Q2 2026 Varroc Engineering Ltd Earnings Call Transcript

Nov 12, 2025 / 12:30 PM GMT

Release Date Price: ₹648.25 (+0.50%)

Transcript

Key Points

Positve

Varroc Engineering Ltd (NSE:VARROC) significantly reduced its net debt, bringing the net debt to equity ratio below 0.22 times.
The company achieved a consolidated revenue growth of 6.1% year-on-year, with India operations growing at 7%.
Varroc Engineering Ltd (NSE:VARROC) improved its PBT margin from 1.1% to over 4% due to financial prudence and cost reduction strategies.
The company has established a strong R&D facility in China to enhance capabilities and leverage available skill sets.
Varroc Engineering Ltd (NSE:VARROC) has a strong focus on e-mobility, with more than 11% of its revenue coming from supplying to EV customers.

Negative

The company's overseas electronics, lighting, and forging businesses continue to face challenges due to customer concentration and macroeconomic conditions.
The rare earth issue impacted Indian revenue, resulting in a loss of INR 750 million in Q2 FY26.
EBITDA margin decreased from 9.7% to 9.1% year-on-year, partly due to increased R&D costs and lower margin tool sales.
The overseas business saw an 18% dip in revenue, affecting overall profitability.
Future debt reduction is expected to be modest due to significant growth-enabling investments planned for the second half of the year.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

VARE.NS - Varroc Engineering Ltd
Q2 2026 Varroc Engineering Ltd Earnings Call
Nov 12, 2025 / 12:30PM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day and welcome to the Vock Engineering Limited Q2NH1F526 earnings conference call hosted by ICICI Securities.

As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing 100 on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vivek Kumar from ICICI Securities Limited.

Thank you and over to you, sir.

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Unidentified_2 [2]
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