Varroc engineering reports strong h1 FY26 growth, significantly cuts debt

Varroc Engineering Limited announced its H1 FY26 financial performance, with revenue from operations increasing by 6.4% year-over-year to INR 42,349 million. The company reported a PBT before JV and exceptional items of INR 1,696 million, marking a 60 bps improvement in the PBT margin to 4.0%. Net debt significantly reduced by INR 3,680 million, now standing at INR 3,800 million, contributing to an improved Net Debt/EBITDA ratio of 0.47 and a Net Debt/Equity ratio of 0.22.

The company's order book remains strong, with an outstanding order book end of H1 FY26 at INR 16,933 million and new order intake in H1 FY26 at INR 8,928 million. Varroc's revenue breakdown shows 74% from 2&3 Wheelers and 26% from 4 Wheelers & Other, with 89% of revenue originating from India. The company continues to invest in product development and manufacturing capabilities, including expanding SMT lines and acquiring land for future growth.