Varmora Granito IPO
Varmora Granito IPO Details
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Open Date
22 Sep 2026
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Close Date
24 Sep 2026
- IPO Price Range
₹ 140 to ₹148
- IPO Size
₹ 1,096.04 Cr
Varmora Granito IPO Timeline
Last Updated: 19 September 2026 5:40 AM by 5paisa
Varmora Granito Limited manufactures and markets tiles and other building-material products. Its tile portfolio includes glazed vitrified tiles (GVT), polished vitrified tiles (PVT) and ceramic tiles across applications such as flooring, walls, façades, back panels and kitchen slabs. The company also offers bathware, sanitaryware, faucets, tile adhesives and related products.
Its business combines in-house manufacturing with third-party manufacturing and a multi-channel distribution model. Domestic sales are served through exclusive brand outlets (EBOs), multi-brand outlets (MBOs) and B2B channels covering builders, contractors, developers and government customers. The company also exports to international markets. Its manufacturing operations are concentrated in the Morbi ceramic cluster in Gujarat.
Varmora has increasingly focused on premium GVT products and product innovation. In FY26, GVT and technical products accounted for 84.19% of revenue from the tiles segment, while revenue generated from in-house manufacturing represented 82.40% of revenue from operations.
Established in: 2003
Chairman and Managing Director: Bhavesh Vallabhdas Varmora
Peers:
| Metric | Varmora Granito Limited | Kajaria Ceramics Limited | Somany Ceramics Limited | Asian Granito India Limited | Orient Bell Limited |
|---|---|---|---|---|---|
| Face Value (₹) | 2 | 1 | 2 | 10 | 10 |
| Revenue from Operations FY26 (₹ Cr) | 1512.46 | 4830.36 | 2789.84 | 1858.06 | 691.45 |
| EPS – Basic (₹) | 3.08 | 30.48 | 19.80 | 0.70 | 8.46 |
| EPS – Diluted (₹) | 3.05 | 30.44 | 19.76 | 0.70 | 8.43 |
| P/E (x) | – | 35.24 | 24.94 | 87.36 | 39.97 |
| RoNW (%) | 7.79 | 15.89 | 8.79 | 1.23 | 3.78 |
| NAV Per Share (₹) | 39.52 | 191.11 | 202.11 | 51.36 | 222.78 |
Varmora Granito Objectives
The Net Proceeds from the Fresh Issue are proposed to be utilised towards:
1. Repayment or pre-payment, in full or in part, of certain outstanding borrowings and accrued interest availed by Varmora Granito Limited.
2. Repayment or pre-payment of certain borrowings of its subsidiaries, including Covertek Ceramica Private Limited, Varmora Sanitarywares Private Limited and Simola Tiles LLP, through investment in these subsidiaries.
3. General corporate purposes.
The Company will not receive any proceeds from the Offer for Sale. The OFS proceeds will be received by Katsura Investments, subject to offer-related expenses and applicable terms.
Varmora Granito IPO Size
| Types | Size |
|---|---|
| Total IPO Size | ₹1,096.04 Cr |
| Offer For Sale | ₹776.04 Cr |
| Fresh Issue | ₹320.00 Cr |
Varmora Granito IPO Lot Size
| Application | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail (Min) | 1 | 101 | 14140 |
| Retail (Max) | 13 | 1313 | 194324 |
| S-HNI (Min) | 14 | 1414 | 197960 |
| S-HNI (Max) | 66 | 6666 | 986568 |
| B-HNI (Min) | 67 | 6767 | 947380 |
| Particulars (In ₹ Crores) | FY24 | FY25 | FY26 |
| Revenue | 1435.48 | 1446.03 | 1512.46 |
| EBITDA | 150.33 | 198.29 | 221.56 |
| PAT | 44.94 | 30.77 | 55.09 |
| Particulars (In ₹ Crores) | FY24 | FY25 | FY26 |
| Total Assets | 1476.16 | 1589.80 | 1509.87 |
| Share Capital | 39.97 | 40.33 | 40.33 |
| Total Liabilities | 772.80 | 846.61 | 699.66 |
| Particulars (In ₹Crores.) | FY24 | FY25 | FY26 |
| Net Cash Generated From / (used in) Operating Activities | 88.29 | 63.21 | 234.07 |
| Net Cash Generated From / (used in) Investing Activities | (336.56) | (119.95) | (45.97) |
| Net Cash Generated From / (used in) Financing Activities | 115.06 | 46.62 | (188.30) |
| Net Increase (Decrease) in Cash and Cash Equivalents | (133.21) | (10.11) | (0.19) |
Strengths
1. Varmora is among the leading Indian tile companies by revenue among the selected listed peers considered in the industry report.
2. Its product mix is increasingly tilted towards premium GVT and technical products, which contributed 84.19% of tile revenue in FY26.
3. The company has a broad product portfolio spanning tiles, bathware, sanitaryware, faucets, adhesives and related building-material products.
