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- Q1 FY26 results
Varroc Engineering Q1 FY26 results: net profit ₹107.42 crore vs ₹34.07 crore, revenue up 6.8%
Varroc Engineering Limited reported consolidated revenue of ₹2,028 crore in Q1 FY26, up 6.8% from the year-ago quarter, while EBITDA rose 11.8% to ₹194.57 crore. Net profit increased to ₹107.42 crore from ₹34.07 crore, and basic EPS was ₹6.88. The company also reported a ₹61.19 crore exceptional gain and reduced net debt, according to its earnings call.
Key points
- Consolidated revenue was ₹2,028 crore in Q1 FY26, up 6.8% from ₹1,899 crore in Q1 FY25.
- EBITDA rose 11.8% to ₹194.57 crore, with EBITDA margin at 9.6% against 9.2% in the year-ago quarter.
- Net profit increased to ₹107.42 crore from ₹34.07 crore, and basic EPS was ₹6.88.
- Automotive revenue rose 6.0% to ₹1,972.36 crore, with segment EBIT of ₹124.16 crore.
How did Varroc Engineering perform in Q1 FY26?
Varroc Engineering’s consolidated revenue for Q1 FY26 was ₹2,028 crore, up 6.8% from ₹1,899 crore in Q1 FY25. EBITDA was ₹194.57 crore, up 11.8%, and EBITDA margin rose 0.4 percentage points to 9.6%. Profit before tax was ₹143.41 crore, while net profit was ₹107.42 crore, compared with ₹34.07 crore a year earlier. Basic EPS increased to ₹6.88 from ₹2.12. On a standalone basis, revenue was ₹1,843 crore and profit after tax was ₹86.63 crore.
Against Q4 FY25, consolidated revenue fell 3.4% to ₹2,028 crore from ₹2,099 crore and EBITDA fell 11.9% to ₹194.57 crore from ₹220.74 crore. EBITDA margin declined 0.9 percentage points to 9.6%. Despite the lower revenue and EBITDA, profit before tax rose 205.5% to ₹143.41 crore and net profit rose 367.2% to ₹107.42 crore, helped by a change from a ₹56.42 crore exceptional charge to a ₹61.19 crore exceptional gain. Basic EPS was ₹6.88 against ₹1.35.
| ₹ crore | Q1 FY26 | Q4 FY25 | Q1 FY25 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 2,028 | 2,099 | 1,899 | +6.8% | −3.4% |
| Other income | 5.06 | 4.84 | 3.55 | +42.5% | +4.5% |
| Total expenses | 1,950 | 2,001 | 1,849 | +5.5% | −2.5% |
| EBITDA | 194.57 | 220.74 | 174.01 | +11.8% | −11.9% |
| EBITDA margin | 9.6% | 10.5% | 9.2% | +0.4 pp | −0.9 pp |
| Profit before tax | 143.41 | 46.95 | 53.31 | +169.0% | +205.5% |
| Tax | 36.53 | 24.26 | 21.92 | +66.7% | +50.6% |
| Net profit | 107.42 | 22.99 | 34.07 | +215.3% | +367.2% |
| EPS (₹) | 6.88 | 1.35 | 2.12 | +224.5% | +409.6% |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in Varroc Engineering's costs and profit?
Total expenses increased 5.5% to ₹1,950 crore from ₹1,849 crore in the year-ago quarter. Cost of materials rose 3.0% by ₹36.44 crore to ₹1,271 crore, while employee cost increased 11.9% by ₹25.61 crore to ₹241.23 crore. The company said the overseas R&D set-up supporting its four-wheeler lighting and electronics business affected employee cost in the quarter. Finance costs fell 18.3% by ₹8.13 crore to ₹36.32 crore, and other expenses declined 0.4% by ₹1.43 crore to ₹320.50 crore. Depreciation rose 1.6% by ₹1.29 crore to ₹81.10 crore.
Other income increased by ₹1.51 crore to ₹5.06 crore from ₹3.55 crore. Tax expense was ₹36.53 crore, up ₹14.61 crore or 66.7% from ₹21.92 crore. The quarter included an exceptional gain of ₹61.19 crore, described in the company’s press release as the foreign currency translation reserve released to profit and loss on the disposal of its China joint venture. There was no exceptional item in Q1 FY25.
| ₹ crore | Q1 FY26 | Q1 FY25 | Change | Change % |
|---|---|---|---|---|
| Cost of materials | 1,271 | 1,235 | +36.44 | +3.0% |
| Employee cost | 241.23 | 215.62 | +25.61 | +11.9% |
| Finance costs | 36.32 | 44.45 | −8.13 | −18.3% |
| Depreciation | 81.10 | 79.81 | +1.29 | +1.6% |
| Other expenses | 320.50 | 321.93 | −1.43 | −0.4% |
| Total expenses | 1,950 | 1,849 | +101.30 | +5.5% |
| Other income | 5.06 | 3.55 | +1.51 | +42.5% |
| Tax | 36.53 | 21.92 | +14.61 | +66.7% |
| Exceptional items | +61.19 (gain) | none |
Source: Company's results filing (XBRL).
How has Varroc Engineering done over the last 8 quarters?
