Varun Motors

Key Metrics of Varun Motors

Revenue₹5,192 Cr▲ 9.4% YoYFY 2025-26

EBITDA₹161 Cr▼ 17.3% YoY

Net profit₹57.7 Cr▼ 18.3% YoY

Net worth—

Competitors10identified

About Varun Motors

Sectors

Automobile ManufacturersPassenger Cars

Company details

Registered office: # 7-8-1/1, Varun Towers Kasturba Marg, Siripuram, Visakhapatnam, In-ap, 530003

Operational Areas of Varun Motors

Automobile Manufacturers›Passenger Cars

Company summary

Entity details

CINU50100AP1993PTC016615

LEI code33580018WIND3K6OOU90

State codeAP

PIN code530003

Current legal nameVARUN MOTORS

Classification—

Listing statusUnlisted

Registration no.016615

Company age—

PAN—

CountryIndia

CityVisakhapatnam

StateAndhra Pradesh

Current statusActive

Date of incorporation—

Registrar of companies—

Authorised capital—

Paid-up capital—

Employee count—

Compliance

Last AGM date—

Last balance sheet—

Next filing dueMGT-7 for FY 2025-26 · 29 Nov 2026

Industry classification

NIC code50100

Description of main activitySale, maintenance and repair of motor vehicles; retail sale of fuel

Description of business activitySale, maintenance and repair of motor vehicles; retail sale of fuel

SectorAutomobile Manufacturers · Passenger Cars

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Financials, ratios and risk analysis

Revenue, EBITDA, net profit, net worth, debt and assets for every filing year, 15+ ratios, the financial health score, shareholding, charges and peer comparison are part of the premium plan.

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Filing compliance

AGM for FY 2025-2630 Sep 2026 Statutory due date passed

AOC-4 for FY 2025-2630 Oct 2026 Statutory due date passed

MGT-7 for FY 2025-2629 Nov 2026 Statutory due date · 25 days left

Due dates follow the Companies Act: AGM within six months of the year end, AOC-4 within 30 days and MGT-7 within 60 days of the AGM. A filing made but not yet uploaded here shows as pending.

Vendor checks & payment capacity

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Credit ratings

ICRA · 23 Jun 2026 ICRA A- Stable outlook · Short term A2+ · Reaffirmed

Change in last 12 months—

Change since first rating on record—since Jun 2026

Rating actions10 up · 0 down

Liquidity (ICRA)Adequate

Rating history

Rating actions

Date	Agency	Action	Long term	Short term	Outlook	Rated amount	Rationale
23 Jun 2026	ICRA	Reaffirmed	A-	A2+	Stable	₹1,265 Cr	View

Credit strengths (ICRA, Jun 2026)

+ Diversified presence with dealership of MSIL, BAL, JCB and BharatBenz

VMPL is the authorised dealer for MSIL’s PVs, BharatBenz’s CVs, BAL’s 2Ws and 3Ws, and JCB’s CE.

+ Wide sales network

VMPL has a wide sales network with more than 400 touchpoints (including showrooms, sales depots, workshops, True Value outlets and driving schools) across Andhra Pradesh, Telangana and Karnataka, covering Hyderabad, Ranga Reddy, Kamareddy, Medak, Sangareddy, Vikarabad, Nizamabad, Krishna, Kothagudem, Visakhapatnam, Vizianagaram and Srikakulam districts, as well as Bengaluru.

Credit challenges

− Sizeable loan book of lending operations and exposure to borrowers with modest credit profiles

The company’s lending loan book remained sizeable at around Rs. 530.5 crore as on March 31, 2026, despite moderating from Rs. 714.2 crore as on March 31, 2025.

− Modest dealership margins, which declined in FY2026 due to higher discounts and increased overheads towards new outlets

Inherent in dealership operations, wherein low-margin vehicle sales dominate the revenue mix, VMPL’s operating margins have remained low.

− Exposed to intense competition

VMPL faces competition from dealers of other OEMs as well as dealers of the same principal across all four dealership segments, resulting in increased pressure to pass on price discounts to customers .

− Pressure on asset quality of lending operations in the recent past

VMPL’s 90+ days past due (dpd) deteriorated to 7.0% as of February 2026 from 4.0% as of March 2025 due to stress in its borrower base, comprising self-employed and rural segments, coupled with pressure in key portfolios such as 3Ws and 2Ws.

