Slides
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varroC Presentation to Investors & Analyst for Q1 FY26 6th Aug 2026 188
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Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures, and financial results, are forward looking statements. Forward looking statements are based on certain assumptions and expectations of future events and involves known and unknown risks, uncertainties and other factors. The Company cannot guarantee that these assumptions and expectations are accurate or exhaustive or will be realised. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. No obligation is assumed by the Company to update the forward-looking statements contained herein. The information contained in these materials has not been independently verified. None of the Company, its Directors, Promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this document or its contents or otherwise in connection with this document, and makes no representation or warranty, express or implied, for the contents of this document including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this document or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. The information and opinions contained in this presentation are current, and if not stated otherwise, as of the date of this presentation. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. The Company undertake no obligation to update or revise any information or the opinions expressed in this presentation as a result of new information, future events or otherwise. Any opinions or information expressed in this presentation are subject to change without notice. This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Varroc Engineering Limited (the “Company”), nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or to be relied in connection with an investment decision in relation to the securities of the Company therefore any person/ party intending to provide finance / invest in the shares/businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision. Neither the delivery of this document nor any further discussions by the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date. This presentation is strictly confidential, unless distributed via a public forum, and may not be copied or disseminated, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of the applicable securities laws. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. By participating in this presentation or by accepting any copy of the slides presented, you agree to be bound by the foregoing limitations. 2
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About Us REVENUE INR 89,080 MILLION BUSINESS CONTRIBUTION BY REGION Varroc is a leading global auto technology company with a product portfolio covering a wide range of electrical, electronics, lighting, polymer,metallic, after-market and advanced safety solutions INDIA 89.3% GLOBAL 10.7% 37 Operating Manufacturing Facilities 6100+ Employees 130+ Patents 07 Technical Centres 08 Countries *Updated as per financial year 2026
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Vision Values Sincerity: Tospeak & act from the heart Humility: Towalk with everyone Integrity: Todo what is right Passion: Togo against all odds Self-discipline: Tomake it all happen Create safe, smart and sustainable future mobility solutions for everyone. VARROC Mission Be the trendsetter in providing mobility solutions that offer the highest value for money to customers • Extend India Market leader position in 2W mobility, lighting, and driver assistance to the world • Stay ahead of market in growth and profitability • Be the Partner of Choice for our valued customers through superior customer experience • Empower and enable all teams committed to speed, excellence, and our values to achieve exceptional success Continue to be a trusted business partner for our customers focused on societal and environmental sustainability.
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Our Global R&D Footprint Poland R&D Center China R&D Center India R&D CenterItaly R&D Center Focus Area • Interior Lighting • Smart Mobility • Driver Monitoring Systems (DMS) • Advance Driver Assist Systems (ADAS) • Exterior Lighting • Interior Lighting • Lighting Electronics Focus Area • ICE Powertrain • E-Mobility Solutions • Body System Solutions • Lighting Solutions • HMI Solutions • Advanced Driver Assist Systems (ADAS) • Smart Mobility • Intelligent Cockpit Focus Area • Exterior Lighting • Advanced Driver Assist Systems (ADAS) • Intelligent Cockpit Focus Area
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Update on Q1 2027 Performance 06th August 2026