4. Its distribution model covers EBOs, MBOs and B2B customers, providing access to retail consumers as well as builders, contractors and institutional buyers.
5. Product innovation includes Integrated Stone Technology commercialised in 2024, alongside a history of launches across large-format, digitally printed and specialised tile categories.
Weaknesses
1. Manufacturing operations are concentrated in the Morbi region of Gujarat, exposing production to location-specific operational or supply-chain disruptions.
2. GVT and technical products account for a large proportion of tile revenue, creating product-concentration risk if demand shifts away from the category.
3. A substantial part of the domestic business depends on franchise-led EBO and MBO distribution, making sales partly dependent on the performance of channel partners.
4. The company has historically carried material borrowings, with debt reduction forming an important use of the Fresh Issue proceeds.
5. Part of its product requirement is met through third-party manufacturers, exposing the business to external quality, cost and supply risks.
Opportunities
1. Premiumisation in the Indian tile market could support demand for GVT, large-format tiles and design-led products, categories where Varmora has increased its focus.
2. Growth in residential construction, renovation, commercial real estate and hospitality can expand addressable demand for tiles and bathware.
3. Increasing formalisation of the tile industry can benefit organised branded manufacturers with established distribution networks.
4. Further expansion of exclusive outlets and distribution in underpenetrated regions can broaden domestic reach.
5. Bathware, adhesives and other complementary building-material categories provide scope to increase product cross-selling through the existing distribution network.
Threats
1. The Indian tile industry is highly competitive, with organised brands competing alongside a large number of manufacturers concentrated in the Morbi cluster.
2. Volatility in natural gas, power, raw materials, packaging and logistics costs can affect manufacturing margins.
3. Slowdowns in residential and commercial construction may reduce demand for tiles and associated building materials.
4. Disruptions at manufacturing facilities or interruptions in fuel and power supply could affect production and deliveries.
5. Changes in trade policies, export demand, environmental regulations or manufacturing standards could affect operating costs and international sales.
1. Revenue from operations increased from ₹1,435.48 crore in FY24 to ₹1,512.46 crore in FY26, while EBITDA rose from ₹150.33 crore to ₹221.56 crore.
2. PAT recovered to ₹55.09 crore in FY26 from ₹30.77 crore in FY25, alongside an improvement in EBITDA margin to 14.18%.
3. The company has a differentiated premium-product focus, with GVT and technical products contributing 84.19% of FY26 tile revenue.
4. Its business combines manufacturing capabilities with a broad distribution network covering retail, B2B and international markets.
5. Fresh Issue proceeds are primarily intended to reduce borrowings, which may lower leverage and finance costs following utilisation of the proceeds.
India's domestic tiles market was valued at approximately ₹53,100 crore in FY25, up from around ₹36,000 crore in FY19, representing a CAGR of 6.7%. The market is projected to reach approximately ₹76,900 crore by FY29, implying a CAGR of 9.7% between FY25 and FY29.
Premiumisation is an important structural trend. Glazed vitrified tiles represented about 35.5% of Indian tile-industry revenue in FY25 and are projected to account for approximately 45% by FY29. GVT typically generates higher realisations than ceramic and polished vitrified tiles, supporting the industry's shift towards more premium products. The organised segment is also expected to gain share as branded distribution, product quality and formal retail channels expand.
Varmora's exposure aligns with these trends. GVT and technical products accounted for 84.19% of its FY26 tile revenue, while its multi-channel distribution network provides access to retail, institutional and export demand. Growth in housing, commercial construction, renovation and organised building-material retail could expand the addressable market, although competition and construction-cycle risks remain relevant.
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FAQs
Varmora Granito IPO opens from 22 September 2026 to 24 September 2026.
The price band of Varmora Granito IPO is fixed at ₹140 to ₹148 per share.
1. Login to your 5paisa demat account and select the issue in the current IPO section.
2. Enter the number of lots and the price at which you wish to apply for the Varmora Granito IPO.
3. Enter your UPI ID and click on submit. Your bid will then be placed with the exchange.
4. You will receive a mandate notification to block funds in your UPI app.
The minimum lot size for Varmora Granito IPO is 101 shares. This requires an investment of ₹14,140 at the floor price of ₹140 per share.
The basis of allotment for the Varmora Granito IPO is expected to be finalised on 25 September 2026.
The Varmora Granito IPO is tentatively scheduled to list on BSE and NSE on 29 September 2026.
JM Financial Limited is book-running lead managers for the Varmora Granito IPO.
The Company proposes to utilise the Net Proceeds from the Fresh Issue towards:
1. Repayment or pre-payment of certain outstanding borrowings and accrued interest availed by the Company.
2. Repayment or pre-payment of certain borrowings of Covertek Ceramica Private Limited, Varmora Sanitarywares Private Limited and Simola Tiles LLP through investment in these subsidiaries.
3. General corporate purposes.