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Varroc Engineering Limited (VARROC)

₹817.45 -0.36% last close, 16 Oct

📊 NSE: VARROC 🏢 Auto Ancillaries 📢 Latest filing: 16 Oct 2026 📝 Analysis written: 14 Dec 2025

Latest quarterly results (Q1 FY27)

In its latest reported quarter, Q1 FY27, Varroc Engineering's revenue was ₹2,634 Cr (+29.9% year on year, +11.2% on the previous quarter), and net profit ₹77.7 Cr (-27.4% year on year); the operating margin was 8.4%.

Q1 FY27 (₹ Cr)	Value	YoY vs Q1 FY26	QoQ
Revenue	₹2,634	+29.9%	+11.2%
Operating profit	₹222	+13.8%	-0.0%
Net profit	₹77.7	-27.4%	+11.0%
EPS (₹)	5.06	-26.5%	+11.5%
Operating margin	8.4%	—	—

Full quarterly financials → Results calendar →

VARROC delivery percentage

NSE end-of-day data for Fri, 16 Oct 2026

On Fri, 16 Oct 2026, 42.19% of the VARROC shares traded on NSE were taken to delivery, against the stock's own 20-session average of 40.84%. That is close to its usual level. Volume was 0.3 times its average, well below normal.

42.19%Delivery, 16 Oct

40.84%Own 20-session average

0.3×Volume vs its average

₹817.45NSE close · -0.36%

Delivery in the last 5 sessions: 38.0% · 30.6% · 44.9% · 45.5% · 42.2%

Delivery across the market →

A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed

📢 Recent Corporate Announcements

Varroc Acquires 45% Stake In Forsee Power India To Form EV Battery Solutions JV

🟢 POSITIVE ⭐ 7/10

EXPANSION 📅 16 Oct 2026, 04:35 PM

Varroc Engineering has partnered with France-based Forsee Power SA to form a joint venture to develop and scale EV battery-pack solutions in India. Under the transaction, Varroc will acquire a 45% equity stake in Forsee Power India, exercise operational and management control, and subscribe to Optionally Convertible Redeemable Preference Shares (OCPRS). The joint venture will initially focus on 3-wheeler battery packs before expanding into 2-wheelers, light commercial vehicles, and buses. Financial consideration for the equity acquisition and OCPRS was not disclosed.

Acquiring a 45% equity stake in Forsee Power India with management and operational control
Additional capital support via Optionally Convertible Redeemable Preference Shares (OCPRS)
Initial target focus on 3-wheeler EV battery packs, expanding to 2W, LCVs, buses, and off-highway
Partner Forsee Power has equipped over 5,500 heavy vehicles and 150,000 light electric vehicles globally

💡 Track subsequent statutory disclosures regarding the cash consideration, OCPRS conversion terms, and regulatory approval timelines for closing the joint venture.

Varroc to Acquire 45% Stake in Forsee Power India for Up to €4.5 Million

🟢 POSITIVE ⭐ 6/10

M&A 📅 16 Oct 2026, 04:29 PM

Varroc Engineering's board has approved acquiring a 45% equity stake along with optionally convertible redeemable preference shares (OCRPS) in Forsee Power India Private Limited. The aggregate consideration across primary/secondary equity and OCRPS will not exceed €4.5 million (approx. ₹40-42 crore). Forsee Power India manufactures battery packs and battery management systems for electric mobility and reported unaudited FY26 turnover of ₹18.84 crore. The deal is expected to close on or before December 31, 2026.

Board approved acquiring 45% equity stake (2,95,398 equity shares) and 80,380 OCRPS in Forsee Power India
Total consideration capped at € 4.5 Million in cash
Target entity generated FY26 unaudited revenue of ₹ 18,83,88,451, up from ₹ 10,57,37,870 in FY25
Acquisition scheduled to close on or before December 31, 2026 subject to conditions precedent

💡 Monitor final transaction closing by December 31, 2026 and track management commentary in upcoming earnings calls regarding EV battery pack integration and customer synergies.