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Highlights for Q1 FY27 4. In Q1FY27 net new business annual peak revenue win is Rs.5,991 million 6. Total Patent filed by the Company so far is 135+ 1.Q1 FY27 Revenue at Rs. 26,342 million with a growth of 29.9% YoY. India Operations registered a 28.6% growth. Overseas Operation saw a growth of 45.6%. Revenue from EV models in Q1 FY27 is ~16% of total revenue in Q1 FY27 and grew by 87% YoY 2. Q1 FY27 PBT (before exceptional and JV profits) at 4.3% vs. 4.1% in Q1 FY26; EBITDA at 8.5% in Q1 FY27 vs 9.5% on YoY basis Under-recovery of war-related inflation impacted Q1 FY 27 margins by ~0.7%. Notable business win in last quarter is • 4W Lighting Business win for our Thailand Operations • E-Mobility higher volume from existing customer 3. Net debt at Rs.5,268 million vs. 4,952 million as of March 31 of FY26 primarily due to capex. 6. Significant YoY improvement in EPS and capital efficiency metrics – ROCE & ROE (without exceptional items in FY 26)
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Automotive Production in India Source: SIAM • In Q1 FY27, the Indian economy remained relatively resilient despite elevated crude prices and supply chain concerns caused by war. • The growth momentum in automotive demand continued with EV adoption gaining more traction. • Interest rates were stable • Improved demand noted in both urban and rural demand All this helped the industry to have strong YoY growth • 2W grew by 22.8% • 3W grew by 39.1% • PV grew by 16.8% • CV grew by 15.2% EV 2W volume on YoY basis grew by 91% • On QoQ basis, we saw growth in 2&3W whereas PV and CV declined. • 2W grew by 2.7% • 3W grew by 3.4% • PV de-grew by -7.5% • CV de-grew by -16.9% Units in million 5.90 0.26 1.24 0.26 7.06 0.35 1.57 0.36 7.25 0.36 1.45 0.30 2W 3W PV CV Q1 FY26 Q4 FY26 Q1 FY27
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Consolidated Financials of Q1 FY27 Particulars Q1 FY27 Q1 FY26 YoY Q4 FY26 QoQ Revenue from operations 26,342 20,276 29.9% 23,681 11.2% EBITDA 2,228 1,919 2,305 EBITDA % 8.5% 9.5% (100 bps) 9.7% (120 bps) PBT before JV and exceptional items 1,132 822 1,074 PBT before JV and exceptional items % 4.3% 4.1% 20 bps 4.5% (20 bps) Exceptional Items* - 612 - PBT (incl. JV profits) after exceptional items 1,144 1,439 1,088 PBT % 4.3% 7.1% 4.6% PAT 777 1,074 705 1. Varroc saw all round revenue growth of 29.9% supported by growth from India business of 28.6% and overseas business growth of 45.6% 2. EBITDA % 8.5% vs 9.5% of LY and vs. 9.7% in Q4, primarily due to lower margin on tooling sales (0.8%), lower RE power savings (0.2%), casual manpower cost (0.5%) and war-related inflationary impact (incl. aftermarket) (0.7%) 3. PBT before JV and exceptional items margin improved by 20 basis point on YoY 4. PAT grew yoy (~70%) excluding exceptional item in Q1 FY 26 * FCTR release of China JV in Q1 FY26 20,276 23,681 26,342 Q1 FY26 Q4 FY26 Q1 FY27 +30% +11% Revenue (Mn)
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Rs. In million 2,099 1,181 2,751 1,777 2,552 1,669 Revenue EBITDA PBT 18,706 21,967 24,054 +29% +10% +22% - 7% +41% - 6% Q1 FY26 Q4 FY26 Q1 FY27 India Business -126 -297 -159 -355 -85 -258 Revenue EBITDA PBT 1,569 1,714 2,288 +46% +33% 33% 47% 13% 27% Q1 FY26 Q4 FY26 Q1 FY27 Overseas Business -53 -57 -287 -335 -239 -266 EBITDA PBT Q1 FY26 Q4 FY26 Q1 FY27 4W Advanced Electronics & Lighting R&D for Overseas Operations Financials of India Operations and Rest of Operations* 1) All round Revenue Growth seen both in India operations and Overseas operations of 29% and 46% respectively YoY 2) Overseas business comprises of a)2W lighting (Revenue have declined but still profitable) b)Advanced Electronics (new business wins are converting to sales) c)Forging 3)Advanced Electronics and Lighting 4W R&D (incl. China team) to support growth in overseas business, after expiry of non-compete restrictions in Oct 25 * These are unaudited numbers and include regrouping of certain expenses based on business verticals
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Reduction in Net Debt (Consol.) 31st Mar 2024 30th Jun 2024 30th Sep 2024 31st Dec 2024 31st Mar 2025 30th Jun 2025 30th Sep 2025 31st Dec 2025 31st Mar 2026 30th June 2026 Net Debt 9,828 9,160 8,273 7,860 7,480 4,478 3,800 4,405 4,952 5,268 Equity 15,262 15,518 16,400 15,826 15,979 16,624 17,218 17,235 18,182 18,910 Annualised Adjusted EBITDA 7,590 6,896 7,467 7,493 7,767 7,675 8,072 8,485 9,219 8,911 Net Debt/Equity 0.64 0.59 0.5 0.5 0.5 0.3 0.22 0.26 0.27 0.28 Net Debt/EBITDA 1.29 1.33 1.11 1.05 0.96 0.58 0.47 0.52 0.54 0.59 9,160 8,273 7,860 7,480 4,478 3,800 4,405 4,952 5,268 0 2000 4000 6000 8000 10000 Jun'24 Sep'24 Dec'24 Mar'25 Jun'25 Sep'25 Dec'25 Mar'26 June'26 Net Debt (₹ Mn) — Quarterly
