Varroc Engineering Ltd
Varroc Engineering Q2 FY26 earnings call: Revenue & Margins
Q2 FY26 earnings call: what management said on revenue, margins and capex.
Guidance rank: #7 of 66 in Auto Components
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The short version
Strong order wins, especially from EV customers, indicating robust future growth (63% of new orders from EV segment). The company aims to double revenue by 2030 and increase PBT above 10%, indicating strong future profit growth ambitions.
From Varroc Engineering Ltd's Q2 FY26 earnings-call transcript · updated 16 Oct 2026.
Revenue & Sales Performance
- Strong order wins, especially from EV customers, indicating robust future growth (63% of new orders from EV segment).
- Expansion in volumes from existing EV programs and next-gen program launches, including e-powertrain and motor-related products.
- Increasing 4-wheeler business, with significant wins in passenger vehicle lighting in India and overseas.
- New business launches expected in 2026, especially from Romania Electronics plant, with additional advanced discussions underway for further opportunities.
- Expansion of R&D and manufacturing footprint in Thailand targeting Southeast Asia, Europe, and North America for Lighting and Electronics.
- Efforts in exterior/interior lighting, ADAS, intelligent cockpit, and high-voltage electronics to drive volume growth.
- Ambition to double revenue by 2030 with PBT above 10%.
2 more points from Varroc Engineering Ltd's call on revenue
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Profitability & Margins
See what Varroc Engineering Ltd said on profitability & margins — free account, 30 seconds.
Capital Expenditure Plans
- For FY '26, regular CAPEX expected around INR 270 crores plus another INR 150 crores for land, with a possible increase of INR 80-90 crores (close to INR 100 crores) mainly for future growth opportunities.
- Significant CAPEX planned for India, approximately INR 250 crores for next year.
- Additional CAPEX of INR 50 to 100 crores expected for overseas plants depending on business wins, particularly in Thailand and Romania.
- Investments in new Lighting plant in Thailand targeting Southeast Asia, Europe, and North America.
- Further capacity expansion anticipated in Romania linked to new business wins in Electronics and Lighting.
2 more points from Varroc Engineering Ltd's call on capex
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Top-ranked in Auto Components
Ranked on what management guided this quarter
Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.
Fundraising & Capital Structure
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Order Book & Pipeline
- Starting the year, Varroc Engineering had an order book of about INR 1,307 crores (peak annual revenue).
- During the year, the company won new orders worth INR 892 crores (peak annual revenue).
- SoP (Start of Production) has moved INR 470 crores of orders.
- As of H1 FY '26, the outstanding order book stands at about INR 1,693 crores.
- Order book composition:
- 63% of order wins are from electric vehicle customers.
- 61% of orders are from 2- and 3-wheelers; 39% are 4-wheelers.
- Customer mix: 58% Bajaj, 42% others.
2 more points from Varroc Engineering Ltd's call on order book
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Varroc Engineering Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest (Q1 FY27): revenue ₹2.6K Cr, net profit ₹78 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.
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What Varroc Engineering Ltd's management said in earlier quarters
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Potential multibaggers · Q2 FY27
Potential multibaggers in Auto Components
on management's own guidance
- Strong growth2
- Strong growth1
- Strong growth3
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Ranks describe management commentary on revenue and margin from the latest earnings call. Not investment advice.
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Frequently Asked Questions
What were Varroc Engineering Ltd Q2 FY26 results?
Strong order wins, especially from EV customers, indicating robust future growth (63% of new orders from EV segment). The company aims to double revenue by 2030 and increase PBT above 10%, indicating strong future profit growth ambitions.
What is Varroc Engineering Ltd share price analysis?
Varroc Engineering Ltd currently shows a neutral. The stock trades at a P/E of 43.8 with a market cap of ₹12,490 Cr. Investors should review the full earnings analysis for detailed insights.
Is Varroc Engineering Ltd planning capital expenditure?
For FY '26, regular CAPEX expected around INR 270 crores plus another INR 150 crores for land, with a possible increase of INR 80-90 crores (close to INR 100 crores) mainly for future growth opportunities.
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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.