Varroc Engineering Q3 Results: Loss narrows, revenue up 10%; shares slip post earnings

Varroc Engineering posted a much-improved performance in Q3 FY26 on January 5, with net loss narrowing sharply to ₹10.2 crore compared with a loss of ₹47.4 crore in the year ago period, aided by higher revenues and operating profit.

Revenue jumped over 10% year-on-year to ₹2,287.5 crore, while EBITDA increased 13% to ₹209.8 crore. Operating margins were largely stable at 9.1%, marginally higher than 9% in Q3 FY25, indicating steady cost control during the quarter.

The company also highlighted an impact of ₹22 crore due to the implementation of the new labour code, which weighed on the said quarter's profitability .

Despite the improvement in earnings, the stock came under pressure. Post the earnings announcement, as of 03:09 PM, shares of Varroc Engineering were trading at ₹583.50 on the NSE, down ₹30.4 or 5%.

Separately, the board approved the exercise of a call option on 25,000 rated, listed, senior, secured, redeemable non-convertible debentures, originally allotted in September 2023, in line with the terms of issue after completion of 30 months from allotment.

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Varroc Engineering is a global automotive component manufacturer with a presence across exterior lighting systems, electrical and electronics, and precision-engineered products for two-wheelers, passenger vehicles and commercial vehicles.