Analysts/Institutional Investor Meet/Con. Call Updates

VARROC/SE/INT/2026-27/58 August 12, 2026 The Manager- Listing The Manager – Listing The Listing Department, The Corporate Relation Department, National Stock Exchange of India BSE Limited Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No. C/1, G Dalal Street, Fort, Block, Mumbai-400 001. Bandra-Kurla Complex, BSE Security Code: 541578 Bandra (East), Mumbai-400 051. NSE Symbol: VARROC Sub: Transcript of Investor / Conference Call pertaining to Unaudited Financial Results for the quarter ended on June 30, 2026 Please find Transcript of Investors / Conference Call held on Thursday, August 6, 2026, in respect of the Un-audited Financial results for the quarter ended on June 30, 2026. This is for your information and records. For Varroc Engineering Limited Anil Ghatiya Company Secretary Membership No. A-16620 Encl: a/a “Varroc Engineering Limited Q1 FY27 Post Results Conference Call” August 06, 2026 MANAGEMENT: MR. TARANG JAIN – CHAIRMAN AND MANAGING DIRECTOR – VARROC ENGINEERING LIMITED MR. ARJUN JAIN – WHOLE-TIME DIRECTOR AND CHIEF EXECUTIVE OFFICER, BUSINESS UNIT I – VARROC ENGINEERING LIMITED MR. DHRUV JAIN – WHOLE-TIME DIRECTOR AND CHIEF EXECUTIVE OFFICER, BUSINESS UNIT II – VARROC ENGINEERING LIMITED MR. MAHENDRA KUMAR – GROUP CHIEF FINANCIAL OFFICER – VARROC ENGINEERING LIMITED MR. BIKASH DUGAR – HEAD, INVESTOR RELATIONS – VARROC ENGINEERING LIMITED MR. VISHAL RAVAL – HEAD, FINANCE CONTROLLER – VARROC ENGINEERING LIMITED MODERATOR: MR. MIHIR VORA – EQUIRUS SECURITIES Page 1 of 18 Varroc Engineering Limited August 06, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Q1 FY27 Varroc Engineering Limited Post Results Conference Call hosted by Equirus Securities. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mihir Vora from Equirus Securities. Thank you, and over to you, sir. Mihir Vora: Thank you, Atharva. Good evening, everyone. We are pleased to invite you to the Q1 FY27 Post Results Conference Call of Varroc Engineering. The management team will be represented by Mr. Tarang Jain, Chairman and Managing Director Mr. Arjun Jain, Whole Time Director and CEO, Business Unit I; Mr. Dhruv Jain, Whole-Time Director and CEO, Business Unit II; Mr. Mahendra Kumar, Group CFO; Mr. Bikash Dugar, Head IR; and Vishal Raval, Head Finance Controller. So without further ado, I now hand over the call to Bikash for the disclaimer. Bikash, over to you. Bikash Dugar: Yes. Thank you, Mihir. Thank you, Equirus, for hosting the call. Just a small disclaimer that today's discussion may include statements which may constitute forward-looking statements or statements that address expectation or projection about the future, including, but not limited to statement 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 involve known and unknown risks, uncertainties and other factors. The actual results, performance or achievement could differ materially from those spoken in any such forward- looking statements. No obligation is assumed by the company on forward-looking statement. With this, I hand over the call to our Chairman, Mr. Tarang Jain. Tarang Jain: Thank you, Bikash, and thank you, Mihir and team Equirus for hosting the call. I am Tarang Jain here, and good evening to everyone. India's economy has remained resilient in quarter 1 of FY27, April to June 2026, supported by a strong domestic consumption, improving rural demand, healthy infrastructure spending and accommodative financing conditions. These macroeconomic tailwinds translated into one of the strongest quarters for the Indian automotive sector with passenger vehicle sales reaching record levels and broad-based growth across 2-wheelers, commercial vehicles, tractors and exports. Improved affordability, rising consumer confidence, robust freight activity and accelerating EV adoption supported demand, while rural recovery particularly benefited 2-wheelers and farm equipment. Page 2 of 18 Varroc Engineering Limited August 06, 2026 For the auto component industry, the positive environment led to the higher production schedules, improved capacity utilization and stronger opportunities in electronics, EV systems, lighting and advanced vehicle technologies. Despite the ongoing risk from commodity price volatility and global geopolitical uncertainties, the overall outlook for financial year '27 remains positive with India continuing to be one of the faster-growing automotive markets globally. In quarter 1 of financial year '27, we saw strong growth across all the automotive segments on a year-on-year basis. On a year-on-year basis, 2-wheelers grew by 22.8%, 3-wheelers grew by 39.1%, passenger vehicles grew by 16.8% and commercial vehicles grew by 15.2%. The EV 2- wheeler volume on a year-on-year basis grew by 91%. Despite seasonality effect on a quarter-on-quarter basis, we still saw a growth on 2- and 3- wheelers -- and 2-wheelers grew by 2.7%, 3-wheelers grew by 3.4%, passenger vehicles degrew by 7.5% and commercial vehicles degrew by 16.9%. In quarter 1 of financial year '27, the company registered a very strong growth of 29.9% and the consolidated revenue reported is INR26.3 billion. The growth was supported by both India operations, which saw a growth of 28.6% and also overseas revenue growth. The momentum of growth in the overseas business, which started in quarter 4 of financial year '26 and gathered further pace in quarter 1 of financial year '27, registering a 45.6% growth on a year-on-year basis. As emphasized in our last earnings call, our foremost priority remains accelerating revenue growth across both India and the international markets. Our EBITDA for the quarter was around 8.5% as compared to 9.5% during the similar period last year. Our PBT before joint venture and exceptional items for quarter 1 FY27 came in at 4.3% of revenue, an improvement of 20 basis points on a year-on-year basis. The profitability in this quarter was adversely impacted by higher commodity prices due to war-related costs, higher tooling sales and the business mix. Despite that, the Indian operations reported a 10.6% EBITDA margin and around a 7% PBT margin. The revenue from supplying to electric vehicles in this quarter was around 15.8% of revenue and grew by 87% on a year-on-year basis. In the overseas electronics and lighting business, we have further won some business, notably for our lighting operations in Thailand. Sequentially, the losses from the overseas operations as well as from overseas R&D is reducing. We hope to maintain this momentum of increasing revenue and hence, the profitability here. We continue to invest not only in technology, but also in people and strengthening our capability. Recently, we have appointed Mr. Eric Hammond as a Chief Technology Officer for our Business Unit 1. He comes in with 25 years of global automotive technology and engineering leadership experience with deep expertise in electrification, software-defined vehicles, connected systems, embedded software, functional safety and cybersecurity. He has successfully led large-scale global R&D organizations, developed next-generation mobility technologies and partnered with leading automotive OEMs to deliver innovative and safety critical solutions. Page 3 of 18 Varroc Engineering Limited August 06, 2026 As emphasized earlier, in India, we continue to leverage our strong customer relationships, technology capabilities and expanding product portfolio to capitalize on opportunities emerging from electrification and th [Showing first 8,000 characters — download PDF for full document]