Synopsis: Auto Components & Equipment stock jumped 6% after securing a six-year contract to supply Energy Star-compliant AC bi-directional chargers to a global EV OEM. Made in Romania, the deal boosts Varroc’s EV presence, with peak annual business value estimated at Rs. 439.1 crore.
The shares of the Small-Cap company specialising in the design, manufacture, and supply of exterior lighting systems, electrical-electronics components, polymer components, and precision metallic components, are in focus upon bagging the EV Charger Deal with Global Automaker.
With a market capitalization of Rs. 9,321.50 Crores on Thursday, the shares of Varroc Engineering Ltd rose upto 6 percent, reaching a high of Rs. 615.00 from its opening price of Rs. 580.20.
What Happened
Varroc Engineering Limited, a leading global Tier-1 automotive supplier, has secured a strategic contract from a leading global electric vehicle (EV) OEM for the supply of AC bi-directional wall chargers. This win marks a key milestone in Varroc’s expansion within the electric mobility ecosystem and strengthens its position as a trusted partner for advanced EV charging solutions.
Under the agreement, Varroc will manufacture Energy Star-compliant AC bi-directional wall chargers at its Romania facility, ensuring high quality and adherence to global standards. The six-year program will be supported by capacity aligned to projected volumes, with an estimated annual business value at peak capacity of Rs. 439.1 cores (Rs. 4,391 million).
Commenting on the business win, Mr. Dhruv Jain, CEO – Business II, Varroc, said: “This win reinforces Varroc’s commitment to delivering world-class electronics solutions to our OEM partners. We look forward to collaborating with the automotive ecosystem to provide innovative solutions that enable safe, smart, and sustainable mobility globally.”
The partnership strengthens Varroc’s presence in the global passenger vehicle electronics market and aligns with its strategic roadmap to accelerate growth in advanced safety, lighting, and electric powertrain solutions. Varroc continues to invest in automotive technologies, leveraging its expertise in electronics manufacturing and product development to meet the rising global demand for e-mobility, connectivity, and ADAS solutions.
Financials
The company’s revenue rose by 6.08 percent from Rs. 2,081 crore in September 2024 to Rs. 2,207 crore in September 2025. Meanwhile, the Net profit rose from Rs. 58 crore to Rs. 63 crore during the same period.
The company demonstrates strong operational efficiency with a ROCE of 17.1%, although its ROE is relatively modest at 7.37%, indicating room for improvement in shareholder returns. Its conservative debt-to-equity ratio of 0.54 reflects prudent leverage management. Notably, the company has achieved an impressive profit growth, delivering a 5-year CAGR of 298%, highlighting its strong scalability and growth potential.
Varroc Engineering Ltd is a global Tier-1 automotive component group, incorporated in 1988. The group manufactures and supplies E-mobility solutions, body systems, lighting solutions, HMI solutions, ICE powertrains, and advanced electronics to leading OEMs, offering end-to-end capabilities across design, development, and manufacturing for two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, and off-highway vehicles worldwide.
The group reported an income of ₹81,718 million from continued operations in FY25. Varroc employs more than 6,100 people, including over 750 R&D engineers, operates 37 manufacturing facilities globally supported by 7 R&D centers, and has filed more than 120 patents.
The revenue breakdown for H1 FY26 shows the largest contribution from Body Part Solutions at 35.2%, followed by ICE-Powertrain Solutions at 25.8%, and Lighting Solutions at 17%. Aftermarket accounts for 10%, E-Mobility 5.8%, HMI Solutions 3.8%, and Others (Overseas) 2.5%.
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