Varroc Engineering Ltd
VARROC NSE
Varroc Engineering Ltd
Consumer DiscretionaryNSE: VARROC BSE: 541578 Auto Components
Key Fundamentals
MicrocapAuto ComponentsAutomobilesMarket Cap
₹12,980 Cr
Volatility
High Risk
P/E Ratio
65.32
EBITDA
₹847 Cr
Return on Equity
12.64%
Debt to Equity
0.52
Book Value
₹116.52
EPS
₹34.44
52W High
₹874.85
52W Low
₹462
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
Log in to view Varroc Engineering Ltd insights
43 extracted metrics + investor summaries across FY15–FY26.
Tapetide Score
Data-driven rating, 0–100. How it works →
Technical Indicators
Key Insights
Strengths
1- Company has delivered good profit growth of 19.0% CAGR over last 5 years
Weaknesses
1- Stock is trading at 7.28 times its book value
Growth Rate
Revenue Growth
8.93% ↘
Net Income Growth
229.70% ↗
Cash Flow Change
-27.14% ↘
ROE
189.91% ↗
ROCE
31.51% ↗
EBITDA Margin (Avg.)
-3.55% ↘
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 7d agoAI opinion · based on fundamentals
Risk high
Varroc Engineering Ltd is a mid-cap auto components company with a market cap of ₹12,865 crore trading at a PE of 63.3x and 7.1x book value. The company posted FY26 consolidated revenue of ₹8,891 crore (9% YoY growth) with full-year net profit of ₹230 crore (up 230% YoY), though EBITDA margins remain in the 9-10% range and recent quarterly trends show margin pressure.
Bull Case 7
- Strong profit growth trajectory with 5-year compounded profit CAGR of 19% and TTM profit growth of 51%, indicating sustained earnings recovery
- FY26 full-year net profit surged 230% YoY to ₹230 crore, demonstrating significant operating leverage as the business scales
- Revenue has grown consistently with 3-year sales CAGR of 9% and 5-year sales CAGR of 15%, reaching ₹88,905 million in FY26
- 3-year ROE of 20% shows meaningful improvement in capital efficiency after years of negative returns
- Stock has delivered 1-year CAGR of 58% and 3-year CAGR of 29%, reflecting market re-rating on improved fundamentals
- Q4 FY26 revenue grew 12.8% YoY to ₹23,681 million with Q4 PAT surging 238% YoY to ₹69.3 crore, showing continued momentum
- Full-year FY26 EBITDA improved to ₹8,364 million with EBITDA margin at 9.4%, up from prior year levels as the company benefits from operating leverage
Bear Case 8
- PE ratio of 63.3x is expensive for an auto components company, leaving limited room for earnings disappointment
- Price-to-book of 7.11x is elevated for a capital-intensive manufacturing business, well above sector averages
- EBITDA margin contracted to 8.5% in Q1 FY27 from 9.5% in Q1 FY26, indicating margin pressure from commodity costs and unfavourable mix
- FY25 consolidated net profit collapsed to ₹697 million from ₹5,321 million in FY24, highlighting earnings volatility
- 5-year ROE is negative at -13% and 10-year ROE is -2%, reflecting a long history of poor capital returns before recent recovery
- 10-year compounded sales CAGR of just 1% and profit CAGR of -4% indicate the long-term track record remains weak
- Debt-to-equity ratio of approximately 51-53% and total debt-to-EBITDA of 1.66x means balance sheet still carries meaningful leverage
- Dividend yield of only 0.18% provides negligible income return to shareholders at current valuations
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 2d ago Headwinds 2
- EBITDA margin contracts on costs Aug 7
EBITDA margin fell to 8.42% from 9.60% YoY in Q1FY27 amid commodity cost pressures, a 118 bps contraction despite record revenue.
- Net profit drops sans exceptional Aug 7
Q1FY27 net profit declined to ₹773 million due to absence of a prior-year exceptional credit that had boosted comparable quarter.
Positives 4
- Record Q1 revenue up 30% YoY Aug 7
Q1FY27 consolidated revenue hit a record ₹26.34 billion, up 29.9% YoY, with EV two-wheeler volumes surging 91%.
