Overview & Quick Summary
Varmora Granito Limited IPO Summary: Varmora Granito Limited is launching an Initial Public Offering (IPO) of ₹708.02 Crore comprising a Fresh Issue of ₹320.00 Crore and an Offer for Sale (OFS) of ₹388.02 Crore (4,78,39,255 total shares, Face Value ₹2/-) priced between ₹140 and ₹148 per share. Bidding is open from September 22 to September 24, 2026, with a minimum lot size of 101 shares (₹14,948). Headquartered in Gujarat with 8 manufacturing plants in the Morbi cluster, Varmora manufactures GVT, PVT, ceramic tiles, bathware, and adhesives, generating 81.72% of FY2026 revenue in-house and selling across 305 EBOs and 2,758 MBOs. For FY2026, Total Income reached ₹1,562.53 crore, EBITDA reached ₹221.56 crore (14.18% margin), PAT surged 79.0% to ₹55.09 crore, and RoNW stood at 7.79%. At the upper band of ₹148, the issue is valued at 48.52x FY2026 diluted EPS, in line with the listed peer average of 47.1x (range 28.6x-72.0x). Based on its 23-year track record, premiumisation toward higher-realisation GVT (84.19% of tile revenue), and debt reduction of ₹245.00 crore, Sushil Finance recommends SUBSCRIBE.
1. IPO Overview
Varmora Granito Limited, an established brand in the ceramic and vitrified tiles and bathware industry, has announced the rollout of its public issue. The public offer opens for subscription on September 22, 2026, and closes on September 24, 2026. The price band has been fixed at ₹140 to ₹148 per share having a face value of ₹2/- per share.
The total issue size aggregates to ₹708.02 crore, representing 4,78,39,255 equity shares. The offering comprises a Fresh Issue of ₹320.00 crore and an Offer for Sale (OFS) of ₹388.02 crore. The shares will be listed on both the BSE & NSE.
| Issue Details |
Particulars |
| Price Band |
₹140 to 148 Per Share |
| Issue Opens on |
Sep 22, 2026 |
| Issue Closes on |
Sep 24, 2026 |
| Lot Size |
101 Shares & in Multiples thereafter |
| Issue Size |
₹ 708.02 Cr. |
| No of Shares |
4,78,39,255 Equity Shares |
| Face Value |
₹ 2/- |
| Listing |
BSE & NSE |
| Lead Managers |
JM Financial Ltd., Goldman Sachs (India) Securities Pvt. Ltd., SBI Capital Markets Ltd. |
| Registrar |
KFin Technologies Ltd. |
2. Key IPO Details
The issue structure highlights the distribution across the fresh issuance and offer for sale, as well as the category reservations across institutional and non-institutional participants:
Issue Highlights (Offer Structure)
| Issuance |
in Cr. |
| Fresh Issue |
₹ 320.00 Cr. |
| Offer for Sale |
₹ 388.02 Cr. |
| Total |
₹ 708.02 Cr. |
Issue Breakup
| Reservation for |
% of Issue |
in Cr. (at upper band) |
| QIB |
50% |
₹ 354.01 Cr. |
| HNI |
15% |
₹ 106.20 Cr. |
| RETAIL |
35% |
₹ 247.81 Cr. |
| TOTAL |
100% |
₹ 708.02 Cr. |
3. Company Overview
Varmora Granito Limited, incorporated in 2003 and headquartered in Gujarat, manufactures ceramic and vitrified tiles, including Glazed Vitrified Tiles (GVT), Polished Vitrified Tiles (PVT), and ceramic tiles, along with bathware and tile adhesives.
Key operational and commercial highlights of the Company include:
- Manufacturing Footprint: The Company operates eight manufacturing facilities in the Morbi cluster of Gujarat.
- In-house Production: 81.72% of its Fiscal 2026 revenue was generated from in-house manufactured products.
- Technology Collaboration: Commercialised Integrated Stone Technology (IST) through a partnership with Italy's SACMI.
- Distribution Reach: Sells through 305 exclusive brand outlets (EBOs) and 2,758 multi-brand outlets (MBOs) across India and overseas, alongside B2B sales to builders, contractors, developers, and government entities.
- Premiumisation Trajectory: GVT and technical products, its higher-realisation category, accounted for 84.19% of tile revenue in Fiscal 2026, up from 75.37% in Fiscal 2024.
- Workforce: As of March 31, 2026, the Company had 1,153 permanent employees.
4. Objects of the Issue
The Company proposes to utilise the Rs. 320.00 crore Fresh Issue proceeds primarily towards:
- Repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by the Company (Rs. 215.00 crore).
- Repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by its wholly-owned subsidiaries, Covertek Ceramica Private Limited and Varmora Sanitarywares Private Limited (Rs. 30.00 crore).
- The balance towards general corporate purposes.
The Company will not receive any proceeds from the Rs. 388.02 crore Offer for Sale, which will accrue to the Investor Selling Shareholder, Katsura Investments, after deducting applicable expenses and taxes.
5. Key Investment Highlights
- Established player: Operating in the tile industry in India in a large and attractive market.
