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Varroc Engineering

VARROC NSE
₹779.15 −10.25 (−1.30%)
P/E
60.31
View as Markdown
MCP
Close 4 Nov 2026 ₹779.15 +154.10 +24.7% 1Y
Start ₹625.05

Key Fundamentals

MicrocapAuto ComponentsConsumer Discretionary

Price-based figures as of · EPS basis: Consolidated · TTM

ROCE
19.00%
Debt to Equity
0.52
EPS (TTM)
₹12.92
Book Value
₹116.52
Market Cap
—
P/E (TTM)
60.31
P/B
6.69
ROE
15.10%
Dividend Yield
0.19%
EBITDA
₹847 Cr
52W High
₹912.20
52W Low
₹462.00
Day Range
₹746.25 – ₹805.40
Volume
8,07,048

Peer Comparison

Consumer Discretionary › Automobiles › Auto Components › Auto Components & Equipments

Varroc Engineering peer comparison
Samvardhana Motherson International
₹159.4938.43₹1,68,660 Cr3.980.37%11.20%13.40%₹1,31,135 Cr₹4,556 Cr
Bosch
₹50,925.0063.56₹1,48,351 Cr10.110.54%14.60%21.50%₹21,088 Cr₹2,363 Cr
Bharat Forge
₹1,812.80122.74₹86,739 Cr7.650.48%12.00%12.60%₹17,543 Cr₹715 Cr
UNO Minda
₹1,196.9057.49₹67,494 Cr10.130.24%19.30%19.60%₹20,725 Cr₹1,291 Cr
Sona BLW Precision Forgings
₹893.7074.48₹56,293 Cr8.700.38%11.70%15.10%₹4,514 Cr₹746 Cr
Schaeffler India
₹3,507.2042.47₹55,555 Cr8.920.99%20.80%27.90%₹10,192 Cr₹1,292 Cr
Tube Investment
₹2,250.5071.81₹42,644 Cr5.620.16%9.95%17.10%₹23,754 Cr₹1,109 Cr
Varroc Engineering (this company)
₹779.1560.31₹11,995 Cr6.690.19%15.10%19.00%₹9,497 Cr₹200 Cr
Median 8 companies₹1,504.8561.94₹61,893 Cr8.180.38%13.30%18.05%₹19,134 Cr₹1,200 Cr

Comparable companies in the same industry. Market cap, P/E and P/B use the latest price; other metrics are as reported in filings. A dash means the figure is not published for that company.

Tapetide Score

Data-driven rating, 0–100, as of . How it works →

Overall score

53 Average

Data confidence 100/100

Category scores

Quality
48
Average
Returns, margins, earnings quality 22% weight
Valuation
35
Poor
Cheap vs sector & own history 24% weight
Growth
53
Average
Sales & profit trajectory 9% weight
Financial Health
38
Weak
Solvency, leverage, coverage 9% weight
Momentum
84
Strong
Trend strength, vol-adjusted 12% weight
Ownership
68
Strong
FII/DII/promoter flows 24% weight

The Tapetide Score is data analysis, not investment advice. Tapetide is not a SEBI-registered research analyst or investment adviser.

Key Insights

Strengths

1
  • Company has delivered good profit growth of 19.0% CAGR over last 5 years

Weaknesses

1
  • Stock is trading at 7.04 times its book value

Technical Indicators

Technical signals: verdict and indicator counts
GroupSignalBearishNeutralBullish
OverallBearish874
OscillatorsBearish270
Moving AveragesStrong Bearish604

Key readings

RSI (14)
43.02
Neutral
MACD (12,26,9)
−10.70
Bearish
SMA (50)
824.42
Bearish
SMA (200)
648.67
Bullish

As of

Analyst Rating

Based on 6 analysts
BUY67%

4 of 6 analysts rate Buy, 0 Hold, 2 Sell.

As of

BUY
4
67%
HOLD
0
0%
SELL
2
33%

Growth Rate

From the financial statements below. 10Y, 5Y, 3Y: compound annual growth to Mar 2026; 1Y: fiscal year to Mar 2026 against Mar 2025; TTM: four quarters to Jun 2026 against Jun 2025.

Revenue

Revenue growth by window
10Y+1.18%
5Y+15.24%
3Y+8.86%
1Y+9.03%
TTM+14.66%

Net profit

Net profit growth by window
10Y−4.64%
5YTurned to profit
3YTurned to profit
1Y+228.57%
TTM+39.86%

Operating cash flow

Operating cash flow growth by window
10Y+6.35%
5Y+2.53%
3Y−7.84%
1Y−27.14%
TTM—

TTM: Reported once a year, so there is no trailing-twelve-month figure.

