Varroc Engineering Limited — Investor Meet, 01-06-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Varroc Engineering reported Q4 revenue of INR 2100 Cr, up 11% YoY, with EBITDA margin at 10.2% and PBT at 4.9%. FY25 revenue rose 8.5% to INR 8170 Cr, free cash flow was INR 312 Cr, and net debt reduced to INR 748 Cr. EV-related revenues made up ~10%, with 55% of new business linked to EVs. The China JV exit brought INR 340 Cr to debt reduction. Exceptional items of INR 147 Cr reflected structural costs. Management highlighted strong patent activity, 31% renewable energy use, and cost control focus. Overseas growth is deferred to H2 FY27; domestic aims for high double-digit growth in FY26 supported by localization and EV push. Plans include a major land acquisition near Pune for capacity expansion. Margin improvement is expected from growth and efficiency, with a cautious stance on metallic business. Export share (target 10%) and diversification beyond Bajaj, along with leveraging Bajaj-KTM ties in Europe, remain key strategies.