Varmora earnings rose 498% year on year to ₹53.7 crore for the six months ended September 30, 2026, as a September-quarter recovery followed production disruptions earlier in the year. Shares of the recently listed tile manufacturer rose nearly 6% on October 21 as it reported its first financial results since joining the BSE and NSE.
Key Takeaways
- First-half profit growth far outpaced the 3.3% increase in revenue.
- September-quarter profit reached ₹44 crore, compared with ₹9.7 crore in the June quarter.
- Domestic sales and premium products grew, while export revenue declined 18%.
Table of Contents
- Varmora earnings recover faster than revenue
- Production disruption gives way to a quarterly rebound
- Premium products and domestic sales lead growth
- IPO proceeds repay debt as manufacturing plans advance
- Conclusion
Varmora earnings recover faster than revenue
Revenue from operations reached ₹714.2 crore in the first half. Earnings before interest, tax, depreciation and amortisation totalled ₹101.3 crore, with the EBITDA margin rising to 14% from 12% a year earlier.
The September quarter accounted for most of the half-year profit. Quarterly profit after tax increased 206% year on year to ₹44 crore from ₹14.4 crore, while revenue rose 9% to ₹399 crore. Revenue was also 27% higher than in the preceding quarter.
The figures show a sharper recovery in profitability than in sales, with the stronger September quarter following a difficult start to the financial year.
| Item | Details |
|---|---|
| New designs | 508 launched during the first half. |
| Exclusive brand outlets | Four added, bringing the network to 309. |
| Multi-brand outlets | More than 2,000 in the distribution network. |
Production disruption gives way to a quarterly rebound
The June quarter was affected by tile-manufacturing disruptions in Morbi after natural gas prices rose sharply amid the West Asia conflict. Several plants remained closed from early March until mid-April, limiting production and sales. June-quarter revenue fell 2.9% year on year to ₹315.3 crore.
Chairman and Managing Director Bhavesh Varmora said price increases during the period had recovered the higher gas costs. He identified cash generation, product innovation and retail-network expansion as continuing priorities.
Premium products and domestic sales lead growth
Premium glazed vitrified tiles and technical products, including Integrated Stone Technology, generated 87% of first-half revenue, up from 83% a year earlier. Revenue from that category increased 9%.
Varmora’s integrated stone technology process uses a five-feeder manufacturing system to produce artificial stone surfaces resembling materials such as marble, stone and granite. This is part of the technical-product range included in the company’s premium portfolio.
Domestic revenue rose 9% to ₹589.7 crore, representing 83% of first-half sales. Exports fell 18% to ₹124.5 crore, affected by Morbi production disruptions and higher freight costs to Gulf markets.
The company also expanded its design range and retail presence during the half-year.
IPO proceeds repay debt as manufacturing plans advance
Varmora completed its ₹708-crore initial public offering during the period, including a ₹320-crore fresh issue whose proceeds were used to repay debt. Its shares began trading on the BSE and NSE on September 29, 2026.
The company commenced production at a new manufacturing facility in Tezpur, Assam, and plans to upgrade its Solaris unit to manufacture glazed vitrified tiles. It also divested its stake in Simola Tiles LLP as part of its focus on its core product portfolio.
Conclusion
Varmora’s first listed results show a strong profit rebound despite modest first-half revenue growth and weaker exports. The planned Solaris upgrade is the next identified manufacturing step, although no completion date was provided.
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