Operating margin· change in pp

Operating margin growth by window
10Y+2.06 pp
5Y+1.51 pp
3Y+0.90 pp
1Y−0.26 pp
TTM−0.76 pp

Revenue by year

Revenue by year, ₹ crore
Mar 2017₹9,299 Cr
Mar 2018₹10,279 Cr
Mar 2019₹12,036 Cr
Mar 2020₹11,122 Cr
Mar 2021₹4,374 Cr
Mar 2022₹5,844 Cr
Mar 2023₹6,891 Cr
Mar 2024₹7,552 Cr
Mar 2025₹8,154 Cr
Mar 2026₹8,890 Cr

Net profit by year

Net profit by year, ₹ crore
Mar 2017₹313 Cr
Mar 2018₹451 Cr
Mar 2019₹429 Cr
Mar 2020₹3.00 Cr
Mar 2021−₹629 Cr
Mar 2022−₹1,107 Cr
Mar 2023−₹817 Cr
Mar 2024₹532 Cr
Mar 2025₹70.00 Cr
Mar 2026₹230 Cr

Analyst Forecasts

Forecast For
Sep 26 consensus · EBITDA
₹245 Cr +6.7% vs Jun 26
Reported High Mean Low

AI Analysis — Bull vs Bear

Generated 11 Aug 2026
AI opinion · based on fundamentals
Risk high

Varroc Engineering Ltd is a mid-cap auto components company with a market cap of ₹12,865 crore trading at a PE of 63.3x and 7.1x book value. The company posted FY26 consolidated revenue of ₹8,891 crore (9% YoY growth) with full-year net profit of ₹230 crore (up 230% YoY), though EBITDA margins remain in the 9-10% range and recent quarterly trends show margin pressure.

Bull Case 7
  • Strong profit growth trajectory with 5-year compounded profit CAGR of 19% and TTM profit growth of 51%, indicating sustained earnings recovery
  • FY26 full-year net profit surged 230% YoY to ₹230 crore, demonstrating significant operating leverage as the business scales
  • Revenue has grown consistently with 3-year sales CAGR of 9% and 5-year sales CAGR of 15%, reaching ₹88,905 million in FY26
  • 3-year ROE of 20% shows meaningful improvement in capital efficiency after years of negative returns
  • Stock has delivered 1-year CAGR of 58% and 3-year CAGR of 29%, reflecting market re-rating on improved fundamentals
  • Q4 FY26 revenue grew 12.8% YoY to ₹23,681 million with Q4 PAT surging 238% YoY to ₹69.3 crore, showing continued momentum
  • Full-year FY26 EBITDA improved to ₹8,364 million with EBITDA margin at 9.4%, up from prior year levels as the company benefits from operating leverage
Bear Case 8
  • PE ratio of 63.3x is expensive for an auto components company, leaving limited room for earnings disappointment
  • Price-to-book of 7.11x is elevated for a capital-intensive manufacturing business, well above sector averages
  • EBITDA margin contracted to 8.5% in Q1 FY27 from 9.5% in Q1 FY26, indicating margin pressure from commodity costs and unfavourable mix
  • FY25 consolidated net profit collapsed to ₹697 million from ₹5,321 million in FY24, highlighting earnings volatility
  • 5-year ROE is negative at -13% and 10-year ROE is -2%, reflecting a long history of poor capital returns before recent recovery
  • 10-year compounded sales CAGR of just 1% and profit CAGR of -4% indicate the long-term track record remains weak
  • Debt-to-equity ratio of approximately 51-53% and total debt-to-EBITDA of 1.66x means balance sheet still carries meaningful leverage
  • Dividend yield of only 0.18% provides negligible income return to shareholders at current valuations

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

80d ago

TL;DR: Varroc Engineering is delivering strong top-line momentum with record Q1FY27 revenue and rapid EV volume growth (91% YoY in two-wheelers), supported by a strategic CTO hire for electrification. The key risk is margin compression from commodity costs, with EBITDA margin dropping 118 bps despite volume leverage. The underlying profit trend (PBT ex-exceptionals +38%) and rising EV mix (~13% of revenue) suggest the growth trajectory is intact, but margin recovery in coming quarters will be critical to watch.

Headwinds 2
  • EBITDA margin contracts on costs Aug 7

    EBITDA margin fell to 8.42% from 9.60% YoY in Q1FY27 amid commodity cost pressures, a 118 bps contraction despite record revenue.