Could lead to an upgrade

VMPL’s ratings may be upgraded if the company demonstrates sustained, broad-based growth in volumes across its key OEMs—MSIL, BAL, BharatBenz and JCB—resulting in higher overall revenues. Further, a healthy improvement in finance income from its lending operations, leading to margin expansion and strengthening of credit metrics, would also support a rating upgrade.

Could lead to a downgrade

The ratings may be downgraded if a significant decline in VMPL’s scale of operations or profitability, due to subdued demand, high discounts, or the absence of improvement in automobile segment margins, adversely affects its debt metrics or

Agency-reported financials (ICRA, 23 Jun 2026)

Metric	FY2025	FY2026
Operating income	₹4,747 Cr	₹5,192 Cr
PAT	₹70.60 Cr	₹57.70 Cr
OPBDIT/OI	4.1%	3.1%
PAT/OI	1.5%	1.1%
Total outside liabilities/Tangible net worth (times)	1.60×	1.20×
Total debt/OPBDIT (times)	4.50×	4.30×
Interest coverage (times)	2.40×	2.30×
Revenue growth (YoY)	—	9.4%
EBITDA (margin × income)	₹195 Cr	₹161 Cr
Implied total debt (debt/EBITDA × EBITDA)	₹876 Cr	₹692 Cr
Implied interest cost (EBITDA ÷ coverage)	₹81.10 Cr	₹69.97 Cr

Borrowings & rated debt

Rated borrowing limits (latest)₹1,265 Cr

Limits raised1 time1 new facility rated

Facility mix

Rated facilities

Facility	Type	Previous	Current	Change	Rating	Action	Agency
Long-term – Fund-based – Cash Credit	Working capital & bank lines	₹1,009 Cr	₹954 Cr	−5.5%	A- (Stable)	Reaffirmed	ICRA
Short-term – Non-fund Based Limits	Non-fund based limits	₹16.0 Cr	₹16.0 Cr	0.0%	A2+	Reaffirmed	ICRA
[ICRA] A- () Long-term – Fund base-Term loan	Term loans	₹15.0 Cr	₹249 Cr	1,560.0%	—	Reaffirmed	ICRA
limits [ICRA] A- () Long-term – Unallocated Limits	Working capital & bank lines	—	₹46.0 Cr	—	—	Assigned	ICRA

Credit assessment · Manufacturing

Rating Methodology – Manufacturing Companies (Mar 2025) · Standalone accounts · FY 2025-26

Indicative long-term—

Indicative short-term—

Score—

LiquidityStretchedAgency: Adequate

DirectionStableAgency outlook: Stable

ICRA rating · Jun 2026A-2 notches above indicative

Ratios, pillar scores and the indicative rating are part of Premium.

Rating status

Default	No default on record
Issuer cooperation	Cooperating
Credit enhancement	None – standalone rating
Next action stable or better (model)	53%
Information on file	44% · missing: Annual results history (3+ years), Debt obligations and repayment schedule, Capex / investment plans, Auditor details, Shareholding pattern

Indicative assessment from public data using the published methodology factors; not a credit rating.

Borrowing & funding lifecycle

⬇ PDF report ⬇ Excel

Can it borrow more?Further funding possible with conditions Next rating action stable or better: 54% (At risk of downgrade) · ML model on 6893 rating histories, AUC 0.653

Rated limits₹1,265 Cr

Not yet allocated₹46.00 Cr

Extra debt within 3.5× EBITDA—

Interest coverage2.30×

Limit utilisation—

Open bank charges0 · —

Credit outlook model: 54% chance the next rating action is stable or better
Current rating A- (investment grade)
Interest coverage 2.3×
₹46 cr of rated limits not yet tied to a lender

Rated limits by facility

Timeline

23 Jun 2026 ICRA reaffirmed: A- (Stable)Rated limits ₹1,265 cr ICRA rationale

23 Jun 2026 Cash & liquid funds ₹90.3 cr

From the report

The company’s ability to improve asset quality, given the modest borrower profile, will remain a key monitorable. www.icra.in Sensitivity Label : Public Page |2 Liquidity position: Adequate The company’s liquidity is adequate with a buffer of Rs. 230-250.0 crore in working capital limits against its drawing power and cash and bank balances of around Rs. 90.3 crore as on March 31, 2026, against repayment obligations of Rs. 30-35.0 crore in the next 12 months.

ICRA rationale

Lender names, bank charges and audited borrowings are part of Premium.

Built from MCA charges, ICRA/CARE rating reports and audited accounts. The borrowing view is an estimate, not a lender's credit decision.

Competitors of Varun Motors