Varmora Granito Limited is scheduled to open its initial public offering (IPO) from 22 September to 24 September 2026, with a price band of ₹140 to ₹148 per equity share. The mainboard IPO comprises a fresh issue of up to 2.16 crore shares aggregating to ₹320 crore and an offer for sale (OFS) of approximately 2.62 crore shares. At the upper price band, the total issue size is approximately ₹708.02 crore. The shares are proposed to be listed on the BSE and NSE.
Varmora Granito operates in the ceramic and vitrified tiles industry and has been in business since 2003. Its product portfolio includes glazed vitrified tiles (GVT), polished vitrified tiles (PVT), ceramic tiles, large-format surfaces, bathware, sanitaryware and adhesives. The company has also expanded into newer surface technologies.
This Varmora Granito IPO analysis covers the company's business model, manufacturing and distribution network, financial performance, IPO structure, use of proceeds, valuation, competitive strengths and key risks.
Looking beyond IPOs? Explore Finology 30.
Table of Contents
- Varmora Granito IPO Details
- What Does Varmora Granito Do?
- Manufacturing and Distribution Network
- IPO Structure: Fresh Issue and OFS
- How Will Varmora Granito Use the IPO Proceeds?
- Varmora Granito Financial Performance
- Margin Expansion in FY2026
- Debt Position
- Operating Cash Flow
- Varmora Granito Competitive Strengths
- Key Risks in Varmora Granito IPO
- Varmora Granito IPO Valuation
- Varmora Granito vs Listed Peers
- What Should Investors Track After the IPO?
- Varmora Granito IPO GMP
- Varmora Granito IPO Dates
- Should You Apply for the Varmora Granito IPO?
- Key Takeaways
- Frequently Asked Questions
The Varmora Granito IPO is a mainboard, book-built issue with a price band of ₹140 to ₹148 per equity share. The issue includes both a fresh issue and an offer for sale.
| Particulars |
Details |
| Company |
Varmora Granito Limited |
| IPO type |
Mainboard, book-built issue |
| IPO dates |
22 September to 24 September 2026 |
| Price band |
₹140 to ₹148 per share |
| Face value |
₹2 per share |
| Fresh issue |
Up to 2.16 crore shares, aggregating to ₹320 crore |
| Offer for Sale |
Approximately 2.62 crore shares |
| Total issue size |
Approximately ₹708.02 crore at the upper price band |
| Lot size |
101 shares |
| Minimum investment |
₹14,948 at ₹148 per share |
| Listing |
BSE and NSE |
| Registrar |
KFin Technologies Limited |
| Book-running lead managers |
JM Financial, Goldman Sachs India Securities and SBI Capital Markets |
The minimum retail application consists of 101 shares. At the lower price band of ₹140, the minimum application amount is ₹14,140, while at the upper price band of ₹148, it is ₹14,948.
The IPO is scheduled to open on 22 September 2026 and close on 24 September 2026. The basis of allotment is expected on 25 September, refund initiation and demat credit are scheduled for 28 September, and the expected listing date is 29 September 2026, subject to the final IPO process and exchange approvals.
/content-assets/3df33d3806b84b8587840a4fb257fa50.png)
Get the latest details on the Varmora Granito IPO, including its price band, issue structure, lot size, subscription dates and listing information.
Varmora Granito is a Gujarat-based manufacturer and marketer of ceramic and vitrified tiles. The company was incorporated in 2003 and has built its business around manufacturing, product development, distribution and exports.
Its product portfolio includes:
- Glazed Vitrified Tiles (GVT)
- Polished Vitrified Tiles (PVT)
- Ceramic tiles
- Large-format surfaces and slabs
- Bathware and sanitaryware
- Adhesives and related building-material products
The company had more than 3,500 SKUs as of 31 March 2025. GVT and technical products form an important part of its tile portfolio.
Varmora has also invested in product and manufacturing technology. In 2024, it commercialised Integrated Stone Technology (IST) through a technology partnership with Italian equipment manufacturer SACMI. The technology is aimed at producing large-format, marble-like surfaces with different design and performance characteristics.
Varmora's manufacturing operations are concentrated in the Morbi cluster of Gujarat, one of India's major ceramic manufacturing centres.