Revenue rose year on year in each of the last 8 quarters. In the reported series, revenue peaked at ₹2,099 crore in Q4 FY25 and was ₹2,028 crore in Q1 FY26, while the lowest was ₹1,884.59 crore in Q3 FY24. Profit after tax reached ₹383.89 crore in Q3 FY24 and fell to a loss of ₹45.18 crore in Q3 FY25 before recovering to ₹107.42 crore in Q1 FY26.
EBITDA margin reached 11.2% in Q4 FY24 and bottomed at 9.0% in Q3 FY25. It was 9.6% in Q1 FY26, lower than the latest peak but above Q1 FY25. Profit after tax direction changed from a loss in Q3 FY25 to ₹22.99 crore in Q4 FY25 and ₹107.42 crore in Q1 FY26.
Which businesses drove the quarter?
Automotive revenue was ₹1,972.36 crore in Q1 FY26, up 6.0% from ₹1,859.89 crore in the year-ago quarter. Segment EBIT rose to ₹124.16 crore from ₹104.58 crore, while the reported EBIT margin was 6.3%. Automotive accounted for the large majority of the company’s reported segment revenue.
Others revenue increased 41.7% to ₹55.19 crore from ₹38.96 crore in Q1 FY25. Segment EBIT was a loss of ₹8.59 crore, compared with a loss of ₹7.5 crore in the year-ago quarter, and the reported EBIT margin was negative 15.6%.
| Segment | Revenue | Revenue YoY | EBIT | EBIT margin |
|---|---|---|---|---|
| Automotive | 1,972 | +6.0% | 124.16 | 6.3% |
| Automotive | 1,972 | +6.0% | 124.16 | 6.3% |
| Others | 55.19 | +41.7% | −8.59 | -15.6% |
| Others | 55.19 | +41.7% | −8.59 | -15.6% |
Source: Company's results filing (XBRL segment data).
What did Varroc Engineering's management say?
Management identified rare-earth magnet supply disruptions as a near-term risk to EV volumes, while saying the company had de-risked certain rare-earth applications and begun supplying ferrite-based magnet solutions. It also said the overseas business was in transition and expected to be moderately profitable by H2 FY27 as new orders converted. No formal guidance was given.
How did Varroc Engineering shares react?
The filing appeared after market hours. The stock moved down 0.2% in the first 5 minutes, down 0.8% in 15 minutes and down 1.4% in 30 minutes. It closed the reaction day up 0.3% from the pre-results close of ₹536.95, while the Auto Components & Equipments sector median moved down 0.3%.
By the next day’s close, the stock was down 0.2% from its pre-results close, versus a sector median of down 1.2%. By the fifth session’s close, it was down 2.0%, compared with a sector median of down 3.6%. The corresponding excess-sector moves were 1.0 percentage point on the next day and 1.6 percentage points after five sessions. Earlier reaction-day moves were positive on 29 May 2025, 10 February 2025 and 17 May 2024, and negative on 13 November 2024 and 7 August 2024.
| After the filing | Stock | Auto Components & Equipments median |
|---|---|---|
| 5 minutes | −0.2% | |
| 15 minutes | −0.8% | |
| 30 minutes | −1.4% | |
| Reaction day | +0.3% | −0.3% |
| Next day | −0.2% | −1.2% |
| 5 days | −2.0% | −3.6% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 29 May 2025 | +2.7% |
| 10 February 2025 | +3.6% |
| 13 November 2024 | −6.5% |
| 7 August 2024 | −3.7% |
| 17 May 2024 | +6.3% |
Source: MarketPing price-reaction measurement.
How did other Auto Components & Equipments companies do?
Among 111 Auto Components & Equipments companies compared for the quarter, the median revenue growth was 8.5%. Of the other companies, 51 grew more slowly than Varroc Engineering and 60 grew faster. Of 113 peers for which profit was compared, 71 reported higher profit. The peer figures were recorded as of 6 November 2026.
| Varroc Engineering revenue growth (YoY) | +6.8% |
|---|---|
| Median of 111 other Auto Components & Equipments companies | +8.5% |
| Companies with slower revenue growth than Varroc Engineering | 51 of 111 |
| Companies with faster revenue growth than Varroc Engineering | 60 of 111 |
| Companies whose net profit rose | 71 of 113 |
Source: Filed results (XBRL) of the industry's companies.
Quick answers
What was Varroc Engineering's revenue in Q1 FY26?
Revenue from operations was ₹2,028 crore, up 6.8% from ₹1,899 crore in Q1 FY25 (consolidated).
Did Varroc Engineering make a profit in Q1 FY26?
Yes. Net profit was ₹107.42 crore, against a net profit of ₹34.07 crore in Q1 FY25.
What was Varroc Engineering's EPS in Q1 FY26?
Basic earnings per share were ₹6.88, against ₹2.12 in Q1 FY25.
How did Varroc Engineering shares react to the Q1 FY26 results?
On the reaction day the stock moved +0.3% from the previous close; the median Auto Components & Equipments stock moved −0.3%.
When did Varroc Engineering announce its Q1 FY26 results?
On 29 July 2025, in a filing to the NSE.
Sources
- Shareholders meeting (NSE, 29 July 2025) · PDF
- General Updates (NSE, 31 July 2025) · PDF
- Outcome of Board Meeting (NSE, 7 August 2025) · PDF
- Outcome of Board Meeting (NSE, 7 August 2025) · PDF
- General Updates (NSE, 7 August 2025) · PDF
- Press Release (NSE, 7 August 2025) · PDF
- The earnings call (11 August 2025)
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
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