Varmora Granito IPO

Mainboard • Equity • Fresh capital cum OFS

LISTEDMAINBOARDEquity

Varmora Granito

Price band

₹140 – ₹148

Lot size

101 shares

Min investment

₹14,948

Issue size

₹708.02 Cr

About the company

Varmora Granito Limited was incorporated in 2003. It manufactures and sells ceramic and vitrified tiles, covering glazed vitrified tiles, polished vitrified tiles and ordinary ceramic tiles. Vitrified tiles are denser and harder than ceramic ones and sit at the premium end of the market. The company has deliberately tilted towards that premium end. Glazed vitrified and technical tiles made up about 84% of its tile revenue in FY2026. It has also adopted Integrated Stone Technology through a technology partnership with the Italian firm SACMI, which supports the more innovative and premium products. It runs eight manufacturing facilities in the Morbi cluster of Gujarat, which is India's main tile making centre, and 81.72% of its FY2026 revenue came from tiles it made itself rather than bought in. Its distribution network covers 305 exclusive brand outlets and 2,758 multi-brand outlets across India and overseas, alongside direct business to business sales to builders, contractors, developers and government bodies. It has 16.22 MW of its own renewable energy capacity from wind and solar, and as on March 2026 it had 1,153 permanent employees.

Varmora Granito Limited makes ceramic and vitrified tiles, with glazed vitrified and technical tiles making up about 84% of its tile revenue in FY2026. It runs eight plants in the Morbi cluster of Gujarat and sells through 305 exclusive and 2,758 multi-brand outlets in India and abroad.

IPO details

Issue price: ₹148
Price band: ₹140 – ₹148
Face value: ₹2
Lot size: 101
Min investment: ₹14,948
Issue size: ₹708.02 Cr
Sale type: Fresh capital cum OFS
Listing on: BSE, NSE
BSE scrip code: 7986
NSE symbol: VARMORA.NS

Lot size & investment by category

APPLICATION	LOTS	SHARES	AMOUNT
Retail (Min)	1	101	₹14,948
Retail (Max)	13	1,313	₹1,94,324
S-HNI (Min)	14	1,414	₹2,09,272
B-HNI (Min)	67	6,767	₹10,01,516

Investor reservation

CATEGORY	RESERVED
QIB	Not more than 50% of the Offer
Retail	Not less than 35% of the Offer
NII	Not less than 15% of the Offer

Objects of the issue

1Repayment/ pre-payment, in full or in part, of all or certain outstanding borrowings and accrued interest thereon availed by: The company and wholly-owned subsidiaries namely Covertek Ceramica Pvt.Ltd. and Varmora Sanitarywares Pvt.Ltd. (formerly, Varmora Sanitarywares LLP), and of the subsidiary, Simola Tiles LLP, through investment in such Subsidiaries245.00

2General Corporate Purposes

Financials

Rs. Crore • restated

METRIC	31 Mar 2026	31 Mar 2025	31 Mar 2024
Assets	1,509.87	1,589.80	1,476.16
Total Income	1,562.53	1,492.68	1,472.58
Profit After Tax	55.09	30.77	44.94
EBITDA	221.56	198.29	150.33
NET Worth	796.88	722.90	678.59
Reserves and Surplus	765.70	691.72	630.20
Total Borrowing	357.95	505.16	412.89

Key performance indicators

P/E Ratio

60.66

EPS (₹)

2.44

RoE

6.80%

RoCE

9.89%

RoNW

7.79%

PAT Margin

3.53%

EBITDA Margin

14.18%

NAV (₹)

39.52

✓ Strengths

• Profit nearly doubled in FY2026, from Rs 30.77 crore to Rs 55.09 crore.

• EBITDA has improved every year, from Rs 150.33 crore in FY2024 to Rs 198.29 crore in FY2025 and Rs 221.56 crore in FY2026.

• The company cut its borrowing sharply, from Rs 505.16 crore in FY2025 to Rs 357.95 crore in FY2026.

• The product mix is premium. Glazed vitrified and technical tiles accounted for about 84% of tile revenue in FY2026, which earns better than plain ceramic tile.

• It makes most of what it sells, with 81.72% of FY2026 revenue coming from its own eight plants rather than traded product.

• The distribution reach is large, with 305 exclusive brand outlets and 2,758 multi-brand outlets in India and overseas, plus direct sales to builders and developers.

• The technology partnership with SACMI of Italy supports its premium and technical tile range.

• It has 16.22 MW of its own wind and solar capacity, which helps against the energy cost that dominates tile making.

⚠ Risks

• This is a very expensive issue on earnings, at about 60.66 times on an EPS of only Rs 2.44.

• Return ratios are weak and do not support that multiple. RoNW was 7.79% and RoCE was 9.89%.

• Promoter holding is already low at 52% before the issue and falls to 46.55% after it, leaving the promoters below a half share.

• Sales have been almost flat for three years, moving from Rs 1,472.58 crore in FY2024 to Rs 1,492.68 crore in FY2025 and Rs 1,562.53 crore in FY2026.

• Profit is volatile, at Rs 44.94 crore in FY2024, Rs 30.77 crore in FY2025 and Rs 55.09 crore in FY2026.

• The profit margin is thin at 3.53%.

• All eight plants are in the Morbi cluster of Gujarat, so any problem affecting that cluster, whether gas supply, labour or regulation, affects the entire company.

• Natural gas is a major input for firing tiles, and gas price movements feed straight into cost with little ability to pass them on quickly.

• Tile demand follows the construction and real estate cycle, and this is a fresh issue combined with an offer for sale.

Promoters & holding

Bhavesh Vallabhdas Varmora, Hiren R Varmora and Pramodkumar Parsotambhai Patel

Pre-issue promoter holding

52%

Post-issue promoter holding

46.55%

Data refreshed 07 Nov 2026, 04:53 pm IST. GMP is unofficial market sentiment, not investment advice.