Varroc Engineering Receives RBI Compounding Order with ₹3.91 Lakh Penalty

🟡 NEUTRAL ⭐ 2/10

REGULATORY 📅 14 Oct 2026, 06:14 PM

Varroc Engineering Limited received a compounding order dated October 13, 2026, from the Reserve Bank of India (RBI), Mumbai, regarding a delay in repatriating dues receivable from a foreign entity. The RBI imposed a compounding fee of ₹3,91,000 under the Foreign Exchange Management (Overseas Investment) Regulations, 2022. The matter stands disposed of with negligible financial impact relative to the company's TTM revenue of ₹9,497 crore and quarterly PAT of ₹77.7 crore. Operational and business activities remain entirely unaffected.

RBI imposed a compounding penalty of ₹3,91,000 via order dated October 13, 2026
Contravention pertains to delay in repatriation of dues under Regulation 9(4) of FEMA (Overseas Investment) Regulations, 2022
Application stands disposed of by the RBI's Foreign Exchange Department
No material impact on company financials or operations beyond the ₹3.91 lakh compounding amount

💡 No action required; investors should track upcoming Q2 FY27 earnings for operational performance across core automotive electronics and lighting divisions.

Varroc Submits Commercial Paper Utilization Certificate for Q2 FY27

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 02 Oct 2026, 11:02 AM

Varroc Engineering Limited has submitted its quarterly compliance certificate for the quarter ended September 30, 2026, pursuant to Chapter XVII of the SEBI Master Circular on Commercial Papers. The Group CFO certified that proceeds from Commercial Papers issued during the quarter were utilized strictly for purposes disclosed in the offer documents. Additionally, the company confirmed full adherence to SEBI listing conditions. This is a standard quarterly regulatory compliance update with no material financial changes disclosed.

Quarter ended September 30, 2026 Commercial Paper compliance certificate filed
Proceeds utilized strictly as per purposes stated in the offer document
Compliance confirmed under SEBI Master Circular No. SEBI/HO/DDHS/PoD1/P/CIR/2024/54 dated May 22, 2024

💡 Track the upcoming Q2 FY27 financial results to monitor operational performance, debt levels (total debt at ₹680 Cr), and cash flow dynamics.

Varroc Engineering Confirms Compliance Officer and RTA Details Under SEBI Regulations

🟡 NEUTRAL ⭐ 1/10

ROUTINE 📅 02 Oct 2026, 10:59 AM

Varroc Engineering submitted routine regulatory disclosures under Regulation 6(1) and 7(1) of the SEBI Listing Regulations. The filing details Mr. Anil Ghatiya as Company Secretary and Compliance Officer, who was appointed on July 31, 2025. It also confirms MUFG Intime India Private Limited (formerly Link Intime India Private Limited) as its Registrar and Share Transfer Agent. This is a standard administrative disclosure with no operational or financial impact on the company.

Compliance submission made under SEBI Listing Regulations 6(1) and 7(1)
Mr. Anil Ghatiya confirmed as CS & Compliance Officer with appointment date of 31/07/2025
MUFG Intime India Private Limited confirmed as RTA with SEBI registration INR000004058

💡 No action is required as this is a procedural compliance submission. Investors should continue to monitor core operational indicators and upcoming quarterly financial results.

Varroc to Shut Italy Manufacturing Operations Contributing 1.41% to Consolidated Revenue

🟢 POSITIVE ⭐ 6/10

OTHER 📅 30 Sep 2026, 08:34 PM

Varroc Engineering has approved the discontinuation of manufacturing, laboratory, and testing activities at its step-down subsidiary Varroc Italy S.p.A. by January 2027. The Italian unit contributed INR 125.22 crore (1.41% of consolidated turnover) and INR 119.96 crore (6.60% of consolidated net worth) as of March 31, 2026. The plant has been incurring continuous losses driven by high operating and labor costs, and will retain only sales and selected R&D functions going forward.

