Varroc Engineering Limited , a global tier-1 automotive component group, has announced its unaudited financial results for the second quarter and half-year ended September 30, 2025, showcasing robust growth and operational improvements.

Financial Highlights

For Q2 FY26, Varroc Engineering reported:

• Consolidated revenue from operations of Rs. 22,073.00 million, a 6.1% increase year-over-year (YoY)
• EBITDA of Rs. 2,018.00 million, with an EBITDA margin of 9.1%
• Profit Before Tax (PBT) before JV and exceptional items of Rs. 912.00 million
• Profit After Tax (PAT) of Rs. 633.00 million

The company's performance for H1 FY26 was equally impressive:

• Consolidated revenue from operations reached Rs. 42,349.00 million, up 6.4% YoY
• EBITDA stood at Rs. 3,937.00 million, with a margin of 9.3%
• PBT before JV and exceptional items was Rs. 1,696.00 million
• PAT increased to Rs. 1,707.00 million

Operational Performance

Varroc's Indian operations grew by 7.9% YoY, despite facing challenges from an industry-wide rare-earth issue. The company estimates that this issue resulted in a revenue loss of approximately Rs. 750.00 million in Q2 FY26. Without this impact, the growth in Indian operations would have been 11.8%.

The company's overseas business, comprising 2W lighting, advanced electronics, and forging operations, faced some challenges. However, Varroc has been winning significant orders for its overseas electronics and lighting businesses, with a turnaround expected to be visible from H2 of FY27.

Balance Sheet Strengthening

Varroc continues to strengthen its balance sheet. In H1 FY26, the company reduced its net debt by Rs. 3,680.00 million, bringing the net debt to equity ratio below 0.22x. The absolute net debt figure stood at Rs. 3,800.00 million as of September 30, 2025.

New Business Wins

In H1 FY26, Varroc achieved net new business wins with annualized peak revenues of Rs. 8,928.00 million. Notable wins include 4W lighting business for passenger vehicles and increased volume from an existing EV customer.

Management Commentary

Mr. Tarang Jain, CMD of Varroc Engineering, commented on the results: "The Indian economy continues to perform well, experiencing robust growth and has become the world's fastest-growing major economy. 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."

He further added, "Over the last 3 years since the divestment exercise, we have been consistently improving on financial prudence, cost reduction and customer delight. As a result, the Net Debt/EBITDA, which was more than 2x in FY23, is now below 0.3X. The interest burden which was close to 3% of revenue in Q2 of FY23 has been reduced to below 1.5% in Q2 of FY26."

Future Outlook

Varroc's growth plan is built on three pillars:

1. Focusing on E-mobility, connectivity, and ADAS to capitalize on the CASE (Connected, Autonomous, Shared, and Electric) disruption in the automotive sector.
2. Strategic business portfolio management, including setting up operations in Thailand to take advantage of export opportunities.
3. Exploring growth in aftermarket, exports, and non-auto sectors through organic and inorganic means.

The company remains confident in its ability to win high-voltage electronics contracts for a range of high-performance e-powertrain components for its Romanian business before the end of the current calendar year.

With these strategic initiatives and a focus on financial prudence, Varroc Engineering is well-positioned to navigate the evolving automotive landscape and deliver sustainable growth in the coming quarters.

Varroc Engineering Limited , a global tier-1 automotive component group, has officially concluded the postal ballot process for appointing Mr. Avinash Ramdas Chintawar as Additional Director and Whole Time Director. The company filed the results with stock exchanges under Regulation 30 of SEBI Listing Regulations on December 13, 2025.

Postal Ballot Results

The postal ballot process concluded on December 13, 2025, with exceptional shareholder support for Mr. Chintawar's appointment. The voting was conducted exclusively through remote e-voting facility provided by National Securities Depository Limited (NSDL).

Regulatory Compliance and Process

The company complied with all regulatory requirements under Section 110 of the Companies Act, 2013, and SEBI Listing Regulations. M/s. Uma Lodha & Co., Practicing Company Secretaries, Mumbai served as the scrutinizer for the postal ballot process. The remote e-voting period commenced on November 14, 2025, at 09:00 A.M. and concluded on December 13, 2025, at 05:00 P.M.

Appointment Details and Remuneration Structure

Mr. Chintawar's appointment as Additional Director (Executive, Non-independent) is valid until the next Annual General Meeting or until regularized by shareholders. His role as Whole Time Director spans three years from November 12, 2025, to November 11, 2028, now secured with shareholder approval.

Professional Background

Mr. Chintawar brings over four decades of distinguished leadership experience in the automotive and manufacturing sectors. Prior to joining Varroc Engineering, he served as Managing Director of Bosch Chassis Systems India Pvt. Ltd. from November 2018 to August 2025 and as Chairman of Bosch India Foundation from 2022 to 2025.

Career Highlights

Throughout his career, Mr. Chintawar has demonstrated strategic foresight and operational excellence:

• Enabled transition from Euro I to Euro VI emission norms in India by establishing advanced injector manufacturing capabilities
• Led multiple international projects, including setting up India's largest Export Oriented Unit (EOU)
• Pioneered road safety advancements through large-scale manufacturing of ABS and ESP systems
• Promoted green energy initiatives, including commissioning a 16MW solar power plant at Bosch's Nashik facility

Board Composition

With Mr. Chintawar's appointment now approved, Varroc Engineering's Board comprises eight members, including three Whole Time Directors and three Independent Directors. This strategic appointment strengthens the company's leadership team as it continues navigating the evolving automotive landscape and driving sector innovation.