Varmora Granito IPO Review: Price Band, Dates, Lot Size, Financials and Risks

The Varmora Granito IPO opens on September 22 and closes on September 24, 2026. Varmora Granito Limited is a tile and building-materials manufacturer operating under the “Varmora” brand, with a portfolio spanning glazed vitrified tiles (GVT), polished vitrified tiles (PVT), ceramic tiles, bathware and adhesives. The company is raising ₹708.02 crore through a fresh issue of ₹320 crore and an offer for sale of ₹388.02 crore by Katsura Investments.

IPO Snapshot

Price Band and Lot Size

Pre-issue shareholding stood at 20,43,90,203 shares, rising to approximately 22,60,11,824 shares post-issue. The IPO comprises a fresh issue of ₹320 crore and an offer for sale of ₹388.02 crore by Katsura Investments.

What Does Varmora Granito Actually Do

Varmora Granito Limited, incorporated in 2003, is engaged in the business of manufacturing and marketing ceramic and vitrified tiles. The company’s product portfolio includes a wide range of tiles across formats such as glazed vitrified tiles (GVT), polished vitrified tiles (PVT), and ceramic tiles, along with bathware and adhesives. Tiles remain its core business, contributing 87.87% of revenue from operations in Fiscal 2026, with GVT and technical products accounting for 73.98% of overall revenue.

As of March 31, 2026, the company offered over 3,500 tile SKUs across 20 surface types, catering to applications including flooring, walls, façades, back paneling and kitchen slabs.

The company operates eight manufacturing facilities in Morbi, Gujarat, and generated 81.72% of its revenue from products manufactured in-house in Fiscal 2026. It has focused on premium and technology-led products, including Integrated Stone Technology (IST), introduced through a partnership with Italian equipment provider SACMI. The technology enables marble-like tile designs while retaining the durability and technical characteristics of vitrified tiles.

The company distributes its products through a multi-channel network comprising B2C channels (305 exclusive brand outlets and over 2,758 multi-brand outlets across 988 Indian cities as of March 31, 2026) and B2B channels (builders, contractors, developers and government procurement). It also exports products to more than 100 countries, supported by a dedicated export team. The company is expanding geographically through its joint venture Allemby Ceramics, whose Tezpur, Assam facility commenced operations in July 2026 with an installed capacity of approximately 6.40 million square metres of GVT tiles annually.

As of March 31, 2026, the company had 1,153 permanent employees.

The Money Numbers

Total income grew from ₹1,435.48 crore in FY24 to ₹1,512.46 crore in FY26, up 5.4% between FY24 and FY26. Profit after tax more than doubled from ₹30.77 crore in FY25 to ₹55.09 crore in FY26, up 79%.

EBITDA rose from ₹146.56 crore in FY24 to ₹192.04 crore in FY25 and ₹214.47 crore in FY26, with EBITDA margin improving from 10.21% to 14.18%. Total borrowings stood at ₹357.95 crore in FY26, with net debt-to-equity at 0.24 times.

Return ratios were moderate: ROE stood at 7.79% and ROCE at 9.89% in FY26, with RoNW at 7.79% and NAV of ₹39.52 per share. Basic EPS for FY26 was ₹3.05. At the upper price band of ₹148, this implies a pre-issue P/E of 48.52 times. Price-to-book value at the offer price works out to 3.74 times.

Objects of the Issue

Against a fresh issue of ₹320 crore, the company has earmarked ₹245 crore for repayment/pre-payment of outstanding borrowings and accrued interest of the company and its wholly owned subsidiaries (Covertek Ceramica and Varmora Sanitarywares LLP). The remaining approximately ₹75 crore will be used for general corporate purposes.

Strengths

• Revenue growth, with total income increasing 5.4% from FY24 to FY26.
• Strong profitability improvement, with PAT more than doubling from ₹30.77 crore to ₹55.09 crore between FY25 and FY26.
• Integrated manufacturing model with 81.72% of revenue from in-house production.
• Strategically located manufacturing facilities in Morbi, Gujarat, India’s largest ceramic cluster.
• Experienced promoters with an established track record in the tile industry.
• Strong distribution network with 305 EBOs and over 2,758 MBOs across 988 cities.
• Diversified product portfolio with over 3,500 SKUs across 20 surface types.
• Export presence in over 100 countries.
• Technology partnerships, including Integrated Stone Technology (IST) with SACMI, Italy.
• Low net debt-to-equity ratio of 0.24 times, indicating conservative leverage.
• Healthy EBITDA margin improvement from 10.21% to 14.18% between FY24 and FY26.

Risks

• Valuation is rich at a P/E of 48.52 times at the upper price band.
• PAT margin remains moderate at 3.64% in FY26.
• ROE of 7.79% and ROCE of 9.89% are moderate compared to peers.ipocentral+1
• The company operates in a highly competitive tile and building materials industry with exposure to cyclicality in real estate demand, raw material price volatility (clay, feldspar, quartz, zircon, chemicals, natural gas), and competition from both organized and unorganized players.
• A significant portion of the fresh-issue proceeds (₹245 crore out of ₹320 crore) is earmarked for debt repayment.ipocentral+1
• Revenue growth has been modest at 5.4% between FY24 and FY26.
• The company’s expansion depends on securing suitable raw material supplies and maintaining capacity utilization.
• The business is capital intensive, with total assets of ₹1,589.80 crore and total borrowings of ₹357.95 crore as of FY26.ipocentral+1
• The company’s joint venture expansion in Assam (Allemby Ceramics) carries execution and market risk.
• The tile industry is fragmented with significant unorganized competition, particularly in the lower-price segments.

How to Apply

You can apply through Alice Blue by selecting your investor category, choosing the number of lots, and submitting your bid between September 22 and September 24.

If you do not want to track subscription numbers throughout the bidding window, Alice Blue’s IPO feature can apply on your behalf. Choose your category and lot size, confirm your UPI ID, and set a subscription trigger, such as below 1x, between 1x and 5x, or above 5x. The system tracks Varmora Granito’s live subscription numbers and submits the application once the selected condition is met. You then receive a UPI payment request to approve. Funds are not deducted until shares are allotted.

Frequently Asked Questions