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Revenue Breakdown for Q1 FY27 P R O D U C T G R O U P M I X V E H C I L E S E G M E N T G E O G R A P H Y C U S T O M E R I N D I A O V E R S E A S 8 7 % 1 3 % B A J A J N O N - B A J A J 4 4 % 5 6 % 2 W & 3 W 4W 7 4 % 2 6 % B O D Y P A R T S I C E P O W E R T R A I N L I G H T I N G S O L U T I O N S A F T E R M A R K E T E - M O B I L I T Y * H M I C O N N E C T I V I T Y O V E R S E A S F O R G I N G 3 4 . 8 % 2 1 . 5 % 16. 5 % 10. 6 % 7 . 6 % 3 . 9 % 3 . 3 % * Please note that Revenue from supplying to EV vehicle for Q1 FY27 was ~ 16% R O M A N I A E L E C T R O N I C S 1 . 8 %
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Net New Annual Peak Revenue Win in Q1 FY27 is Rs. 5,991 million Annual Peak Revenue SOP in FY27 SOP in FY28 SOP in FY29 Outstanding Order Book (End FY26) 35,090 New Order Intake (Q1 FY27) 5,991 SoP YTD 4,989 Outstanding Order Book (End Q1 FY27) 36,092 23,155 11,671 1,266 EV Customer 72% ICE Customer 28% EV Customer ICE Customer Annual Peak Revenue % win from ICE & EV Players Annual Peak Revenue % win from Customers Annual Peak Revenue % win from ICE & EV Players Bajaj 58% Non-Bajaj 42% Bajaj Non-Bajaj 2W&3W 75% 4W&Others 25% 2W&3W 4W&Others
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Technical Site Krakow Poland Timisoara Targa Mures Romania China Hanoi Vietnam Pune India ADAS & DMS Varroc Smart MobilityLighting(4W & 2W) Head and Rear Lamp, LCU, LDM, ADB IOT Applications, including Vehicle Telematics & Fleet Management Focus on ADAS, Driver & Camera Monitoring Systems Manufacturing Plant Sales Office Cambiano Italy Bielefeld Germany Headquarter Infotainment & Surround View Camera System (360) Touchscreen Display ready to integrate DMS and SVS Rayong Thailand Manufacturing Location Electronics Production Exterior Lighting Production Interior Lighting Production Romania Y Y Y Vietnam Y Y - Thailand - Y - India Y - - Italy - Y - Electronics Manufacturing Services High and Low Voltage Electronics Varroc Business-II:- In a Glance R&D Location Lighting Connectivity ADAS Poland - Y Y Italy Y - India Y Y China Y Y Y
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Technological new age products win in last 18 months Interior Ambient Lighting NEW WIN Interior ambient lighting products delivers an emotional atmosphere within the vehicle and also take over functional tasks like warning functions. They are used for • Steering wheels • Doors • Roof Lamps • Glove boxes • Footwell Varroc Interior Ambient Lighting Advantages: • Standardization of light engines • Flexibility of using it for different applications • Competitive cost approach Front Drive & Rear Drive Inverter Electronics for Electric PV Inverter in an electric vehicle converts direct current (DC) from the battery to alternating current (AC) for the electric motor. Inverter Electronics is meticulously crafted, designed with precision and engineered to perfection, this inverter stands as a testament to our dedication to excellence and showcase our advanced electronics manufacturing capabilities. This needs to withstand Enviromental Requirements, EMC Standards, Product handling etc. Enviourmental - Heat cycles - Humidity cycles - Thermal cycles (hot/cold) - Xenon tests - Odor tests EMC - ESD tests - Pulse interference on supply & sensor lines - Conducted emissions tests - Bulk current injections tests Handling - Chemical resistance - Vibration resistance - Cleanability - Serviceability
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Recent High Voltage awarded project PCBA Inverter Main Atlas Rohm: The main inverter converts DC power from the battery into AC power to drive the electric motor. It is a central part of the vehicle’s propulsion system PCBA Inverter Atlas Alpha Shunt Current Sense: monitor and control the flow of electrical current in a three- phase motor drive or power conversion system. PCBA Daughter Board: is a secondary circuit board that connects to the main inverter board to provide specialized functions TSU PCBA: is a dedicated circuit board used in inverter systems— to accurately measure current using shunt resistors. It processes and transmits current data to the main control board, and system monitoring. HV Power PCBA: refers to electrical power systems or components that operate at voltages significantly higher than standard household levels. Typically, HV starts atabove 1000 volts AC or 1500 volts DC, and is used in industrial, transmission, and specialized equipment where large amounts of energy need to be moved efficiently. LV Control: refers to the systems and components used to monitor, regulate, and operate electrical equipment that runs on low voltage, typically below 1000 volts AC or 1500 volts DC. PEU: the Power Electronics Unit, is responsible for on- board charging, power conversion, and control of the high voltage battery.