- PBT before exceptions up 38% Aug 7
PBT before JV and exceptional items surged 38% to ₹1,132 million in Q1FY27, reflecting strong underlying profitability improvement.
- FY26 revenue up 9%, EV at 13% Jul 28
FY26 consolidated revenue reached ₹88,905 million, up 9% YoY, with EV revenue now contributing ~13% of total and PBT margin improving 50 bps to 4.3%.
- New CTO for electrification push Aug 3
Eric Hamon appointed CTO effective August 3, 2026, bringing 25+ years of automotive technology experience focused on electrification and connectivity.
Neutral 3
- Equirus investor meet Aug 13 Aug 7
Varroc will host an in-person investor meeting with Equirus on August 13, 2026 in Mumbai, discussing publicly available information.
- BRSR report shows 45% renewables Jul 28
FY26 sustainability report filed showing 45% renewable energy usage and Zero Liquid Discharge achieved at five plants.
- ₹50 crore CP at 7.20% coupon Jul 22
Varroc allotted ₹50 crore Commercial Papers on July 22 with 7.20% coupon and 30-day tenure maturing August 21, 2026.
TL;DR: Varroc Engineering is delivering strong top-line momentum with record Q1FY27 revenue and rapid EV volume growth (91% YoY in two-wheelers), supported by a strategic CTO hire for electrification. The key risk is margin compression from commodity costs, with EBITDA margin dropping 118 bps despite volume leverage. The underlying profit trend (PBT ex-exceptionals +38%) and rising EV mix (~13% of revenue) suggest the growth trajectory is intact, but margin recovery in coming quarters will be critical to watch.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,806 | 1,887 | 1,885 | 1,975 | 1,899 | 2,081 | 2,075 | 2,099 | 2,028 | 2,207 | 2,288 | 2,368 | 2,634 |
| Expenses | 1,623 | 1,693 | 1,709 | 1,754 | 1,725 | 1,873 | 1,889 | 1,878 | 1,833 | 2,004 | 2,078 | 2,146 | 2,412 |
| Operating Profit | 183 | 194 | 176 | 221 | 174 | 208 | 186 | 221 | 195 | 203 | 210 | 222 | 222 |
| OPM % | 10% | 10% | 9% | 11% | 9% | 10% | 9% | 11% | 10% | 9% | 9% | 9% | 8% |
| Other Income | -9 | 15 | 34 | 12 | 6 | 7 | -88 | -51 | 67 | 3 | -100 | 7 | 7 |
| Interest | 49 | 50 | 50 | 45 | 44 | 43 | 42 | 41 | 36 | 32 | 31 | 35 | 31 |
| Depreciation | 80 | 85 | 89 | 82 | 80 | 82 | 81 | 81 | 81 | 83 | 82 | 86 | 84 |
| PBT | 44 | 74 | 71 | 105 | 56 | 91 | -25 | 47 | 144 | 92 | -3 | 109 | 114 |
| Tax % | 23% | 25% | -443% | 44% | 39% | 36% | 82% | 51% | 25% | 31% | 245% | 35% | 32% |
| Net Profit | 34 | 56 | 384 | 58 | 34 | 58 | -45 | 23 | 107 | 63 | -11 | 70 | 78 |
| EPS in Rs | 2.11 | 3.55 | 25.05 | 3.72 | 2.12 | 3.64 | -3.1 | 1.35 | 6.88 | 3.99 | -0.67 | 4.54 | 5.06 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 6,770 | 7,909 | 9,299 | 10,279 | 12,036 | 11,122 | 4,374 | 5,844 | 6,891 | 7,552 | 8,154 | 8,890 | 9,497 |
| Expenses | 6,206 | 7,341 | 8,716 | 9,398 | 10,978 | 10,306 | 4,036 | 5,484 | 6,316 | 6,796 | 7,379 | 8,069 | 8,640 |
| Operating Profit | 564 | 568 | 582 | 881 | 1,059 | 816 | 338 | 360 | 575 | 756 | 775 | 821 | 857 |
| OPM % | 8% | 7% | 6% | 9% | 9% | 7% | 8% | 6% | 8% | 10% | 10% | 9% | 9% |
| Other Income | 229 | 73 | 172 | 108 | 122 | 94 | -556 | -996 | -821 | 69 | -112 | -14 | -82 |
