Staff Writer
Pune: Auto components maker Varroc Engineering Ltd. on Wednesday reported a 12.8 per cent year-on-year rise in consolidated revenue from operations at Rs 23,681 million for the March quarter, driven by strong demand across automotive segments and recovery in overseas businesses.
The company said the quarterly revenue was its highest-ever post divestment.
Profit before tax (PBT) before exceptional items and joint venture profit stood at Rs 1,074 million in the fourth quarter of FY26, compared with Rs 1,034 million in the corresponding quarter of the previous fiscal.
For the full financial year 2025-26, the company reported consolidated revenue of Rs 88.9 billion, registering a growth of 9 per cent over the previous year.
Tarang Jain said the Indian automotive sector continued to benefit from strong domestic consumption, infrastructure spending, premiumisation trends and rising electrification.
“This synchronised consumption recovery is driving growth in the automotive sector also,” he said. The company’s EBITDA margin improved to 9.7 per cent in the March quarter from 9.3 per cent in the preceding quarter, while PBT before JV profit rose to 4.5 per cent of revenue from 4.4 per cent sequentially.
Varroc said revenue contribution from electric vehicle programmes stood at around 14 per cent during the quarter and 13 per cent for the full year.
The company also reported its highest-ever annual net new business wins in FY26, with annualised peak revenue potential of Rs 32,889 million.
Among key orders secured during the quarter were a wall charger programme for its Romanian business from a global EV player and crankpin gear business under its ICE powertrain solutions segment.
The company said its overseas electronics and lighting business continued to secure significant orders, with turnaround expected to become more visible from the second half of FY27.
Net debt declined by Rs 2,528 million year-on-year to Rs 4,952 million in FY26, while return on capital employed (ROCE) stood at 24.4 per cent. The board of directors has recommended a dividend of 150 per cent of face value for FY26, the company said.
