Varroc Engineering Limited (VARROC) Financial Results — Revenue ₹23,700 Cr

Investor Takeaways

Revenue reached ₹23,700 Cr in Q4 FY26, up 12.8% YoY, with EBITDA margin expanding to 9.7% and PBT margin improving to 4.5%.

Full-year revenue grew 9% to ₹88,900 Cr, driven by record order intake of INR 32,889 billion annualized and EV components contributing 14% of quarterly revenue.

International revenue share is expanding, with Romania breakeven targeted by Q4 and Italy within 12-18 months.

Overall Tone: Neutral

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹23,700 Cr	12.8%
Net Profit	₹450 Cr	N/A
EBITDA	₹2,289.9 Cr	N/A
EPS	₹3.15	N/A
OPM	9.7%	N/A

What Changed

Varroc Engineering demonstrated accelerating growth momentum in Q4 FY26, with revenue growth accelerating to 12.8% YoY from the full-year growth of 9%. This was supported by strong execution in overseas markets, particularly Thailand, and disciplined capital allocation toward high-growth segments. The company achieved record order intake of INR 32,889 billion annualized, reflecting robust demand visibility. EV components now contribute 14% of quarterly revenue, up from previous periods, signaling strategic progress in the electric vehicle transition. Margin expansion was evident, with EBITDA margin rising to 9.7% and PBT margin improving to 4.5%, indicating better cost control and operational efficiency. The company is targeting double-digit EBITDA margins by FY27-28, underpinned by capacity expansion in e-mobility and electronics. Capital expenditure of INR 450-500 crore this fiscal year is focused on scaling EV and electronics manufacturing capabilities, with international breakeven targets set for Romania by Q4 and Italy within 12-18 months. Despite near-term supply chain challenges, the company is maintaining a disciplined approach to growth and capital allocation, positioning for long-term structural improvement in profitability and market positioning.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
Varroc Engineering	87.44	N/A	N/A	8,523.19
TVS Motor Company	393.51	N/A	N/A	8,23,516
Maruti Suzuki	27.84	15.51%	19.82%	4,15,671.64
Mahindra & Mahindra	22.17	20.41%	14.57%	3,88,366.49

Varroc trades at a significant premium to Maruti and M&M on P/E, reflecting growth expectations, though its margins and returns currently lag behind established peers.