| Interest | 475 | -43 | 90 | 86 | 97 | 139 | 89 | 118 | 190 | 194 | 170 | 134 | 129 |
| Depreciation | 254 | 292 | 337 | 386 | 566 | 732 | 274 | 305 | 337 | 337 | 323 | 332 | 335 |
| PBT | 63 | 392 | 327 | 516 | 519 | 39 | -581 | -1,059 | -773 | 294 | 169 | 341 | 312 |
| Tax % | 73% | 6% | 4% | 13% | 17% | 94% | 8% | 5% | 6% | -81% | 59% | 33% | — |
| Net Profit | 17 | 370 | 313 | 451 | 429 | 3 | -629 | -1,107 | -817 | 532 | 70 | 230 | 200 |
| EPS in Rs | 16.06 | 353 | 254 | 36.57 | 31.54 | 0.01 | -41.36 | -72.64 | -53.66 | 34.43 | 4.01 | 14.73 | 12.92 |
| Div. Payout % | 16% | 1% | 13% | 1% | 14% | 21284% | 0% | 0% | 0% | 0% | 25% | 10% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 10 | 10 | 11 | 12 | 13 | 13 | 15 | 15 | 15 | 15 | 15 | 15 |
| Reserves | 1,073 | 1,737 | 2,172 | 2,815 | 3,053 | 2,991 | 3,013 | 1,973 | 961 | 1,482 | 1,550 | 1,765 |
| Borrowings | 1,651 | 1,617 | 1,510 | 1,194 | 2,432 | 4,255 | 3,695 | 1,625 | 1,806 | 1,390 | 1,118 | 925 |
| Other Liabilities | 1,695 | 1,869 | 2,154 | 2,780 | 3,142 | 3,644 | 4,369 | 7,375 | 1,832 | 1,643 | 1,984 | 2,163 |
| Total Liabilities | 4,428 | 5,233 | 5,847 | 6,802 | 8,641 | 10,904 | 11,092 | 10,989 | 4,614 | 4,530 | 4,667 | 4,868 |
| Fixed Assets | 2,054 | 2,390 | 2,396 | 2,804 | 3,560 | 5,283 | 5,231 | 2,046 | 2,051 | 2,027 | 2,016 | 2,232 |
| CWIP | 178 | 315 | 293 | 344 | 999 | 790 | 856 | 140 | 135 | 80 | 103 | 151 |
| Investments | 22 | 12 | 293 | 360 | 362 | 330 | 376 | 388 | 421 | 530 | 69 | 88 |
| Other Assets | 2,174 | 2,515 | 2,867 | 3,294 | 3,720 | 4,500 | 4,629 | 8,416 | 2,007 | 1,893 | 2,479 | 2,396 |
| Total Assets | 4,428 | 5,233 | 5,847 | 6,802 | 8,641 | 10,904 | 11,092 | 10,989 | 4,614 | 4,530 | 4,667 | 4,868 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 128 | 290 | 676 | 1,075 | 474 | 1,414 | 474 | 636 | 686 | 638 | 737 | 537 |
| Investing | -286 | -575 | -577 | -545 | -1,769 | -1,259 | -613 | -762 | -448 | -166 | -245 | -118 |
| Financing | 70 | 386 | 94 | -523 | 1,129 | 733 | -152 | -335 | -216 | -664 | -490 | -405 |
| Net Cash Flow | -87 | 101 | 193 | 6 | -166 | 888 | -292 | -461 | 22 | -192 | 1 | 14 |
| Free Cash Flow | -222 | -309 | 52 | 497 | -951 | 27 | -254 | -208 | 116 | 420 | 465 | 87 |
| CFO/OP | 33 | 58 | 125 | 136 | 57 | 189 | 146 | 197 | 135 | 92 | 94 | 69 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 58 | 55 | 45 | 50 | 41 | 36 | 137 | 32 | 32 | 24 | 30 | 30 |
| Inventory Days | 51 | 49 | 46 | 49 | 43 | 56 | 164 | 58 | 55 | 52 | 51 | 60 |
| Days Payable | 90 | 92 | 94 | 114 | 99 | 124 | 396 | 127 | 99 | 94 | 98 | 97 |
| Cash Conversion Cycle | 19 | 12 | -3 | -15 | -15 | -32 | -95 | -36 | -12 | -19 | -16 | -8 |
| Working Capital Days | 22 | 21 | -17 | -16 | -49 | -96 | -217 | -18 | -77 | -33 | -35 | -23 |
| ROCE % | — | 11% | 12% | 16% | 13% | 3% | 3% | 2% | 8% | 17% | 17% | 19% |
Documents
1
Announcement under Regulation 30 (LODR)-Credit Rating
24 Apr - India Ratings upgraded Varroc bank loans to AA+/Stable; debenture rating withdrawn after full repayment. 24 Apr - India Ratings upgraded Varroc bank loans to AA+/Stable; debenture rating withdrawn after full repayment.
