Varmora Granito Limited IPO Analysis
This article is based entirely on publicly available information disclosed in the Red Herring Prospectus (RHP) of Varmora Granito Limited, dated September 16 2026, and is intended for general market and financial education purposes only.
1. IPO Snapshot
| Particular | Details |
|---|---|
| Company Name | Varmora Granito Limited |
| IPO Type | Fresh Issue and Offer for Sale |
| Fresh Issue | ₹3,200.00 million |
| Offer for Sale | Up to 26,217,634 shares |
| Total Offer Size | 4,90,74,776 shares / ₹6,870.47 million at ₹140; 4,78,39,255 shares / ₹7,080.21 million at ₹148 |
| Face Value | ₹2 per Equity Share |
| Price Band | ₹140–₹148 per Equity Share |
| Lot Size | 101 Equity Shares |
| Anchor Bidding | September 21, 2026 |
| IPO Opening | September 22, 2026 |
| IPO Closing | September 24, 2026 |
| Listing Exchange | BSE and NSE; NSE is the Designated Stock Exchange |
| Registrar | KFin Technologies Limited |
| Lead Managers | JM Financial Limited; Goldman Sachs (India) Securities Private Limited; SBI Capital Markets Limited |
2. IPO Details
| Particular | At Floor Price ₹140 | At Cap Price ₹148 |
|---|---|---|
| Fresh Issue Shares | 22,857,142 | 21,621,621 |
| Fresh Issue Amount | ₹3,200.00 million | ₹3,200.00 million |
| Offer for Sale Shares | 26,217,634 | 26,217,634 |
| Offer for Sale Value | ₹3,670.47 million | ₹3,880.21 million |
| Total Offer Shares | 4,90,74,776 | 4,78,39,255 |
| Total Offer Size | ₹6,870.47 million | ₹7,080.21 million |
| Pre-Issue Shares | 20,43,90,203 | 20,43,90,203 |
| Post-Issue Shares | 22,72,47,345 | 22,60,11,824 |
| Post-Issue Market Capitalisation | ₹31,814.63 million | ₹33,449.75 million |
3. Issue Reservation
| Category | Reservation / Allocation |
|---|---|
| QIB | Not more than 50% of the Offer; up to 60% of the QIB Portion may be allocated to Anchor Investors. |
| NII | Not less than 15% of the Offer. One-third of the NII Portion is for applications above ₹0.20 million and up to ₹1.00 million; two-thirds for applications above ₹1.00 million, subject to the stated spill-over rules. |
| Retail Individual Investors | Not less than 35% of the Offer. |
| Anchor Investor sub-reservation | 40% of Anchor Investor Portion: 33.33% for domestic Mutual Funds and 6.67% for Life Insurance Companies and Pension Funds, subject to valid bids at or above the Anchor Investor Allocation Price. |
4. IPO Lot Size
| Application | Lots | Shares | Amount at ₹140 | Amount at ₹148 |
|---|---|---|---|---|
| Retail (Min) | 1 | 101 | ₹14,140 | ₹14,948 |
| Retail (Max) | 13 | 1,313 | ₹1,83,820 | ₹1,94,324 |
| S-HNI (Min) | 14 | 1,414 | ₹1,97,960 | ₹2,09,272 |
| S-HNI (Max) | 66 | 6,666 | ₹9,33,240 | ₹9,86,568 |
| B-HNI (Min) | 67 | 6,767 | ₹9,47,380 | ₹10,01,516 |
5. About the Company
Varmora Granito Limited was originally incorporated as Varmora Granito Private Limited on November 18, 2003. It was converted into a public limited company following board and shareholder resolutions in April 2025, and a fresh certificate of incorporation was issued on May 14, 2025.
The Company operates in tiles and bathware. Its tile portfolio includes glazed vitrified tiles (GVT) and technical products, polished vitrified tiles (PVT) and ceramic tiles. The Company also has bathware, adhesives and other revenue streams. As of March 31, 2026, its tile portfolio included over 3,500 SKUs, with products across 20 surface types.
The RHP states that the Company operates eight manufacturing facilities through the Company and its subsidiaries in the Morbi cluster in Gujarat. It also states that operations at the Allemby Ceramics Private Limited manufacturing facility in Tezpur, Assam commenced in July 2026 through a joint venture, with approximately 6.40 million square metres of annual GVT capacity.
