Annual Report

Annual Report 2025-26 WHAT’S INSIDE 04-102 103-228 Corporate Overview Statutory Reports 04 Corporate Snapshot 103 Management Discussion and Analysis 06 Key Highlights 08 Our Journey 117 Board’s Report 10 Geographic Presence 151 Corporate Governance Report 12 Message from Chairman 186 Business Responsibility and Sustainability Reporting 16 Message from Group Chief Financial Officer 20 Performance Highlights 22 What Drives Our Edge 229-459 23 Operating Landscape 25 Varroc’s Diverse Automotive Financial Statements Product Range 229 Standalone 40 Varroc Play In Automotive 335 Consolidated E/E Architecture 48 Value Creation Model 50 Operational Excellence 51 Scaling Connectivity 460-480 52 Engineering Innovation 54 Risk Management Notice 56 Board of Directors 460 38th Annual General Meeting 58 Our ESG Practices 60 Our Materiality Approach and Stakeholder Engagement 62 Our Sustainability Priorities 63 ESG Strategy Framework 65 Corporate Governance 68 Environment 80 Social BRILLIANCE @ SCALE At Varroc, we believe brilliance creates its greatest impact when it is scaled with precision, consistency and purpose. By combining deep engineering expertise with advanced manufacturing, technology and innovation, we transform ideas into intelligent mobility solutions that shape the future of the automotive industry. Brilliance at Scale defines the way Guided by our Safe, Smart and we create value. It reflects our Sustainable philosophy, we combine ability to translate deep engineering innovation, agility and responsible expertise into intelligent solutions, business practices to deliver transform manufacturing excellence meaningful outcomes for customers, into dependable execution and build communities and stakeholders. trusted partnerships that accelerate progress. From conventional With every solution we mobility and electrification to create, we are setting advanced lighting, connected new benchmarks for technologies and intelligent cockpit engineering excellence solutions, we are engineering a portfolio that keeps pace with a at scale. rapidly evolving world. 01 Corporate Overview 02 Statutory Reports 03 Financial Statements Corporate Snapshot The Varroc Advantage We are a global automotive technology company delivering Engineering Brilliance for Safe, Smart & Sustainable Mobility engineering-led mobility solutions backed by advanced manufacturing capabilities. Our portfolio spans electrical and electronic systems, lighting solutions, polymer and metallic components, precision- Consistent Competitive Global engineered powertrain products and intelligent mobility technologies Brilliance Brilliance Brilliance for leading OEMs in the two-wheeler, three-wheeler, passenger vehicle, commercial vehicle and off-highway segments. Innovation Every product Safe Solutions across geographies As mobility transitions towards electrified, connected and intelligent platforms, we are shaping the Mobility across next generation of automotive innovation. By combining engineering excellence, manufacturing Every Line Smart Innovation segments expertise and investments in emerging technologies, we develop safer, smarter and more sustainable mobility solutions while expanding our capabilities in EV components, advanced lighting, telematics Every Delivery Sustainable by design Impact that travels far and driver assistance systems. Vision Mission Precision engineering and Innovation, future-ready A global mindset with deep operational excellence deliver solutions that helps our local understanding powering reliability and quality at customers lead in a rapidly mobility worldwide. scale, every time. evolving world. Create Safe, Smart Be the trendsetter in providing mobility solutions that offer the highest value for & Sustainable money to customers future mobility • Extend India Market leader position in 2W mobility, lighting and driver solutions for everyone. assistance to the world is more than a tagline. • Stay ahead of market in growth and profitability It is embedded across our people, processes, products and partnerships. • Be the Partner of Choice for our valued customers through superior It is how we engineer progress and drive the future of mobility 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. ICE Powertrain E-Mobility Body System HMI Varroc Vision Solutions Solutions Solutions Solutions Connect Sincerity Humility Integrity To speak and act from the heart To walk with everyone To do what is right Lighting Intelligent Cockpit Aftermarket Varroc Smart Passion Self-Discipline Solutions and ADAS Mobility To go the distance against all odds To make it happen 04 05 Annual Report 2025-26 01 Corporate Overview 02 Statutory Reports 03 Financial Statements Key Highlights A Year of Defining Progress 88,905 Mn 9.4% 4.3% Revenue EBITDA Margin PBT Margin 24.2% 0.27x 37 ROCE Net Debt / Equity Manufacturing Facilities 7+ 130+ 5,400+ Global R&D Centres Patent Filings Employees 36% 52,000 30,51,444 kWh Renewable Energy Contribution tonnes of CO e Electricity saved due to targeted 2 initiatives Emissions Avoided 06 07 Annual Report 2025-26 01 Corporate Overview 02 Statutory Reports 03 Financial Statements Our Journey Engineering Our Evolution 2014 2025 Received private equity investment from Tata Renewable energy Opportunity Fund 2012 sourcing in India exceeded 2024 36%, strengthening our Acquired a 50% stake in Varroc commitment to sustainable TYC Corporation (China) Acquired Visteon’s global manufacturing Passenger Vehicle (PV) Expanded the portfolio Lighting Business with ISG and secured the first interior lighting 2011 programme 2023 Acquired Tri.o.m., Italy, expanding into two- • Secured the first OEM wheeler lighting 2022 programme for the Driver Monitoring System 2007 • Established the Group • Started localised production of EV components ESG Policy Acquired Forging Company IMES, Italy for two-wheelers and three-wheelers in India for critical large forging required for Earth • Expanded the portfolio to include ADAS, Driver Moving and Oil drilling companies Monitoring Systems and Video Telematics 2005 • Divested the passenger vehicle lighting business in Europe and the Americas to Plastic Omnium Entered a technical 2019 collaboration with Delphi Corporation, Germany, 2001 Acquired a 74% stake in to manufacture catalytic CarlQ, a leading telematics converters for two-wheelers 2018 solution provider and three-wheelers in India Formed a technical collaboration with Mitsuba Corporation, Japan, for Listed on the National electrical and electronic products for 1996 Stock Exchange and two-wheelers and three-wheelers Bombay Stock Exchange 2017 Partnered with Scarpa and Colombo to • Acquired a 90% stake in auto accessories 1990 manufacture engine manufacturer TCPL (India) valves in India • Formed a joint venture with Dell’orto for Electronic Initiated polymer business in Chhatrapati Fuel Injection Technology for two-wheelers and Sambhaji Nagar (erstwhile Aurangabad), India, three-wheelers in India marking the first milestone of the journey • Technical collaboration with Heraeus, Germany for catalytic converter 08 09 Annual Report 2025-26 01 Corporate Overview 02 Statutory Reports 03 Financial Statements Geographic Presence Where We Make Our Mark Germany Poland Romania China Bielefeld Kraków Timișoara Chongqing (VTYC) Targu Mures Changzhou (VTYC) Suzhou Shenzhen A GLOBAL FOOTPRINT 130+ 37 PATENTS MANUFACTURING FACILITIES 07 `8888,,990055 MN TECHNICAL CENTRES FY 2026 REVENUE Italy Cambiano Sumirago Japan Dominican Tokyo Republic 2-WHEELER 3-WHEELER Haiti Vietnam Hanoi FARM OFF HIGHWAY VEHICLE VEHICLE EL SALVADOR Thailand Rayong COMMERCIAL 4-WHEELER VEHICLE India Aurangabad Pune HEADQUARTERS TECHNICAL CENTRE Chennai Pantnagar Uruguay Indore Ahmedabad MANUFACTURING PLANT SALES Binola Greater Noida Kolar [Showing first 8,000 characters — download PDF for full document]