India · Delayed Price · Currency is INR Varroc Engineering Earnings Call Transcripts
Fiscal Year 2026
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Double-digit revenue and EBITDA growth were driven by strong auto sector demand and robust EV segment expansion. Overseas business revival and record order wins, especially in EV and lighting, support a positive outlook with higher margins and significant CapEx planned for FY 2027.
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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% YoY in Q2 FY2026, with India operations up 7% despite rare earth supply issues. EBITDA margin was 9.1%, net debt reduced to INR 3,800 million, and ROCE improved to 23.6%. Strong EV growth and new business wins position the company for future expansion.
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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 FY 2025 revenue grew 11% year-over-year, with EBITDA margin at 10.2% and net debt reduced to INR 7.5 billion. Strong order wins, increased renewable energy sourcing, and a completed China JV exit position the company for future growth, with export and overseas recovery expected from FY 2027.
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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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Revenue grew 10.3% year-over-year in Q2 FY25, led by strong India and EV segment growth, while consolidated profitability was impacted by overseas operations. Net debt reduction and robust order wins, especially in EVs, support a positive outlook, with further margin improvement expected from Q4 FY25.
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Revenue grew 5.2% year-over-year, led by strong India business and robust two-wheeler demand, while overseas operations faced headwinds. Profitability was impacted by start-up costs and commodity adjustments, but debt reduction and cost-saving initiatives are expected to improve margins in H2 FY25.