Varmora Granito Q1 FY27 Results (NSE: VARMORA)
Signal: Loss reversed
The read
The operating inflection is mixed: consolidated gross margin rose to 62.65%, +406bps YoY, and PAT turned positive at ₹97.03 million, but revenue declined 2.89% YoY and the profit improvement is materially helped by the depreciation-method change, which raised quarterly net profit by ₹84.70 million.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹315.27 Cr | -2.89% | -30.38% |
| Net profit | ₹9.7 Cr | Turnaround from -54.00 million | |
| EPS | ₹0.63 | Turnaround from -₹0.21 |
P&L walk
Consolidated revenue was ₹3152.75 million, -2.89% YoY and -30.38% QoQ, but gross margin expanded to 62.65%, +406bps YoY, as raw-material consumption fell to 24.59% of revenue from 28.65%; PAT turned positive at ₹97.03 million versus a ₹54.00 million loss, although the benefit includes ₹84.70 million of disclosed quarterly profit impact from the prospective depreciation-method change.
Segments
The Group reports a single operating segment, but consolidated PAT of ₹97.03 million was ₹50.15 million below standalone PAT of ₹147.18 million because subsidiaries, associates, joint ventures and non-controlling interests dragged group earnings.
Key positives
- Consolidated gross margin expanded to 62.65%, +406bps YoY, while raw-material consumption declined to 24.59% of revenue from 28.65%.
- Finance costs fell 32.87% YoY to ₹71.29 million, providing support to the return to positive consolidated PAT of ₹97.03 million.
- Standalone revenue grew 3.64% YoY to ₹2962.91 million and standalone PAT turned positive at ₹147.18 million from a ₹57.28 million loss.
Key concerns
- Consolidated revenue declined 2.89% YoY to ₹3152.75 million and was down 30.38% QoQ, with no volume or realisation disclosure to establish the source of the slowdown.
- Standalone gross margin compressed 1202bps YoY to 39.89%, indicating materially weaker parent-level cost absorption despite the consolidated margin expansion.
- Consolidated PAT of ₹97.03 million was below standalone PAT of ₹147.18 million, reflecting losses or dilution from the wider group.
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