Varmora Granito Q2 FY27: consolidated PAT surges 175% YoY as margins expand sharply

In its first quarter as a listed company, Varmora Granito posted consolidated revenue of ₹399.0 Cr, up 8.8% YoY and 26.5% QoQ, with PAT attributable to owners of ₹45.3 Cr, up 175% YoY (PAT margin 11.4% vs 4.5% a year ago). EPS came in at ₹2.23 for the quarter (H1 FY27 EPS ₹2.87). Standalone revenue was ₹387.1 Cr with PAT of ₹23.3 Cr, up a more modest 37% YoY after absorbing a ₹17.9 Cr exceptional loss on the sale of its stake in subsidiary Simola Tiles LLP. The gap between standalone and consolidated growth is explained almost entirely by that one transaction: at the standalone entity the stake sale registers as a loss, while at the Group level the same deal (deconsolidation of Simola Tiles LLP, now a 30%/29% associate rather than a subsidiary) nets to a small ₹0.6 Cr gain, so the drag essentially disappears on a consolidated basis. Excluding exceptional items on both sides, adjusted consolidated PAT growth is still ~202% YoY — confirming the jump is largely operating, not accounting. The operating margin story is the core of the quarter: EBITDA margin expanded to roughly 17.1% from ~5.7% a year ago and ~4.6% in Q1 FY27, helped by a drop in finance costs (₹6.8 Cr vs ₹9.7 Cr YoY). Against the pre-listing expectation range we flagged (revenue ~₹430–450 Cr, EBITDA margin 12–14%, PAT margin 3–4%), revenue came in below range while both margin metrics beat it comfortably — a miss on scale, a clear beat on profitability. No management press release was available to cross-check against the company's own framing, and there is no formal prior guidance on record for this quarter. Post-listing analyst coverage remains thin — a web check found no Q2 FY27-specific consensus estimates, consistent with the pre-result read that research on the stock is still mostly pre-IPO in nature. The two watch items flagged pre-result — capex pace and IPO-proceeds deployment — both show limited progress. H1 FY27 capex was just ₹11.7 Cr (consolidated) / ₹14.8 Cr (standalone), well short of the ₹100–150 Cr range flagged for the first six months post-listing. More notably, all ₹296 Cr of net IPO proceeds remain parked in monitoring accounts as of 30 September 2026, with the company's own disclosure showing zero utilisation against any of the stated objects (₹215 Cr debt repayment, ₹30 Cr subsidiary investment, ₹48 Cr general corporate purposes). Standalone total borrowings are little changed at ₹274.9 Cr versus ₹279.3 Cr in March 2026, so the debt-reduction story investors were watching for has not yet started to play out.