Slides
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1 Presentation to Investors & Analyst for Q2 FY27 4th Nov 2026
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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 Q2 FY2027 Performance 04th November 2026
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Highlights for Q2 FY27 4. In H1 FY27 net new business annual peak revenue win is Rs.10,127 million. Net Annual Peak Revenue win by supplying to EV vehicle is over 48% 6. Total Patent filed by the Company so far is 140+ 1.Q2 FY27 Revenue at Rs. 29,479 million with a growth of 33.6% YoY. India Operations registered a 29.5% growth. Overseas Operation saw a growth of 104.1%. Revenue from EV models in Q2 FY27 is ~19% of total revenue in Q2 FY27 and grew by 130% YoY 2. Q2 FY27 PBT (before exceptional and JV profits) at 4.7% vs. 4.1% in Q2 FY26; EBITDA at 8.9% in Q2 FY27 vs 9.1% on YoY basis Under-recovery of war-related inflation continue to impact Q2 FY 27 margins by ~ 80 bps 3. Net debt at Rs.5,547 million vs. 5,268 million Q1 FY27 primarily due to capex and delayed war recovery. 5. Company continue to take strategic decision to create wealth for all the stakeholders I. Company has decided to restructure its 2W lighting manufacturing operations in Italy II. Company to acquire stake in Forsee Power India which is focused on battery pack systems.
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Automotive Production in India Source: SIAM • In Q2 FY27 and H1 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. All this helped the industry to have strong YoY growth • 2W grew by 16.3% • 3W grew by 23.7% • PV grew by 24.9% • CV grew by 33.9% EV 2W volume on YoY basis grew by 115% • On QoQ basis, we saw growth in all segment because of the festive season • 2W grew by 11.7% • 3W grew by 25.1% • PV grew by 14.2% • CV grew by 19.0% • In H1 FY27 basis, we saw growth in all segment • 2W grew by 19.5% • 3W grew by 30.5% • PV grew by 21.0% • CV grew by 24.7% Units in million 6.96 0.36 1.33 0.26 7.25 0.36 1.45 0.30 8.10 0.45 1.66 0.35 2W 3W PV CV Q2 FY26 Q1 FY27 Q2 FY27 12.86 0.62 2.57 0.52 15.37 0.81 3.11 0.65 2W 3W PV CV H1 FY26 H1 FY27
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Consolidated Financials of Q1 FY27 Particulars Q2 FY27 Q1 FY27 QoQ Q2 FY26 YoY Revenue from operations 29,479 26,342 11.9% 22,073 33.6% EBITDA 2,611 2,228 2,018 EBITDA % 8.9% 8.5% 40 bps 9.1% (20 bps) PBT before JV and exceptional items 1,401 1,132 912 PBT before JV and exceptional items % 4.7% 4.3% 40 bps 4.1% 60 bps Exceptional Items* -631 - - PBT (incl. JV profits) after exceptional items 776 1,144 920 PBT % 2.6% 4.3% 4.2% PAT 335 777 633 1. Varroc saw all round revenue growth of 33.6% supported by growth from India business of 29.5% and overseas business growth of 104.1% 2. EBITDA % 8.9% vs 8.5% of Q1 and vs. 9.1% in LY Q2, primarily due to war-related impact (0.8%) & changes in business mix 3. PBT before JV and exceptional items margin improved by 60 basis point on YoY and 20 basis point on QoQ * Restructuring cost of 2W Lighting Italy manufacturing plus past tax related issues for Italy 2W lighting entity only 22,073 26,342 29,479 Q2 FY26 Q1 FY27 Q2 FY27 +33.6% +12% Revenue (Mn)
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Consolidated Financials of H1 FY27 1) YoY revenue growth at 31.8% supported by India business growth at 29.1% and overseas growth of 70.7% 2) The EBITDA margin for H1 FY27 was lower by 60 basis point and came at 8.7% due to war-related non- recovery and inflationary impact of ~80 bps and also higher tooling sales impacting by ~30 bps 3) PBT margin before JV and exceptional items improved by 40 basis Particulars H1 FY27 H1 FY26 YoY Revenue from Operations 55,822 42,349 31.8% EBITDA 4,838 3,937 EBITDA % 8.7% 9.3% -(60 bps) PBT before JV and exceptional items 2,532 1,734 PBT before JV and exceptional items % 4.5% 4.1% 40 bps Exceptional Items -631 612 PBT (incl. JV profits) after exceptional items* 1,920 2,360 PBT % 3.5% 5.6% PAT 1,112 1,707 42,349 55,822 H1 FY26 H1 FY27 +31.8% Revenue (Mn) * includes H1 FY26 Exceptional items: - FCTR released on disposal of China JV invst~Rs.611 million - * Includes H1 FY27 restructuring cost of 2W Lighting Italy manufacturing plus past tax related issues for Italy 2W lighting entity only
