Varroc Engineering (VARROC) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 consolidated revenue reached INR 21 billion, up 11% year-over-year, with Indian operations growing 13%; full-year revenue was INR 81.7 billion, up 8.5%.

• Net debt reduced by INR 2.3 billion to INR 7.48 billion, with net debt/equity at 0.47; board recommended a 100% dividend of face value Rs. 1 for FY25.

• Major structural changes included the sale of the China JV stake, completed in May 2025, and the merger of Varroc Polymer with Varroc Engineering.

• Net new business wins with annualized peak revenues of INR 11.7 billion, 55% from EV models; EV customer revenue was 10.3% in Q4.

• Board approved appointments and re-appointments of key directors and auditors.

Financial highlights

• Q4 FY25 EBITDA margin was 10.2% (vs. 11.1% in Q4 FY24); PBT before exceptional items at 4.9% of revenue.

• Free cash flow for FY25 was INR 3,116 million (3.8% of revenue); ROCE before tax at 20.8%.

• Standalone revenue for FY 2024-25 was Rs. 73,685.82 million, up from Rs. 66,760.16 million year-over-year.

• Consolidated net profit for FY 2024-25 was Rs. 696.76 million, compared to Rs. 5,320.75 million in FY 2023-24.

• EPS (consolidated) for FY 2024-25 was Rs. 4.01, down from Rs. 34.43 in FY 2023-24.

Outlook and guidance

• CapEx guidance for FY26 is INR 225–275 crore, with an additional INR 100 crore for land purchase.

• Focus on debt reduction, prudent capital deployment, and less capital-intensive investments.

• Targeting sustainable improvement in contribution margins and efficient free cash flow conversion.

• Board seeks shareholder approval to raise up to Rs. 500 crores via non-convertible debentures in FY 2025-26.

• No specific EBITDA margin guidance, but ongoing efforts to improve margins and cost control.