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Confidential 17 Bidirectional L2V2 Charger • Wallcharger/Wallbox for the end customer • To be used in front of your house or for public charging stations with wall mount • Manages high-power AC up to 11.5 kW for EV charging • Highly efficient (>97%) and accurately metered power • Bi-directional power flow • Continuous current rating of 48 Amps • Control module to manage all communications Product Specifications The Wallcharger PCBAs are produced to withstand General Automotive Requirements, which include Enviromental Requirements, EMC Standards, Product handling etc. Component Level: • AEC-Q100 • AEC-Q200 PCB Level: • IPC-6012 Class3 - PCB • RoHSs - Directive 2002/95/EC - PCB System Level: • IATF 16949
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Our Businesses 6th August 2026
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Powering India’s Mobility: E-Mobility Components • Customer CTQ’s • Component Design • Robust analysis to predict the design meets all CTQs • Tolerance analysis to ensure DFM • Material and component data base to speed up the design Sub Systems • Customer requirements and CTQs • Sub-system level CTQs • Design of Electronic Hardware, Software & Mechanical • Sub system level simulation and analysis to ensure robustness • Model Based design and system validation (HILS) Systems • System level requirements and CTQs • Architecture design • Electronics, Control System and Software architecture design & development • System integration and testing (HILS) • Vehicle level testing 2 FACILITIES - INDIA Motor Charger Motor Controller Throttle VCU LED Headlamp DC-DC Convertor Battery & BMS 48V • Locally designed, developed and manufactured • Fully IoT enabled machines • Complete vertical integration for Electronic Manufacturing • Motor Dyno Testing System for testing 2W and 3W EV 452 558 740 777 950 1,304 1,375 1,202 1,247 1,176 1,701 1,349 1,941 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 ₹ in Million
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Powering E/E Architecture & Ambient Lighting : Electronics Romania 1 FACILITIES - Romania • Overall approach and objective: Integrate electronics manufacturing capability and enhanced level of vertical integration • Serving Global OEM’s for their EV Platform • ISO Class 8 Clean room standard • Fully prepared to play Automotive E/E Architecture through contract manufacturing, joint development or end to end development & manufacturing ₹ in Million Capacity (all infrastructure prepared and immediate implementation possible): • Infrastructure is prepared for 7 SMT lines and 10 Backend lines • 50% free space in production area for new SMT/Backend lines • Theoretic placement capacity : 90,000 cph /SMT line Quality: • Focus on customer requirements • IPC trainers inhouse • Jidoka principles implemented • 5S Best in Class Production area: • ESD area with controlled temperature and humidity • Clean room standard for electronic manufacturing • ESD check and authorized entrance People expertise: • Experienced management and expert team in electronic automotive manufacturing Smart Storage solution: • MSL control environment • FIFO management and inventory accuracy • Communication with pick & place machines • Communication with ERP system ERP/Traceability: • SAP R3 – Finance, MP&L, Purchasing, Maintenance • Full traceability, UID for RAW 469 Q1 FY27
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Powering India’s Mobility: ICE Powertrain Solutions Engine Components Valves Designed for 30% longer lifespan with optimized heat resistance & reduced friction Transmission Component Deliver 15% higher efficiency with precision-forged gears Crankpins & Balancer Reduce vibration by 25%, improving ride quality & engine longevity Generator Solutions Magneto & Regulator Rectifier Provide 20% better power stability, enhancing battery life Integrated Starter Generator (ISG) Improves fuel efficiency by 8%, ensuring seamless restarts Crankpins & Balancer Reduce vibration by 25%, improving ride quality & engine longevity 2 FACILITIES - ITALY5 FACILITIES - INDIA Motor Solutions Starter Motor Offers 15% faster engine starts, with improved torque output Actuator Motor Increases precision by12%, ensuring smoother vehicle operations Wiper Motor Delivers 20% longer life with optimized speed control 5,371 5,414 5,459 6,404 5,150 5,502 5,344 5,558 5,760 6,129 6,232 6,440 6,315 Q1 FY24Q2 FY24Q3 FY24Q4 FY24Q1 FY25Q2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27 ₹ in Million • Products developed to meet stricter emission norms under BS VI • Delivers high performance, cost-effective components • Drive innovation have built products like Integrated Starter Generator, Electronic Fuel Injection, Sodium filled valves.
