| Metric | Value (₹ Cr) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 2.2K | 8.9% | 6.1% |
| Total Income | 2.2K | 8.7% | 5.9% |
| Expenditure | 2.1K | 8.6% | 6.1% |
| PBT | 91.19 | 36.4% | 1.2% |
| Net Profit | 63.26 | 41.1% | 9.4% |
| OPM | 9.20% | 3.41pp | 11.19pp |
| NPM | 2.86% | 2.42pp | 0.12pp |
| EPS | 3.99 | 42.0% | 9.6% |
Varroc Engineering Delivers Highest Ever Revenue in Q2 FY26 Post Divestment
12 Nov 2025 · 12 Nov 2025, 05:33 pm
Summary
Varroc Engineering Ltd. has announced its results for the first quarter ended Sep 30, 2025. The company has reported a consolidated revenue from operations of 22,073 million in Q2 FY26, a growth of 6.1% YoY. The PBT before JV profit for Q2 FY26 came at 912 million as compared to 901 million reported in Q2 FY25.
Key Highlights
- 1
Highest ever revenue in Q2 FY26 post divestment
- 2
Consolidated revenue from operations was 22,073 million in Q2 FY26, a growth of 6.1% YoY
- 3
PBT before JV profit for Q2 FY26 came at 912 million as compared to 901 million reported in Q2 FY25
- 4
Indian economy continues to perform well, experiencing robust growth and has become the world’s fastest growing major economy
- 5
Supply chain resilience and regionalization are becoming key corporate strategies amid uncertainty
- 6
Varroc has been consistently improving on financial prudence, cost reduction and customer delight
- 7
Net Debt/EBITDA is now below 0.3X
- 8
Interest burden has been reduced to below 1.5%
- 9
Gross margins have been improved by almost 1%
- 10
Organisation has been made more agile, fundamentally strong, and customer-focused
- 11
Free cash flow generation has been managed and debt has been reduced significantly
- 12
R&D facility has been established in China to enhance capabilities and take advantage of skillset available there
- 13
Opportunities are being explored to rationalize fixed manpower cost in plants through VRS schemes
- 14
Revenue growth in the EV segment has been scaled, contributing to more than 11% of Revenue
- 15
Al is being experimented with in areas like quality inspection and corporate functions to improve productivity and cut down inefficiencies
- 16
Working capital is being improved and throughput is being increased
- 17
Growth plan is built mainly on 3 pillars: disruption in the automotive sector, business portfolio management, and looking through adjacencies
Management Comments
Tarang Jain
CMD
The Indian economy continues to perform well, experiencing robust growth and has become the world’s fastest growing major economy. India's real GDP grew by 7.8% in the April-June 2025 quarter... In these uncertain times, it becomes very important for the Company to find ways to manage this uncertainty and grow simultaneously during this period... We are moving fast to make our organisation more agile, fundamentally strong, and customer-focused to succeed in this environment... We are also continuously improving our speed of response, program management efficacy and delivering first time right... We are also exploring opportunities to rationalize fixed manpower cost in plants through VRS schemes... Over the last few years, we have been able to scale our EV products portfolio and this has resulted in our revenue growth in this segment helping the overall growth of the Company.
Informational and educational content only. Not investment advice.