2
Announcement under Regulation 30 (LODR)-Press Release / Media Release
22 Apr - Varroc reports improved ESG ratings, emissions cuts, and Kham River restoration progress on World Earth Day. 22 Apr - Varroc reports improved ESG ratings, emissions cuts, and Kham River restoration progress on World Earth Day.
3
Announcement under Regulation 30 (LODR)-Credit Rating
1d - India Ratings upgraded Varroc bank loans to AA+/Stable; debenture rating withdrawn after full repayment. 1d - India Ratings upgraded Varroc bank loans to AA+/Stable; debenture rating withdrawn after full repayment.
4
Announcement under Regulation 30 (LODR)-Press Release / Media Release
17h - Varroc reports improved ESG ratings, emissions cuts, and Kham River restoration progress on World Earth Day. 17h - Varroc reports improved ESG ratings, emissions cuts, and Kham River restoration progress on World Earth Day.
5
Announcement under Regulation 30 (LODR)-Change in Management
8 Apr - Kavita Kulkarni resigns as Group CHRO on April 10, 2026; Avijit Roy appointed effective same date. 8 Apr - Kavita Kulkarni resigns as Group CHRO on April 10, 2026; Avijit Roy appointed effective same date.
Frequently Asked Questions about Varroc Engineering Ltd
What does Varroc Engineering Ltd do?
Varroc Engineering Ltd was incorporated in 1988, is the flagship company of the Chhatrapati Sambhaji Nagar-based Varroc Group. Varroc is a global tier-1 automotive component group. It is engaged in the business of manufacturing and supplying automobile components to a wide range of OEMs across th...
Where is Varroc Engineering Ltd (VARROC) listed?
Varroc Engineering Ltd is listed on the Indian stock exchanges. It is listed on NSE: VARROC and BSE: 541578. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Varroc Engineering Ltd belong to?
Varroc Engineering Ltd operates in the Consumer Discretionary sector within the Auto Components industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Varroc Engineering Ltd?
Varroc Engineering Ltd has a market capitalisation of approximately ₹12979.97 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Varroc Engineering Ltd?
The Price-to-Earnings (PE) ratio of Varroc Engineering Ltd is 65.32. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Varroc Engineering Ltd?
Over the past 52 weeks, Varroc Engineering Ltd has traded between a low of ₹462 and a high of ₹874.85. This range helps investors understand the stock's price volatility and recent trading levels.
Does Varroc Engineering Ltd pay dividends?
Yes, Varroc Engineering Ltd has a dividend yield of 0.18%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Varroc Engineering Ltd?
Varroc Engineering Ltd has a Return on Equity (ROE) of 12.64%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Varroc Engineering Ltd on Tapetide?
On Tapetide, you can view Varroc Engineering Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.
Company Information
Varroc Engineering Ltd was incorporated in 1988, is the flagship company of the Chhatrapati Sambhaji Nagar-based Varroc Group. Varroc is a global tier-1 automotive component group. It is engaged in the business of manufacturing and supplying automobile components to a wide range of OEMs across the globe[1]
Website varrocgroup.com
CEO Mr. Tarang Jain
Employees 5,706
Listed 2018-07-06
Face Value ₹ 1
Issued Size 15,27,86,400