Closure of manufacturing, laboratory, and testing operations at Varroc Italy S.p.A. targeted by January 2027
Italian subsidiary contributed INR 1,252.21 million (INR 125.22 crore), or 1.41% of consolidated turnover as of March 31, 2026
Unit accounts for INR 1,199.57 million (INR 120 crore), representing 6.60% of consolidated net worth
Move follows persistent losses from unsustainable labor and operating costs; retains sales and reorganized R&D

💡 Track upcoming quarterly results for potential one-time severance and restructuring charges, as well as updates on trade union consultations in Italy.

Varroc Engineering Lists ₹50 Cr Commercial Paper at 6.90% Discount Rate

🟡 NEUTRAL ⭐ 3/10

FUNDRAISE 📅 28 Sep 2026, 09:44 AM

Varroc Engineering Limited has announced the listing and record date for its Commercial Papers (CPs) worth ₹50 Crores, which were listed on the NSE on September 25, 2026. The CPs carry a tenure of 90 days with a discount rate of 6.90% and were subscribed by Kotak Mahindra Bank Limited. The redemption date is set for December 23, 2026, with a record date of December 22, 2026. Relative to the company's total debt of ₹680 Crores and TTM revenue of ₹9,497 Crores, this represents routine short-term working capital financing.

Commercial paper issuance size of ₹50 Crores listed on NSE
Issued to Kotak Mahindra Bank Limited at a discount rate of 6.90%
Tenure of 90 days: issued on September 24, 2026, and due on December 23, 2026
Record date for redemption set for December 22, 2026, with ₹50,00,00,000 payable

💡 Track the timely redemption on December 23, 2026, and monitor the company's upcoming Q2 FY27 earnings for overall debt levels and working capital trends.

Varroc Engineering Allots Rs 50 Cr Commercial Paper at 6.90% Discount Rate

🟡 NEUTRAL ⭐ 3/10

FUNDRAISE 📅 24 Sep 2026, 11:55 AM

Varroc Engineering has allotted unsecured Commercial Paper (CP) aggregating to Rs 50 crore to Kotak Mahindra Bank Limited on September 24, 2026. The instrument carries a tenor of 90 days with a maturity date of December 23, 2026, issued at a discount rate of 6.90% per annum. Relative to the company's total debt of Rs 680 crore, this short-term borrowing represents ~7.4%, and constitutes a minor fraction (~0.5%) of TTM revenue of Rs 9,497 crore. The proceeds serve short-term working capital needs, and the paper is proposed to be listed on the NSE.

Commercial Paper issue size of Rs 50 Crores allotted on September 24, 2026
Short-term tenure of 90 days maturing on December 23, 2026
Coupon/interest discount rate set at 6.90% with upfront interest payment
Issued 1,000 units at an issue price of Rs 4,91,635.5 per unit (face value Rs 5,00,000)
Subscribed by Kotak Mahindra Bank Limited; ICICI Bank Limited acting as IPA

💡 Track the timely redemption on December 23, 2026, and monitor quarterly interest costs to ensure effective working capital management.

Varroc Engineering Closes Trading Window From Oct 1, 2026 for Q2/H1 FY27 Results

🟡 NEUTRAL ⭐ 1/10

ROUTINE 📅 14 Sep 2026, 10:27 AM

Varroc Engineering Limited has announced the closure of its trading window starting October 1, 2026, pursuant to SEBI (Prohibition of Insider Trading) Regulations. The closure will remain effective until 48 hours after the declaration of the un-audited financial results for the quarter and half-year ending September 30, 2026. The restriction applies to designated persons and their immediate relatives. The specific date of the board meeting to consider the financial results will be announced separately.

Trading window closes on October 1, 2026
Applies to financial results for the quarter and half-year ending September 30, 2026
Trading window to reopen 48 hours after declaration of financial results

💡 Track subsequent announcements for the exact board meeting date scheduled to review the Q2/H1 FY27 financial performance.

