Varroc Engineering Limited has informed the Exchange about Investor Presentation
VARROC · price
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Varroc Engineering reported Q1 FY26 consolidated revenue of Rs. 20,276 million, up 6.8% year-on-year, driven by 7.2% growth in India operations. Profitability improved notably, with EBITDA margin at 9.5% (vs 9.1% YoY) and PBT before exceptional items at 4.1% (vs 2.8% YoY), a 130 bps expansion. Net debt fell sharply by Rs. 3,002 million to Rs. 4,478 million, with net debt-to-EBITDA improving to 0.58x from 0.96x, aided by Rs. 3,400 million received from the China JV stake sale in May 2025. The company won new orders with annual peak revenue potential of Rs. 2,905 million in Q1 FY26, taking the total peak revenue pipeline to Rs. 33,310 million by FY28. EV-related revenue contributed around 11% of total revenue, and the E-mobility segment grew to Rs. 1,247 million in the quarter.
Positive for shareholders — the quarter shows broad-based improvement with revenue growth outpacing industry, margin expansion, strong order wins, and significant debt reduction. The improving balance sheet and growing EV exposure position the company well, though sequential revenue dipped 3.4% QoQ partly due to seasonality in the auto sector.