The company serves both domestic and international markets through a multi-channel distribution network. Its domestic channels include exclusive brand outlets, multi-brand outlets and B2B customers such as builders, contractors and institutional buyers.
Varmora states that its products are exported to more than 100 countries, giving the company exposure to international markets in addition to domestic demand.
The distribution model provides broad market reach, although a significant proportion of domestic sales through franchisee-operated outlets means the company has less direct control over certain retail-level operations.
The Varmora Granito IPO consists of two components: a fresh issue and an offer for sale. The distinction is important because the proceeds from the two components have different destinations.
Fresh Issue
Varmora Granito plans to raise ₹320 crore through the fresh issue, comprising up to approximately 2.16 crore equity shares.
The proceeds from the fresh issue will be received by the company and used for the purposes specified in the offer documents.
Offer for Sale
The IPO also includes an OFS of approximately 2.62 crore shares, primarily by Katsura Investments.
The proceeds from the OFS will go to the selling shareholders rather than to Varmora Granito.
At the upper price band of ₹148, the fresh issue represents ₹320 crore, while the OFS represents approximately ₹388 crore. Together, the two components result in a total issue size of approximately ₹708.02 crore.
The current IPO structure is smaller than the offer contemplated in the company's August 2025 DRHP. The earlier DRHP proposed a ₹400 crore fresh issue and an OFS of up to 5.24 crore shares.
The principal purpose of the fresh issue is repayment or prepayment of borrowings and accrued interest.
The June 2026 addendum and related offer-document disclosures indicate that approximately ₹245 crore of the fresh issue proceeds is intended for repayment or prepayment of borrowings and accrued interest of the company and certain subsidiaries.
The remaining portion of the fresh issue is intended for general corporate purposes under the applicable offer-document framework.
Debt repayment is an important part of the IPO because the company reported total borrowings of approximately ₹357.95 crore as of 31 March 2026.
If implemented as stated, the debt-repayment plan could reduce borrowings and associated interest costs. Investors should compare the company's actual post-IPO debt position with the stated use of proceeds.
Varmora Granito's recent financial performance shows relatively moderate revenue growth but a stronger improvement in operating profitability. PAT declined in FY2025 before recovering in FY2026.
FY2024 Financial Performance
| Particulars |
FY2024 |
| Revenue from operations |
₹1,435.48 Cr |
| EBITDA |
₹150.33 Cr |
| PAT |
₹44.94 Cr |
| EBITDA margin |
10.21% |
| ROCE |
7.95% |
| ROE |
6.39% |
FY2025 Financial Performance
| Particulars |
FY2025 |
| Revenue from operations |
₹1,446.03 Cr |
| EBITDA |
₹198.29 Cr |
| PAT |
₹30.77 Cr |
| EBITDA margin |
13.28% |
| ROCE |
6.32% |
| ROE |
4.14% |
FY2026 Financial Performance
| Particulars |
FY2026 |
| Revenue from operations |
₹1,512.46 Cr |
| EBITDA |
₹221.56 Cr |
| PAT |
₹55.09 Cr |
| EBITDA margin |
14.18% |
| ROCE |
9.89% |
| ROE |
6.80% |
Revenue Growth
Revenue from operations increased from ₹1,435.48 crore in FY2024 to ₹1,512.46 crore in FY2026.
This represents relatively modest growth over the two years. The more notable change has been the improvement in operating profitability rather than rapid top-line expansion.
EBITDA Improvement
EBITDA increased from ₹150.33 crore in FY2024 to ₹221.56 crore in FY2026.
During the same period, EBITDA margin increased from 10.21% to 14.18%.
The improvement indicates that operating profitability increased faster than revenue over this period. The sustainability of this margin improvement will be an important metric to monitor after listing.
Profit After Tax
PAT declined from ₹44.94 crore in FY2024 to ₹30.77 crore in FY2025, before recovering to ₹55.09 crore in FY2026.
The FY2026 profit was therefore higher than both FY2024 and FY2025 levels. However, the previous decline shows that profitability has not been consistent across the reported period.
The company's gross margin increased from 35.26% in FY2024 to 37.92% in FY2026. The company's disclosures associate the improvement with its product mix, particularly the contribution of GVT and technical products.
EBITDA margin also increased from 10.21% in FY2024 to 14.18% in FY2026.