Distribution is through B2C retail channels comprising 305 exclusive brand outlets (EBOs) and 2,758 multi-brand outlets (MBOs), and B2B channels involving builders, contractors, developers and government agencies. The EBO/MBO network covered 988 cities in 24 states and union territories in India as of March 31, 2026. The Company states that its products had been exported to more than 100 countries as of that date.
In Fiscal 2026, GVT and technical products contributed ₹11,189.80 million, or 73.98% of revenue from operations. Revenue from in-house manufacturing was ₹12,359.32 million, representing 81.72% of revenue from operations.
6. Restated Financial Information
| Particular | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Revenue from operations | 15,124.64 | 14,460.29 | 14,354.81 |
| Other income | 500.64 | 466.46 | 371.01 |
| Total income | 15,625.28 | 14,926.75 | 14,725.82 |
| EBITDA before exceptional items | 2,215.56 | 1,982.91 | 1,503.30 |
| Profit before exceptional items and tax | 761.65 | 363.93 | 596.63 |
| Profit before tax | 766.18 | 376.50 | 630.36 |
| Profit for the year | 550.93 | 307.73 | 449.35 |
| Basic EPS (₹) | 3.08 | 1.75 | 2.19 |
| Diluted EPS (₹) | 3.05 | 1.74 | 2.19 |
| Total assets | 15,098.71 | 15,898.04 | 14,761.64 |
| Total equity | 8,102.16 | 7,431.95 | 7,033.61 |
| Equity share capital | 403.25 | 403.25 | 399.66 |
| Other equity | 7,657.02 | 6,917.24 | 6,301.96 |
| Borrowings — non-current | 1,713.65 | 2,212.71 | 2,623.55 |
| Borrowings — current | 1,865.83 | 2,838.84 | 1,505.33 |
| Total liabilities | 6,996.55 | 8,466.09 | 7,728.03 |
| Finance costs | 394.04 | 424.90 | 290.56 |
| Depreciation & amortisation | 1,059.87 | 1,194.08 | 616.11 |
| Inventory | 2,483.28 | 2,859.49 | 1,902.88 |
| Trade receivables | 3,826.67 | 3,822.15 | 3,329.16 |
| Trade payables | 2,205.12 | 2,098.85 | 1,932.94 |
| CFO | 2,340.70 | 632.13 | 882.91 |
| CFI | (459.65) | (1,199.47) | (3,365.60) |
| CFF | (1,882.96) | 466.22 | 1,150.57 |
| Capex / payments for PPE & CWIP | (337.60) | (1,116.69) | (3,482.97) |
Figures are in ₹ million, except EPS.
7. Key Performance Indicators
| KPI | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Tiles sales volume (mn sq. m.) | 38.34 | 38.10 | 36.12 |
| Total dealer network | 3,063 | 3,005 | 3,315 |
| Cities with EBOs | 249 | 232 | 209 |
| Revenue from operations | 15,124.64 | 14,460.29 | 14,354.81 |
| Growth in revenue from operations | 4.59% | 0.73% | 7.53% |
| Revenue from tiles | 13,290.58 | 12,779.34 | 12,483.99 |
| GVT & technical products / tile revenue | 84.19% | 78.71% | 75.37% |
| Revenue from in-house manufacturing | 12,359.32 | 11,358.53 | 9,593.49 |
| In-house manufacturing / revenue from operations | 81.72% | 78.55% | 66.83% |
| Gross profit | 5,924.35 | 5,814.40 | 5,192.33 |
| Gross margin | 37.92% | 38.95% | 35.26% |
| EBITDA before exceptional items | 2,215.56 | 1,982.91 | 1,503.30 |
| EBITDA margin | 14.18% | 13.28% | 10.21% |
| Adjusted EBITDA | 2,331.56 | 2,071.41 | 1,534.88 |
| Adjusted EBITDA margin | 14.92% | 13.88% | 10.42% |
| Profit for the year | 550.93 | 307.73 | 449.35 |
| Profit for the year margin | 3.53% | 2.06% | 3.05% |
| Advertisement & promotion expense | 231.61 | 332.36 | 375.59 |
| Basic EPS (₹) | 3.08 | 1.75 | 2.19 |
| ROCE | 9.89% | 6.32% | 7.95% |
| ROE | 6.80% | 4.14% | 6.39% |
| Net working capital days | 96 | 112 | 82 |
| Net debt | 2,434.26 | 3,900.10 | 3,145.67 |
8. IPO Valuation
| Metric | Disclosure |
|---|---|
| Price band | ₹140–₹148 |
| P/E based on diluted FY2026 EPS | 45.90x at ₹140; 48.52x at ₹148 |
| Industry peer-group P/E | Highest 72.00x; lowest 28.55x; average 47.12x |
