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Earnings Call Transcript

Varroc Engineering Earnings Call Transcript: Key Takeaways

Varroc reported robust 30% YoY revenue growth driven by EV penetration and overseas lighting. However, margins were suppressed by one-time tooling sales and war-related cost escalations.

Guidance and delivery
Management target Revenue 25.0% FY27
Highlights
Revenue growth30% YoY growth driven by EV segments and overseas lighting performance.
MarginsEBITDA contracted to 8.5% due to low-margin tooling and war costs.
Order bookNew wins of 600 Crores this quarter; total peak potential high.
Demand visibilityStrong domestic 2W/3W recovery and accelerating EV adoption trends.
Management confidenceConfident, shifting from turnaround focus to aggressive revenue scaling.

Growth

Strong 30% organic growth; EV revenue surged 87% YoY reaching 16% of total revenue.

Outlook

Aims to double overall revenue to 20,000 Crores by FY31 with 10% PBT margins.

Risks

Tooling sales dilution and geopolitical cost pressures; significant dependence on Bajaj remains a concentration risk.

Last quarter's promises, checked

Delivered

  • Guided ~10% CAGR revenue growth -> delivered 30% YoY (= BEAT)
  • Guided debt reduction -> delivered Net Debt/Equity 0.27 vs 0.64 in FY24 (= BEAT)
  • Guided EV revenue ~13% -> delivered 16% (= BEAT)

Partly delivered

  • Guided PBT improvement -> delivered 4.3% vs 3.8% in FY25 (= PARTIAL)

Missed

  • Guided 10.1% EBITDA (FY24 peak) -> delivered 8.5% (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: VARROC. Summary written with AI assistance from the document.

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Varroc Engineering Ltd: key numbers

Share price
₹834.85
Market cap
₹12,755 Cr
Revenue (annual)
₹8,890 Cr
Net profit (annual)
₹225.0 Cr
P/E (TTM)
64.7×Sector 33.6×
Promoter holding
75.00%+0.00% QoQ
FII holding
4.29%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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