Product mix is therefore an important metric to track after listing. A continued contribution from higher-value products could support margins, while weaker demand for premium products or higher input costs could put pressure on profitability.
Varmora Granito reported total borrowings of approximately ₹357.95 crore as of 31 March 2026.
| Debt metric |
FY2026 |
| Total borrowings |
₹357.95 Cr |
| Debt-to-equity |
Approximately 0.44x |
| Interest coverage ratio |
Approximately 1.89x |
A substantial portion of the fresh issue is proposed to be used for debt repayment or prepayment.
Debt reduction can potentially lower interest expenses and improve leverage. However, investors should also assess whether the company can maintain a lower debt burden while meeting future capital expenditure and working-capital requirements.
Varmora Granito reported operating cash flow of approximately ₹234.07 crore in FY2026.
Operating cash flow provides an additional perspective on earnings because reported PAT does not by itself indicate how much cash the business generates from operations.
For Varmora Granito, investors should monitor:
- Operating cash flow
- Working capital
- Inventory
- Receivables
- Capital expenditure
- Debt repayment
- Free cash flow
These indicators can help assess whether reported earnings are translating into cash generation.
Varmora Granito has several business characteristics that are relevant when evaluating the IPO.
1. Established operating history
Varmora has been operating since 2003 and has developed manufacturing, distribution and export capabilities over more than two decades.
2. Product diversification
The company offers ceramic and vitrified tiles alongside bathware, sanitaryware, adhesives and newer surface products.
3. Focus on GVT and technical products
GVT and technical products form an important part of the tile portfolio. The company's margin improvement has also been associated with product mix.
4. Technology adoption
Varmora has invested in newer tile technologies and commercialised Integrated Stone Technology through its partnership with SACMI.
5. Distribution reach
The company has a multi-channel domestic distribution network covering exclusive outlets, multi-brand outlets and B2B customers. It also exports to more than 100 countries.
6. Debt repayment through IPO
A significant portion of the fresh issue is earmarked for repayment or prepayment of borrowings and accrued interest.
The resulting post-IPO debt position and interest costs will be important metrics to track.
The Varmora Granito IPO also involves several business and financial risks that investors should assess.
1. Manufacturing concentration in Morbi
A significant portion of the company's manufacturing infrastructure is concentrated in the Morbi region of Gujarat.
This creates geographic concentration risk. Extreme weather events, infrastructure problems, supply-chain interruptions or other local disruptions could affect production.
The company's disclosures have also highlighted previous operational disruption caused by weather-related events.
2. Energy costs
Tile manufacturing is energy-intensive, making the business sensitive to power and fuel costs.
Changes in natural gas, electricity, fuel and logistics costs can affect margins, particularly when higher costs cannot be fully passed on to customers.
3. Competitive tiles industry
Varmora operates in a competitive industry that includes listed companies such as Kajaria Ceramics, Somany Ceramics, Asian Granito India and Orient Bell.
Competition exists across pricing, product design, distribution, dealer relationships, manufacturing efficiency and brand positioning.
4. Dependence on construction and real-estate demand
Demand for tiles is linked to residential construction, renovation, commercial real estate and broader construction activity.
A slowdown in construction or housing demand could affect tile volumes, pricing and capacity utilisation.
5. Working-capital requirements
The company's manufacturing and distribution model requires working capital.
Investors should monitor receivables, inventory and the working-capital cycle after listing.
6. Debt and interest costs
Although the company plans to use IPO proceeds for debt repayment or prepayment, it continues to have borrowings.
The actual reduction in debt after the IPO should therefore be compared with the stated use of proceeds.
7. Product concentration
GVT and technical products account for a substantial portion of tile revenue.
A strong contribution from these categories can support product premiumisation, but changes in demand for these products can also affect overall performance.
8. Franchisee dependence
A significant portion of domestic sales is generated through franchisee-operated outlets.
This model can help expand the retail network without owning every outlet, but it can also reduce direct control over certain aspects of retail execution and customer experience.
9. Export and currency exposure
Varmora exports to more than 100 countries.
International operations expose the company to currency movements, overseas demand conditions, logistics costs, trade restrictions and geopolitical developments.
