1. Opening Hook
Varroc’s management sounds like that gym bro who finally lost weight and won’t stop talking about it.
Debt is down, margins are flexing, and India business is glowing like a Diwali diya.
Meanwhile, overseas operations are still stuck in traffic, blaming geopolitics, tariffs, and the weather.
Chairman Tarang Jain opened the call with macro optimism, geopolitical anxiety, and a gentle reminder that Varroc is now financially disciplined. Translation: the reckless phase is over, and the accountant is now in charge.
The real drama? EVs, China R&D, Thailand plants, and Romania’s long-awaited “turnaround” promise.
India is carrying the group, overseas is in rehab, and management is asking for patience.
Stick around. The numbers behave early, but the real gossip starts later. 😏
2. At a Glance
- Revenue up 6.1% – Would’ve been ~12% if rare earths didn’t vanish mysteriously.
- India growth ~7% – Domestic business doing leg day, overseas skipped gym.
- EBITDA margin at 9.1% – Down YoY thanks to R&D and tooling “investments”.
- PBT margin ~4.1% – Respectable, but still allergic to double digits.
- Net debt down to ₹380 cr – From scary to boring; bankers now sleep peacefully.
- EV revenue at 11% – Small slice, big bragging rights.
3. Management’s Key Commentary
“Net debt to EBITDA has reduced from over 2x in FY23 to below 0.3x.”
(We survived. Please clap. 👏)
“Interest cost reduced from ~3% of revenue to below 1.5%.”
(Bankers downgraded from villains to minor irritants.)
“India EBITDA and PBT margins are strong at 11.5% and 7%.”
(India is paying everyone’s bills.)
“Overseas businesses continue to face challenges.”
(Still stuck in the ‘it’s complicated’ relationship status.)
“Turnaround in overseas electronics and lighting expected from H2 FY27.”
(Not now, not soon, but someday. Trust us. 😌)
“EVs contribute over 11% of revenue today.”
(Small number, spoken with big pride.)
“China R&D setup