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Powering India’s Mobility: Lighting Solutions Visibility System Headlamps Deliver 50% better illumination, 40% longer life, and enhanced safety with AFS (+20% visibility) and DRLs (+30% daytime visibility) Projector Modules Compact LED projectors combine beams & ALU functions for optimal lighting, with precision systems for logo projection & customizable module 5 FACILITIES - INDIA Indication System Signaling Lamps 3D tail lamps with patented lenses offer a signature glow and integrated stop/tail functions. Virtual image tech delivers wide-angle illumination Specialty Lighting Sleek lamps with animated displays, adaptive lighting (DRL, ADB, AFS), and 3D-effect tail lamps with LED welcome features enhance style, safety. Winker LED winkers offer 25% better visibility and 50% longer life, while dynamic turn indicators enhance signaling with progressive illumination. Blinker Reduce power use by 20% and respond faster. Smart modules adapt brightness to conditions, while sequential indicators enable safer, quicker lane changes. 4,346 4,259 3,865 3,819 3,849 3,909 4,096 4,220 3,651 3,480 3,601 4,167 4,202 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 ₹ in Million 4 FACILITIES - GLOBALLY • Varroc is delivering cutting-edge Visibility and Indication Systems for 2W, 3W, and 4W vehicles • Our expertise spans LED, Matrix and Xenon technologies, focusing on lightweight, energy - efficient designs that enhance safety and aesthetics • We integrate advanced innovations like Adaptive Driving Beam (ADB) Systems for glare -free night driving and LiDAR-enabled headlamps for ADAS compatibility. Please note that from Q1 FY27 we have not included the Revenue from Romania Electronics in Lighting
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Powering India’s Mobility: HMI Solutions Hardware Solutions 3 FACILITIES - INDIA Digital Instrument Cluster Offer 40% brighter displays, hybrid designs blend analog and digital, and cloud dashboards enable real-time monitoring and diagnostics Ergonomic Handlebar Switches Backlit, sealed design enhances visibility and water resistance, with 20% better accessibility to reduce rider fatigue. Smart Telematics & Monitoring System GPS diagnostics with 4G LTE enable real-time tracking, 5% faster data, and remote OTA software updates. Indirect Tyre Pressure Monitoring System Prevents 80% of tire-related accidents and boosts fuel efficiency by 10% through optimal pressure alerts. Smart Sensors Rain & light sensors auto-activate headlamps; speed & position sensors boost performance monitoring accuracy by 30%. 681 695 717 637 683 545 590 554 731 860 909 921 987 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 ₹ in Million • Varroc HMI solutions enhance rider control, connectivity, and safety with advanced instrument clusters, telematics, sensors, and switches. • Our products are backed by state-of-the-art manufacturing facilities, including high -precision molding, SMT lines for electronic assembly, and in-house testing labs, we ensure best-in-class quality, durability and performance.
