Mumbai — Varroc Engineering reported a 26.5% year-over-year decline in consolidated net profit for the quarter ended June 30, as an exceptional charge and weaker margins offset strong revenue growth.
The automotive technology company posted a net profit of Rs 77.3 crore for the first quarter of fiscal 2027, compared with Rs 105.1 crore in the same period a year earlier, according to a regulatory filing.
Revenue from operations rose 29.9% to Rs 2,634.2 crore from Rs 2,027.6 crore in the year-ago quarter.
Earnings before interest, taxes, depreciation and amortization increased 14% to Rs 221.9 crore from Rs 194.6 crore. However, the EBITDA margin narrowed to 8.4% from 9.6%.
Varroc’s electric vehicle business remained a major growth driver. Revenue from EV models accounted for about 16% of total sales and increased 87% from a year earlier.
The company also reported growth across its major markets. Revenue from its India business rose 28.6%, while overseas operations recorded a 45.6% increase.
Varroc said it continues to invest in innovation and product development and has filed more than 135 patents covering a range of automotive technologies.
On a sequential basis, revenue from the two-wheeler segment increased 2.7%, while sales from the three-wheeler business rose 3.4%.
Passenger vehicle revenue declined 7.5% from the previous quarter, while commercial vehicle revenue fell 16.9%.
Shares of Varroc Engineering closed 1.7% higher at Rs 730 on the National Stock Exchange ahead of the earnings announcement. (Source: IANS)
