Varroc Engineering LimitedAutomobilesVARROC
Q1 FY27 concall · earnings callVarroc Engineering Limited
Varroc aims to achieve a revenue target of INR 20,000 crores by FY31, driven by strong order wins in EV and overseas electronics, with anticipated growth of around 20% in FY27.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| FY26 Consolidated Revenue | ₹8,890.5 Cr | 9% | |
| FY26 EBITDA Margin | 9.4% | — | |
| FY26 PBT Margin | 4.3% | 50 basis points | |
| FY26 EV Revenue Contribution | 13% | — | |
| Net New Business Wins (Annualized Peak Revenue) | ₹3,289 Cr | — | |
| EV Share of New Wins | 65% | — | |
| Expected FY27 Revenue | exceed ₹10,500 Cr | around 20% | |
| FY27 Planned Capex | ₹550 Cr | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹2,075.26 Cr+10.1% YoY-0.3% QoQ | ₹-45.18 CrTurned loss-making YoYTurned loss-making QoQ | ₹-3.10Turned negative YoYTurned negative QoQ |
| Q2 FY25 | ₹2,080.77 Cr+10.3% YoY+9.6% QoQ | ₹57.80 Cr+3.7% YoY+69.7% QoQ | ₹3.64+2.5% YoY+71.7% QoQ |
| Q1 FY25 | ₹1,898.85 Cr+5.9% YoY-3.8% QoQ | ₹34.07 Cr-0.1% YoY-41.6% QoQ | ₹2.12-39.1% YoY-43% QoQ |
| Q4 FY24 | ₹1,974.86 Cr+16.9% YoY+4.8% QoQ | ₹58.36 Cr+45.8% YoY-84.8% QoQ | ₹3.72+43.6% YoY-85.1% QoQ |
| Q3 FY24 | ₹1,884.59 Cr+9.8% YoY-0.1% QoQ | ₹383.89 Cr+1662.6% YoY+589% QoQ | ₹25.05+1769.4% YoY+605.6% QoQ |
TL;DR
- Consolidated revenue for FY26 was approximately INR 88,905 million, with 9% YoY growth.
- Net new business wins were approximately INR 32.89 billion, with around 65% related to EV models.
- EV revenue contributed about 13% of FY26 revenue and is expected to grow significantly.
- Overseas electronics business is expected to reach EBITDA neutral position by end of FY27.
- FY27 revenue is expected to exceed INR 10,500 crores.
- Capex for FY27 is projected to be about INR 550 crores.
Said on the call
“For Varroc, financial year '27 will be an important year of execution.”
From the Q&A
| Topic | What management said |
|---|---|
| Revenue target of INR 20,000 crores by FY31 | Achieving a CAGR of ~17.5% is seen as achievable with strong fundamentals; overseas ops expected to contribute ~INR 4,000 crores (20%), India business (~INR 16,000 crores) needs a CAGR of ~15.5% driven by EV and premiumization. |
| E-mobility segment growth and customers | Currently at ~8% of revenue with one market-leading customer; adding another customer imminently; EV penetration in 2W/3W expected to reach 30%/40% by FY31, driving significant growth. |
| Overseas operations turnaround | Revenue has been falling due to market softness and a customer withdrawal; new large orders have started SOP in Q1 FY27, leading to a revenue bounce back; overseas electronics expected to be EBITDA neutral by end of FY27. |
| Capex and net debt outlook | FY27 capex is ~INR 550 crores (INR 200+ crores overseas); future capex to be controlled at INR 300-350 crores, mostly in domestic e-mobility. Net debt may not reduce significantly in FY27 due to heavy capex, but should reduce significantly by end of FY28. |
Guidance
- FY27 revenue expected to exceed INR 10,500 crores (~20% growth).
- Overseas electronics business expected to reach EBITDA neutral position by end of FY27.
- FY27 capex expected to be about INR 550 crores.
- Target to cross INR 200 billion (INR 20,000 crores) revenue by FY31.
- Net debt expected to reduce significantly by end of FY28.
Source
Summary written from the transcript filed by Varroc Engineering Limited for the call held on 20 Aug 2026; published 21 Aug 2026, 19:14 IST.
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