Varroc Engineering Assigned ESG Rating of 70.7 by SES ESG, Up 0.4 Points

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 09 Sep 2026, 09:51 AM

Varroc Engineering announced that SES ESG Research Private Limited has independently assigned an ESG rating of 70.7 to the company. This marks an improvement of 0.4 points compared to its previous rating of 70.3. The rating was independently assigned without company engagement, and the intimation was received via BSE Limited on September 8, 2026.

SES ESG Research assigned an ESG Rating of 70.7 to Varroc Engineering
Score improved by 0.4 points from the previous rating of 70.3
Information received by the company via BSE Limited on September 8, 2026
Company clarified it did not directly engage SES ESG for the evaluation

💡 Monitor upcoming quarterly earnings and customer demand trends, as this routine unsolicited ESG disclosure does not impact core operational performance.

Varroc Assigned 'Crisil ESG 62' Rating Under 'Strong' Category by CRISIL ESG Ratings

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 08 Sep 2026, 10:23 AM

Varroc Engineering received an independent ESG rating of 'Crisil ESG 62' under the 'Strong' category from CRISIL ESG Ratings & Analytics Limited. The rating reflects the company's performance across Environmental, Social, and Governance parameters. Varroc noted it did not formally engage the agency for this assessment and received the information via BSE Limited. This assessment has no immediate financial or balance sheet impact on the company's ₹9,497 crore TTM revenue base.

Assigned an ESG score of 'Crisil ESG 62'
Categorized under the 'Strong' tier by CRISIL ESG Ratings & Analytics Limited
Intimation received by the company on September 7, 2026
Company clarified it did not solicit or engage CRISIL ESG for the rating

💡 Track Varroc's core operational metrics, particularly the scaling of its EV component orders and SMT lines, alongside quarterly earnings.

Varroc Subsidiary Files €67M Recovery Claim Against OP Mobility in Paris Commercial Court

🔵 WATCH ⭐ 6/10

LEGAL 📅 28 Aug 2026, 03:57 PM

Varroc Engineering's step-down subsidiary, Varroc Electronics Romania S.R.L. (VeR), has initiated fresh legal proceedings before the Paris Commercial Court against Opmobility Lighting Holding (Plastic Omnium Group). The lawsuit seeks recovery of approximately EUR 67 million (~₹600+ crore) plus additional costs arising from a Supply Agreement. Concurrently, VeR is taking steps to withdraw pending appeal proceedings to pursue this fresh action. The matter remains at a preliminary stage with notices being served.

Claim quantum stands at approximately EUR 67 million plus other costs
Filed by step-down subsidiary Varroc Electronics Romania S.R.L. before the Paris Commercial Court
VeR is withdrawing prior appeal proceedings to pursue this fresh claim under the Supply Agreement
Opposing party is Opmobility Lighting Holding (Plastic Omnium Group)

💡 Track further regulatory disclosures regarding the admission of the suit, court hearings in France, and counterparty responses or potential settlement discussions.

Varroc Engineering: Cancellation of Investor Meeting Scheduled for August 27, 2026

🟡 NEUTRAL ⭐ 1/10

ROUTINE 📅 25 Aug 2026, 09:28 AM

Varroc Engineering Limited has informed the exchanges that its scheduled physical investor meeting with Mahindra Manulife Mutual Fund on Thursday, August 27, 2026, at 12:00 noon in Pune has been cancelled. The cancellation occurred due to unavoidable exigencies on the part of the investor. This is a routine administrative update following the prior intimation on August 24, 2026, and carries no impact on the company's financial performance.

Cancellation of an in-person meeting with Mahindra Manulife Mutual Fund scheduled for August 27, 2026, at 12:00 noon in Pune
Cancellation cited as being due to unavoidable exigencies on the part of the investor
Filing submitted in continuation of the prior intimation dated August 24, 2026

💡 No action required; this is a procedural filing regarding a cancelled interaction. Track quarterly earnings and operational commentary for business updates.

