Varroc Engineering Limited , a prominent player in the automotive component manufacturing sector, has successfully met its financial commitment by redeeming Commercial Papers (CPs) worth Rs. 50.00 Crore. The company made this announcement to the National Stock Exchange of India (NSE) and BSE Limited on November 20, 2025.

Key Details of the Redemption

The redemption of the Commercial Papers, which were issued to Kotak Mahindra Bank Limited, was completed on the maturity date. Here are the essential details of the transaction:

Regulatory Compliance

Varroc Engineering's action aligns with the SEBI Operational Circular No. SEBI/HO/DDHS/P/CIR/2021/613 dated August 10, 2021, and its subsequent amendments. This circular governs the issuance and listing of various financial instruments, including Commercial Papers.

Company's Statement

In its communication to the stock exchanges, Varroc Engineering stated, "We wish to inform you that the Company has fulfilled its payment obligation and has fully redeemed the Commercial Papers (CPs) of Rs. 50.00 Crore."

This timely redemption of Commercial Papers demonstrates Varroc Engineering's commitment to meeting its financial obligations and maintaining a strong financial position. It also reflects the company's ability to manage its short-term debt effectively, which is crucial for maintaining investor confidence and financial stability.

Varroc Engineering , a leading auto components manufacturer, has reported a 6.1% year-on-year growth in consolidated revenue, reaching INR 22.7 billion in Q2 FY26. The company demonstrated resilience in the face of rare-earth magnet supply issues, which cost an estimated INR 750 million in potential revenue.

Financial Highlights

Debt Reduction and Order Book

Varroc Engineering has made significant strides in strengthening its financial position:

• Net debt reduced by INR 3,680 million in H1 FY26
• Net debt to equity ratio improved to below 0.22x
• Secured new business wins worth INR 8,928 million in annualized peak revenue
• 63% of new orders from EV customers

Operational Insights

The company's performance was impacted by rare-earth magnet supply issues, primarily affecting its powertrain product line, especially traction motors. However, Varroc has successfully derisked its supply chain, with normalization achieved towards the end of Q2.

Tarang Jain, Chairman and Managing Director, commented, "We are moving fast to make our organization more agile, fundamentally strong and customer focused to succeed in this environment. Over the last 3 years, since the divestment exercise, we have been consistently improving on financial prudence, cost reduction and customer delight."

Future Outlook

Varroc Engineering is focusing on three key growth pillars:

1. Content increases driven by safer, smarter, sustainable, and more premium mobility
2. Portfolio management, including a new manufacturing facility in Thailand
3. Expansion into adjacencies, including aftermarket and exports

The company expects to double its revenue by 2030 and aims to achieve a PBT margin well above 10%.

EV and Technology Focus

Varroc's revenue from EV customers now stands at 11% of total revenue. The company has a strong product portfolio across different powertrains, with 5-7 times more content in electric vehicles compared to ICE vehicles.

Arjun Jain, Whole-Time Director and CEO of Business Unit-I, stated, "We have strong technology. We have strong positioning across all powertrains. And we now wait to see how the market evolves, and we are in the right place to take advantage regardless of which direction the market moves in."

As Varroc Engineering continues to navigate the evolving automotive landscape, its focus on debt reduction, technological advancements, and strategic growth initiatives positions the company well for future success in the auto components sector.