Varroc Engineering Limited — Important, 05-02-2026: Disclosure of material issue

Varroc Engineering has decided to exercise a call option for the early redemption of its 8.6% Non-Convertible Debentures (NCDs).

**Issue:** Varroc is calling back its 8.6% NCDs ahead of their original maturity. The company will redeem NCDs with an outstanding principal amount of Rs. 171.88 Cr (from an original issue size of Rs. 250 Cr).

**Possible Impact:** This early debt repayment reduces the company's interest expenses and overall debt burden, signaling confidence in its financial health. It frees up cash flow and strengthens the balance sheet, potentially improving future profitability and financial flexibility.

**Company's Response/Mitigation Plan:** The company is proceeding with the early redemption, citing its "financial position, cash flows and overall capital structure" as the reason. The Record Date for determining eligible debenture holders is February 13, 2026, and the full redemption payment will be made on March 7, 2026. #VarrocEngineering #DebtReduction #NCDs #FinancialHealth