At the upper price band of ₹148 per share, the company has an implied post-issue equity value of roughly ₹3,345 crore, based on the current IPO structure.
Using FY2026 restated PAT of ₹55.09 crore and approximately 22.51 crore post-issue shares, the indicative post-issue EPS works out to around ₹2.45. At the upper price band of ₹148, this implies a P/E of approximately 60x.
At ₹148 per share:
Indicative P/E = ₹148 ÷ ₹2.45 ≈ 60x
This is an indicative calculation based on FY2026 earnings and the post-issue share count. It is not a forecast of future earnings.
The valuation therefore needs to be considered alongside the company's revenue growth, profitability, return ratios, debt reduction, cash generation and future margin sustainability.
For investors assessing the valuation, the key consideration is whether the company's future earnings growth can support the valuation implied by the IPO price.
Varmora operates in a competitive industry alongside listed companies including Kajaria Ceramics, Somany Ceramics, Asian Granito India and Orient Bell.
Selected FY2026 metrics are as follows:
| Company |
Revenue |
RoNW |
| Varmora Granito |
₹1,512.46 Cr |
7.79% |
| Kajaria Ceramics |
₹4,830.36 Cr |
15.89% |
| Somany Ceramics |
₹2,789.84 Cr |
8.79% |
| Asian Granito India |
₹1,858.06 Cr |
1.23% |
| Orient Bell |
₹691.45 Cr |
3.78% |
The figures show differences in business scale and returns among companies in the same broad industry.
Investors can compare Varmora with listed peers across multiple parameters, including:
- Revenue growth
- EBITDA margin
- PAT margin
- ROE or RoNW
- ROCE
- Debt-to-equity
- Interest coverage
- Working-capital cycle
- Capacity utilisation
- Product mix
- Valuation
A single ratio may not provide sufficient context because companies can differ in scale, product mix, profitability and capital structure.
Several operating and financial indicators can help investors evaluate Varmora Granito after listing.
Revenue growth
FY2026 revenue from operations was ₹1,512.46 crore. Sustained revenue growth will be important for the company's future earnings profile.
EBITDA margin
EBITDA margin improved to 14.18% in FY2026. Investors should monitor whether this improvement continues.
PAT margin
FY2026 PAT of ₹55.09 crore on revenue of ₹1,512.46 crore implies a PAT margin of approximately 3.6%.
This means changes in operating costs, depreciation, finance costs and other expenses can have a meaningful effect on net profitability.
Debt reduction
The fresh issue proceeds are intended to be used substantially for debt repayment or prepayment. The company's post-IPO borrowings should therefore be compared with its stated objectives.
Working capital
Inventory and receivables should be tracked because manufacturing and distribution businesses can require meaningful working capital.
Premium-product contribution
The contribution of GVT and technical products can indicate whether the company's product-mix strategy is translating into sustainable margins.
Capacity utilisation
Manufacturing capacity and utilisation levels will influence how efficiently the company converts its installed capacity into revenue.
Cash generation
Operating cash flow should be assessed alongside PAT to determine whether reported earnings are translating into cash from operations.
The Varmora Granito IPO GMP, or grey market premium, is an unofficial market indicator and is not an official metric published by SEBI or the stock exchanges.
GMP can change before listing and should not be treated as a substitute for analysing the company's financial statements, valuation, IPO objectives and disclosed risks.
For fundamental analysis, the more relevant factors include the Varmora Granito IPO price, issue size, earnings, margins, debt, cash generation and valuation.
The current IPO schedule is as follows:
| IPO event |
Date |
| IPO opens |
22 September 2026 |
| IPO closes |
24 September 2026 |
| Basis of allotment |
25 September 2026 |
| Refund initiation |
28 September 2026 |
| Demat credit |
28 September 2026 |
| Expected listing |
29 September 2026 |
These dates remain subject to the final IPO process and applicable approvals.
Whether an investor applies for the Varmora Granito IPO depends on their assessment of the company's financial performance, valuation, business prospects and risk factors.
Factors to consider
-
FY2026 revenue from operations increased to ₹1,512.46 crore.
-
FY2026 PAT recovered to ₹55.09 crore.
-
EBITDA increased to ₹221.56 crore.
-
EBITDA margin improved to 14.18% in FY2026.