  • Net profit drops sans exceptional Aug 7

    Q1FY27 net profit declined to ₹773 million due to absence of a prior-year exceptional credit that had boosted comparable quarter.

Positives 4
  • Record Q1 revenue up 30% YoY Aug 7

    Q1FY27 consolidated revenue hit a record ₹26.34 billion, up 29.9% YoY, with EV two-wheeler volumes surging 91%.

  • PBT before exceptions up 38% Aug 7

    PBT before JV and exceptional items surged 38% to ₹1,132 million in Q1FY27, reflecting strong underlying profitability improvement.

  • FY26 revenue up 9%, EV at 13% Jul 28

    FY26 consolidated revenue reached ₹88,905 million, up 9% YoY, with EV revenue now contributing ~13% of total and PBT margin improving 50 bps to 4.3%.

Neutral 3
  • Equirus investor meet Aug 13 Aug 7

    Varroc will host an in-person investor meeting with Equirus on August 13, 2026 in Mumbai, discussing publicly available information.

  • BRSR report shows 45% renewables Jul 28

    FY26 sustainability report filed showing 45% renewable energy usage and Zero Liquid Discharge achieved at five plants.

  • ₹50 crore CP at 7.20% coupon Jul 22

    Varroc allotted ₹50 crore Commercial Papers on July 22 with 7.20% coupon and 30-day tenure maturing August 21, 2026.

Quarterly Results

₹ Cr
VARROC quarterly results, ₹ crore
Particulars Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Sales
1,806
1,887
1,885
1,975
1,899
2,081
2,075
2,099
2,028
2,207
2,288
2,368
2,634
Expenses
1,623
1,693
1,709
1,754
1,725
1,873
1,889
1,878
1,833
2,004
2,078
2,146
2,412
Operating Profit
183
194
176
221
174
208
186
221
195
203
210
222
222
OPM %
10%
10%
9%
11%
9%
10%
9%
11%
10%
9%
9%
9%
8%
Other Income
−9
15
34
12
6
7
−88
−51
67
3
−100
7
6.2
Interest
49
50
50
45
44
43
42
41
36
32
31
35
31
Depreciation
80
85
89
82
80
82
81
81
81
83
82
86
84
PBT
44
74
71
105
56
90.11
−25
47
144
91.19
−3
109
114
Tax %
23%
25%
−443%
44%
39%
36%
82%
51%
25%
31%
245%
35%
32%
Net Profit
34
56
384
58
34
58
−45
23
107
63
−11
70
78
EPS (₹)
2.11
3.55
25.05
3.72
2.12
3.64
−3.1
1.35
6.88
3.99
−0.67
4.54
5.06

Profit & Loss

₹ Cr
VARROC profit and loss, annual, ₹ crore
Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Sales
6,770
7,909
9,299
10,279
12,036
11,122
4,374
5,844
6,891
7,552
8,154
8,890
9,497
Expenses
6,206
7,341
8,716
9,398
10,978
10,306
4,036
5,484
6,316
6,796
7,379
8,069
8,640
Operating Profit
564
568
582
881
1,059
816
338
360
575
756
775
821
857
OPM %
8%
7%
6%
9%
9%
7%
8%
6%
8%
10%
10%
9%
9%
Other Income
229
73
172
108
122
94
−556
−996
−821
69
−112
−14
−82
Interest
475
−43
90
86
97
139
89
118
190
194
170
134
129
Depreciation
254
292
337
386
566
732
274
305
337
337
323
332
335
PBT
63
392
327
516
519
39
−581
−1,059
−773
294
169
341
312
Tax %
73%
6%
4%
13%
17%
94%
8%
5%
6%
−81%
59%
33%
—
Net Profit
17
370
313
451
429
3
−629
−1,107
−817
532
70
230
200
EPS (₹)
16.06
353
254
36.57
31.54
0.01
−41.36
−72.64
−53.66
34.43
4.01
14.73
12.92
Div. Payout %
16%
1%
13%
1%
14%
Not meaningful for this period: the ratio divides by a base close to zero, so it is left blank rather than shown as a very large number.
0%
0%
0%
0%
25%
10%
—