| Weighted average RoNW | 6.61% for the last three Fiscals |
| NAV per Equity Share | ₹39.52 as at March 31, 2026 |
| Market cap / revenue from operations | 2.21x at lower band; 2.10x at upper band |
| Market cap / tangible assets | 5.53x at lower band; 5.26x at upper band |
| EV / EBITDA before exceptional items | 16.20x at lower band; 15.46x at upper band |
9. Peer Comparison
| Company | Revenue from operations (₹mn) | FV (₹) | P/E (x) | EPS Basic (₹) | EPS Diluted (₹) | RoNW | NAV / share (₹) |
|---|---|---|---|---|---|---|---|
| Varmora Granito Limited | 15,124.64 | 2 | — | 3.08 | 3.05 | 7.79% | 39.52 |
| Kajaria Ceramics Limited | 48,303.60 | 1 | 40.27 | 30.48 | 30.44 | 15.89% | 191.11 |
| Somany Ceramics Limited | 27,898.40 | 2 | 28.55 | 19.80 | 19.76 | 8.79% | 202.11 |
| Asian Granito India Limited | 18,580.62 | 10 | 72.00 | 0.70 | 0.70 | 1.23% | 51.36 |
| Orient Bell Limited | 6,914.53 | 10 | 47.67 | 8.46 | 8.43 | 3.78% | 222.78 |
10. Shareholding & Capital Structure
| Particular | At ₹140 | At ₹148 |
|---|---|---|
| Promoters | 51,885,030 shares / 22.83% | 51,885,030 shares / 22.96% |
| Promoter Group excluding Promoters | 54,426,950 shares / 23.95% | 54,426,950 shares / 24.08% |
| Katsura Investments | 41,820,459 shares / 18.40% | 41,820,459 shares / 18.50% |
| Pre-issue paid-up Equity Shares | 204,390,203 | 204,390,203 |
| Post-issue shares | 22,72,47,345 | 22,60,11,824 |
| Authorised share capital | ₹4,521.505 million | ₹4,521.505 million |
| Securities premium before Offer | ₹4,057.55 million | ₹4,057.55 million |
| ESOP 2023 | Up to 3,827,374 Equity Shares; 3,679,600 options granted as of RHP date | Up to 3,827,374 Equity Shares; 3,679,600 options granted as of RHP date |
11. Objects of the Issue
| Object | Amount | Deployment |
|---|---|---|
| Repayment / pre-payment of borrowings of the Company | ₹2,150.00 million | Fiscal 2027: ₹2,150.00 million |
| Repayment / pre-payment through investment in wholly-owned subsidiaries | ₹300.00 million | Fiscal 2027: ₹300.00 million |
| Gross Fresh Issue proceeds | ₹3,200.00 million | — |
12. OFS / Selling Shareholder
| Selling shareholder | Shares offered | WACA | Proceeds |
|---|---|---|---|
| Katsura Investments | 26,217,634 | ₹74.82 per Equity Share | ₹3,670.47 million at ₹140 / ₹3,880.21 million at ₹148 |
13. Key Risks Highlighted in the RHP
Business / Operations: Dependence on in-house manufacturing facilities: 81.72% of FY2026 revenue from operations was generated from in-house manufacturing. A shutdown or interruption at facilities could affect operations.
Product concentration: GVT and technical products represented 73.98% of FY2026 revenue from operations. A downturn in tiles, particularly GVT, could reduce business volumes.
Geographic concentration: The RHP states that all revenue is attributable to manufacturing facilities in the Morbi cluster; local or regional disruption could affect operations.
Distribution / Customer: B2C channels accounted for 66.80% of FY2026 domestic sales and the network is operated through franchisees. Franchisee non-performance or loss of significant channel partners could affect sales and operations.
Suppliers / Inputs: Operations are exposed to volatility in raw material and packing-material prices and dependence on suppliers. The top ten suppliers represented 8.10% of total expenses in FY2026.
International / Trade: Revenue from contracts with customers outside India represented 21.11% of Sale of Products in FY2026. The RHP identifies foreign regulatory, tariff, geopolitical, currency and sanctions-related risks.
