| Scrip Code | 541578 |
|---|---|
| NSE Symbol | VARROC |
| MSEI Symbol | NOTLISTED |
| ISIN | INE665L01035 |
| Name of company | VARROC ENGINEERING LIMITED |
| Type of company | Main Board |
| Class of security | Equity |
| Date of start of financial year | 01-04-2025 |
| Date of end of financial year | 31-03-2026 |
| Date of board meeting when results were approved | 05-02-2026 |
| Date on which prior intimation of the meeting for considering financial results was informed to the exchange | 19-01-2026 |
| Description of presentation currency | INR |
| Level of rounding used in financial results | Lakhs |
| Reporting Type | Quarterly |
| Reporting Quarter | Third quarter |
| Nature of report standalone or consolidated | Consolidated |
| Whether results are audited or unaudited for the quarter ended | Unaudited |
| Whether results are audited or unaudited for the Year to date for current period ended/year ended | Unaudited |
| Segment Reporting | Multi segment |
| Description of single segment | |
| Start date and time of board meeting | 05-02-2026 12:30:00 |
| End date and time of board meeting | 05-02-2026 14:40:00 |
| Whether cash flow statement is applicable on company | |
| Type of cash flow statement | |
| Declaration of unmodified opinion or statement on impact of audit qualification | Not applicable |
| Particulars | 3 months/ 6 months ended (dd-mm-yyyy) | Year to date figures for current period ended (dd-mm-yyyy) | |
|---|---|---|---|
| A | Date of start of reporting period | 01-10-2025 | 01-04-2025 |
| B | Date of end of reporting period | 31-12-2025 | 31-12-2025 |
| C | Whether results are audited or unaudited | Unaudited | Unaudited |
| D | Nature of report standalone or consolidated | Consolidated | Consolidated |
| 1 | Income | ||
| Revenue from operations | 2,28,752.00 | 6,52,240.90 | |
| Other income | 429.60 | 1,201.30 | |
| Total income | 2,29,181.60 | 6,53,442.20 | |
| 2 | Expenses | ||
| (a) | Cost of materials consumed | 1,49,099.30 | 4,19,512.70 |
| (b) | Purchases of stock-in-trade | 0.00 | 0.00 |
| (c) | Changes in inventories of finished goods, work-in-progress and stock-in-trade | (203.20) | (1,388.50) |
| (d) | Employee benefit expense | 23,544.60 | 72,615.20 |
| (e) | Finance costs | 3,115.80 | 9,933.30 |
| (f) | Depreciation, depletion and amortisation expense | 8,238.10 | 24,606.20 |
| (f) | Other Expenses | ||
| 1 | Foreign exchange (gain)/loss (net) | 228.60 | (155.60) |
| 2 | Consumption of Stores, Spares and Tools | 2,660.40 | 7,657.50 |
| 3 | Consumption of Packing Material | 2,782.10 | 7,689.10 |
| 4 | Water and Electricity Charges | 5,405.10 | 15,965.90 |
| 5 | Contract Labour Cost | 7,253.80 | 21,007.20 |
| 6 | Freight and Forwarding Expenses | 3,359.60 | 9,219.20 |
| 7 | Legal and Professional Fees | 1,948.80 | 6,520.90 |
| 8 | Other Expenses | 11,682.20 | 32,852.70 |
| Total other expenses | 35,320.60 | 1,00,756.90 | |
| Total expenses | 2,19,115.20 | 6,26,035.80 | |
| 3 | Total profit before exceptional items and tax | 10,066.40 | 27,406.40 |
| 4 | Exceptional items | (10,488.10) | (4,368.70) |
| 5 | Total profit before tax | (421.70) | 23,037.70 |
| 6 | Tax expense | ||
| 7 | Current tax | 180.90 | 1,064.80 |
| 8 | Deferred tax | 621.20 | 6,266.10 |
| 9 | Total tax expenses | 802.10 | 7,330.90 |
| 10 | Net movement in regulatory deferral account balances related to profit or loss and the related deferred tax movement | 0.00 | 0.00 |
| 11 | Net Profit Loss for the period from continuing operations | (1,223.80) | 15,706.80 |
| 12 | Profit (loss) from discontinued operations before tax | 0.00 | 0.00 |
| 13 | Tax expense of discontinued operations | 0.00 | 0.00 |
| 14 | Net profit (loss) from discontinued operation after tax | 0.00 | 0.00 |
| 15 | Share of profit (loss) of associates and joint ventures accounted for using equity method | 93.50 | 231.20 |
| 16 | Total profit (loss) for period | (1,130.30) | 15,938.00 |
| 17 | Other comprehensive income net of taxes | 1,674.80 | (1,479.20) |
