Recently listed Varmora Granito shares demonstrated remarkable resilience, finishing 1.60% higher at ₹135 on Thursday despite the broader market crash. According to latest reports, the Nifty 50 index declined 123 points to 22,687, BSE Sensex corrected 460 points to 73,249, and Bank Nifty fell 51 points to 54,925. The small-cap stock with a market cap of around ₹3,000 crore attracted buying interest despite weak trends on Dalal Street, showcasing strong fundamentals that are driving investor confidence. As per market analysts, the company's 498% year-on-year growth in net profit for H1 FY27 has been a key factor in attracting investor interest.
Tile manufacturer Varmora Granito Ltd delivered exceptional first-half FY27 results, with net profit surging 498% year-on-year to ₹53.7 crore from ₹9.7 crore in the June quarter. According to latest reports, revenue from operations increased 3.3% to ₹714.2 crore for the six months ended September 30, 2026. The company's shares rose nearly 6% following the strong financial performance, marking a significant milestone as the first results since its stock exchange listing on September 29, 2026. EBITDA stood at ₹101.3 crore with a margin of 14%, compared with 12% in the year-ago period, demonstrating improved operational efficiency.
The September quarter marked a significant recovery for Varmora Granito, with revenue rising 9% year-on-year and 27% sequentially to ₹399 crore. As per latest reports, profit after tax surged 206% to ₹44 crore from ₹14.4 crore in the same period last year, while profit in the June quarter stood at ₹9.7 crore. The June quarter was affected by industry-wide disruptions after gas prices in Morbi rose following the outbreak of the conflict in West Asia, with tile manufacturing plants remaining shut from early March to mid-April. Chairman and Managing Director Bhavesh Varmora noted that despite challenging first-quarter conditions, the company recorded a 498% increase in profit for H1 FY27, with the September quarter showing strong recovery momentum.
According to latest reports, 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, up from 83% in the year-ago period. The premium segment grew 9% year-on-year. The company added four exclusive brand outlets during the first half, taking the total to 309, 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, while export revenue fell 18% to ₹124.5 crore due to West Asia conflict impact and higher freight costs. The company has more than 2,000 multi-brand outlets across its network.
Market experts are bullish on Varmora Granito's prospects, with technical analysts suggesting the stock may touch ₹170 once it decisively breaks above the ₹146 hurdle. According to Mahesh M Ojha, VP — Research and Business Development at KC Securities, the stock has strong support at ₹124, whereas it is facing resistance at ₹146. Fresh buying should be initiated only above ₹146 or around ₹130, maintaining a stop-loss at ₹124, while existing investors should hold their positions with a strict stop-loss at ₹124 for upside targets of ₹146 and ₹170. The company's resilience against the ongoing Middle East crisis and natural gas supply challenges has impressed market participants, with the tile manufacturing industry facing acute supply chain disruptions.
