Varroc Engineering Limited has successfully fulfilled its debt obligations by paying ₹19.64 crores in interest and principal amounts on its Non-Convertible Securities during the quarter ended December 31, 2025. The payment demonstrates the company's commitment to maintaining its debt service obligations in accordance with regulatory requirements.

Payment Details for Q3FY26

The automotive components manufacturer made the payment ahead of the due date, showcasing strong financial discipline. The company paid the obligations on December 5, 2025, two days before the scheduled due date of December 7, 2025.

Non-Convertible Securities Overview

The Non-Convertible Securities carry an 8.60% per annum coupon rate with quarterly payment frequency. The securities were originally issued on September 7, 2023, with a maturity date of September 7, 2028, providing a five-year tenure for the debt instrument.

Regulatory Compliance

Varroc Engineering Limited has filed this payment confirmation under Regulation 57 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was submitted to both NSE and BSE, ensuring transparency in debt servicing activities. Company Secretary and Compliance Officer Anil Ghatiya signed the regulatory filing, confirming the company's adherence to listing obligations and maintaining investor confidence through timely debt service.

Varroc Engineering Limited has released its unaudited quarterly results for the period ending September 30, 2025, showcasing a mixed financial performance amidst ongoing challenges.

Financial Highlights

The company's standalone revenue from operations for Q2 FY26 stood at Rs. 20,378.56 million, marking a 10.58% increase from the previous quarter. However, the profit after tax decreased by 21.90% to Rs. 676.54 million compared to Q1 FY26.

Auditor Qualification and Ongoing Challenges

The financial results come with a significant caveat as the auditors issued a qualified opinion due to a settlement offer from an overseas party. The qualification pertains to Rs. 209.89 million in income recognized in the previous quarter, raising questions about the accuracy of the reported figures.

Adding to the company's challenges, Varroc Engineering faces arbitration claims amounting to US$ 66.41 million from OPmobility Lighting Holding. This development could potentially impact the company's financial position and future performance.

Operational Performance

Despite the challenges, Varroc Engineering has shown resilience in its core operations:

• Operating Profit Margin (OPM) for Q2 FY26 stood at 9.05%, compared to 11.39% in Q1 FY26.
• The company's EBITDA margin decreased to 9.2% from 9.6% in the previous quarter.

Year-on-Year Comparison

Comparing Q2 FY26 with the same quarter last year:

The year-on-year comparison shows a positive trend in revenue and profitability, indicating the company's ability to grow despite challenging circumstances.

Looking Ahead

While Varroc Engineering has demonstrated revenue growth, the auditor qualification and ongoing arbitration claims present significant challenges. Investors and stakeholders will be closely watching how the company addresses these issues and maintains its growth trajectory in the coming quarters.

The management's ability to navigate these challenges while capitalizing on growth opportunities will be crucial for the company's long-term success and shareholder value creation.