Varroc Engineering Ltd reported a sharp rise in fourth-quarter profit, helped by double-digit revenue growth, improved operating performance and a lower exceptional-item impact compared with the year-ago period.
The Pune-based auto component maker reported consolidated profit after tax of ₹70.5 crore for Q4FY26, compared with ₹23 crore in Q4FY25.
Revenue from operations rose 12.8% year-on-year to ₹2,368.1 crore in the quarter, which the company said was its highest-ever quarterly revenue after divestment.
EBITDA stood at ₹230.5 crore in Q4FY26, up from ₹213.4 crore in the same quarter last year. However, EBITDA margin moderated to 9.7% from 10.2% a year earlier. Sequentially, EBITDA margin improved from 9.3% in Q3FY26.
Profit before tax, before exceptional items and JV profit, stood at ₹107.4 crore, compared with ₹103.4 crore in Q4FY25. The PBT margin before JV and exceptional items stood at 4.5%.
Chairman and Managing Director Tarang Jain said the company benefited from recovery across the automotive sector, supported by domestic consumption, infrastructure spending and policy-led manufacturing initiatives.
He said rural consumption growth was supported by higher farm and non-farm incomes and easing rural inflation, while urban demand was aided by fiscal stimulus, tax relief and lower finance costs. “This synchronised consumption recovery is driving growth in the automotive sector also,” Jain said.
Jain added that trends such as rising disposable incomes, increasing vehicle penetration, premiumisation and electrification were also supporting demand across segments.
The company said revenue from supplying components to electric vehicles contributed around 14% of revenue in Q4FY26. For the full year, EV-related revenue contribution stood at around 13%.
The company also highlighted strong business wins during the year. In FY26, Varroc secured its highest-ever net new business wins, with annualised peak revenue potential of ₹3,288.9 crore.
Notable wins in the March quarter included a wall charger order for its Romanian business from a global EV player, and gears and crankpin orders from its ICE powertrain solutions business.
For the full year FY26, Varroc reported revenue of ₹8,890 crore, up 9% from the previous year. EBITDA margin stood at 9.4%, while PBT before JV profit margin improved by 50 basis points to 4.3%.
Varroc said its India business remained strong in FY26, with India EBITDA margin at 11.7% and PBT margin at 7.2%.
The company said it continued to follow a disciplined and value-accretive capital allocation strategy. Net debt reduced by ₹252.8 crore during FY26 to ₹495.2 crore, while net debt-to-equity stood at 0.27. Average return on capital employed stood at 24.4% during the year.
Varroc said its priority remains accelerating revenue growth across India and international markets. In India, the company plans to leverage customer relationships, technology capabilities and an expanding product portfolio to benefit from electrification and premiumisation trends.
In overseas markets, the company said it is strengthening its presence through customer engagement, engineering capabilities and focused business wins. The turnaround in overseas electronics and lighting businesses is expected to become more visible from the second half of FY27.