Balance Sheet

₹ Cr
VARROC balance sheet, annual, ₹ crore
Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
10
10
11
12
13
13
15
15
15
15
15
15
Reserves
1,073
1,737
2,172
2,815
3,053
2,991
3,013
1,973
961
1,482
1,550
1,765
Borrowings
1,651
1,617
1,510
1,194
2,432
4,255
3,695
1,625
1,806
1,390
1,118
925
Other Liabilities
1,695
1,869
2,154
2,780
3,142
3,644
4,369
7,375
1,832
1,643
1,984
2,163
Total Liabilities
4,428
5,233
5,847
6,802
8,641
10,904
11,092
10,989
4,614
4,530
4,667
4,868
Fixed Assets
2,054
2,390
2,396
2,804
3,560
5,283
5,231
2,046
2,051
2,027
2,016
2,232
CWIP
178
315
293
344
999
790
856
140
135
80
103
151
Investments
22
12
293
360
362
330
376
388
421
530
69
88
Other Assets
2,174
2,515
2,867
3,294
3,720
4,500
4,629
8,416
2,007
1,893
2,479
2,396
Total Assets
4,428
5,233
5,847
6,802
8,641
10,904
11,092
10,989
4,614
4,530
4,667
4,868

Cash Flow

₹ Cr
VARROC cash flow, annual, ₹ crore
Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
128
290
676
1,075
474
1,414
474
636
686
638
737
537
Investing
−286
−575
−577
−545
−1,769
−1,259
−613
−762
−448
−166
−245
−118
Financing
70
386
94
−523
1,129
733
−152
−335
−216
−664
−490
−405
Net Cash Flow
−87
101
193
6
−166
888
−292
−461
22
−192
1
14
Free Cash Flow
−222
−309
52
497
−951
27
−254
−208
116
420
465
87
CFO/OP
33
58
125
136
57
189
146
197
135
92
94
69

Ratios

VARROC financial ratios, annual
Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
58
55
45
50
41
36
137
32
32
24
30
30
Inventory Days
51
49
46
49
43
56
164
58
55
52
51
60
Days Payable
90
92
94
114
99
124
396
127
99
94
98
97
Cash Conversion Cycle
19
12
−3
−15
−15
−32
−95
−36
−12
−19
−16
−8
Working Capital Days
22
21
−17
−16
−49
−96
−217
−18
−77
−33
−35
−23
ROCE %
—
11%
12%
16%
13%
3%
3%
2%
8%
17%
17%
19%

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

Log in to view Varroc Engineering insights

63 extracted metrics across FY15–FY27.

Shareholding Pattern

As of Sep 2026

  • Promoters 75.00%
  • DIIs 10.83%
  • Public 7.55%
  • FIIs 4.49%
  • Others 2.13%

No promoter shares pledged as of 14 Oct 2026

Change vs previous quarter

Not shown for some quarters: Others. Not available separately for this quarter: the shareholding filing gives Public and Others as one figure, shown under Public, so Others is left blank rather than estimated.

Documents

Frequently Asked Questions about Varroc Engineering

What does Varroc Engineering Ltd do?
Varroc Engineering Ltd was incorporated in 1988, is the flagship company of the Chhatrapati Sambhaji Nagar-based Varroc Group. Varroc is a global tier-1 automotive component group.
Where is Varroc Engineering Ltd (VARROC) listed?
Varroc Engineering Ltd trades as VARROC on the NSE and under code 541578 on the BSE.
Which sector does Varroc Engineering Ltd belong to?
Varroc Engineering Ltd is classified under the Automobiles sector, in the Auto Components industry.
What is the PE ratio of Varroc Engineering Ltd?
Varroc Engineering Ltd trades at a PE ratio of 60.31 as of 4 Nov 2026, on earnings per share of ₹12.92, against a book value of ₹116.52 per share.
What is the 52-week high and low of Varroc Engineering Ltd?
Over the last 52 weeks Varroc Engineering Ltd has traded between ₹462 and ₹912.2 as of 4 Nov 2026.
Does Varroc Engineering Ltd pay dividends?
Varroc Engineering Ltd has a dividend yield of 0.19%.
What is the Return on Equity (ROE) of Varroc Engineering Ltd?
Varroc Engineering Ltd reported a return on equity of 15.10%. Its debt-to-equity ratio is 0.52.

Company Information

Varroc Engineering Ltd was incorporated in 1988, is the flagship company of the Chhatrapati Sambhaji Nagar-based Varroc Group. Varroc is a global tier-1 automotive component group. It is engaged in the business of manufacturing and supplying automobile components to a wide range of OEMs across the globe

Website varrocgroup.com
CEO Mr. Tarang Jain
Employees 5,706
Listed 6 Jul 2018
Face Value ₹1

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