Varmora Granito Limited reported a standalone net profit of ₹147.18 million for the quarter ended June 30, 2026 (Q1FY27), marking a significant turnaround from a net loss of ₹57.28 million in the corresponding period last year.

The company's revenue from operations grew 3.6% year-on-year to ₹2,962.91 million, up from ₹2,858.70 million in Q1FY26. On a consolidated basis, Varmora Granito recorded a profit after tax of ₹97.03 million, compared to a loss of ₹54.00 million in the same quarter last year.

Financial Performance Highlights

The Board of Directors approved the unaudited financial results on October 19, 2026. This marks the company's first quarterly results following its listing on the NSE and BSE on September 29, 2026.

Consolidated Results

On a consolidated basis, total income stood at ₹3,197.80 million for Q1FY27, a slight decrease from ₹3,319.65 million in Q1FY26. However, the bottom line improved significantly due to reduced losses at the subsidiary and associate levels.

• Consolidated Revenue: ₹3,152.75 million (down 2.9% YoY)
• Consolidated Net Profit: ₹97.03 million (vs loss of ₹54.00 million YoY)
• Share of Losses: The group reported a share of loss from associates and joint ventures of ₹2.59 million.

What the Numbers Show

A key driver behind the profitability swing was a change in accounting policy effective April 1, 2026. The company shifted its depreciation method from the diminishing balance method to the straight-line method. According to Note 7, had the previous method been retained, depreciation charges would have been higher by ₹104.59 million, which would have reduced net profit by ₹78.27 million for the quarter. This accounting change accounts for a substantial portion of the reported profit improvement.

Additionally, finance costs declined significantly to ₹57.89 million in Q1FY27 from ₹88.05 million in Q1FY26, indicating improved debt servicing capacity or lower outstanding liabilities.

Strategic Updates

Subsequent to the quarter-end, Varmora Granito retired as a partner in Simola Tiles LLP pursuant to a memorandum of understanding dated September 5, 2026. Consequently, Simola Tiles LLP ceased to be a subsidiary of the group. The new partners, Chaturbhai Karamashibhai Detroja and Kiritkumar Karamshibhai Detroja, hold 30% and 29% partnership interests respectively.

Varmora Granito Limited reported a 37% year-on-year increase in standalone net profit for the quarter ended September 30, 2026 (Q2FY27), reaching ₹232.86 million. The tiles manufacturer’s revenue from operations grew 17% YoY to ₹3,870.64 million, reflecting robust demand in the sector.

The company’s board approved the unaudited financial results for Q1FY27 and Q2FY27 on October 19, 2026. These are the first quarterly results following the company’s listing on stock exchanges on September 29, 2026, after completing an IPO of ₹7,080 million.

Standalone Financial Performance

The standalone P&L shows significant improvement compared to the previous year and the preceding quarter. While QoQ profit growth was moderated by an exceptional item related to the sale of Simola Tiles LLP, the underlying operational performance remained strong.

Consolidated Performance

On a consolidated basis, the group recorded a net profit of ₹439.55 million for Q2FY27, up from ₹143.77 million in Q2FY26. Consolidated revenue rose 8.7% YoY to ₹3,989.66 million. The consolidated results include contributions from subsidiaries such as Covertek Ceramica and Varmora Sanitarywares.

What the Numbers Show

A key analytical observation is the impact of accounting policy changes on profitability. Effective April 1, 2026, Varmora changed its depreciation method from diminishing balance to straight-line. The company disclosed that had the previous method been used, depreciation would have been higher by ₹105.58 million for the quarter, reducing net profit by ₹79.01 million. This change accounts for approximately 34% of the reported standalone net profit for Q2FY27, indicating that a significant portion of the profit growth is attributable to this non-operational accounting adjustment rather than pure operational expansion.

Additionally, the standalone net profit was impacted by an exceptional loss of ₹178.67 million due to the sale of Simola Tiles LLP. Without this one-time charge, standalone profit before tax would have been significantly higher, aligning more closely with the strong revenue growth trajectory.

Balance Sheet and Cash Flow

The balance sheet reflects a substantial strengthening of liquidity post-IPO. Cash and cash equivalents surged to ₹3,716.06 million as of September 30, 2026, up from ₹811.58 million at March 31, 2026. This influx is primarily due to IPO proceeds of ₹2,960.43 million received during the half-year.

Net cash flow from operating activities stood at ₹771.89 million for H1FY27, compared to ₹383.33 million in H1FY26. Working capital management showed mixed signals; while trade receivables decreased slightly, inventories increased by ₹388.10 million during the half-year, suggesting potential inventory build-up ahead of future demand or seasonal factors.