H1 FY27 PAT up 498% YoY to ₹537 mn; revenue from operations up 3.3%, with strong Q2 recovery after Q1 gas disruption
Varmora Granito's first results after its shares listed on September 29, 2026.
By ScoutQuest · · 3 min read
- H1 FY27 PAT
- ₹537 mn, up 498% YoY
- H1 FY27 Revenue from Operations
- ₹7,142 mn, up 3.3% YoY
- EBITDA
- ₹1,013 mn, margin 14.0%
The headline numbers
The update is a press release on the unaudited financial results for the first quarter ended June 30, 2026 and the second quarter and half year ended September 30, 2026 of financial year 2026-27. These are the company's first results since its equity shares were listed on BSE and NSE on September 29, 2026.
For H1 FY27, Profit After Tax (PAT) stood at ₹537 mn, an increase of 498% over H1 FY26. Revenue from operations was ₹7,142 mn, up 3.3%. EBITDA was ₹1,013 mn with an EBITDA margin of 14.0%, against 12.0% in H1 FY26.
Quarter by quarter
- Q2 FY27 revenue from operations ₹3,990 mn: up 9% YoY and 27% QoQ.
- Q1 FY27 revenue from operations ₹3,153 mn: down 2.9% YoY.
- Q2 FY27 PAT ₹440 mn; Q1 FY27 PAT ₹97 mn.
- Q2 FY27 EBITDA ₹683 mn at a 17.0% margin; Q1 FY27 EBITDA ₹330 mn at a 10.3% margin.
- Total income for H1 FY27 was ₹7,224 mn, flat at 0% YoY.
The company describes H1 as "a half of two very different quarters". Q1 was affected by an industry-wide disruption: following the onset of the West Asia conflict on February 28, gas prices at Morbi rose from about ₹48 to ₹86-88 per SCM, and Morbi plants remained shut from early March to mid-April. Q1 volumes declined 16% YoY. Price increases of 18%-19% taken during the period recovered 100% of the higher gas cost, according to the release. The average gas cost in Q2 FY27 was ₹80.53 per SCM, compared with ₹84.73 in Q1 FY27, with gas easing to about ₹79 per SCM.
Where the revenue comes from
- Domestic revenue ₹5,897 mn, 83% of revenue, up 9% YoY. No single state contributes more than 14% of revenue.
- Export revenue ₹1,245 mn, 17% of revenue, down 18% YoY, as Morbi exports were affected by the West Asia conflict and higher freight costs to the Gulf.
- GVT and Technical Products, including IST and slabs, contributed 87% of revenue in H1 FY27 (83% in H1 FY26), growing 9% YoY.
- Gross margin for H1 FY27 was 37.2%, against 37.7% in H1 FY26.
Distribution and products
- Added 4 Exclusive Brand Outlets (EBOs) during H1 FY27, taking the network to 309 EBOs, alongside 2,000+ Multi-Brand Outlets (MBOs).
- Launched 508 new designs during the half year.
- Net working capital stood at 114 days as on September 30, 2026, compared with 96 days in FY26 and 112 days in FY25.
The IPO and what the money was used for
- The company completed its Initial Public Offering of ₹7,080.21 mn at ₹148 per equity share, comprising a fresh issue of ₹3,200 mn and an offer for sale of up to 2,62,17,634 equity shares.
- Per the management commentary, proceeds of the fresh issue have been used to repay debt, which the company says strengthens the balance sheet and lowers interest cost going forward.
Other developments disclosed
- Commencement of production and sales at Allemy Ceramics Private Limited, a manufacturing facility at Tezpur, Assam, described as the first major tile manufacturing unit in Northeast India.
- The company discontinued ceramic tile manufacturing operations at its Solaris unit; the facility is planned to be upgraded to manufacture Glazed Vitrified Tiles (GVT).
- Divestment of its stake in Simola Tiles LLP, a subsidiary, which the company links to its focus on its core product portfolio.
What a retail reader may track
- Whether the Q2 revenue recovery (up 27% QoQ) carries into the next quarters.
- Gas prices at Morbi, which the release identifies as the main swing factor for costs and plant running.
- Export performance, which fell 18% YoY in H1.
- Working capital days, which rose to 114 days from 96 days in FY26.
Note: EPS for quarter periods is not annualised, as stated in the release.
Also from Varmora Granito
Varmora Granito files audio recording of Oct 23, 2026 analyst meet on Q2 FY27 results
23 Oct 2026
Varmora management detailed capacity utilization, revenue potential and margin outlook across its Morbi, Tezpur and upcoming Solaris plants
21 Oct 2026
Varmora Granito H1 FY27: revenue up 3.3% to ₹7,142 mn, PAT up 498% as Tezpur plant starts and Simola is divested
20 Oct 2026
More numbers
- H1 FY27 Profit After Tax (PAT)₹537 mn
- H1 FY27 Revenue from Operations₹7,142 mn
- Q2 FY27 Revenue from Operations₹3,990 mn
- Q1 FY27 Revenue from Operations₹3,153 mn
- H1 FY27 EBITDA Margin14.0%
- YoY increase in H1 FY27 PAT498%
- IPO size₹7,080.21 mn
- H1 FY27 Export revenue₹1,245 mn
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