Varmora Granito Limited

Financial Results Overview

Standalone Results for Quarter Ended June 30, 2026:

  • Revenue from operations: ₹2,962.91 million
  • Other income: ₹55.15 million
  • Total income: ₹3,018.06 million
  • Profit before tax: ₹193.91 million
  • Tax expense: ₹6.73 million
  • Net profit: ₹147.18 million
  • EPS: ₹0.73 (basic and diluted)

Consolidated Results for Quarter Ended June 30, 2026:

  • Revenue from operations: ₹3,152.75 million
  • Other income: ₹45.05 million
  • Total income: ₹3,197.80 million
  • Profit before tax: ₹141.13 million
  • Tax expense: ₹44.10 million
  • Net profit: ₹97.03 million
  • EPS: ₹0.63 (basic and diluted)
  • Net profit attributable to owners: ₹126.36 million

Standalone Results for Quarter Ended September 30, 2026:

  • Revenue from operations: ₹3,870.64 million
  • Other income: ₹42.98 million
  • Total income: ₹3,913.62 million
  • Profit before exceptional items and tax: ₹476.89 million
  • Exceptional items: ₹178.67 million (loss on sale of Simola Tiles LLP)
  • Profit before tax: ₹298.22 million
  • Tax expense: ₹65.36 million
  • Net profit: ₹232.86 million
  • EPS: ₹1.15 (basic and diluted)

Consolidated Results for Quarter Ended September 30, 2026:

  • Revenue from operations: ₹3,989.66 million
  • Other income: ₹36.21 million
  • Total income: ₹4,025.87 million
  • Profit before exceptional items and tax: ₹505.91 million
  • Exceptional items: ₹(5.81) million
  • Profit before tax: ₹511.72 million
  • Tax expense: ₹72.68 million
  • Net profit: ₹439.55 million
  • EPS: ₹2.23 (basic and diluted)
  • Net profit attributable to owners: ₹453.22 million

IPO and Listing Details

The company completed its Initial Public Offering on September 29, 2026, listing on both NSE and BSE:

  • Total shares offered: 47,839,255 equity shares of face value ₹2 each
  • Issue price: ₹148 per equity share
  • Offer for sale: 26,217,634 equity shares by selling shareholders
  • Fresh issue: 21,621,621 equity shares

IPO Proceeds Utilization as of September 30, 2026:

  • Repayment of company borrowings (planned: ₹2,150.00 million) - Utilized: ₹0
  • Repayment of subsidiary borrowings (planned: ₹300.00 million) - Utilized: ₹0
  • General corporate purpose (planned: ₹480.03 million) - Utilized: ₹0
  • Total unutilized proceeds: ₹2,960.43 million (net of share issue expenses of ₹269.97 million)
  • Unutilized funds held in monitoring accounts

Significant Corporate Developments

Divestment of Subsidiary:

  • The company retired as partner of Simola Tiles LLP effective September 5, 2026
  • New partners Chaturbhai Karamashibhai Detroja (30%) and Kiritkumar Karamshibhai Detroja (29%) admitted
  • Consideration: ₹373.50 million
  • Loss on sale of investment and call option: ₹178.67 million, classified as exceptional item
  • Simola Tiles LLP ceased to be subsidiary from effective date

Accounting Policy Change:

  • Effective April 1, 2026, changed depreciation method from diminishing balance to straight line
  • Impact for Q2 FY27: Depreciation lower by ₹104.59 million, net profit higher by ₹78.27 million (standalone)
  • Impact for Q2 FY27: Depreciation lower by ₹112.40 million, net profit higher by ₹84.70 million (consolidated)

ESOP Allotment:

  • During Q2 FY27, allotted 27,65,095 equity shares of face value ₹2 each to eligible employees under Varmora Employee Stock Option Plan 2023

Regulatory and Compliance Matters

Labour Code Implementation:

  • Government of India consolidated 29 labour legislations into four Labour Codes effective November 21, 2025
  • Additional provision of ₹7.24 million (standalone) and ₹7.74 million (consolidated) towards gratuity made for FY26, disclosed under exceptional items

Auditor Review:

  • Walker Chandiok & Co LLP conducted limited review of financial results
  • Certain subsidiaries, associates and joint ventures not reviewed by principal auditors, reliance placed on other auditors' reports

Capital Structure

  • Paid-up equity share capital: ₹452.02 million as of September 30, 2026 (increased from ₹403.25 million due to IPO and ESOP allotment)
  • Face value: ₹2 per share

Operational Highlights

  • Business falls under single operating segment of manufacturing and selling tiles and related products
  • No reportable segment disclosure required under Ind AS 108

Financial Position (Standalone as of September 30, 2026)

  • Total assets: ₹17,306.73 million
  • Total equity: ₹11,462.84 million
  • Cash and cash equivalents: ₹3,716.06 million
  • Total borrowings: ₹2,749.06 million (current ₹1,534.03 million, non-current ₹1,215.03 million)

Cash Flow (Standalone Half Year Ended September 30, 2026)

  • Net cash from operating activities: ₹771.89 million
  • Net cash used in investing activities: ₹(661.73) million
  • Net cash from financing activities: ₹2,794.32 million (primarily IPO proceeds)
  • Net increase in cash: ₹2,904.48 million