Varroc Engineering Schedules In-Person Investor Meeting with Mahindra Manulife MF on Aug 27, 2026

🟡 NEUTRAL ⭐ 1/10

ROUTINE 📅 24 Aug 2026, 10:06 AM

Varroc Engineering Limited has informed the exchanges of a scheduled physical meeting with institutional investor Mahindra Manulife Mutual Fund. The meeting is set to take place in Pune on Thursday, August 27, 2026, at 12:00 noon. The company confirmed that discussions will rely strictly on publicly available information without sharing any unpublished price-sensitive information (UPSI).

Meeting scheduled with Mahindra Manulife Mutual Fund on Thursday, August 27, 2026
Time and mode: 12:00 noon, in-person meeting in Pune
Discussion strictly based on publicly available information with no UPSI shared

💡 Track subsequent disclosures for any presentation decks or material corporate updates shared publicly post the interaction.

Varroc Engineering AGM: FY27 Capex Planned at ~₹550 Cr; Overseas Revenue Target ₹1,500-2,000 Cr

🟡 NEUTRAL ⭐ 4/10

ROUTINE 📅 21 Aug 2026, 06:50 PM

Varroc Engineering published the transcript of its 38th AGM held on August 20, 2026. Management outlined an FY27 capex outlay of approximately ₹550 crore, with over ₹200 crore directed overseas to support a ₹1,500–₹2,000 crore overseas revenue run-rate. Annual capex is expected to normalize to ₹300–₹350 crore in subsequent years, supporting substantial debt reduction by the end of FY28. Additionally, the filing noted ongoing arbitration regarding ₹209.89 million in disputed transition management income recognized from Chongqing Varroc TYC.

Planned FY27 capex of ~₹550 crore (~5.8% of TTM revenue), including ₹200+ crore for overseas capacity ramp-up.
Overseas manufacturing capacity targeted to support ₹1,500 crore to ₹2,000 crore in revenue.
Future annual capex guided to normalize at ₹300 crore to ₹350 crore from FY28 onwards.
Auditors maintained a qualified opinion regarding ₹209.89 million recognized as TMA revenue under active arbitration with TYC parties.

💡 Track the execution of overseas capacity expansion and monitoring quarterly free cash flow generation to confirm debt reduction progress by FY28.

View All VARROC Announcements on Live Market Tracking →

💰 Financial Performance

Revenue Growth by Segment

India Business revenue grew 8% YoY to INR 20,879 million in Q2 FY26. Overseas Business revenue declined 18% YoY to INR 1,194 million, primarily due to US tariffs impacting the Forging segment. Overall FY25 revenue was INR 81,541 million, up 8.0% from INR 75,519 million in FY24.

Geographic Revenue Split

As of H1 FY26, India accounts for 89% of total revenue, while Overseas business and exports contribute 11%. This reflects a strategic shift toward the domestic market following the divestment of certain global lighting businesses.

Profitability Margins

PBT margins improved significantly from 1.1% in FY23 to over 4% in Q2 FY26. Gross margins improved by approximately 1% during this period due to better product mix and cost-saving initiatives. FY25 PAT was INR 697 million compared to INR 5,530 million in FY24, which was skewed by a one-time deferred tax credit.

EBITDA Margin

EBITDA grew from INR 5,966 million in FY23 to INR 7,767 million in FY25. The India Business EBITDA for Q2 FY26 was INR 2,405 million (11.5% margin), up 11% YoY, driven by operating leverage and cost reduction.

Capital Expenditure

H1 FY26 CAPEX was INR 186 crores, largely front-loaded for a new facility in Thailand and SMT line expansions. The company is expanding SMT lines from 10 to 15 to cater to growing electronics demand.

Credit Rating & Borrowing

Net debt was reduced significantly to INR 3,800 million (INR 380 crores) in Q2 FY26 from INR 7,480 million in FY25. Borrowing costs are approximately 8% for debt and 7% for receivables discounting (INR 700-750 crores). Net Debt to EBITDA improved from >2x in FY23 to 0.47x in FY25 and 0.22x in Q2 FY26.

