Varroc Engineering Ltd

About Varroc Engineering Ltd

Varroc Engineering Ltd is a global tier-1 automotive component manufacturer, primarily serving the two-wheeler, three-wheeler, and off-highway vehicle segments in India. It designs, develops, and manufactures polymer, electrical & electronics, and metallic components. The company focuses on technology and innovation, offering diverse mobility solutions.

Key Financial Ratios of Varroc Engineering Ltd

• P/E Ratio (TTM): Price to Earnings ratio shows how much an investor pays for every rupee of the company's earnings. Varroc Engineering Ltd's P/E ratio (TTM) is 59.61, compared to the industry median of 29.83 and large cap median of 28.91.

• P/B Ratio: Price to Book ratio compares a company's market price to its book value per share. Varroc Engineering Ltd's P/B ratio is 4.94, compared to the industry median of 5.10 and large cap median of 4.94.

• P/S Ratio: Price to Sales ratio compares a company's market value to its total revenue. Varroc Engineering Ltd's P/S ratio is 1.02, compared to the industry median of 2.05 and large cap median of 1.78.

• PEG Ratio: PEG ratio adjusts the P/E ratio for expected earnings growth. Varroc Engineering Ltd's PEG ratio is 0.45.

• EV/EBITDA Ratio: This ratio compares a company's enterprise value to its earnings before interest, tax, depreciation, and amortization. Varroc Engineering Ltd's EV/EBITDA ratio is 13.19.

• Return on Equity (ROE): ROE measures how much profit a company generates from shareholders' invested capital. Varroc Engineering Ltd's ROE is 4.98%.

• Return on Assets (ROA): ROA measures how efficiently a company converts its assets into net profit. Varroc Engineering Ltd's ROA is 16.61%.

• Return on Capital Employed (ROCE): ROCE measures how efficiently a company generates profit from all the capital it employs. Varroc Engineering Ltd's ROCE is 10.68%.

• Operating Margin: Operating margin shows what percentage of revenue remains after covering operating expenses. Varroc Engineering Ltd's operating margin is 9.50%.

• Net Margin: Net margin shows what percentage of revenue converts into final net profit. Varroc Engineering Ltd's net margin is 0.86%.

• Current Ratio: The current ratio measures a company's ability to pay short-term liabilities using short-term assets. Varroc Engineering Ltd's current ratio is 1.79.

• Debt to Equity Ratio: This ratio shows the proportion of debt a company uses relative to shareholders' equity. Varroc Engineering Ltd's debt-to-equity ratio is 0.32.

• Interest Coverage Ratio: This ratio shows how easily a company can pay interest on its outstanding debt from its operating earnings. Varroc Engineering Ltd's interest coverage ratio is 1.99.

• Dividend Per Share (DPS): DPS shows the total dividend paid per share in the latest financial year. Varroc Engineering Ltd's DPS is ₹1.

• Earnings Per Share (EPS): EPS shows how much profit is allocated to each outstanding share. Varroc Engineering Ltd's EPS is -88.35.

(Source line: "Ratios as of 20 Feb 2026, based on last traded price of ₹543.60. Data sourced from BSE/NSE Exchange Filings & Public Terminal Data.")

Key Facts

• Founded: 1990

• Headquarters: Aurangabad, Maharashtra

• Core Offerings: Polymer components, Electrical & Electronics components, Metallic components, Two-wheeler lighting systems, Exhaust systems

• Stock Listing: NSE (VARROC), BSE (541578)

• Promoter: Tarang Jain / Varroc Group

History of Varroc Engineering Ltd

Varroc Engineering Ltd was incorporated in 1990, building on the Varroc Group's foundation. It rapidly expanded its product portfolio and manufacturing footprint in India. A significant milestone was the 2012 acquisition of Visteon's global lighting business, which established Varroc Lighting Systems (VLS) and expanded its global presence. In 2018, the company launched its IPO on Indian stock exchanges. To deleverage and focus on its India-centric business, Varroc divested its four-wheeler lighting systems business (VLS) to Compagnie Plastic Omnium SE in October 2022. Presently, it focuses on supplying polymer, electrical & electronics, and metallic components to 2W, 3W, and off-highway vehicle manufacturers in India.

Business Segments and Revenue Mix

• Polymer Components: Manufactures plastic moulded parts such as body panels, mudguards, fairings, and structural components primarily for two-wheelers and off-highway vehicles.

• Electrical & Electronics Components: Produces instrument clusters, control units, ignition systems, voltage regulators, and sensors for various vehicle applications.

• Metallic Components: Engaged in the fabrication of exhaust systems, suspension components, crankshafts, and other precision metallic parts.

Key Personnel

Tarang Jain (Managing Director): An automotive industry veteran, he is the key promoter and has been instrumental in Varroc's growth and strategic direction, leading its diversification and global expansion before focusing on the India business.

Subsidiaries and Associate Companies

• Varroc Polymers Private Limited

• Varroc Elastomers Private Limited

• Varroc Powertrain Private Limited

Corporate Actions

Initial Public Offering (IPO) in 2018. Major divestment of its four-wheeler lighting systems business (Varroc Lighting Systems - VLS) to Compagnie Plastic Omnium SE in October 2022, aimed at deleveraging and focusing on the India business.

References

1. Varroc Engineering Ltd. Annual Report FY2023-24 2. Exchange Filings (NSE/BSE) 3. Financial Results Announcement (Q4 FY24)