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Powering India’s Mobility: Body System Solutions Exterior & Interior Molded Parts Exterior Molded Components Molded-in-color design offers a sleek finish, while advanced molding cuts weight and cost. Tail Lamp Assembly Integrated tailgate with lighting and camera boosts utility; 2K Dolphin Spin tech adds premium finish and IP55 durability. Soft Door Trim Enhance cabin feel along dual- tone armrest and metallic speaker grilles, adding a stylish, premium finish. Cockpit/ Dashboard fits all platforms, with smart storage, ambient lighting, and sustainable materials for enhanced utility & appeal Painted Parts Painted Body Panels & Covers Piano black finish offers seamless gloss and durability, enhancing vehicle appeal with a high-end, sophisticated look. Functional Polymer Components Air Filter Assembly In-house development with submicron filtration, sound- reducing resonators, & dust/oil separation for longer engine life Seat Assembly In-house 2W/3W seats offer durable, lightweight comfort with premium finishes like PU skin and multi-layer foam. Mirror Assembly Premium 2W/3W/4W mirrors with anti-dazzle glass, global compliance, and stylish manual/electric options. 14 FACILITIES - INDIA ₹ in Million • Varroc offer end-to-end design, development, and manufacturing • Our expertise spans in lightweighting, 2K molding, and 3i technology enables durable, efficient, and sustainable solutions. 5,604 6,405 6,567 6,625 6,694 7,718 7,485 7,856 6,957 7,819 7,772 8507 8,881 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Lightweight Structural Component End-to-end in-house production with durable, premium finishes for parts like oil pans, visors, engine protectors
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1,602 1,537 1,498 1,487 1,664 1,831 1,862 1,602 1,931 2,273 2,402 2,185 2,697 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Powering India’s Mobility: Aftermarket Our Product Portfolio Lighting Electrical, Electronics, and Lighting products meticulously crafted to optimize vehicle performance. Spare Parts Includes forged components, filters, and rubber parts, built for exceptional reliability and longevity, ensuring unwavering support for your vehicle Lubricants Specialized engine oils tailored for 2W/3W/4W. Offers optimal protection and contribute to overall efficiency of your vehicle. Automotive Accessories Diverse range from Helmets to Roof Rails, meticulously crafted to enhance, personalize and optimize vehicle functionality & safety. ₹ in Million EXPORTS TO 30+ COUNTRIES PAN INDIA DISTRIBUTOR +310 Cities +720 Distributors West 1,706 27% North 1,293 20% South 1,292 20% Export 1,253 20% East 765 12% West North South Export East Other
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Leveraging Global Capabilities to Deliver Value to Customers R&D CENTERS LOW COST MANUFACTURING HUBS CUSTOMERS SERVED CHINA · Changzhou R&D Intelligence Hub INDIA · Pune R&D Headquarters · 750+ Engrs POLAND Electronics R&D · Innovation INDIA · 37 Plants Core Mfg · Domestic + Export ROMANIA HV Electronics · EU Hub THAILAND ASEAN Export · EV Lighting VIETNAM 2W Lighting · Cost Base INDIA OEMs EUROPE NORTH AMERICA ASEAN MARKETS Varroc have R&D capability embedded in India (Maharashtra, Karnataka), China's Electronics & Lighting epicentre (Changzhou, Chongqing, Suzhou, Shenzhen), giving us deep access to the electronics, lighting talent pool and emerging technology. This know-how is then deployed across our manufacturing footprint in India, Romania , Thailand and Vietnam — allowing us to serve customers both domestically and internationally, wherever they need us. We are not just an Indian supplier looking outward — we are a global company with the rare combination of engineering intelligence, low cost structure, QCD, and proximity to customer. VALUE for CUSTOMER VARROC MOAT R&D depth Low Cost Structure QCD Proximity to Customer+ + + = Varroc Global Capabilities
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Revenue Growth CM Improvement PBT Growth FCF Conversion Prudent Redeployment Volume growth on top of inflation recovery to pave way for profitable growth Sustainable improvement in contribution margins through economies of scale, revenue management and cost efficiencies to magnify the benefit of revenue growth and make the business more robust Growth in CM and less than proportionate increase in fixed costs to result in multiplier effect on PBT through operating leverage Efficient conversion of growth in profits into growth in FCF to improve intrinsic value of business and to create reinvestment pool Debt reduction, less capital- intensive investments and prudent capital deployment in organic + inorganic growth opportunities to ensure compounding of value Compounding Machine of Value
