Varroc Engineering Q1 FY27 Revenue Surges 30% YoY to ₹2,634 Crore, PBT Before Exceptional Items Up 38%
Varroc Engineering reported Q1 FY27 consolidated revenue of ₹2,634.2 crore, up 29.9% YoY. PBT before exceptional items rose 38% to ₹113.2 crore. EV revenue grew 87% YoY, contributing 15.8% of total revenue. Net debt stands at ₹526.8 crore with a net debt-to-equity of 0.28.
The substantial revenue growth, improved profitability, and positive commentary on future outlook indicate a significant positive impact on the company's performance and investor perception.
The company reported strong year-on-year growth in revenue and profit before tax, along with significant growth in EV-related business and a comfortable debt-to-equity ratio.
Varroc Engineering Limited announced its unaudited financial results for the first quarter ended June 30, 2026. The company reported a consolidated revenue from operations of ₹2,634.2 crore (₹26,342 million) for Q1 FY27, marking a significant year-on-year growth of 29.9%. This represents the highest quarterly revenue achieved post-divestment.
Profit Before Tax (PBT) before exceptional items and JV profit for Q1 FY27 stood at ₹113.2 crore (₹1,132 million), an increase of 38% compared to ₹82.2 crore (₹822 million) in Q1 FY26. The company's PBT margin improved by 20 basis points YoY to 4.3% of revenue, despite adverse impacts from commodity price volatility and higher tooling sales.
Mr. Tarang Jain, CMD, commented on the resilient Indian economy and strong performance of the automotive sector, highlighting broad-based growth across segments. Varroc witnessed robust growth across all automotive segments on a YoY basis, with EV 2W volume growing by 91%. India operations saw a growth of 28.6%, while overseas revenue grew by 45.6% YoY.
The company's EBITDA margin was approximately 8.5% for the quarter. Revenue from supplying EV vehicles contributed around 15.8% of the total revenue, with an 87% YoY growth. Varroc also reported winning new business with annualized peak revenues of ₹599.1 crore (₹5,991 million).
In terms of financial position, the net debt at the end of Q1 FY27 was ₹526.8 crore (₹5,268 million), with a comfortable net debt-to-equity ratio of 0.28. The average Return on Capital Employed (ROCE) was around 24% for the quarter. The company has appointed Mr. Eric Hamon as Chief Technology Officer for Business 1, bringing extensive global automotive technology and engineering leadership experience.
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