Varroc Engineering Ltd logo

Varroc Engineering Ltd

VARROC NSE

Key Fundamentals

MicrocapAuto ComponentsAutomobiles
Market Cap
₹12,159 Cr
Volatility
High Risk
P/E Ratio
62.79
EBITDA
₹847 Cr
Return on Equity
12.64%
Debt to Equity
0.52
Book Value
₹116.52
EPS
₹34.44
52W High
₹757.45
52W Low
₹462

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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43 extracted metrics + investor summaries across FY15–FY26.

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Tapetide Score

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Technical Indicators

Key Insights

Strengths

1
  • Company has delivered good profit growth of 19.0% CAGR over last 5 years

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 anthropic claude-opus-4.6 8d ago
AI opinion · based on fundamentals
Risk high

Varroc Engineering reported FY26 consolidated revenue of ₹8,891 crore (up 9% YoY) and net profit of ₹230 crore (up 230% YoY), with net debt reduced significantly to a Net Debt/EBITDA ratio of 0.59x from 2.14x in FY23. The stock trades at a P/E of 44.2x and P/B of 5.7x, reflecting a turnaround narrative with strong India operations offset by historically loss-making overseas units.

Bull Case 8
  • FY26 net profit surged 230% YoY to ₹230 crore from ₹70 crore in FY25, demonstrating a sharp earnings recovery
  • Net Debt/EBITDA improved from 2.14x in FY23 to 0.59x in FY26, with net debt falling by ₹2,528 million YoY to ₹4,952 million, significantly strengthening the balance sheet
  • EV revenue contribution rose to 14% of total revenue in Q4 FY26, up from 5.3% in FY24, with over 63% of new business wins in H1 FY26 related to EVs
  • Highest-ever net new business wins with annualized peak revenue of ₹32,889 million, signalling a strong forward order pipeline
  • India operations grew 12.3% YoY in Q3 FY26 and remain the primary profit driver with consistent outperformance versus industry
  • Compounded profit growth of 19% CAGR over 5 years and 32% CAGR over 3 years indicates a sustained earnings trajectory post-turnaround
  • Stock CAGR of 24% over 1-year and 3-year periods reflects market recognition of the operational improvement
  • Board recommended a 150% dividend on face value (₹1.50/share), signalling management confidence in cash flow sustainability
Bear Case 8
  • P/E of 44.2x is elevated for an auto components company, leaving limited margin of safety if earnings growth slows from the current 124% TTM pace
  • Overseas operations declined 16.5% YoY in Q3 FY26 and remained loss-making through most of FY26, creating a drag on consolidated margins
  • EBITDA margin contracted to 9.4% in FY26 from 10.5% in the prior year quarter (Q4), indicating margin pressure despite revenue growth
  • 5-year ROE of -13% and 10-year ROE of -2% reflect a prolonged history of poor capital efficiency prior to the recent turnaround
  • 10-year compounded sales CAGR of just 1% and profit CAGR of -4% show the business has structurally underperformed over a longer cycle
  • P/B of 5.7x is demanding given that consolidated ROE last year was 15%, implying the market is pricing in substantial further improvement
  • Auditor qualification flagged in the FY26 annual report adds governance uncertainty that investors need to monitor
  • Dividend yield of only 0.23% offers negligible income cushion at current valuations

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 5d ago
Positives 2
  • FY26 revenue up 9% YoY Jul 28

    Consolidated revenue hit ₹88,905 million with EBITDA margin at 9.4% and PBT margin improving 50 bps to 4.3%. EV revenue now contributes ~13% of total revenue.

  • ₹1.50 dividend declared Jul 13

    Final dividend of ₹1.50 per share with record date August 7, 2026. 38th AGM scheduled for August 20, 2026.

Neutral 4
  • Q1FY27 earnings call Aug 6 Jul 30

    Management including Chairman Tarang Jain and Group CFO Mahendra Kumar will discuss Q1FY27 un-audited results on August 6 at 5:00 PM IST.

  • FY26 BRSR report filed Jul 28

    ESG report details 45% renewable energy usage and Zero Liquid Discharge achieved at five manufacturing plants.

  • ₹50 crore CP issued at 7.20% Jul 22

    30-day commercial paper allotted on July 22 at 7.20% coupon, maturing August 21, 2026.

  • Captive solar investments Jul 8

    Invested in AMPIN Energy C&I One and AMPIN C&I Power Twelve for solar power at Tamil Nadu and Karnataka plants.

TL;DR: Varroc Engineering is delivering steady top-line growth with 9% YoY revenue increase and improving profitability margins. The EV revenue mix at 13% signals successful diversification. No material headwinds are visible in recent news flow, and the sustainability push with 45% renewable energy adds long-term optionality. The trend is positive heading into Q1FY27 results on August 6.

Quarterly Results

  Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 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
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
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%
—
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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%

Shareholding Pattern

As of Jun 2026
Promoters 75.00%
DIIs 10.59%
Public 7.41%
Others 7.00%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Promoters
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
75.00%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
4.22%
4.23%
3.80%
3.90%
3.92%
3.99%
4.29%
4.36%
4.45%
0.00%
DIIs
14.66%
14.27%
13.75%
14.16%
14.86%
14.57%
13.70%
12.22%
12.02%
12.21%
11.73%
10.67%
12.15%
12.73%
12.65%
12.49%
12.80%
13.02%
12.74%
12.40%
11.35%
10.59%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
3.55%
4.48%
5.83%
5.80%
4.87%
5.40%
5.34%
6.25%
6.25%
6.10%
6.03%
7.25%
6.98%
6.62%
6.96%
6.96%
6.79%
6.42%
6.39%
6.57%
7.33%
7.41%
Others
6.79%
6.25%
5.42%
5.04%
5.27%
5.04%
5.96%
6.53%
6.73%
6.70%
7.24%
7.08%
1.65%
1.41%
1.60%
1.65%
1.50%
1.57%
1.57%
1.67%
1.87%
7.00%
No. of Shareholders
0
53,266
66,815
70,827
68,090
68,082
80,831
78,877
85,623
84,433
81,789
88,080
86,738
89,549
99,500
98,417
95,594
91,287
88,841
85,292
84,692
83,288

Documents

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 Automobiles 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 ₹12158.74 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 62.79. 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 ₹757.45. 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 0.20%. 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

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