Credit rating
Announcement under Regulation 30 (LODR)-Credit Rating 9 Sep - SES ESG assigns Varroc ESG rating 70.7, up 0.4 points from 70.3.
Source: Bse
Varroc Engineering Limited (VARROC)
Micro CapAuto stocks · Micro cap · NSE
Varroc Engineering is an Indian auto component manufacturer, supplying to 2W, 3W, PV, CV, and EV segments. It focuses on electronics, EV systems, lighting, and advanced vehicle technologies, with operations in India and overseas. The company aims to capitalize on electrification and premiumization trends.
Data qualityFresh enough for analysisQuote updated 21 Oct, 04:45 am ISTDetails
Quote21 Oct, 04:45 am IST
Base fundamentals14 Oct 2026 · screener
Latest result06 Aug, 10:12 pm IST
Score21 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags02 May 2026
Coverage14/14 · 100%
Valuation2026-07-20 · Rf 6.8% · Auto P/E 25.7 (n=127)
Technical timing lens
Trend score and candlestick chart
50NeutralSMA20 -1.2% / mo · MACD −
Stock trend: 51
Sector RS: 49
Sector 3M: -6.3% vs Nifty 500 -5.6%
Auto FPI tailwindNot confirmed
Latest mapped FPI equity flow was not positive. View sector evidence
Technical chart
VARROCD candles · FIT view+56.8%Latest close ₹803.00 on 2026-10-19
Bar
-2.2%
RSI
44
MACD hist
-3.41
52W pos
76%
2026-10-19O ₹820.80H ₹824.80L ₹798.00C ₹803.00Vol 1.2L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
VARROCNifty AutoNifty 500
- VARROC
- +25.1%
- Nifty 500
- -5.6%
- Nifty Auto
- -5.4%
- Vs Nifty 500
- +30.7 pp
Chart stats
19 Oct 2026- From 52W high
- -12.0%
- 52W range position
- 76%
- ATR (14)
- 3.6%
- Volume vs 20D
- 0.53x
- Avg traded value
- ₹18.2 Cr
- 20D price channel
- ₹784.7 - ₹912.2
₹912.2
₹462 - ₹912.2
₹29
Latest completed session
20-session average
29.3% annualized volatility
Research snapshot
What the evidence says now
Mixed fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend is neutral, and recent execution is consistent.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · FAIR VALUE46
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Bad2
Revenue +29.9% · PAT -27.1% YoY
Technical
Neutral50
Price trend and sector-relative-strength timing.
Valuation
Legacy model-61.2%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence77
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Jun 2026
Bad · 2/100PAT -27% YoY · margin compression · Rev +30% YoY · +11% QoQ
Filed 06 Aug 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,634 Cr | +29.9% | +11.2% |
| EBITDA | ₹222 Cr | +13.8% | +0.0% |
| Operating margin | 8.0% | -200 bps | -100 bps |
| PAT | ₹78 Cr | -27.1% | +11.4% |
| PAT margin | 3.0% | -232 bps | +0 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 43.80
- P/B
- 7.01
- EV/EBITDA
- 11.28
- Market Cap
- 12519.00Cr
Profitability
- ROE
- 15.10%
- ROCE
- 19.00%
- ROA
- 4.11%
- Dividend Y
- 0.18%
Growth (CAGR)
- Revenue 5Y
- 15.00%
- EPS 5Y
- 19.00%
- Revenue 3Y
- 9.00%
- EPS 3Y
- 32.00%
Balance Sheet
- Debt/Equity
- 0.52
- Interest Coverage
- 6.64×
- Altman Z
- 5.60
- Book Value
- 117.00
Cash Flow
- FCF Yield
- 3.35%
- FCF Positive Y
- 7/5
- OCF
- 537.00 Cr
- EPS TTM
- 12.92
Shareholding
- Promoter Hold
- 75.00%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 80%
Financial History
Updated 19/10/2026
Revenue
₹ CrLatest: 8,890+9.0% vs prev
Net Profit
₹ CrLatest: 230+228.6% vs prev
Return on Equity
%Latest: 1,533+38916.0% vs prev
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Bearish setupTrend is weak — long-term uptrend intact. RSI 44.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~1.2% over last month) — short-term momentum negative.
- RSI(14) at 44 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 12% off 52W high · 74% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
87
RS percentile
Stage 2 UptrendEstablished S2
1M return
-6.8%
3M return
+25.1%
6M return
+50.4%
1Y return
+32.2%
RS 1D
0
RS 20D
-1
Sector rank
#3
Industry rank
#30
Stage evidence
- Price is 20.8% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +6.7%.
- Both 3-month and 6-month returns are positive.