- Comprehensive product portfolio: A premium portfolio spanning GVT, PVT, ceramic tiles, and bathware.
- Innovation-led approach: Customer-centric approach resulting in multiple new product launches — over 2,900 new SKUs added between Fiscal 2024 and Fiscal 2026.
- Pan-India distribution: Well-diversified network anchored by exclusive brand outlets (EBOs) that strengthens brand recall.
- In-house manufacturing: Strategically located, technologically advanced manufacturing that preserves control over quality and the supply chain.
6. Brief Financial Performance & Valuation Metrics
**Not Annualized
| Particulars |
FY2024 |
FY2025 |
FY2026 |
| Total Income |
1,472.58 |
1,492.68 |
1,562.53 |
| Total Expenditure |
1,412.92 |
1,456.28 |
1,486.36 |
| EBITDA |
150.33 |
198.29 |
221.56 |
| Profit Before Tax |
63.04 |
37.65 |
76.62 |
| Profit After Tax |
44.94 |
30.77 |
55.09 |
| E.P.S. (Diluted) (₹) |
2.19 |
1.74 |
3.05 |
| P/E (Diluted)* |
67.58x |
85.06x |
48.52x |
| RONW / ROE |
6.51% |
4.88% |
7.79% |
7. IPO Timeline & Payment Charts
Indicative Time Table
| Tentative Events |
Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
25/9/2026 |
| Initiation of refunds/unblocking ASBA Fund |
28/9/2026 |
| Credit of Equity Shares to demat accounts of Allottees |
28/9/2026 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
29/9/2026 |
PRICE CHART (@148) (Retail Category)
| LOT SIZE |
Amount (₹) |
| 101 | 14,948 |
| 202 | 29,896 |
| 303 | 44,844 |
| 404 | 59,792 |
| 505 | 74,740 |
| 606 | 89,688 |
| 707 | 1,04,636 |
| 808 | 1,19,584 |
| 909 | 1,34,532 |
| 1010 | 1,49,480 |
| 1111 | 1,64,428 |
| 1212 | 1,79,376 |
| 1313 | 1,94,324 |
HNI Payment Chart
| Category |
No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
1,414 |
Rs. 2,09,272 |
| Big HNI |
6,767 |
Rs. 10,01,516 |
8. Our View / Recommendation
Analyst Recommendation: SUBSCRIBE
Sushil Finance Research Stance & Valuation Rationale
Varmora Granito has demonstrated improving financial performance, with Total Income growing 1.4% in FY2025 and 4.7% in FY2026, while PAT fell 31.5% in FY2025 before rebounding 79.0% in FY2026, driving diluted EPS from Rs. 1.74 to Rs. 3.05 and improving RoNW to 7.79%.
EBITDA margin expanded to 14.18% in FY2026 from 13.28% in FY2025, aided by a shift toward premium GVT/technical tiles.
However, at the upper price band the issue is priced at around 48.5x FY2026 diluted earnings, broadly in line with the disclosed listed-peer average of 47.1x (range 28.6x-72.0x), leaving limited valuation cushion.
Given the fair-value pricing versus peers, a competitive, cyclical tile industry, set against the company's 23-year track record, premiumisation strategy and deleveraging balance sheet, we recommend Subscribe.
9. Frequently Asked Questions (FAQs)
Q1. What is the business profile and manufacturing setup of Varmora Granito Limited?
Varmora Granito Limited manufactures ceramic and vitrified tiles (GVT, PVT, ceramic tiles), bathware, and adhesives. It operates eight manufacturing facilities in the Morbi cluster of Gujarat, producing 81.72% of its Fiscal 2026 revenue in-house, supported by a workforce of 1,153 permanent employees as of March 31, 2026.
Q2. What is Integrated Stone Technology (IST) commercialised by Varmora?
Integrated Stone Technology (IST) has been commercialised by Varmora through an international partnership with Italy's SACMI to produce technologically advanced, higher-realisation surfaces.
Q3. What is the share of GVT and technical tiles in Varmora's revenue?
GVT and technical products, which represent Varmora's higher-realisation category, accounted for 84.19% of its tile revenue in Fiscal 2026, up from 75.37% in Fiscal 2024.
Q4. How extensive is Varmora Granito's distribution network?
The Company distributes its products across India and overseas through 305 exclusive brand outlets (EBOs) and 2,758 multi-brand outlets (MBOs), alongside B2B sales to builders, developers, contractors, and government entities.
Q5. What is the valuation of the Varmora Granito IPO relative to listed peers?
At the upper price band of ₹148, the issue is valued at 48.52x (around 48.5x) FY2026 diluted EPS of ₹3.05, broadly in line with the disclosed listed-peer average of 47.1x (range 28.6x to 72.0x).
Q6. Who is the selling shareholder in the Offer for Sale (OFS)?
The ₹388.02 crore Offer for Sale proceeds accrue entirely to the Investor Selling Shareholder, Katsura Investments, after deducting applicable expenses and taxes. The Company will not receive any funds from the OFS.
10. Red Herring Prospectus (RHP) Reference
11. Disclaimer
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