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Rs. In million 2,405 1,512 2,552 1,669 2,790 1,857 Revenue EBITDA PBT 20,879 24,054 27,046 +29.5% +12.6% +16% +9.3% +22.8% +11.2% Q2 FY26 Q1 FY27 Q2 FY27 India Business -102 -284 -85 -260 -5 -241 Revenue EBITDA PBT 1,194 2,288 2,433 +104% +6.4% Q2 FY26 Q1 FY27 Q2 FY27 Overseas Business -285 -307 -239 -266 -175 -209 EBITDA PBT Q2 FY26 Q1 FY27 Q2 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 29.7% and 104% 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)Overseas business losses were lower as it was supported by engineering income and R&D losses also lower due to higher capitalisation * 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 202530th Sep 2025 31st Dec 2025 31st Mar 2026 30th June 2026 30th Sep 2026 Net Debt 9,828 9,160 8,273 7,860 7,480 4,478 3,800 4,405 4,952 5,268 5,547* Equity 15,262 15,518 16,400 15,826 15,979 16,624 17,218 17,235 18,182 18,910 19,042 Annualised Adjusted EBITDA 7,590 6,896 7,467 7,493 7,767 7,675 8,072 8,485 9,219 8,911 9,677 Net Debt/Equity 0.64 0.59 0.5 0.5 0.5 0.3 0.22 0.26 0.27 0.28 0.29 Net Debt/EBITDA 1.29 1.33 1.11 1.05 0.96 0.58 0.47 0.52 0.54 0.59 0.57 9,160 8,273 7,860 7,480 4,478 3,800 4,405 4,952 5,268 5,547 0 2000 4000 6000 8000 10000 Jun'24 Sep'24 Dec'24 Mar'25 Jun'25 Sep'25 Dec'25 Mar'26 June'26 Sep'26 Net Debt (₹ Mn) — Quarterly * The net debt in H1 FY27 has been adversely impacted by over Rs.1,140 million of cash collection from customer related to war
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Revenue Breakdown for H1 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 87% 13% B A J A J N O N - B A J A J 46% 54% 2 W & 3 W 4W 75% 25% 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 . 0 % 2 2 . 9 % 1 6 . 4 % 9 . 2 % 8 . 6 % 3 . 7 % 2 . 9 % * Please note that Revenue from supplying to EV vehicle for Q2 FY27 was ~ 19% R O M A N I A E L E C T R O N I C S 2 . 2 %
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Net New Annual Peak Revenue Win in H1 FY27 is Rs. 10,127 million Annual Peak Revenue SOP in FY27 SOP in FY28 SOP in FY29 Outstanding Order Book (End FY26) 35,090 New Order Intake (H1 FY27) 10,127 SoP YTD 8,226 Outstanding Order Book (End H1 FY27) 36,991 21,557 13,871 1,563 EV Customer 48% ICE Customer 52% 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 55% Non-Bajaj 45% Bajaj Non-Bajaj 2W&3W 73% 4W&Others 27% 2W&3W 4W&Others
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HOW THE FORSEE ACQUISITION STRENGTHENS VARROC A faster, controlled entry into battery systems with technology access and performance-linked downside protection STRATEGIC CAPABILITY ACQUISITION 1 WHY IT CREATES VALUE 1 Accelerates market entry Acquire an operating India platform and proven battery-pack know-how instead of building from scratch. 2 Expands EV content Adds battery packs and BMS to Varroc’s lighting, electronics and electrical portfolio. 3 Combines complementary strengths Forsee technology + Varroc OEM access, localization, sourcing and manufacturing execution. 4 Creates a scalable platform Start with 2W/3W traction and extend toward buses, trucks, off-highway and industrial applications. 5 Improves control and risk discipline Varroc operating control, staged consideration and contractual technology-continuity protections. VALUE CREATION 2 HOW THE ACQUISITION TAKES PLACE AT CLOSING 45% equity stake Primary subscription + secondary acquisition Plus subscription to OCRPS I & II €4.5m upfront consideration FULLY DILUTED Additional 6% ownership OCRPS conversion / agreed call-put mechanics preserve majority economics and targeted control. CONTROL 4-member Board: 2 Varroc + 2 Forsee Varroc Chair with casting vote Varroc appoints CEO and CFO Reserved matters protect both shareholders Up to €2.0m contingent consideration €1.0m operational milestone €1.0m revenue / gross-margin milestone BOARD TAKEAWAY Varroc gains a controlled battery-systems platform now, while paying part of the value only when operating and financial outcomes are delivered. Note: transaction mechanics remain subject to final executed SHA, SSPA, TLA, MSA, cap table and adviser conclusions. 15
