Tile manufacturer Varmora Granito Ltd reported a net profit of ₹44 crore in the September quarter of FY27, more than three times the ₹14.4 crore it earned in the same period last year.
Revenue from operations rose 9% year-on-year to ₹399 crore from ₹366.8 crore. Total income increased to ₹402.6 crore from ₹389.2 crore in the year-ago quarter.
Earnings before interest, tax, depreciation and amortisation (EBITDA), a measure of operating profitability, grew 19% to ₹68.3 crore from ₹57.2 crore.
The EBITDA margin, which indicates how much revenue a company retains as operating profit, improved to 17% from 14.7%. This was an expansion of 226 basis points, or 2.26 percentage points.
The September quarter was the company’s first reporting period since its shares were listed on the BSE and NSE on September 29, 2026.
Varmora Granito revenue rebounds after June-quarter decline
Revenue from operations increased 27% quarter-on-quarter in Q2 FY27, recovering from a decline in the June quarter.
In Q1 FY27, revenue fell 2.9% year-on-year to ₹315.3 crore, while net profit stood at ₹9.7 crore.
For the first half of FY27, revenue from operations grew 3.3% year-on-year to ₹714.2 crore. EBITDA stood at ₹101.3 crore, with a margin of 14%, compared with 12% in the first half of FY26. Net profit also increased compared with the year-ago period, reaching ₹53.7 crore.
Higher gas costs and price increases
Varmora Granito Chairman and Managing Director Bhavesh Varmora said the June quarter was affected by an industry-wide disruption after gas prices in Morbi rose following the outbreak of the conflict in West Asia.
Tile manufacturing plants in Morbi, Gujarat, remained shut from early March to mid-April, affecting production and sales volumes.
The company said it raised prices by 18%–19%, depending on the product, to offset higher gas costs. These increases helped it recover the entire additional cost of gas.
Prices remained firm even after gas costs eased. The average gas cost fell to ₹80.53 per standard cubic metre in Q2 FY27 from ₹84.73 per standard cubic metre in the June quarter.
Premium tiles contribute 87% of first-half revenue
Glazed vitrified tiles (GVT) and technical products, including tiles made using Integrated Stone Technology and slabs, accounted for 87% of Varmora’s revenue in the first half of FY27, up from 83% in the year-ago period. The segment grew 9% year-on-year, the company said.
Varmora added four exclusive brand outlets during the first half, taking the total to 309. It also has more than 2,000 multi-brand outlets and launched 508 new designs during the period.
Domestic revenue rose 9% year-on-year to ₹589.7 crore in H1 FY27, accounting for 83% of total revenue.
Export revenue, however, fell 18% to ₹124.5 crore. The company attributed the decline to the impact of the West Asia conflict on exports from Morbi and higher freight costs to Gulf markets.
Manufacturing expansion and product portfolio changes
Varmora said production and sales had started at its Allemby Ceramics facility in Tezpur, Assam. The company described it as the first major tile manufacturing unit in Northeast India.
It has also stopped manufacturing ceramic tiles at its Solaris unit and plans to upgrade the facility to produce glazed vitrified tiles instead.
Separately, Varmora sold its stake in subsidiary Simola Tiles LLP as part of its effort to focus on its core product portfolio.
The company completed its ₹708.02 crore initial public offering (IPO) at ₹148 per share. Its shares were listed on the BSE and NSE on September 29, 2026.