50-DMA
price below
200-DMA
price above
S2 entered
28 Jul 2026
S2 age
58 trading sessions
Sector
leading
Industry
neutral
Relative-strength line vs Nifty 500 (base 100)
261 observations
19 Oct 2026Value 137.59-0.75%
RS vs Nifty 500138
Valuation & peers
U-Score 46 · legacy U-Score band FAIR VALUE · valuation evidence and comparable companies
Valuation & peers
U-Score 46 · legacy U-Score band FAIR VALUE · valuation evidence and comparable companies
Financial Turnaround
Fundamental score breakdown
U band · FAIR VALUEValuation0/30
Growth15/25
Quality12/20
Balance Sheet8/15
Cash Flow6/10
Piotroski
8/9 (+5)
Penalties
0
Raw sum
46
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
46/100 · legacy band FAIR VALUE
Positive drivers
- FCF yield is supportive at 3.4%.
- Piotroski is strong at 8/9.
- Growth contributes 15/25 to the score.
Main drags
- Fair-value margin of safety is negative at -61.2%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Balance sheet is weaker at 8/15; verify the latest quarterly trend.
Sector valuation model
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Primary lens
EV/EBITDA and PE against execution quality and margin stability.
Secondary checks
Order book, receivables, working capital, debt, operating cash flow.
Main risk check
Order wins matter only if they convert into cash and margins.
PE
43.8
PB
7.0
EV/EBITDA
11.3
ROE
15.1%
ROCE
19.0%
FCF Yield
3.4%
Debt/Equity
0.5
MoS
-61.2%
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 21 Oct 2026
v4.3-runtime-valuation
Final score
46
Previous: 46
Legacy U-Score band
FAIR VALUE
Previous: FAIR VALUE
Margin of safety
-61.2%
Previous: -61.2%
Score history
12 stored score snapshots. Latest stored move: +0 points.
21 Oct 2026
v4.3-runtime-valuation
46
46
46
46
46
46
46
46
46
46
46
46
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹184.42
-335.4% MoS
Growth-justified P/E
38.5
Growth-justified Value
₹498.07
-61.2% MoS
PEG
1.81
Comparable companies
Peers
Business-comparable peers in Auto — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
ASKAUTOLTD
Micro
ASK Automotive Limited
Auto Components
match 139
54
37.5
25.1%
+8%
FAIR VALUE
LUMAXTECH
Micro
Lumax Auto Technologies Limited
Auto Components
match 139
55
40.5
26.4%
-4%
FAIR VALUE
CIEINDIA
Micro
CIE Automotive India Limited
Auto Components
match 137
66
16.1
11.8%
+60%
UNDERVALUED
PRICOLLTD
Micro
Pricol Limited
Auto Components
match 136
55
30.5
21.8%
+22%
FAIR VALUE
SKFINDIA
Micro
SKF India Limited
Auto Components
match 135
33
30.9
14.8%
-581%
WATCHLIST
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis intactReviewed 2026-10-12T08:44:16.643Z
Management commentary snapshot
Q1 FY27 consolidated revenue grew 29.9% YoY to INR 26.3 billion, driven by strong India (28.6% YoY) and overseas (45.6% YoY) performance. EV revenue surged 87% YoY, comprising 15.8% of total. EBITDA margin declined to 8.5% from 9.5% YoY due to commodity prices, tooling sales, and business mix.
Strong revenue growth across all segments, particularly in EV and overseas, indicates positive momentum. However, Q1 profitability was impacted by commodity price under-recovery and one-time tooling sales. Management's confidence in full-year growth and long-term PBT targets, alongside comfortable debt metrics, supports the thesis, but margin recovery needs close monitoring.
Growth engines
Electric Vehicle (EV) Segment
EV revenue grew 87% YoY, comprising 15.8% of total revenue. Company is a primary supplier to market leaders in 2W/3W EV and expects further customer gains.
Overseas Electronics & Lighting Business
Overseas revenue grew 45.6% YoY. New business wins in 4-wheeler lighting for Thailand operations and passenger vehicle electronics in Romania.
New Business Wins & Customer Expansion
Net new business wins of INR 5,991 million (annualized peak revenue). Engaged with new OEMs and existing incumbents for export vehicles.
Premiumization Trends in India
Leveraging strong customer relationships and expanding product portfolio to capitalize on premiumization trends in India.
Capacity and execution
Capex for Growth
FY27 is a capex-heavy year with INR 500-550 crores planned (India and overseas) to support growth, with capex front-loaded in Q1.
E-mobility Capacity Expansion
A large portion of the capex is for e-mobility capacity expansion and capacity to service EV models with engine-agnostic products.
Romania Electronics Launches
Few new launches this year in Romania electronics location, leading to increased revenue quarter-on-quarter, and expected to continue.
Tailwinds
Resilient Indian Economy
Supported by strong domestic consumption, improving rural demand, healthy infrastructure spending, and accommodative financing conditions.
Strong Indian Automotive Sector
Record passenger vehicle sales and broad-based growth across 2-wheelers, 3-wheelers, commercial vehicles, tractors, and exports.
