Varmora Granito Net Profit Surges 206% to ₹44 Crore in Q2 FY27
New Delhi | October 21, 2026: Varmora Granito has reported a sharp improvement in profitability for the September quarter, with net profit rising more than threefold to ₹44 crore. The tile manufacturer’s performance was supported by higher operating revenue, improved margins and a strong recovery from the disruption faced in the first quarter.
The company’s profit after tax increased 205.6% year-on-year from ₹14.40 crore in Q2 FY26. Revenue from operations rose 9% to ₹399 crore, while EBITDA increased 19% to ₹68.30 crore.
Revenue and Margins Improve in Q2
Varmora Granito’s total income stood at ₹402.60 crore during Q2 FY27, compared with ₹389.20 crore in the same quarter last year.
Revenue from operations grew from ₹366.80 crore to ₹399 crore. On a sequential basis, the improvement was more pronounced, with revenue increasing 27% from ₹315.30 crore in Q1 FY27.
EBITDA margin also strengthened to 17%, compared with 14.7% a year earlier, indicating better operating profitability during the quarter.
H1 Performance Shows Strong Profit Recovery
For the first half of FY27, revenue from operations increased 3.3% to ₹714.20 crore, compared with ₹691.50 crore in H1 FY26.
EBITDA rose 17% to ₹101.30 crore, while the EBITDA margin improved from 12% to 14%.
The biggest improvement came at the bottom line. H1 profit after tax jumped 498% to ₹53.70 crore, compared with ₹9 crore in the corresponding period last year.
Price Hikes Help Offset Higher Gas Costs
The company said the first quarter was affected by an industry-wide disruption after gas prices increased sharply following the West Asia conflict. Morbi plants remained shut until mid-April, affecting production during the quarter.
Varmora subsequently implemented price increases of 18–19%, depending on the product category, to offset higher gas costs.
Average gas costs nevertheless declined to ₹80.53 per standard cubic metre in Q2 FY27, from ₹84.73 in Q1 FY27.
The combination of pricing measures and lower average gas costs supported the company’s recovery during the September quarter.
Domestic Market Gains as Exports Decline
Domestic operations remained the main contributor to Varmora’s business during the first half.
Domestic revenue increased 9% to ₹589.70 crore, accounting for 83% of H1 FY27 revenue.
Exports, however, declined 18% to ₹124.50 crore, reducing their contribution to 17% of total revenue.
Glazed vitrified tiles and technical products, including integrated stone technology and slabs, continued to gain importance. These products accounted for 87% of H1 revenue, up from 83% a year earlier, with revenue from the segment growing 9%.
New Tezpur Facility Adds Manufacturing Capacity
Varmora has also commenced production and sales from its new manufacturing facility in Tezpur, Assam.
At the same time, the company has discontinued ceramic tile manufacturing at its Solaris unit and plans to upgrade the facility for glazed vitrified tile production.
The company also divested its stake in subsidiary Simola Tiles LLP, reflecting its focus on its core product portfolio.
What It Means for the Building Materials Market
Varmora’s Q2 performance comes as manufacturers continue to navigate higher energy costs, demand fluctuations and changing product preferences.
The stronger domestic performance and increased contribution from glazed vitrified tiles and technical products point to a continued shift towards higher-value product categories. The new Assam facility could also strengthen the company’s manufacturing footprint and support its expansion strategy.
For the building materials and real estate ecosystem, the results offer a useful indicator of how tile manufacturers are responding to cost pressures while maintaining demand and profitability.