Starting his career as a civil engineer, he made an entry into Telugu cinema with the path-breaking crime thriller, "Siva" (1989) screened at the 13th International Film Festival of India, and has won Varma, the state Nandi Awards for Best direction, Best first film of a director, and the Filmfare Award for Best Film – Telugu. Subsequently, the film was included in CNN-IBN's list of 100 greatest Indian films of all time. Varma's next movie "Kshana Kshanam" (1991) was screened at the Ann Arbor Film Festival. The sleeper hit won him another Nandi Award for Best Direction, and the Nandi Award for Best Screenplay Writer. The 1993 political drama, "Gaayam" received six state Nandi Awards. In 1999, he directed "Prema Katha" for which he received his third Nandi Award for Best Director.