Q4 2026 Varroc Engineering Ltd Earnings Call Transcript

May 27, 2026 / 11:30 AM GMT

Release Date Price: ₹587.3 (+2.19%)

Transcript

Key Points

Positve

Varroc Engineering Ltd (NSE:VARROC) reported a consolidated revenue growth of 12.8% year-on-year for Q4 FY26, reaching Rs. 23.7 billion.
The company's EBITDA margin improved to 9.7% in Q4 FY26 from 9.3% in the previous quarter.
Revenue from supplying to electric vehicles (EVs) constituted 14% of total revenues in Q4, indicating a strong focus on the growing EV market.
The company achieved its highest-ever net new business wins with an annualized peak revenue of Rs. 32,889 billion, highlighting strong future growth potential.
Varroc Engineering Ltd (NSE:VARROC) reduced its net debt by Rs. 2,528 million from the previous year, showcasing effective debt management.

Negative

Despite revenue growth, the EBITDA margin remains below the double-digit target, indicating room for improvement in operational efficiency.
The international business, particularly the Romanian operations, is expected to reach EBITDA break-even only by Q4 of FY27, indicating ongoing challenges.
The Italian forging business may take another year to achieve EBITDA break-even, reflecting continued operational difficulties.
The company anticipates significant capital expenditure of Rs. 450 to 500 crores in FY27, which could impact short-term cash flow.
There are ongoing supply chain challenges, particularly with tier-two and tier-three suppliers, which could affect production and sales.

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

VARE.NS - Varroc Engineering Ltd
Q4 2026 Varroc Engineering Ltd Earnings Call
May 27, 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 Varrock Engineering Limited Q4 FY26 Earnings Conference Call hosted by Investor Capital Services. Before I move to introduce the management, I would like to remind all participants that they are 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 raise your virtual hand. Please note that this conference is being recorded.

Today it gives me great pleasure to introduce you to the management of Aroc Engineering. Mr. Tarang Jain, Chairman and MD. Mr. Arjun Jain, Whole Time Director and CEO, Business 1. Mr. Dhruv Jain, Whole Time Director and CEO,

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