Varmora Granito544942Earnings call transcript

Earnings call transcript: H1 margin gains, GVT-heavy mix, 76% utilisation and weak exports

Varmora Granito has shared the transcript of its first earnings call as a listed company, held on October 23, 2026, covering Q2 and H1 FY27.

By ScoutQuest · Tue 27 Oct 2026, 1:18 PM IST · 2 min read

H1 PAT growth (YoY): PAT improved 498% year-on-year
Margin improvement (H1): EBITDA margin improved 17% and gross margin 8%
Capacity utilisation: Capacity is 50.6 million square metres, H1 utilisation 76%, seen at 80%-85% ahead

The company listed on 29th September 2026 and this was its first earnings call, held on October 23, 2026, covering Q1, Q2 and H1 FY27.
The IPO was of INR 708 crores, of which INR 320 crores was a fresh issue to be used for debt repayment. Management said the interest cost, going forward, will become almost zero.
Management opened with a forward-looking statement caution: some statements are not based on current expectations and are subject to risks and uncertainties.

All figures quoted below were described as year-on-year for the first half.
Revenue growth of 3% was cited alongside a gross margin improvement of 8%, an EBITDA margin improvement of 17% and a PAT improvement of 498%.
Q1 was disrupted: April was shut because of non-availability of fuel, with operations starting around the 10th or 11th of May. Q2 was described as a recovery quarter with strong growth.

Average realisation improved by INR 75 over last year; of this, INR 50 came from a price hike and INR 25 from product mix.
Management also spoke of a 21% improvement in average realisation, of which 3.5% came from product mix, with the rest from the price hike and operating efficiency.
Within GVT, sales are shifting to larger, higher-value sizes such as 6x4 feet and 8x4 feet from 4x2 GVT.

GVT is about 86% of the mix this year; the company makes 18 sizes and 20 surfaces of GVT.
PVT ceramics fell from 11% of revenue last year to 8% this year; ceramics fell from 6% to 5%. Both are described as declining businesses.
The company has more than 3,500 SKUs, 309 EBOs and around 2,000 MBOs.

Installed capacity is 50.6 million square meters.
Utilisation was 72% last year and 76% in the first half of this year.
Peak utilisation of 92% to 93% is achievable. Management guided that utilisation should improve to around 80% to 85%, with growth coming from better utilisation.
Management said there is no immediate capex plan.

Domestic revenue grew 9%, and domestic GVT volume growth was 14%.
Export revenue de-grew, with management confirming a fall of 18%, attributed to non-availability of containers and container freight.
The comparison excludes Simola, an entity the company divested, whose revenue is excluded from the first-half versus first-half comparison.

The transcript points to profitability improving faster than revenue, led by a richer product mix and price increases rather than by a big jump in volumes.
Future growth is largely guided to come from filling existing capacity rather than new capex, while exports remain the weak spot on logistics constraints.
These are management's statements on a call; they are not audited numbers and forward-looking remarks carry the usual risks.

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