Varroc Engineering announced a significant 33.6% year-on-year growth in consolidated revenue for the second quarter of FY27, reaching ₹29,479 million. The company also saw its PBT before exceptional and JV items grow by 54% to ₹1,401 million. Key drivers included robust automotive demand, ramp-up of new programs, and strong performance in its India, overseas, and electric mobility businesses. The company is also undertaking strategic actions to strengthen long-term value creation, including restructuring its two-wheeler lighting manufacturing and acquiring a stake in Forsee Power India.
Varroc Engineering Delivers Strong Q2 FY27 Performance
Varroc Engineering Ltd. has reported a robust financial performance for the second quarter of FY27, with consolidated revenue from operations surging by 33.6% year-on-year to ₹29,479 million. This marks the highest ever quarterly revenue for the company post-divestment. The company also achieved a 54% growth in Profit Before Tax (PBT) before exceptional and JV profit, which stood at ₹1,401 million compared to ₹912 million in Q2 FY26.
Revenue Growth Drivers
The strong revenue growth was underpinned by robust automotive demand, the ramp-up of new programs, and continued expansion across its India, overseas, and electric mobility businesses. India operations grew by 29.5% year-on-year, while overseas operations also demonstrated significant growth. For the first half of FY27 (H1 FY27), consolidated revenue increased by 31.8% year-on-year to ₹55,822 million, fueled by 29.1% growth in India and an impressive 70.7% growth in the overseas business.
Profitability and EV Business Expansion
Profitability saw sequential improvement, with Q2 FY27 EBITDA at ₹2,611 million, an increase from 8.5% to 8.9% EBITDA margin. Despite renewed commodity inflation, profitability remained resilient. Varroc’s participation in electric mobility continues to gain scale, with revenue from products supplied to EV models accounting for approximately 19% of consolidated revenue in Q2 FY27, up from 16% in Q1 FY27. EV-related revenue grew by approximately 130% year-on-year.
Strategic Actions for Long-Term Value
The company is also implementing strategic actions to enhance long-term value. These include restructuring its two-wheeler lighting manufacturing operations in Italy, with proposed relocation to Romania and Vietnam to improve capacity utilisation and cash generation. Furthermore, Varroc is proceeding with the acquisition of a stake in Forsee Power India, which will provide access to an operating battery-pack platform and complement its existing portfolio, strengthening its position in electric mobility.
Financial Highlights (Q2 FY27 vs Q2 FY26)
- Revenue from operations: ₹29,479 million (up 33.6%)
- PBT before JV and exceptional items: ₹1,401 million (up 54%)
- EBITDA: ₹2,611 million
Source: BSE
