Varmora Granito Shares In Focus: 498% H1 Profit Growth, 9% Q2 Revenue Rise Put Tile Stock In Spotlight

Varmora Granito Ltd shares remained in focus on Wednesday, October 21, after the tiles manufacturer reported a sharp improvement in profitability for the first half of FY27, supported by a strong recovery in the September quarter. The company posted a 498% year-on-year increase in profit after tax to Rs 53.7 crore for the six months ended September 30, 2026, while first-half revenue rose 3.3% to Rs 714.2 crore.

Varmora Granito Share Price Today After Q2 Results

The stock was quoted at Rs 131.02 at 3:30 pm on the NSE on October 21. It opened at Rs 145 and touched an intraday high of Rs 146.90 before slipping to a low of Rs 129.90. The company’s latest financial performance has drawn attention to its recovery after a difficult start to the financial year, particularly as production disruptions and higher fuel costs had affected the ceramic manufacturing industry earlier in the year.

Varmora Granito Q2 Results: Profit Climbs To Rs 44 Crore

The September quarter proved to be a major contributor to Varmora Granito’s first-half earnings, with revenue from operations rising to Rs 399 crore from Rs 366 crore in the corresponding quarter last year, an increase of around 9%.

Net profit for the quarter reached Rs 44 crore, compared with Rs 14.4 crore a year earlier, marking a growth of approximately 206%. The company also recorded a substantial sequential improvement from the June quarter, when revenue stood at Rs 315.3 crore and profit after tax was Rs 9.7 crore.

The difference between the two quarters highlights the extent of the recovery. Revenue increased by nearly 27% sequentially, while quarterly profit more than quadrupled from the June-quarter level. The improvement helped lift first-half profit to Rs 53.7 crore, compared with approximately Rs 9 crore in the year-ago period.

Production activity in Morbi, Gujarat, a major ceramic manufacturing hub, was disrupted after natural gas prices climbed amid the West Asia conflict. Several manufacturing units remained shut from early March until mid-April, affecting output and sales.

Varmora Granito’s June-quarter revenue declined 2.9% year-on-year to Rs 315.3 crore as these disruptions weighed on operations. The subsequent improvement in September suggests that the recovery in manufacturing activity and sales played an important role in restoring earnings momentum.

For tile manufacturers, fuel prices, production capacity utilisation and product pricing can significantly influence profitability. When factories operate more consistently, manufacturers can spread fixed costs across higher production volumes. However, the sustainability of the latest improvement will depend on demand conditions, input costs and the company’s ability to maintain margins in subsequent quarters.

Premium Tiles Account For 87% Of Revenue

Varmora Granito’s business mix is another important factor for investors to track. Premium tiles contributed 87% of the company’s revenue during the first half of FY27, underlining the importance of higher-value products to its overall business.

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