| 18 | Total Comprehensive Income for the period | 544.50 | 14,458.80 |
| 19 | Total profit or loss, attributable to | ||
| Profit or loss, attributable to owners of parent | (1,029.70) | 15,571.60 | |
| Total profit or loss, attributable to non-controlling interests | (100.60) | 366.40 | |
| 20 | Total Comprehensive income for the period attributable to | ||
| Comprehensive income for the period attributable to owners of parent | 637.00 | 14,084.30 | |
| Total comprehensive income for the period attributable to owners of parent non-controlling interests | (92.50) | 374.50 | |
| 21 | Details of equity share capital | ||
| Paid-up equity share capital | 1,527.90 | 1,527.90 | |
| Face value of equity share capital | 1 | 1 | |
| 27 | Details of debt securities | ||
| 22 | Reserves excluding revaluation reserve | ||
| 23 | Earnings per share | ||
| i | Earnings per equity share for continuing operations | ||
| Basic earnings (loss) per share from continuing operations | -0.67 | 10.19 | |
| Diluted earnings (loss) per share from continuing operations | -0.67 | 10.19 | |
| ii | Earnings per equity share for discontinued operations | ||
| Basic earnings (loss) per share from discontinued operations | 0 | 0 | |
| Diluted earnings (loss) per share from discontinued operations | 0 | 0 | |
| ii | Earnings per equity share | ||
| Basic earnings (loss) per share from continuing and discontinued operations | -0.67 | 10.19 | |
| Diluted earnings (loss) per share from continuing and discontinued operations | -0.67 | 10.19 | |
| 24 | Debt equity ratio | 0.4400 | 0.4400 |
| 25 | Debt service coverage ratio | 3.2100 | 2.6400 |
| 26 | Interest service coverage ratio | 6.900 | 6.2600 |
| 27 | Disclosure of notes on financial results | Textual Information(1) | |
| Textual Information(1) | 1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on February 05, 2026 and were subjected to review by the Statutory Auditors. 2. The Group had received a settlement offer during the quarter ended June 30, 2025 from Beste Motor Co. Ltd. and TYC Brother Industrial Co. Ltd. (“TYC Parties”) alleging breach of Transition Management Agreement (‘TMA’ or ‘agreement’) in respect of certain income amounting to Rs. 209.89 million recognized during the quarter ended June 30, 2025 and Rs. 231.82 million recognized during the previous year ended March 31, 2025 by the Group under ‘Revenue from operations’, as received from Chongqing Varroc TYC Auto Lamps Co., Ltd. (erstwhile joint venture). In the current quarter, the Group received a ‘Statement of Claim’ under the arbitration proceedings originally initiated by TYC Parties in August 2022, on the aforesaid matter and on certain additional claims/ breaches under the aforesaid TMA which are to be quantified. The Group believes that it has a strong case and will take appropriate actions, including filing of counter claims, as necessary to protect its interests. The auditors in their review report have included a qualification in respect of this matter. 3. Exceptional items for the periods presented in the consolidated financial results include the following: a) On November 21, 2025, the Government of India notified the four Labour Codes – the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 consolidating 29 existing labour laws. The Group has assessed and disclosed the incremental impact of these changes on the basis of the best information available and guidance provided by the Institute of Chartered Accountants of India. Considering the materiality and regulatory-driven, non-recurring nature of this impact, the Group has presented such incremental impact under Exceptional Items in the financial results for the quarter and nine months ended December 31, 2025. The incremental impact on provisions for employee benefits expenses of Rs. 225.49 Million towards gratuity and compensated absences primarily arises due to change in wage definition. The Group continues to monitor the finalisation of Central/State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect as and when such clarifications are issued/rules are notified. b)The Group announced a Voluntary Separation Scheme (‘VSS’) for all eligible permanent workmen at specific plants of the Group. In this regard, the Group accepted separation of 411 employees and the separation cost of Rs. 799.49 million associated with the VSS has been recognised as an exceptional item during the quarter and nine months ended December 31, 2025. |
