Varma, ranked 60 in the world, dropped the first game before fighting back in brilliant style to fashion a 16-21 21-18 21-19 victory over Guru, ranked 22nd, in the 75-minute semi-final battle between two players from the Gopichand Academy in Hyderabad at the Cricket Club of India's courts.
Varma, who will be 21 on December 30, will clash with third seed H S Prannoy in the title clash tomorrow.
The women's final, also to be played tomorrow, would be an all-Indonesia clash between top seed Febby Angguni and Ana Rovita.
Pradnya Gadre set herself up for a double crown in doubles by reaching the women's as well as mixed doubles title contest pairing N Sikki Reddy and Akshay Dewalkar respectively.
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Results (All semi finals and all Indian names unless stated otherwise):
Men's singles: H S Prannoy (3) def. B Sai Praneeth (2) 21-19 21-10.
Women's singles: Ana Rovita, INA, def. Chia Hsin Lee (6), TPE, 11-21 21-19 23-21; Febby Angguni (1), INA def. Dinar Dyah Ayustine (INA) 21-11 21-15.
Women's doubles: Pradnya Gadre and N Siki Reddy def. Prajakta Sawant and Arathi Sara Sunil 19-21 22-20 21-17.
Mixed doubles: Kona Tarun and Ashwini Ponnappa (1) def. Pranaav Jerry Chopra and K Maneesha (4) 21-14 21-9; Akshay Dewalkar and Pradnya Gadre (3) def. Arun Vishnu and Aparna Balan (2) 19-21 21-18 21-18.