Varroc Engineering reported a robust 29.9% YoY revenue growth in Q1 FY27, reaching ₹26,342 million. India operations saw a 28.6% growth, while overseas operations grew by 45.6%. Revenue from EV models accounted for ~16% of total revenue, surging by 87% YoY. EBITDA stood at 8.5%, with net new business wins amounting to ₹5,991 million.
Varroc Engineering Reports Strong Q1 FY27 Performance
Varroc Engineering Limited has announced its unaudited financial results for the first quarter ended June 30, 2026 (Q1 FY27). The company demonstrated significant growth across key financial metrics, underscoring its strategic initiatives and market positioning.
Revenue Growth and Segment Performance
Total revenue from operations for Q1 FY27 reached ₹26,342 million, marking a substantial increase of 29.9% compared to the same quarter last year (Q1 FY26) when revenue stood at ₹20,276 million. This growth was fueled by strong performances in both domestic and international markets. India operations registered a healthy growth of 28.6%, while overseas operations witnessed an impressive growth rate of 45.6%.
A notable highlight is the increasing contribution of EV models to the company’s revenue. Revenue from EV models in Q1 FY27 constituted approximately 16% of the total revenue and experienced a remarkable year-on-year growth of 87%.
Profitability and Margins
Profit Before Tax (PBT) before exceptional and JV profits stood at 4.3% in Q1 FY27, compared to 4.1% in Q1 FY26, showing an improvement of 20 basis points YoY. EBITDA for the quarter was reported at 8.5% of revenue. The company noted that under-recovery of war-related inflation impacted Q1 FY27 margins by approximately 0.7%.
New Business Wins and Debt Management
Varroc secured significant new business wins in Q1 FY27, with an annual peak revenue win of ₹5,991 million. Notable wins include a 4W Lighting Business contract for its Thailand Operations and higher volume from an existing customer in the E-Mobility segment. The company’s net debt stood at ₹5,268 million as of June 30, 2026, an increase from ₹4,952 million as of March 31, 2026, primarily due to capital expenditure.
Key Highlights of Q1 FY27
- Revenue: ₹26,342 million (+29.9% YoY)
- India Operations Revenue Growth: 28.6%
- Overseas Operations Revenue Growth: 45.6%
- EV Model Revenue Contribution: ~16% (+87% YoY)
- PBT Margin (before exceptional/JV): 4.3%
- Net New Business Wins: ₹5,991 million
- Total Patents: 135+
The company also reported a significant year-on-year improvement in Earnings Per Share (EPS) and capital efficiency metrics, including ROCE & ROE (excluding exceptional items in FY26).
Source: BSE
