Varroc Engineering Limited has successfully completed the redemption of Commercial Papers (CPs) worth Rs. 50 Crore on February 27, 2026. The company informed stock exchanges about fulfilling its payment obligation in accordance with SEBI Operational Circular No. SEBI/HO/DDHS/P/CIR/2021/613 dated August 10, 2021, which governs the issue and listing of non-convertible securities and commercial papers.

Commercial Paper Details

The redemption involved Commercial Papers that were issued to Kotak Mahindra Bank Limited as the sole investor. The transaction details demonstrate a short-term funding arrangement with a 30-day maturity period.

Regulatory Compliance

The company's communication to stock exchanges referenced previous notifications dated January 28, 2026, and January 29, 2026, indicating proper disclosure protocols were followed throughout the Commercial Paper lifecycle. The redemption was completed on the scheduled maturity date, demonstrating adherence to the agreed terms and conditions.

Market Communication

Varroc Engineering Limited notified both the National Stock Exchange of India Limited (NSE Symbol: VARROC) and BSE Limited (Security Code: 541578) about the successful redemption. The company's communication was signed by Anil Ghatiya, Company Secretary & Compliance Officer, ensuring proper corporate governance standards were maintained.

This redemption reflects the company's commitment to meeting its short-term debt obligations and maintaining healthy relationships with financial institutions for future funding requirements.

Varroc Engineering announced its Q3FY26 quarterly results for the quarter ended December 31, 2025, showcasing robust consolidated revenue growth and strong operational performance. The automotive technology company reported consolidated revenue from operations of ₹22.88 billion, marking a 10.2% year-on-year growth from ₹20.75 billion in Q3FY25. The Board of Directors approved the financial results at its meeting held on February 5, 2026, along with several other strategic decisions.

Financial Performance Overview

The company delivered strong consolidated financial performance for Q3FY26. Revenue from operations reached ₹22.88 billion compared to ₹20.75 billion in the corresponding quarter of the previous year. EBITDA stood at ₹2.12 billion with EBITDA margin of 9.30%, showing improvement from 9.20% in Q3FY25. However, the company reported a consolidated net loss of ₹113.03 million for the quarter due to exceptional items.

Nine-Month Performance and Market Growth

For the nine-month period ending December 31, 2025, consolidated revenue from operations reached ₹65.22 billion compared to ₹60.55 billion in the previous year, reflecting growth of 7.70%. The company benefited from strong economic growth across automotive sectors on a year-on-year basis. Nine-month EBITDA stood at ₹6.06 billion with margin of 9.30%, while net profit after tax reached ₹1.59 billion.

EV Business Performance and Strategic Growth

During the earnings conference call held on February 5, 2026, Chairman and Managing Director Tarang Jain highlighted the company's strong performance in electric vehicle segments. Revenue from EV models reached 14.3% of total revenues in Q3FY26, representing a remarkable 53% year-on-year growth. For the nine-month period, EV revenue constituted 12.1% of total revenues with 38% year-on-year growth.

Exceptional Items Impact

The company's Q3FY26 results were significantly impacted by exceptional items totaling ₹1.05 billion. Major components included ₹799.49 million for Voluntary Separation Scheme costs for 411 employees, ₹225.49 million related to new Labour Code implementation, and ₹33.83 million net loss from liquidation of subsidiary Varroc Lighting Systems, Bulgaria. These one-time charges affected the quarterly profitability despite strong operational performance.

Outstanding Order Book and Business Outlook

Varroc Engineering continues to maintain a strong order book position with outstanding orders of ₹14.07 billion at the end of 9M FY26. The company secured net new annual peak revenue wins of ₹20.64 billion during the nine-month period, with 75% from EV customers and 25% from ICE customers, demonstrating strong positioning in the electric vehicle transition. Expected start of production is spread across FY27 and FY28.

Management Commentary and Strategic Initiatives

During the conference call, management emphasized the company's focus on cost optimization and strategic restructuring. The Voluntary Separation Scheme, affecting over 400 employees primarily from ICE powertrain operations, is expected to generate annual savings of approximately ₹20 crores with a payback period of 4 years. CEO Arjun Jain noted that 95% of the VRS participants were from the ICE powertrain product group, with no impact on current operations.

The company also highlighted significant business wins in overseas markets, including high-voltage electronics orders for Romanian operations from global EV players and 4-wheeler lighting contracts for Thailand facilities. Management expects overseas operations to achieve cash breakeven by next year, with full profitability expected in the following year.

Conference Call Transcript Availability

The company has made available the complete transcript of the investor conference call held on February 5, 2026, discussing the Q3FY26 and nine-month results. The transcript, filed with stock exchanges on February 10, 2026, provides detailed management commentary on business developments, strategic initiatives, and future outlook for stakeholders seeking comprehensive insights into the company's performance.

Source: Varroc Engineering Limited regulatory filing dated February 10, 2026