⚙️ Operational Drivers

Raw Materials

Key raw materials include plastic resins for moulded parts, electronic components for SMT lines, and steel for forgings and engine valves. Raw material costs were INR 52,092 million in FY25, representing 63.9% of total revenue.

Capacity Expansion

Expanding SMT lines from 10 to 15. Established a new facility in Thailand and acquired land in South and West India to strengthen OEM relationships. The company operates 37 manufacturing plants and 7 R&D labs globally.

Raw Material Costs

Raw material costs as a percentage of revenue stood at 63.9% in FY25. The company manages costs through customer recoveries, particularly for rare earth freight impacts, ensuring minimal bottom-line margin erosion.

Manufacturing Efficiency

The company is focusing on 'first-time right' delivery and program management efficacy. Operating leverage from increased India volumes is helping improve absolute P&L parameters.

📈 Strategic Growth

Expected Growth Rate

12%

Growth Strategy

The company aims to double revenue by 2030 by focusing on EV components, which represented 63% of the INR 893 crore peak annual revenue from H1 FY26 new wins. Strategy includes expanding SMT lines for electronics, scaling the Romania electronics plant (SOP mid-2026), and growing the aftermarket division which serves 27 countries.

Products & Services

2-wheeler and 4-wheeler lighting, TFT clusters (bonded, Wi-Fi/Bluetooth enabled), EV powertrain components, engine valves, forgings, and plastic-moulded body systems.

Brand Portfolio

Varroc, Varroc Connect, Durovalves India.

New Products/Services

High-voltage electronics for e-powertrains, 4W lighting for passenger vehicles, and advanced TFT clusters. New business wins in H1 FY26 reached a peak annualized revenue of INR 8,928 million.

Market Expansion

Expansion into Thailand with a new facility and strengthening presence in South/West India. Targeting high-performance e-powertrain components for the Romanian plant by end of 2025.

Market Share & Ranking

Varroc is a market leader in India for 2W mobility, lighting, and driver assistance systems.

Strategic Alliances

The company completed the merger of Varroc Polymers Limited with Varroc Engineering Limited effective February 1, 2025, to streamline operations.

🌍 External Factors

Industry Trends

The industry is shifting toward electrification and connected 'intelligent cockpits.' Varroc is positioning itself as a 'partner of choice' for EV OEMs, with 63% of new order wins being EV-related.

Competitive Landscape

Competes with global and domestic auto-component players in lighting and electronics. Key advantage is the low-cost manufacturing base in India combined with R&D in Romania and China.

Competitive Moat

Moat is built on 125+ patents, long-term OEM relationships (37+ years for the Chairman), and deep integration in the EV supply chain. Sustainability is driven by R&D in advanced electronics and lighting.

Macro Economic Sensitivity

Highly sensitive to automotive production trends in India; 2W production grew 10.6% and 3W grew 18.3% in Q2 FY26, directly boosting Varroc's domestic performance.

Consumer Behavior

Shift toward premiumization in 2Ws (TFT clusters, LED lighting) and rapid adoption of EVs are driving demand for Varroc's advanced electronics portfolio.

Geopolitical Risks

US-China trade tensions and US tariffs on forgings are primary risks. The company is also monitoring rare earth supply chains.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to automotive safety and emission standards. Overseas business is currently impacted by US tariff regulations on forging imports.

Taxation Policy Impact

The company benefits from a recurring R&D tax credit of approximately INR 11 crores per quarter related to overseas R&D spending.

Legal Contingencies

The company successfully executed a Scheme of Amalgamation for Varroc Polymers Limited, increasing authorized share capital to INR 559.4 million.

⚠️ Risk Analysis

Key Uncertainties

High customer concentration with Bajaj (45%) and the successful ramp-up of the Romania electronics plant are key uncertainties. Volatility in global EV adoption rates could impact the SOP timelines of new business wins.