Varroc Engineering Limited — Investor Meet, 17-11-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Varroc Engineering's Q2 and H1 FY26 consolidated revenue reached INR 2,270 Cr (+6.1% YoY), with India operations growing 7%. EBITDA margin was 9.1% (vs 9.7% YoY) due to R&D investments and tooling, though India EBITDA remained strong at 11.5%. Net debt significantly reduced to INR 380 Cr, bringing Net Debt/EBITDA to 0.47x and ROCE to 23.6%. H1 FY26 saw new orders worth INR 892.8 Cr (63% EV-related), including 4-Wheeler Lighting and EV powertrain wins, with the rare-earth issue now resolved. Strategic R&D investments in China/Poland target advanced Lighting and ADAS, with overseas business turnaround expected from H2 FY27. Increased CAPEX in H2 will moderate further debt reduction. The company aims to double revenue and achieve >10% PBT by 2030, balancing financial prudence with growth initiatives.