Financial Performance Summary

Quarterly Performance (₹ Mn):

| Period | Revenue from Operations | YoY % | QoQ % | EBITDA | EBITDA Margin | PAT | PAT Margin |

| Q2 FY27 | 3,990 | 9% | 27% | 683 | 17.0% | 440 | 10.9% |

| Q1 FY27 | 3,153 | (3%) | - | 330 | 10.3% | 97 | 3.0% |

| Q2 FY26 | 3,668 | - | - | 572 | 14.7% | 144 | 3.7% |

| Q1 FY26 | 3,247 | - | - | 291 | 8.8% | (54) | (1.6%) |

Half-Yearly Performance (₹ Mn):

| Period | Revenue from Operations | YoY % | EBITDA | EBITDA Margin | PAT | PAT Margin |

| H1 FY27 | 7,142 | 3.3% | 1,013 | 14.0% | 537 | 7.4% |

| H1 FY26 | 6,915 | - | 863 | 12.0% | 90 | 1.2% |

Total Income:

  • H1 FY27: ₹7,224 Mn (vs H1 FY26: ₹7,212 Mn, 0% growth)
  • Q2 FY27: ₹4,026 Mn (vs Q2 FY26: ₹3,892 Mn, 3% growth)
  • Q1 FY27: ₹3,198 Mn (vs Q1 FY26: ₹3,320 Mn, 4% decline)

Earnings Per Share (EPS):

  • Q2 FY27: ₹4.44
  • Q1 FY27: ₹0.63
  • H1 FY27: ₹2.87

Operational Highlights

Margin Performance:

  • Gross margin for H1 FY27 stood at 37.2% (H1 FY26: 37.7%; FY26 full year: 37.9%)
  • EBITDA margin expansion of 206 bps YoY in H1 FY27 to 14.0%
  • PAT margin expansion of 618 bps YoY in H1 FY27 to 7.4%

Q1 FY27 Disruption Impact:

  • Industry-wide disruption due to West Asia conflict starting February 28, 2026
  • Gas prices in Morbi rose from ~₹48 to ₹86–88 per SCM
  • Morbi plants remained shut from early March to mid-April 2026
  • Q1 volumes declined 16% YoY, with nearly all shortfall in April
  • Excluding Simola, Q1 volume declined 11% YoY
  • Advance dealer stocking in March ahead of April 1 price increase and labor shortages affected the quarter

Q2 FY27 Recovery:

  • Price increases of 18%-19% (depending on SKUs) recovered 100% of higher gas cost
  • Average gas cost in Q2 FY27: ₹80.53 per SCM (Q1 FY27: ₹84.73 per SCM)
  • Gas prices eased to ~₹79 per SCM with firm pricing maintained

Product Mix:

  • GVT and Technical Products, including IST and slabs, contributed 87% of revenue in H1 FY27 (H1 FY26: 83%)
  • Premium products grew 9% YoY

Distribution Network:

  • Added 4 Exclusive Brand Outlets (EBOs) during H1 FY27
  • Total network: 309 EBOs alongside 2,000+ Multi-Brand Outlets (MBOs)
  • Launched 508 new designs during the half year

Domestic and Export Performance

Domestic Market:

  • H1 FY27 revenue: ₹5,897 Mn (83% of total revenue)
  • YoY growth: 9%
  • No single state contributes more than 14% of revenue

Export Market:

  • H1 FY27 revenue: ₹1,245 Mn (17% of total revenue)
  • YoY decline: 18%
  • Impacted by West Asia conflict and higher freight costs to the Gulf

Key Developments

IPO Completion:

  • Completed Initial Public Offering of ₹7,080.21 Mn at ₹148 per equity share
  • Comprising fresh issue of ₹3,200 Mn and offer for sale of up to 2,62,17,634 equity shares
  • Equity shares listed on BSE and NSE on September 29, 2026
  • Fresh issue proceeds used to repay debt, strengthening balance sheet and lowering interest cost

New Manufacturing Facility:

  • Commencement of Production and Sales at Allemby Ceramics Private Limited
  • New state-of-the-art manufacturing facility at Tezpur, Assam
  • First major tile manufacturing unit in Northeast India
  • Inaugurated by Chief Minister of Assam, Shri. Himanta Biswa Sarma
  • Expected to strengthen Company's market position in Northeast

Strategic Manufacturing Upgrade:

  • Discontinued ceramic tile manufacturing operations at Solaris unit
  • Facility planned to be upgraded to manufacture Glazed Vitrified Tiles (GVT)
  • Aligned with Company's strategic focus on innovating and upgrading product portfolio

Divestment:

  • Divested stake in Simola Tiles LLP (subsidiary)
  • Aligned with Company's strategic focus on core product portfolio

Working Capital and Balance Sheet

  • Net working capital: 114 days as on September 30, 2026 (FY26: 96 days; FY25: 112 days)
  • Debt reduction through IPO proceeds improving balance sheet strength

Management Commentary

Mr. Bhavesh Varmora, Chairman and Managing Director, highlighted:

  • Milestone moment as first results since listing
  • Strong Q2 recovery post Q1 gas disruption
  • Price increases fully recovered higher gas costs
  • Strategic focus on cash generation, retail network expansion in emerging markets, product innovation, and growing bathware and adhesives business
  • Belief in shift towards organized, branded players and premium surfaces positioning Varmora well for long term

Company Background

Varmora Granito Limited is a product-led tiles and home-surfaces brand headquartered in Morbi, Gujarat. The company offers:

  • 3,500+ tile SKUs across 20 surface types
  • 1,000+ bathware and sanitaryware SKUs
  • Glazed Vitrified Tiles (GVT) and Technical Products contributed 84% of tiles revenue in FY26
  • Operates 8 manufacturing plants in Morbi through subsidiaries
  • 80% of revenue from in-house manufactured products
  • Retail presence through 309 Exclusive Brand Outlets across 249 cities, 2,000+ Multi-Brand Outlets, and presence in 988 cities
  • FY26 performance: Total income of ₹15,625 Mn with EBITDA margin of ~14.2%