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 supplier, has announced a significant addition to its leadership team. Avinash Chintawar has been appointed as the Chief Operating Officer (COO) for Business I, effective October 15, 2025. This strategic move aims to enhance the company's operational efficiency and align with its long-term vision.

Key Appointment Details

Role and Responsibilities

Chintawar will oversee the Operations Vertical within Business I, with a focus on:

• Strengthening operational efficiencies
• Enhancing overall performance
• Ensuring alignment with Varroc's long-term strategic vision

Professional Background

Avinash Chintawar brings over four decades of experience in the automotive and manufacturing sectors. His impressive career history includes:

Educational Qualifications

Management Comments

Arjun Jain, Whole Time Director & CEO of Business I at Varroc, expressed confidence in the appointment, stating, "We are delighted to welcome Avinash to the Varroc leadership team. His extensive experience and deep understanding of achieving operational excellence align perfectly with our needs as we drive the next phase of our growth."

Chintawar himself commented on his new role, saying, "I am excited to join Varroc at a time when the industry is undergoing such dynamic change. I look forward to working closely with the team to enhance operational excellence and contribute to its vision of sustainable and future-ready growth."

Company Overview

Varroc Engineering Ltd, incorporated in 1988, is a global tier-1 automotive component group. The company specializes in:

• E-mobility solutions
• Body systems solutions
• Lighting solutions
• HMI solutions
• ICE powertrain
• Advanced electronics

Varroc serves leading OEMs worldwide, offering end-to-end capabilities across design, development, and manufacturing for various vehicle types. In the fiscal year 2025, the group reported an income of ₹81,718.00 million from continued operations.

This strategic appointment underscores Varroc's commitment to operational excellence and sustainable growth in the evolving global automotive landscape. As the industry faces dynamic changes, Chintawar's extensive experience and leadership are expected to play a crucial role in driving Varroc's future success.