India · Delayed Price · Currency is INR Varroc Engineering Earnings Call Transcripts
Fiscal Year 2026
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Q3 FY26 saw 10.2% revenue growth and robust India margins, with EV segment revenue up 53% YoY. Overseas business remains challenged but is set for a turnaround from FY27, driven by major order wins in electronics and lighting. Net debt rose due to VRS, but reduction is targeted by FY27.
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Revenue grew 6.1% year-over-year in Q2 FY26, with strong India performance and significant debt reduction. EV segment contributed 11% of revenue, and new business wins were robust, especially in lighting and powertrain. Overseas business faces challenges but expects a turnaround from H2 FY27.
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Q1 FY 2026 revenue grew 6.8% year-over-year, with EBITDA margin at 9.5% and net debt reduced to INR 448 crores. New business wins focused on EV and ICE segments, while overseas operations remain loss-making but are expected to improve from FY 2027.
Fiscal Year 2025
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Q4 FY25 revenue grew 11% year-over-year, with EBITDA margin at 10.2% and net debt reduced to INR 7.48 billion. Major structural changes included the China JV exit and a merger, while strong EV order wins and increased renewable energy sourcing position the company for future growth.
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Q3 FY25 revenue grew 10.1% year-over-year to INR 20.7 billion, with EBITDA margin flat at 9.2%. Net debt reduced, order book strengthened by EV-related wins, and major overseas orders secured for FY27. China JV sale delayed, with realization expected at INR 320-330 crore.
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Q2 FY25 saw 10.3% revenue growth and improved profitability, led by strong India and EV segment performance. Net debt reduction, robust order wins (37% from EVs), and increased CAPEX support future growth, while overseas challenges and tax issues remain monitored.
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Q1 FY25 saw 5.2% revenue growth year-over-year, led by strong India performance and robust EV order wins, while overseas operations remained weak. Margins were impacted by start-up costs and negative leverage, but cost-saving and renewable energy initiatives are set to improve profitability from H2 FY25.