Varroc Engineering Limited — PPTs, 06-08-2026: Investor Presentation

Varroc Engineering (VARROC) kicked off Q1 FY27 with robust performance.

**Business Performance:** Consolidated revenue surged 29.9% YoY to ₹2,634.2 Cr, marking a new quarterly high post divestment. PBT before exceptional items and JV profit jumped 38% YoY to ₹113.2 Cr (from ₹82.2 Cr). India operations grew 28.6%, while overseas revenue climbed 45.6%. All automotive segments saw strong YoY growth, with EV 2W volumes soaring 91%. EV vehicle revenue contributed 15.8% of total. EBITDA was 8.5%, impacted by higher commodity prices.

**Growth Drivers & Strategy:** The company prioritizes accelerating revenue across India and international markets, leveraging electrification and premiumization trends in India, and strengthening overseas presence through customer engagement and engineering capabilities. They continue to invest in technology and talent.

**Recent Developments:** Varroc secured new business wins totaling ₹599.1 Cr in annualized peak revenues, notably in Thailand lighting operations. They also appointed a new Chief Technology Officer to bolster innovation. Losses from overseas R&D are now reducing.

**Key Financial Metrics:** Net debt stood at ₹526.8 Cr, with a comfortable Net Debt to Equity of 0.28 and an average ROCE of 24%.

**Management Outlook:** Management remains positive for FY27, citing India's resilient economy and a robust automotive sector. They aim to improve contribution margins, control costs, and boost free cash flow.