Accelerating EV Adoption
EV 2-wheeler volume grew 91% YoY. Management sees a structural shift in consumer mindset towards EVs, especially in 2W/3W.
Improved Capacity Utilization
Positive environment led to higher production schedules and improved capacity utilization for the auto component industry.
Headwinds
Commodity Price Volatility
Ongoing risk from commodity price volatility, which adversely impacted Q1 profitability due to higher prices and war-related costs.
Global Geopolitical Uncertainties
Ongoing risk from global geopolitical uncertainties, mentioned as impacting the overall outlook.
Labor Challenges
Early Q1 faced labor challenges in own plants and supply chain, which contributed to slightly lower EV powertrain revenue growth, but now fully recovered.
Risk radar
Commodity Price Under-recovery
Q1 EBITDA was impacted by 0.5% due to genuine under-recovery from war-related commodity costs. Recovery efforts are underway.
Overseas OEM Launch Delays
Reports of expected delays in launches by some overseas OEMs could impact order book execution, though Varroc is diversified across customers.
EV Powertrain ASP Pressure
EV powertrain ASPs declined by high single-digits in Q1. While not expecting double-digit changes, OEMs will continue to seek cost reductions.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare BOTH
YoY comparison is crucial due to the seasonal nature of the automotive industry and to assess overall market recovery and company's growth against the previous year. QoQ is relevant for tracking sequential momentum in EV adoption, overseas business turnaround, and project execution.
Sector KPIs management disclosed
Consolidated Revenue Growth
Company registered a strong growth of 29.9% YoY, with consolidated revenue at INR 26.3 billion.
EV Revenue Contribution & Growth
Revenue from supplying to electric vehicles was 15.8% of total revenue and grew by 87% on a year-on-year basis.
Overseas Revenue Growth
Overseas business registered a 45.6% growth on a year-on-year basis, gathering pace from Q4 FY26.
Net New Business Wins
Net new business wins with annualized peak revenues of INR 5,991 million in Q1 FY27. Prominent wins include 4-wheeler lighting for Thailand and e-mobility volume expansion.
Management forward view
FY27 Revenue Growth Ambition
Management believes the company could achieve 20-25% growth in FY27, considering strong Q1 and good H2 FY26 performance (stated as ambition, not guidance).
Overseas Profitability Target
Expects to reach EBITDA breakeven in Romania by the end of FY27 or Q4 FY27. Overall overseas business aims for 10% PBT in 3-4 years.
Long-term PBT Target
Long-term strategy is to take overall company PBT to 10% in the next 3 to 4 years.
FY31 Revenue & Mix Target
Intention to double overall revenue to INR 20,000 crores by FY31, with 20% from overseas and ~10% from inorganic/non-auto routes.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin | 8.5% in Q1 FY27 | Recovery from commodity price impact and lower-margin tooling sales in subsequent quarters. |
| Overseas Romania EBITDA | Loss-making | Achievement of EBITDA breakeven by Q4 FY27 as guided by management. |
| Net Debt | INR 5,268 million (0.28 Net Debt to Equity) | Progress towards the stated target of achieving zero debt by FY28, despite front-loaded capex. |
| New Customer SOPs | Undisclosed, but engaged with new OEMs for e-powertrain and other products. | Announcement of new customer SOPs, especially for e-powertrain, to diversify customer mix. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
77Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 83rd percentile of the scored universe and 66th percentile within Auto. No major sub-score weakness stands out.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 05 Sept 2026
management-trust-v1
145 docs text-extracted · 44 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
83rd percentile
overall median 67 · Auto: 66th pctile, median 74 · Micro: 70th pctile, median 73
Evidence depth
Financial-only
145 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Can support position sizing if valuation and trend also agree.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
86
strong · holding, pledge, alignment
Cash flow
77
strong · profit to cash conversion
Balance sheet
81
strong · leverage and solvency
Discipline
60
acceptable · capital discipline
Results
80
strong · quarterly consistency
Trust positives
- ▸Promoter holding is 75%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 3.3%.
- ▸7 years of positive FCF.
Trust risks
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Varroc Engineering Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Credit rating
Announcement under Regulation 30 (LODR)-Credit Rating 8 Sep - CRISIL ESG assigned Varroc a 'Crisil ESG 62' rating, category 'Strong'.
Source: Bse
Concall transcript
AGM Transcript 21 Aug - Varroc AGM transcript details FY26 results, FY27 capex of about INR550 crore, and INR20,000 crore FY31 target.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 19 Aug
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 7 Aug
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 7 Aug
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 13 Jul
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Acquisition 8 Jul - Varroc invested up to Rs 48.7 lakh in two AMPIN SPVs for captive solar power in Karnataka and Tamil Nadu.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 17 Jun
Source: Bse
Annual report
Annual Report 2026
Source: Bse
Annual report
Annual Report 2026 from bse
Source: Bse
Annual report
Annual Report 2025
Source: Bse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.