revenue post-divestment. Full-year FY26 revenue stood at ₹88.9 billion, growing 9.0% YoY. EBITDA margin for Q4 FY26 improved to ~9.7% (from 9.3% in Q3), and full-year EBITDA margin was 9.4%, with PBT before JV profit margin expanding by 50 bps to 4.3%. EV-related revenue contributed ~14% in Q4 and ~13% for FY26. Net debt reduced significantly by ₹2,528 million to ₹4,952 million, with a comfortable net debt-to-equity of 0.27 and ROCE of 24.4%. The company won its highest-ever net new business worth ₹32,889 million in annualized peak revenues. Q3 FY26 included exceptional items of ₹1,024 million (VRS and New Labour Code). The board recommended a 150% dividend.
Strong double-digit revenue growth, improving margins, and a sharp deleveraging of balance sheet signal operational turnaround, particularly in overseas businesses. The comfortable leverage ratio and high ROCE are positive for shareholders, though margin expansion remains modest.