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.

Varmora Granito Limited submitted its Code of Conduct and Procedures for Fair Disclosure of Unpublished Price Sensitive Information (UPSI) to the National Stock Exchange of India and BSE Limited on September 29, 2026. This filing complies with Regulation 8(2) of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015.

The document outlines the company’s framework for maintaining confidentiality and ensuring uniform dissemination of material information. It was approved by the Board of Directors on April 25, 2025, aligning with the principles of responsible business conduct as per the National Guidelines on Responsible Business Conduct and SEBI’s Business Responsibility and Sustainability Reporting framework.

Key Provisions of the Code

The code mandates that Varmora make prompt disclosure to stock exchanges whenever credible and concrete information impacting price discovery emerges. The company aims to prevent selective or speculative disclosure that could adversely affect market price discovery.

Key operational guidelines include:

• Designated Officer: The Head of Investor Relations will act as the Chief Investor Relations Officer (CIRO), coordinating with the Compliance Officer to ensure regulatory filings align with SEBI guidelines.
• Analyst Meetings: At least two company representatives must be present during meetings with analysts, brokers, or institutional investors. Transcripts or records may be made available on the official website where necessary.
• Need-to-Know Basis: UPSI shall be shared only for legitimate purposes, such as with partners, lenders, auditors, or legal advisors, provided such sharing does not circumvent regulatory prohibitions.

Structured Digital Database Requirements

The company is required to maintain a structured digital database containing names and Permanent Account Numbers (or other authorized identifiers) of persons or entities receiving UPSI. This database must include adequate internal controls, such as time stamping and audit trails, to ensure non-tampering and restrict access solely for implementing fair practices.

Definition of Unpublished Price Sensitive Information

The code defines UPSI as any information relating to the company or its securities that is not generally available but is likely to materially affect the security price once disclosed. This includes information regarding:

• Financial results and dividends
• Changes in capital structure
• Mergers, de-mergers, acquisitions, and delistings
• Expansion of business
• Changes in key managerial personnel

Any person receiving UPSI for a legitimate purpose is considered an insider and must maintain confidentiality in compliance with this code and the SEBI PIT Regulations.