Varroc Engineering Ltd., a global tier-I auto components group, announced a significant growth in its consolidated revenue for the fourth quarter of the financial year 2025-26, reaching ₹23,681 million, marking a 12.8% year-on-year increase. This achievement represents the highest quarterly revenue post-divestment for the company.
The company’s Profit Before Tax (PBT) before exceptional items and joint venture profit for Q4 FY26 was ₹1,074 million, compared to ₹1,034 million in Q4 FY25. Varroc’s EBITDA for the quarter stood at 9.7%, an increase from 9.3% in the previous quarter. For the full financial year FY26, Varroc reported a revenue of ₹88.9 billion, reflecting a 9.0% growth. The EBITDA margin for the year was 9.4%, and the PBT before JV profit margin improved by 50 basis points to 4.3%.
The revenue from supplying to electric vehicles (EVs) accounted for approximately 14% of the total revenue in Q4 FY26 and around 13% for the entire year. Varroc’s India operations showed strong performance with an EBITDA of 11.7% and a PBT of 7.2% for FY26, growing both year-on-year and sequentially despite supply chain challenges.
In its overseas electronics and lighting business, Varroc continues to secure significant orders, with expectations of a more visible turnaround from the second half of FY27. The company achieved its highest-ever net new business wins in FY26, with annualised peak revenues of ₹32,889 million. Notable wins in the last quarter included a wall-charger for its Romanian business from a global EV player and gears and crankpin from its ICE-powertrain solutions.
Varroc’s disciplined capital allocation strategy led to a reduction in net debt to ₹4,952 million, a decrease of ₹2,528 million from the previous year, with a comfortable net debt to equity ratio of 0.27. The average Return on Capital Employed (ROCE) stood at 24.4% for FY26.
The Board of Directors has recommended a 150% dividend of the face value for FY26.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).