Varroc Engineering Limited has released its investor presentation for the second quarter and half-year ended September 30, 2026. The presentation covers the un-audited financial results, providing insights into revenue growth, PBT, EBITDA margins, and strategic initiatives including restructuring and potential acquisitions. Key highlights include strong revenue growth from India and overseas operations, with a notable contribution from EV models.
Varroc Engineering Presents Q2 FY27 Financials and Strategy
Varroc Engineering Limited has issued its investor presentation for the second quarter (Q2) and the first half (H1) of the financial year 2027 (FY27), ending on September 30, 2026. This comprehensive document details the company’s un-audited financial performance and strategic direction.
Key Financial Highlights
In Q2 FY27, Varroc Engineering reported a revenue of ₹29,479 million, marking a significant year-on-year (YoY) growth of 33.6%. India Operations contributed with a 29.5% growth, while Overseas Operations saw an impressive surge of 104.1%. Revenue from EV models accounted for approximately 19% of the total Q2 FY27 revenue, growing by 130% YoY. The company’s Profit Before Tax (PBT) before exceptional and JV profits stood at 4.7%, with EBITDA at 8.9%. Net debt increased to ₹5,547 million in Q2 FY27, primarily due to capital expenditure and delayed war recovery.
For H1 FY27, the company secured net new business with an annual peak revenue win of ₹10,127 million. The net annual peak revenue win from supplying to EV vehicles exceeded 48%.
Strategic Decisions and Future Outlook
Varroc Engineering continues to implement strategic decisions aimed at creating stakeholder wealth. Notable initiatives include the restructuring of its 2W lighting manufacturing operations in Italy and a planned acquisition of a stake in Forsee Power India, a company focused on battery pack systems. The company has also filed over 140+ patents to date.
Operational and Market Insights
The presentation highlights the resilience of the Indian economy in Q2 FY27 and H1 FY27, despite global challenges. Automotive demand has shown continued momentum, driven by EV adoption. India’s automotive production saw strong YoY growth across segments like 2W, 3W, PV, and CV. The company’s global R&D footprint spans Poland, Italy, India, and China, focusing on key areas like Interior Lighting, Smart Mobility, ADAS, E-Mobility Solutions, and Intelligent Cockpit technologies.
Consolidated financials for Q1 FY27 show revenue from operations at ₹29,479 million, an 11.9% increase QoQ and a 33.6% increase YoY. EBITDA was reported at ₹2,611 million, with an EBITDA margin of 8.9%. PBT before JV and exceptional items margin improved by 60 basis points YoY.
The company’s business segments include India Business and Overseas Business, with specific focus on 4W Advanced Electronics & Lighting R&D for Overseas Operations. The Revenue Breakdown for H1 FY27 shows a product group mix dominated by Body Parts (34.0%), ICE Powertrain (22.9%), and Lighting Solutions (16.4%). Geography-wise, India contributes 87% to revenue, with Overseas contributing 13%.
Acquisition and Restructuring
The presentation also details the acquisition of Forsee, which strengthens Varroc’s position in battery systems, accelerating market entry, expanding EV content, and combining complementary strengths. Furthermore, the restructuring of Italy 2W lighting operations aims to create a leaner, low-cost global operating model, enhancing profitability and capital productivity.
Source: BSE
