Varroc Engineering reported a 10.2% YoY revenue increase in Q3 FY26, reaching Rs. 22,875 million, with India operations growing by 12.3%. Revenue from EV models grew significantly, and the company secured record new orders. While net debt increased due to a one-time Rs. 799 million VRS expenditure, the company anticipates improved cost structure. The firm is focusing on electric mobility and strategic growth initiatives.
Financial Performance
Varroc Engineering announced its Q3 FY26 results, showcasing a revenue of Rs. 22,875 million, marking a 10.2% increase compared to the previous year. The company’s India operations were a key driver, achieving a growth rate of 12.3%.
The company’s Profit Before Tax (PBT), before exceptional items and JV profits, stood at 4.4%, compared to 3.2% in Q3 FY25. EBITDA margins also saw a slight increase, reaching 9.3% compared to 9.2% in the same period last year.
Electric Vehicle Growth
Varroc Engineering is making significant strides in the electric vehicle (EV) segment. Revenue from EV models in Q3 FY26 grew by approximately 53% YoY, contributing about 14.3% to the overall revenue. Over the first nine months of the fiscal year, EV revenue increased by 38% YoY, representing about 12.1% of total revenue.
New Order Wins
The company achieved its highest-ever net new order wins during the first nine months of FY26. These orders have a peak annual revenue potential of Rs. 20,636 million, with over 74% of these orders related to EV models.
Debt and Investments
Varroc Engineering’s net debt increased to Rs. 4405 million due to a one-time expenditure of approximately Rs. 799 million on a voluntary retirement scheme (VRS). However, the company expects this to improve its cost structure and generate recurring annual benefits, with a payback period of approximately four years.
Strategic Wins and Innovations
Varroc Engineering has secured notable business wins, including contracts for high-voltage PCBA from a global EV OEM for its Romanian entity, lighting for electric vehicles from a global EV OEM for its Thailand entity, and lighting business for an Indian OEM’s upcoming EV.
The company also filed more than 15 patents in the first nine months of FY26, bringing the total patent filings to over 130.
Source: BSE
