Small-cap stock shows resilience against stock market crash; experts hint at strong Q2 results 2026 | Should you buy?
Small-cap stock to buy after Q2 Results 2026: The key benchmark indices continue to remain under the selling heat for the third straight session on Thursday. The Nifty 50 index finished 123 points lower at 22,687, the BSE Sensex corrected 460 points and closed at 73,249, while the Bank Nifty index went off 51 points and ended at 54,925. However, some stocks showed resilience against this continuous Indian stock market crash. Recently listed Varmora Granito shares are among them. The small-cap stock with a market cap of around ₹3,000 crore, attracted buying interest on Thursday despite weak trends on Dalal Street and finished 1.60% higher at around ₹135 apiece on the NSE.
According to stock market experts, the small-cap stock is attracting buying interest after reporting strong Q2FY27 and H-1FY27 numbers. They said the company is in the tile manufacturing business, which was severely hit by a natural supply gap amid the ongoing Middle East crisis. However, the company came through the supply chain crisis and reported strong numbers. They said that the stock may touch ₹170 once it decisively breaks above the ₹146 hurdle.
Highlighting the reason for resilience shown by the small-cap stock despite weak trends on Dalal Street, Anujm Gupta, a SEBI-registered market analyst, said, “The company had reported strong Q2 and H-1 earnings on Monday. This was cheered by bulls on Monday, and the stock finished higher, showing resilience against the selling pressure in the key benchmark indices. The company has reported around 500% YoY growth in the net profit in the first half of the recently ended September 2026 quarter. The company's revenue grew both in YoY and Qoq terms.”
On why these earnings are cheered by Dalal Street bulls, Mahesh M Ojha, VP — Research and Business Development at KC Securities, said, “The small-cap company is a tile maker company. The industry they belong to is facing an acute natural gas supply crisis, but the company has managed to handle the crisis well despite the persisting Middle East crisis.”
Decoding the technical chart of the small-cap stock, Mahesh M Ojha of KC Securities said, “The stock has strong support at ₹124, whereas it is facing resistance at ₹146. On breaking above ₹146 on a closing basis, we can expect the small-cap stock to come close to ₹170.”
Ojha said that 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.
Varmora Granito Limited reported a 498% year-on-year increase in profit after tax (PAT) to ₹53.7 crore for the first half of FY27, supported by a recovery in the September quarter and growth in its premium tile and technical product portfolio.
The company’s revenue from operations for the six months ended September 30, 2026, rose 3.3% year-on-year to ₹714.2 crore. These are Varmora’s first financial results since its shares were listed on the BSE and NSE on September 29.
Revenue for the September quarter stood at ₹399 crore, up 9% year-on-year and 27% sequentially. Profit after tax for the quarter was ₹44 crore, up 206% from ₹14.4 crore in the corresponding quarter of the previous financial year. PAT for the June quarter stood at ₹9.7 crore.
The first quarter was affected by disruptions to tile manufacturing in Morbi following a sharp rise in natural gas prices amid the West Asia conflict. Several plants remained shut from early March until mid-April, affecting production and sales volumes. The company’s revenue for the June quarter declined 2.9% year-on-year to ₹315.3 crore.
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
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