Varroc Engineering Announces Financial Results for FY 2025-26; Plans Include Rs 500 Crore NCD Issuance and Borrowing Limit Hike

Varroc Engineering Announces Financial Results for FY 2025-26; Plans Include Rs 500 Crore NCD Issuance and Borrowing Limit Hike​

Varroc Engineering Limited today announced the approval of its standalone and consolidated financial results for the Quarter and Financial Year ended March 31, 2026. The company also recommended a dividend payout and outlined significant proposals including raising capital through Non-Convertible Debentures (NCDs) and substantially enhancing its borrowing limits.

The Board of Directors held a meeting on May 27, 2026, where the financial results and key corporate actions were approved.

Financial Performance Summary​

The company's financials for the quarter and full year ended March 31, 2026, were approved by the Board. The results demonstrate the following figures:


The audited standalone figures show a Total Income of Rs 81,578.90 million for the year ended March 31, 2026, with Total Comprehensive Income reaching Rs 2,926.76 million.

Dividend Recommendation and Auditor Re-appointment​

In a major governance update, the Board recommended a dividend of Rs 1.50 per Equity Share. This amount represents 150% of the face value of Rs 1 each for the Financial Year 2025-26, subject to approval by the company's shareholders at the ensuing 38th Annual General Meeting (AGM).

Additionally, the Board approved the re-appointment of M/s. S. R. Bhargave & Co., a firm of Cost Accountants, as the Cost Auditor for the Financial Year 2026-27.

Capital Funding and Borrowing Limits​

The Board also presented the shareholders with resolutions to seek approval for major capital enhancement initiatives at the upcoming AGM:

1. Non-Convertible Debentures (NCDs):
The company plans to issue Secured/Unsecured Redeemable Non-Convertible Debentures. The total amount sought for issuance does not exceed Rs 500 crores (Rupees Five Hundred Crores Only) in the Financial Year.

2. Borrowing Limit Enhancements:
Shareholder approval is sought to increase the overall borrowing limits under Sections 180(1)(c) and Section 180(1)(a) of the Companies Act, 2013.
The proposed increase enhances the borrowing limits to ₹ 3,000 Crores (Rupees Three Thousand Crores), which is over and above the aggregate of the paid-up share capital, free reserves, and securities premium.

Annual General Meeting Details​

The 38th Annual General Meeting (AGM) of Varroc Engineering Limited is scheduled to be held on Thursday, August 20, 2026.

For the purpose of calculating voting rights for the business to be transacted at the AGM, the company has fixed Thursday, August 13, 2026, as the Cut-off date.

Financial Position (Rs. Million)​

The consolidated balance sheet as at March 31, 2026, reports total assets of Rs 48,746.92 million, compared to Rs 46,719.13 million at March 31, 2025.

The structure of the consolidated liabilities shows a total equity and liabilities of Rs 48,746.92 million at March 31, 2026, comprising a total non-current liability of Rs 4,293.20 million and total current liabilities of Rs 26,271.87 million.

Corporate Entities​

The 'Automotive' segment remains the largest revenue contributor, reporting total revenue of Rs 86,487.52 million for the year ended March 31, 2026, while 'Others' contributed Rs 22,019.0 million.

The company's registered office is located at L-4, MIDC Area, Waluj, Chhatrapati Sambhaji Nagar (Aurangabad)-431 136, Maharashtra.

VARROC Stock Price Movement​

Today, Varroc Engineering Limited shares edged higher, closing at ₹587.3, representing a strong 2.66% gain for the day. The equity finished the day on a volume of 282,215 shares, signaling robust investor interest in the Auto Components sector.