Varroc Engineering Ltd(VARROC)

NSE: VARROCBSE: 541578

₹ 763.7-3.37%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 11,668 crWebsite: www.varroc.comUpdated: 24 Oct 2026

About

Varroc Engineering is an Indian auto components manufacturer supplying electrical, electronics, lighting and powertrain systems mainly to two-wheeler and three-wheeler OEMs. It reported revenue of Rs 8890.49 crore for FY26. It has manufacturing and R&D facilities in India, Romania, Thailand and Italy, and is the main e-powertrain supplier to India's 2W/3W market leader.^[1]

Business segments

Automotive segment: auto parts for two-, three- and four-wheelers, plus related design, development and engineering. It made up 97.3% of FY26 revenue (Rs 8,648.75 crore).^[2][3]
Others segment: forging components for off-road vehicles and components for mining and oil drilling. It made up 2.7% of FY26 revenue (Rs 241.74 crore), with an EBIT loss of Rs 27.69 crore.^[2][3]
India operations contributed about 87% of consolidated revenue in Q1 FY27. Overseas operations contributed 13% in Q1 FY27, up from 11% in FY26.^[4]

EV and product mix

EV-related revenue was about 16% of consolidated revenue in Q1 FY27, up 87% YoY. It was about 13% in FY26 and about 14% in Q4 FY26.^[4]
Varroc is the main e-powertrain supplier to the 2W/3W market leader. Production for a new non-Bajaj EV 2W customer started in Q2 FY27, and two more customers are in advanced talks.^[4]
The non-compete from the earlier 4W lighting divestiture expired in October 2025. This lets Varroc compete globally in 4W lighting and advanced electronics.^[5]
Varroc won its first non-automotive business, in motors and motor controls, worth about Rs 50 crore in annualised peak revenue. The first production start is targeted for FY27.^[6]

Operations and manufacturing

Varroc had 37 manufacturing plants, 7 R&D labs and more than 6,100 employees as of the FY25 annual report.^[7]
The Thailand exterior lighting plant started operations in October 2025. It targets Southeast Asia, Europe and North America.^[5]
Overseas operations include 2W lighting, Romania electronics, Thailand 4W lighting and Forging Italy.^[5]
The Romania electronics entity holds high-voltage PCBA and wall-charger wins from global EV OEMs. Its revenue began growing quarter-on-quarter in Q1 FY27 as new programmes started.^[4]
Renewable energy made up 36% of India energy consumption in FY26.^[6]

Order book

The outstanding order book (annual peak revenue) was Rs 36,092 million at the end of Q1 FY27, up from Rs 35,090 million at the end of FY26.^[4]
FY26 net new order intake was a record Rs 32,889 million (annual peak revenue). More than 65% was linked to EV models and 71% came from non-Bajaj customers.^[6]
Q1 FY27 net new order wins were Rs 5,991 million (annual peak revenue). They included a 4W lighting win for Thailand and higher e-mobility volumes from existing customers.^[4]

Customers

Bajaj Auto is the largest customer, at 44% of consolidated revenue in Q1 FY27. Non-Bajaj customers made up the other 56%.^[4]
In Q4 FY26 the Romania entity won an order for a bidirectional L2V2 wall charger from a global EV OEM. It also holds an HV PCBA e-powertrain win from a global EV OEM.^[6]
Customer KTM AG filed for insolvency, and a court in Austria admitted a restructuring with self-administration (FY26 annual report).^[2]

Expansion and capex

FY27 capex (India plus overseas) is planned at Rs 500-550 crore, front-loaded, with much of it going to e-mobility capacity.^[4]
Small-scale production of Thailand 4W exterior lighting is set to begin in December 2026.^[6]
Capex from FY28 onward is expected to settle at Rs 300-350 crore, focused on domestic e-mobility, injection moulding and lighting.^[6]
Zero net debt is targeted by the end of FY28. No significant debt reduction is expected in FY27 because of heavy capex.^[4]

Recent developments

On 24 September 2026, Varroc issued Rs 50 crore of commercial paper to Kotak Mahindra Bank at 6.90%, maturing on 23 December 2026.^[8]
The FY26 annual report seeks approval to issue NCDs of up to Rs 500 crore in FY27. It also seeks to raise the borrowing and charge limits to Rs 3,000 crore.^[2]
Wholly owned subsidiary Varroc Polymers Limited has been merged into the company (FY26 annual report).^[2]
Eric Hammond was appointed CTO for Business Unit I in Q1 FY27. He brings 25 years of experience in electrification, software-defined vehicles and cybersecurity.^[4]
In Q3 FY26, more than 400 employees took a voluntary separation scheme, 95% of them from the ICE powertrain group. The one-time cost was Rs 799 million.^[9]

Market Cap

₹11,668 Cr

High / Low

₹910 / 462

Stock P/E

63.4

Price / Book

7.0

Book Value

₹117

EPS

₹14.7

No. of Shares

15.28 Cr

ROCE

19.2%

ROE

13.5%

OPM

5.8%

Debt / Equity

0.41

Sales

₹8,890 Cr

Net Profit

₹230 Cr

Promoter holding

75.0%

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Varroc Engineering Ltd(VARROC)

About

Business segments

EV and product mix

Operations and manufacturing

Order book

Customers

Expansion and capex

Recent developments

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