Competition: The Company operates in competitive tile and bathware markets and competes with large organized players as well as regional and unbranded players.
Financial / Leverage: The Company states that its business is capital intensive and it has incurred indebtedness. FY2026 net debt disclosed in the KPI table was ₹2,434.26 million.
Working capital / Receivables: The RHP identifies working-capital requirements, customer receivables and potential payment delays as risks; net working capital days were 96 in FY2026.
Legal / Regulatory: The RHP identifies risks from statutory and regulatory approvals, outstanding litigation, tax matters and changes in applicable laws.
14. Litigation & Contingent Liabilities
| Area | Disclosure |
|---|---|
| Company — criminal proceedings by Company | 56 criminal complaints under Section 138 of the Negotiable Instruments Act; aggregate amount ₹72.93 million. |
| Company — criminal proceedings against Company | One complaint by Vikraman P. concerning alleged use of blank dealership-security cheques; matter pending. |
| Company — regulatory / environmental | NGT/GPCB proceedings relating to coal-gasifier operations. Following a February 25, 2026 NGT judgment, a penalty of ₹2.39 million was upheld; the Company states it is considering an appeal. |
| Company — tax proceedings | 19 cases: 2 direct-tax cases amounting to ₹1.64 million and 17 indirect-tax cases amounting to ₹81.03 million; total ₹82.67 million, to the extent quantifiable. |
| Subsidiary | Covertek Ceramica Private Limited has filed 9 criminal complaints under Section 138; aggregate amount ₹4.60 million. |
| Directors | One sessions case involving Sandhya Maulik Patel in her capacity as director of Hester Biosciences Limited; an interim stay order has been issued by the High Court of Lucknow. A separate criminal complaint names Bhavesh Vallabhdas Varmora as Managing Director. |
| Contingent liabilities | Central Excise ₹55.31m; Income Tax ₹1.64m; GST ₹25.72m; Others (NGT) ₹13.68m; interim NGT/GPCB compensation ₹18.40m. |
| Creditors | No Material Creditors as defined by the RHP. Consolidated trade payables were ₹2,205.12m; 32 MSME creditors ₹20.52m; other creditors ₹2,184.60m. |
15. Registrar
| Particular | Details |
|---|---|
| Name | KFin Technologies Limited |
| Address | Selenium, Tower B, Plot No. 31 and 32, Financial District Nanakramguda, Serilingampally, Hyderabad 500 032, Telangana, India |
| Telephone | +91 40 6716 2222 |
| vgl.ipo@kfintech.com | |
| Investor grievance email | einward.ris@kfintech.com |
| Website | www.kfintech.com |
| Contact person | M. Murali Krishna |
| SEBI registration number | INR000000221 |
16. Lead Manager(s)
| BRLM | Address / Contact | SEBI Registration |
|---|---|---|
| JM Financial Limited | 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025, Maharashtra; +91 22 6630 3030; vgl.ipo@jmfl.com; www.jmfl.com; Contact: Prachee Dhuri | INM000010361 |
| Goldman Sachs (India) Securities Private Limited | 9th and 10th Floor, Ascent-Worli, Sudam Kalu Ahire Marg, Worli, Mumbai 400 025, Maharashtra; +91 22 6616 9000; varmoraipo@gs.com; www.goldmansachs.com; Contact: Mayur Khule | INM000011054 |
| SBI Capital Markets Limited | 1501, 15th Floor, A & B Wing, Parinee Crescenzo, G Block, Bandra Kurla Complex, Mumbai 400 051, Maharashtra; +91 22 4006 9807; varmora.ipo@sbicaps.com; www.sbicaps.com; Contact: Krithika Shetty / Sylvia Mendonca | INM000003531 |
17. Company Contact Details
| Particular | Details |
|---|---|
| Registered Office | 8-A, National Highway, Dhuva, Taluka Wankaner, Rajkot – 363 641, Gujarat, India |
| Corporate Office | 1004/5/6, South Tower, ONE42, Off. Iscon-Ambli Road, Ahmedabad – 380 054, Gujarat, India |
| Telephone | +91 9909913657 |
| investor.relations@varmora.com | |
| Website | www.varmora.com |
| Contact person | Nilesh Sharma, Company Secretary and Compliance Officer |
| CIN | U26914GJ2003PLC043194 |