Mumbai, Nov 4 (PTI) Automotive component manufacturer and technology solutions provider Varroc Engineering on Wednesday reported a nearly two-fold jump in consolidated profit after tax (PAT) to Rs 63.3 crore in the September quarter of the current fiscal.
The company had posted a consolidated bottomline of Rs 33.5 crore in the September quarter of the financial year ended March 2026, Varroc said.
Revenue for the second quarter of FY27 increased 33.6 per cent to Rs 2,947.9 crore from Rs 2,207.3 crore in the year-ago period.
The company’s Ebitda (earnings before interest, taxes, depreciation and amortisation) stood at Rs 261.1 crore from Rs 201.8 crore in the corresponding quarter year ago.
The company said while its domestic operations grew 29.5 per cent year-on-year during the quarter, the overseas operations also delivered strong growth.
Revenue from products supplied to EV models touched approximately 19 per cent of consolidated revenue in the second quarter of this fiscal compared to approximately 16 per cent in the April-June period, it said.
EV-related revenue grew approximately 130 per cent YoY, while the E-Mobility Solutions business recorded a revenue of approximately Rs 277.3 crore during the September quarter.
Profitability remained resilient despite renewed commodity inflation arising from geopolitical developments, it said, adding that the timing gap between input-cost increases and customer non-recoveries impacted Q2 FY27 Ebitda margin by approximately 80 basis points on sequential basis.
“We delivered another quarter of strong growth, with sequential improvement in profitability despite commodity inflation and the timing gap in customer recoveries. Our EV business continues to gain scale. Our overseas business continues to commercialise new business wins and grow its revenue exponentially and reduce the losses," said Tarang Jain, Chairman and Managing Director of Varroc.
Stating that the company's priorities remain clear, which is to grow profitably, improve margins, generate free cash flow, maintain capital discipline and enhance return on capital employed, he added.
Varroc Engineering said it has initiated two strategic actions aimed at improving profitability and strengthening its capabilities in future mobility, adding that it has decided to restructure its two-wheeler lighting manufacturing operations in Italy, while preserving customer programmes and technology capabilities.
Manufacturing is proposed to be relocated to Romania and Vietnam, which is expected to improve capacity utilisation, fixed-cost absorption and cash generation. The restructuring will involve a one-time restructuring cost with an expected payback period of approximately three years, it said.
“We are taking decisive strategic actions to strengthen Varroc's long-term competitiveness. The restructuring of our Italy operations is aimed at creating a more efficient manufacturing footprint, while our proposed investment in Forsee Power India will expand our capabilities in battery packs and battery management system,” Jain added.
Varroc also said it is proceeding with the acquisition of a stake in Forsee Power India, providing access to an operating battery-pack platform and know-how.
The transaction will complement Varroc's existing lighting, electronics and electrical portfolio by adding battery packs and further strengthening its position in electric mobility, the company said.
(This story has not been edited by THE WEEK and is auto-generated from PTI)