Q3 2026 Varroc Engineering Ltd Earnings Call Transcript

Feb 5, 2026 / 11:30 AM GMT

Release Date Price: ₹582.1 (-5.18%)

Transcript

Key Points

Positve

Varroc Engineering Ltd (NSE:VARROC) reported a consolidated revenue growth of 10.2% year-on-year, with India operations growing at 12.3%.
The company's EBITDA margin improved slightly to 9.3% from 9.2% year-on-year.
Revenue from electric vehicle (EV) models increased significantly, contributing 14.3% of total revenues, marking a 53% year-on-year growth.
The company achieved its highest-ever new order wins in nine months, with an annualized peak revenue potential of over INR 20,663 million.
Varroc Engineering Ltd (NSE:VARROC) has successfully implemented a voluntary separation scheme, which is expected to strengthen its cost structure with a payback period of four years.

Negative

The overseas electronics, lighting, and forging business segments continue to face challenges due to customer concentration and macroeconomic factors.
The company's net debt increased to INR 4,405 million due to a one-time cash outflow related to the voluntary separation scheme.
Gross margins declined during the quarter, attributed to changes in product and market mix rather than raw material costs.
The overseas business, particularly in Romania, is not expected to reach full profitability until the financial year 2027.
The company is facing an arbitration case with a claim of approximately €66 million, which remains unresolved and could impact future financials.

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

VARE.NS - Varroc Engineering Ltd
Q3 2026 Varroc Engineering Ltd Earnings Call
Feb 05, 2026 / 11:30AM 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 Fair of Engineering Limited Q3 FY26 earnings conference call hosted by Experience Securities Private Limited. As a reminder, all participant lines will read the less only more, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this 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. Mihir Vra from Equiia Securities Private Limited.

Thank you and over to you, sir.

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Unidentified_2 [2]
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