Varroc Engineering Limited

NSE: VARROC · Auto Components & Equipments

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52W Range₹462 – ₹912

Snapshot

Unlock Varroc Engineering Limited's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Varroc Engineering Limited is a global automotive component manufacturer specialising in exterior lighting, electrical-electronics, and polymer-metallic components. The company serves a diverse range of original equipment manufacturers across the two-wheeler, three-wheeler, and four-wheeler vehicle segments.

Business Model

The company generates revenue by designing, manufacturing, and supplying high-precision automotive parts and systems to global OEMs. It operates through an integrated business model that spans the entire value chain from component design to final assembly.

Growth Outlook

Growth is driven by the increasing adoption of advanced automotive electronics, traction motors for electric vehicles, and the expansion of its precision metallic component portfolio. The company continues to leverage its global manufacturing footprint to capture demand from both domestic and international automotive markets.

Key Risks

  • Cyclicality of Automotive Industry. The company's financial performance is highly sensitive to fluctuations in global automotive production volumes and consumer demand.
  • Raw Material Price Volatility. Significant fluctuations in the costs of steel, aluminium, and electronic components can impact operating margins if not effectively passed on to customers.
  • Technological Disruption. The rapid transition toward electric vehicles necessitates continuous investment in R&D to remain relevant against evolving powertrain technologies.
  • Geopolitical and Supply Chain Risks. Operating a global manufacturing network exposes the company to international trade barriers, logistics disruptions, and regional economic instability.

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Key Metrics

REVENUE

₹9,497 Cr

TTM · consolidated

+14.7%YoY

NET PROFIT

₹200 Cr

TTM · consolidated

+39.9%YoY

EPS

₹12.92

TTM · consolidated

+47.3%YoY

RETURN ON EQUITY

12.0%

TTM · consolidated

+2.9 ppYoY

RETURN ON CAPITAL EMPLOYED

20.0%

TTM · consolidated

+0.2 ppYoY

P/E

64.3×

Q1 FY27 · consolidated

64.3 vs 64.2x5Y avg

EV/EBITDA

15.3x

Q1 FY27 · consolidated

15.3 vs 29.4x5Y avg

EBITDA MARGIN

9.2%

TTM · consolidated

-0.8 ppYoY

NET PROFIT MARGIN

2.9%

Q1 FY27 · consolidated

-2.4 ppYoY

DEBT TO EQUITY

0.4%

Q1 FY27 · consolidated

-0.1 ppYoY

Peers · Auto Components & Equipments

CompanyMkt CapP/E (TTM)EV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Varroc Engineering LimitedVARROC
₹12,781 Cr64.3×15.2914.7%9.2%12.0%20.0%+36.1%
JBM Auto Ltd.JBMA
₹14,232 Cr42.2×19.9612.5%13.7%16.8%24.3%-20.1%
Lumax Auto Technologies LimitedLUMAXTECH
₹13,938 Cr41.6×19.1833.3%14.9%35.6%29.3%+50.1%
SEDEMAC Mechatronics LimitedSEDEMAC
₹13,404 Cr———20.0%———
Ramkrishna Forgings Ltd.RKFORGE
₹12,914 Cr118.1×20.808.5%16.3%3.4%7.7%+29.0%
ASK Automotive LimitedASKAUTOLTD
₹12,839 Cr38.5×22.8027.9%12.7%26.9%28.7%+16.5%

As of Q1 FY27

Financials