Varroc Engineering supplies lighting, electronics and e-mobility components to two- and three-wheeler makers, with Bajaj Auto as its anchor EV customer. This print will speak to whether the guided Q2 margin recovery — recouping a 50 bps under-recovery and a ₹70 Cr tooling one-timer — lands against a quarter of renewed commodity and freight inflation, and how far the e-mobility ramp and overseas turnaround have progressed.
| Results date | November 04, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 2,634.2 Cr |
| Previous quarter PAT | Rs. 77.7 Cr |
| Previous quarter EBITDA margin | 8.5% |
| Net debt (latest quarter) | Rs. 526.8 Cr |
| Market cap | Rs. 11,706.49 Cr |
| CMP | Rs. 766.2 |
The board meets on November 4, 2026 to consider the Q2/H1 FY27 results, per the company's board-meeting intimation. The trading window remains shut from October 1 to November 6, 2026.
The Q2 FY27 analyst call is scheduled for November 4, 2026 at 5:00 p.m. IST, organised via ICICI Securities.
The quarter's central test is the margin bridge: management guided on the Q1 FY27 call (August 6, 2026) to recover most of a 50 bps margin under-recovery plus one-timers — tooling revenue of ₹70 Cr that impacted margins by 0.8% — in Q2, from a Q1 consolidated EBITDA margin of 8.5% (India 10.6%) back toward FY26's ~9.4%.
The demand backdrop ran ahead: SIAM two-wheeler wholesale volumes rose 15.2% YoY and three-wheelers 23.6% YoY over July–September 2026, while EV retails set all-time highs in July and September with e-2W penetration around 13% — a rising volume input for Bajaj-anchored OE content, though the PM E-DRIVE e-2W incentive was halved to ₹2,500/kWh (capped at ₹5,000 per vehicle) from August 11, 2026.
The swing factor is costs: the Middle East conflict re-escalated from mid-July with Hormuz traffic disrupted and oil above $100/bbl as of September 9, keeping freight and energy inputs dearer against Q1 material cost of 64.0% of revenue, and reviving the war-related working-capital build on ₹933.11 Cr of inventory and ₹734.54 Cr of receivables.
Execution milestones Q2 should advance include the traction-motor SOP commencing in Q2 with two further customers in advanced discussions, Romania electronics' path to EBITDA breakeven by Q4 FY27, and Forsee Power India JV completion on or before December 31, 2026. The call is also likely to cover the FY27 frame of 20–25% organic growth, revenue above ₹10,500 Cr, capex of ₹500–550 Cr, and litigation updates on the OPmobility US$66.41 million arbitration and Romania's ~EUR 67 million counter-claim.
Performance vs. previously stated guidance: Management's FY27 guidance stack, and where each item stands after Q1.
Q2 margin bridge and India margins
E-mobility ramp and order book
Forsee Power JV and Italy restructuring
Litigation and balance sheet
Management has said EV margins are comparable to ICE margins at the PBT level, with potential for ASP increases through component integration. The company is around 70% powertrain agnostic, with the balance from ICE powertrain.
Management flagged the Q1 softness as one-time items — tooling revenue of ₹70 Cr (0.8% margin impact) and a 50 bps under-recovery — and expects to recover most of these in Q2. India EBITDA margin was 10.6% in Q1 FY27.
Approximately three-fourths of Q1 FY27 EV revenue came from Bajaj Auto. Management has said non-Bajaj revenue should increase given the current order book is skewed toward non-Bajaj clients.
Management guided FY27 organic growth of 20–25% with consolidated revenue to exceed ₹10,500 Cr. Q1 FY27 revenue grew 29.9% YoY to ₹2,634.2 Cr, already ahead of the growth guidance.
Consolidated revenue rose to ₹2,634.2 Cr in Q1 FY27 from ₹2,027.6 Cr in Q1 FY26, up 29.9% YoY and 11.2% QoQ. E-mobility revenue of ₹194.1 Cr grew 55.65% YoY, with EV revenue at 15.8% of total revenue.
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