5415782026-04-012026-06-305415782026-04-012026-06-30in-capmkt:OtherExpenses1Member5415782026-04-012026-06-30in-capmkt:OtherExpenses2Member5415782026-04-012026-06-30in-capmkt:OtherExpenses3Member5415782026-04-012026-06-30in-capmkt:OtherExpenses4Member5415782026-04-012026-06-30in-capmkt:OtherExpenses5Member5415782026-04-012026-06-30in-capmkt:OtherExpenses6Member5415782026-04-012026-06-30in-capmkt:OtherExpenses7Member5415782026-04-012026-06-30in-capmkt:OtherExpenses8Memberiso4217:INRxbrli:pureiso4217:INRxbrli:shares541578VARROCNOTLISTEDINE665L01035VARROC ENGINEERING LIMITEDMain BoardEquity2026-04-012027-03-312026-08-062026-07-30INRMillionsQuarterlyFirst quarterSingle segmentIn Accordance with paragraph 4 of the notified IND AS 108 The Company has disclosed segment information only on the basis of consolidated financial statement.2026-08-0611:35:002026-08-0616:26:00Not applicablefalsefalseThis disclosure is not applicable as there was no default on loans and debt securities.2026-04-012026-06-30UnauditedStandalone2363495000051490000236864400001578284000006297000019926600002655600006789800003568080000223510900001335350000013353500003226200002406000034668000009886700000000988670000098867000015279000016.476.47006.476.470.00280.06380.08591. The above results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on August 06, 2026 and were subjected to review by the Statutory Auditors. <br /> <br /> 2. The figures for the quarter ended March 31, 2026 are the derived figures between the audited figures in respect of full financial year March 31, 2026 and the unaudited published year-to-date figures upto December 31, 2025 being the end of the third quarter of the previous financial year which were subjected to limited review. <br /> <br /> 3. The Company 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 recognised by the Company under ‘Revenue from operations’ <br /> during the quarter ended June 30, 2025, as received from Chongqing Varroc TYC Auto Lamps Co., Ltd. (erstwhile joint venture). Subsequently, the Company received 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 against which the company has filed Statement of Defence in March 2026. The Company believes that it has a strong case and will take appropriate actions as necessary to protect its interests. The auditors in their review report have included a qualification in respect of this matter. <br /> <br /> 4. On July 7, 2025, the Company, together with its Wholly Owned Subsidiary, VarrocCorp Holding B.V., Netherlands, received an intimation from ICC International Court of Arbitration ('ICC') with respect to a Request for Arbitration initiated by OPmobility Lighting Holding, France (Erstwhile PO Lighting Systems). The request pertains to certain alleged breaches of covenants under the Securities Purchase Agreement executed between the parties on April 29, 2022, and subsequently amended on October 5, 2022, May 12, 2023, and June 15, 2023. Claims in respect of some of the breaches have been quantified at US$ 66.41 mn plus legal costs while for others no quantification has been provided. The Company is evaluating the matter and exploring legal and contractual remedies. It intends to contest the claims and take appropriate steps to protect its interests. Based on a legal opinion obtained, the Company believes that it has grounds to defend against the said allegations and accordingly no provision has been considered in respect of this matter in these results. <br /> <br /> 5. The Company had received following GST orders in relation to inappropriate classification of certain goods supplied during the period from July l, 2017 to September 30, 2023: <br /> a) Order dated November 5, 2024 from Additional Commissioner of CGST & Central Excise for appropriation of GST dues amounting to Rs. 629 million along with equivalent penalty and applicable interest; <br /> b) Order dated January 03, 2025 from Commercial Tax Officer (Divisional GST office, Kamataka) consisting of demand for GST dues amounting to Rs. 0.03 million along with interest of Rs. 302.67 million and penalty of Rs. 564.19 million (received by Varroc Polymers Limited 'VPL') (wholly owned subsidiary, now merged with the Company) <br /> The Company had paid the principal demand and had filed appeals against the above orders which were partly allowed resulting in reduction of total demand to Rs. 284 million.The Company has filed further appeal against b) above and intends to pursue further appellate remedies against a) above, in respect of the interest and penalty components. Based on legal <br /> advice and assessment of the merits of the cases, management belicves that it has adequate grounds to successfully defend the matters. Pending conclusion of the proceedings, no adjustments have been made in the financial results for the quarter ended June 30, 2026. <br /> <br /> 6. Exceptional items for the periods presented in the standalone results include following: <br /> 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 Company 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 Company has presented such incremental impact under "Exceptional Items" in the financial results for the year ended March 31, 2026. The incremental impact on provisions for employee benefits expenses of Rs. 217.93 million towards gratuity and compensated absences primarily arises due to change in wage definition. The Company 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. <br /> b. The Company announced a Voluntary Separation Scheme (‘VSS’) for all eligible permanent workmen at specific plants of the Company. In this regard, the Company accepted separation of 338 employees and the separation cost of Rs. 663.44 million associated with the VSS has been recognised as an exceptional item during the year ended March 31, 2026. <br /> c. Exceptional item also includes write back of excess accrual of estimated expenses directly attributable to the merger of Rs. 10 million for the year ended March 31, 2026.Foreign exchange (gain)/loss (net)3650000Consumption of Stores, Spares and Tools241520000Consumption of Packing Material303930000Water and Electricity Charges544490000Contract Labour Cost1064910000Freight and Forwarding Expenses337020000Legal and Professional Fees200040000Other Expenses872520000