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| Debt equity ratio | |
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| Debt service coverage ratio | |
| Interest service coverage ratio |
| Particulars | 3 months/ 6 month ended (dd-mm-yyyy) | Year to date figures for current period ended (dd-mm-yyyy) | |||||
|---|---|---|---|---|---|---|---|
| Date of start of reporting period | 01-10-2025 | 01-04-2025 | |||||
| Date of end of reporting period | 31-12-2025 | 31-12-2025 | |||||
| Whether results are audited or unaudited | Unaudited | Unaudited | |||||
| Nature of report standalone or consolidated | Consolidated | Consolidated | |||||
| 1 | Segment Revenue (Income) | ||||||
| (net sale/income from each segment should be disclosed) | |||||||
| 1 | Automative | 2,22,230.90 | 6,35,264.90 | ||||
| 2 | Others | 6,521.10 | 16,976.00 | ||||
| Total Segment Revenue | 2,28,752.00 | 6,52,240.90 | |||||
| Less: Inter segment revenue | |||||||
| Revenue from operations | 2,28,752.00 | 6,52,240.90 | |||||
| 2 | Segment Result | ||||||
| Profit (+) / Loss (-) before tax and interest from each segment | |||||||
| 1 | Automative | 3,264.90 | 28,653.60 | ||||
| 2 | Others | (766.10) | (2,620.10) | ||||
| Total Profit before tax | 2,498.80 | 26,033.50 | |||||
| i. Finance cost | 3,115.80 | 9,933.30 | |||||
| ii. Other Unallocable Expenditure net off Unallocable income | (288.80) | (7,168.70) | |||||
| Profit before tax | (328.20) | 23,268.90 | |||||
| 3 | (Segment Asset - Segment Liabilities) | ||||||
| Segment Asset | |||||||
| 1 | Automative | 4,18,644.70 | 4,18,644.70 | ||||
| 2 | Others | 23,555.70 | 23,555.70 | ||||
| Total Segment Asset | 4,42,200.40 | 4,42,200.40 | |||||
| Un-allocable Assets | 29,992.70 | 29,992.70 | |||||
| Net Segment Asset | 4,72,193.10 | 4,72,193.10 | |||||
| 4 | Segment Liabilities | ||||||
| Segment Liabilities | |||||||
| 1 | Automative | 2,16,602.40 | 2,16,602.40 | ||||
| 2 | Others | 5,677.20 | 5,677.20 | ||||
| Total Segment Liabilities | 2,22,279.60 | 2,22,279.60 | |||||
| Un-allocable Liabilities | 77,189.00 | 77,189.00 | |||||
| Net Segment Liabilities | 2,99,468.60 | 2,99,468.60 | |||||
| Disclosure of notes on segments | |||||||
| Particulars | 3 months/ 6 months ended (dd-mm-yyyy) | Year to date figures for current period ended (dd-mm-yyyy) | |
|---|---|---|---|
| A | Date of start of reporting period | 01-10-2025 | 01-04-2025 |
| B | Date of end of reporting period | 31-12-2025 | 31-12-2025 |
| C | Whether results are audited or unaudited | Unaudited | Unaudited |
| D | Nature of report standalone or consolidated | Consolidated | Consolidated |
| Other comprehensive income [Abstract] | |||
| 1 | Amount of items that will not be reclassified to profit and loss | ||
| 1 | Remeasurement of defined benefit obligation | 318.00 | 318.00 |
| Total Amount of items that will not be reclassified to profit and loss | 318.00 | 318.00 | |
| 2 | Income tax relating to items that will not be reclassified to profit or loss | 80.00 | 80.00 |
| 3 | Amount of items that will be reclassified to profit and loss | ||
| 1 | Deferred hedging gains/(losses) on cash flow hedges | 451.50 | (206.70) |
| 2 | Exchange differences in translating the financial statements of foreign operations | 1,468.50 | (2,088.00) |
| Total Amount of items that will be reclassified to profit and loss | 1,920.00 | (2,294.70) | |
| 4 | Income tax relating to items that will be reclassified to profit or loss | 483.20 | (577.50) |
| 5 | Total Other comprehensive income | 1,674.80 | (1,479.20) |