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Long Standing, Growing Customer Relationships •Strong long-standing relationships with marquee OEMs across high-end and mass market segments •Ability to invest to meet growing customer needs •Advanced test lab helps in speeding up the process of design, development to commercialization of technologically advanced products for our customers. Comprehensive Solution Provider •End-to-end services across design, development and delivery •Wide range of products across E-mobility, Ice powertrain, lighting solutions, HMI solutions, Body system solutions and Electrical. •Ability to cross-sell to meet customer requirements Low-Cost Manufacturing Footprint •Pan-India presence enabling proximity to customers •Strategically located with global footprint (Manufacturing plants in India, China, Vietnam, Romania, & Italy) Continuous Focus on R&D Capabilities Enhancing Portfolio • Developing innovative, cost- competitive proprietary products continuously. • Well-positioned to benefit from key trends like safety digitalization, electrification, and increased electronics use. • With our experts in automotive technology and the latest global advancements, we develop world class solutions with highest-standards Our Key Strengths Strong Competitive Position in a Growing Market Segment •Leading technology supplier to 2W market •Leading supplier of exterior lighting to passenger cars •Emerging system supplier in ADAS, telematics and cockpit electronics
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Sustainability
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30 ESG Framework At Varroc, our ESG & Sustainability vision is to co-create a sustainable value for our stakeholders through innovative research, engineering, & manufacturing of environmentally sustainable products for mobility sector through environment friendly operations aligning with our corporate vision to ‘Create safe, smart, and sustainable future mobility solutions for everyone. 1. SUSTAINABLE PRODUCTS Enabling positive impact on environment via eco-friendly designs and manufacturing materials, following the design for environment approach. 2. SUSTAINABLE OPERATIONS Eco-friendly manufacturing, adhering to environmental norms, increasing renewable energy use, and enhancing waste recycling. 3. EMPLOYEE GROWTH & DIVERSITY Nurturing employee skills, diversity, inclusion and human rights adherence. 4. SUSTAINABLE SUPPLY CHAIN Building a sustainable network of suppliers meeting environmental and social standards. 6. ETHICAL GOVERNANCE Implementing ethical practices for sustained company growth. 5. COMMUNITY DEVELOPMENT Harnessing our expertise and employee efforts for community betterment.
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31 Commitment to Environment • Implementation of Occupational Health & Safety Management System across all the manufacturing Plants with ISO 14001 & ISO 45001 certification. EHS • 47 Energy efficiency and Energy conservation projects/Kaizens implemented in FY26. • Approx. 22 Million KWH - Electricity units saved in FY26 which is equivalent to approx. 16,186 tCO2e. GHG EMISSIONS • 36% Renewable energy contributions. Commitment to increase to 50% in coming years. • We generated 78 Million units of renewable energy in FY26 which is equivalent to avoiding 55,380 tonnes of CO2e emissions in the atmosphere. RENEWABLE ENERGY • Over 90% Waste generated across our plants is Recycled. • Zero Liquid Discharge with Water Evaporation Technology. • Over 45% Wastewater is recycled & reused in process or utilized for non- potable purpose such as gardening, tree plantation, landscape etc. WASTE MANAGEMENT
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32 Varroc’s Kham River Restoration Mission Our commitment to the Kham River Restoration Project reflects our ethos of blending sustainability, innovation, and community engagement to restore one of Chhatrapati Sambhajinagar’s most crucial water bodies and giving back to the city where we started. Awards and Recognitions • WRI Ross Center Prize for Cities • St. Andrew’s Price for Environment • Special Jury’s award in FICCI Water Awards under Urban Water and Wastewater Management • Inclusion in River City Alliance and appreciation by National Institute of Urban Affairs • Recognition received at the DHARA summit organized by National Institute of Urban Affairs 1,74,521 sq. meters 182 Events held and 17,00,000+ citizens engaged As a part of citizen engagement programmes Accelerated waste collection efforts in the city Area cleaned 58,771 sq. meters Area greened 2,60,000 Saplings planted 7,314 meters Banks pitched
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33 Commitment to Society Creating meaningful differences to the society through environmental and social welfare projects •Kham River Eco Restoration Project was introduced with the objective of giving back to the city in which we started our operations •Under this project, we focused on cleaning the Kham river, pitching riverbanks, greening areas around Kham river, effectively managing solid waste in the city, creating bio-diversity parks and engaging citizens about the benefits of clean river Kham River Restoration • Varroc Vengsarkar Cricket Academy (VVCA) • Partnered with Abhinav Bindra Foundation for competing Olympic games athlete program • Supporting Varroc Inter school and industrial cricket tournaments • Young Talent sponsorship program Nurturing Future Sports Talent • Learn and Earn Program at Varroc Academy • Women’s Empowerment through association with MKSS Cummins college and Engineering For Women Creating meaningful differences to the society and environment Social Impact Programs
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Thank You For your Valuable time! Visit Us: varroc.com