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ITALY 2W LIGHTING RESTRUCTURING From sub-scale manufacturing to a lean, low-cost global operating model PROFITABILITY + CAPITAL PRODUCTIVITY STRATEGIC INTENT Preserve customer programs and technology while relocating manufacturing to Romania and Vietnam, removing the burden of an underutilised Italian footprint. CURRENT CHALLENGE Italy manufacturing footprint 35.9% capacity load at Cambiano High fixed-cost absorption at sub-scale volumes Fragmented overseas manufacturing footprint Capital tied up in a structurally inefficient site RESTRUCTURING ACTION Transfer, consolidate, simplify Move selected programs and equipment to Targu Mures and Hanoi Use safety stock and phased industrialisation to protect deliveries Retain customer relationships within Varroc’s network Exit recurring Italy manufacturing costs after transition TARGET OUTCOME A stronger earnings model Lower conversion cost and improved gross margin Better fixed-cost absorption and plant utilisation Higher sustainable EBITDA, PBT and cash generation Improved ROCE and capacity to fund growth HOW STAKEHOLDER WEALTH IS CREATED 1 MARGIN Shift production to lower-cost locations 2 UTILISATION Fill existing capacity in Romania and Vietnam 3 CASH FLOW Remove recurring site costs and avoid sustaining capex 4 CAPITAL ALLOCATION Redirect cash toward higher-return growth platforms EXECUTION GATE One-time restructuring cash cost and transfer risk must be tightly controlled. BOARD TAKEAWAY One-time cost today enables structurally higher margins, better asset productivity and long-term shareholder value. 16
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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 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 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 20 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 04th November 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 950 1,304 1,375 1,202 1,247 1,176 1,701 1,349 1,941 2,773 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 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 469 734 Q1 FY27 Q2 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 5,150 5,502 5,344 5,558 5,760 6,129 6,232 6,440 6,615 7,608 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 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. 3,849 3,909 4,096 4,220 3,651 3,480 3,601 4,167 4,202 4,761 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 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%. 683 545 590 554 731 860 909 921 987 1,032 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 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. 6,694 7,718 7,485 7,856 6,957 7,819 7,772 8507 8,881 9,854 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 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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1,664 1,831 1,862 1,602 1,931 2,273 2,402 2,185 2,587 2,500 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 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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33 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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34 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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35 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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36 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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