-
A substantial portion of the fresh issue is proposed to be used for debt repayment or prepayment.
-
The company has an established presence in the ceramic and vitrified tiles industry.
-
Varmora has domestic and export operations, with products exported to more than 100 countries.
-
Its product portfolio includes GVT, PVT, ceramic tiles and newer surface products.
-
The company has invested in newer technologies, including Integrated Stone Technology.
Factors requiring attention
-
Revenue growth has been relatively moderate in recent years.
-
The business is exposed to energy and fuel costs.
-
The tiles industry is competitive across pricing, products, distribution and branding.
-
Manufacturing operations are concentrated in the Morbi region.
-
The company continues to have borrowings despite the proposed debt repayment.
-
Working-capital requirements need to be monitored.
-
A meaningful proportion of domestic sales comes through franchisee-operated outlets.
-
Export operations expose the company to currency, logistics and overseas-market risks.
-
The IPO valuation based on FY2026 earnings needs to be assessed against future earnings growth and margin sustainability.
-
Returns on equity and capital remain below those of some larger listed peers based on the figures presented above.
For investors evaluating the Varmora Granito IPO, the key assessment is the relationship between future earnings potential, margin sustainability, debt reduction and the valuation implied by the ₹140 to ₹148 price band.
Varmora Granito enters the IPO market with an established presence in the ceramic and vitrified tiles industry, a broad product portfolio, manufacturing capabilities in the Morbi cluster, a multi-channel distribution network and exports to more than 100 countries.
Financially, FY2026 showed an improvement in profitability. Revenue from operations stood at ₹1,512.46 crore, EBITDA was ₹221.56 crore, and PAT was ₹55.09 crore. EBITDA margin improved to 14.18%, while operating cash flow stood at approximately ₹234.07 crore.
At the same time, recent revenue growth has been moderate, profitability has fluctuated across the reported period, and the company remains exposed to energy costs, construction demand, competition, working-capital requirements and debt.
The IPO's fresh issue is primarily intended for debt repayment or prepayment, making the company's post-IPO leverage and interest costs important metrics to monitor.
At the upper price band of ₹148, the implied post-issue valuation is approximately ₹3,345 crore. Based on FY2026 PAT and the indicative post-issue share count, the implied P/E is around 60x.
For investors analysing the Varmora Granito IPO, the key areas to monitor are revenue growth, EBITDA margins, premium-product contribution, debt reduction, working capital, cash generation, capacity utilisation and valuation.
Want to benchmark Varmora Granito against other recent mainboard issues across different sectors? Use this IPO dashboard to compare issue structures, pricing, timelines and other key IPO details.
1. What is the Varmora Granito IPO price band?
The Varmora Granito IPO price band is ₹140 to ₹148 per equity share.
2. What is the Varmora Granito IPO lot size and minimum investment?
The minimum lot size is 101 shares. At the upper price band of ₹148, the minimum application amount is ₹14,948.
3. When will the Varmora Granito IPO open and close?
The Varmora Granito IPO is scheduled to open on 22 September 2026 and close on 24 September 2026. The expected listing date is 29 September 2026.
4. What is the Varmora Granito IPO issue size?
The current IPO comprises a fresh issue of up to 2.16 crore shares aggregating to ₹320 crore and an OFS of approximately 2.62 crore shares. At the upper price band, the total issue size is approximately ₹708.02 Cr.
5. How will Varmora Granito use the IPO proceeds?
A substantial portion of the fresh issue proceeds is intended for repayment or prepayment of borrowings and accrued interest. Approximately ₹245 crore is identified for debt repayment or prepayment, with the remaining amount intended for general corporate purposes as specified in the offer documents.
6. What was Varmora Granito's FY2026 revenue?
Varmora Granito reported ₹1,512.46 crore in revenue from operations in FY2026.
7. What was Varmora Granito's FY2026 profit?
The company's FY2026 restated PAT was ₹55.09 crore. EBITDA was ₹221.56 crore, with an EBITDA margin of 14.18%.
8. What are the major risks in the Varmora Granito IPO?
The major risks include exposure to energy prices, concentration of manufacturing in Morbi, competition in the tiles industry, dependence on construction and real-estate demand, working-capital requirements, existing borrowings, franchisee dependence and exposure to international markets.