| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹140 to ₹148 | 101 | 22nd Sep, 2026 – 24th Sep, 2026 | ₹708 Cr |
Varmora Granito Ltd
Varmora Granito is an established Indian tiles manufacturer with a diversified portfolio comprising glazed vitrified tiles (GVT), polished vitrified tiles (PVT), ceramic tiles and other premium, technology-led products. The company has consistently focused on innovation and premiumization, including the commercialization of Integrated Stone Technology (IST) in 2024 through a technology partnership with SACMI Imola S.C., an Italian tile equipment provider. GVT and technical products accounted for 84.2% of tile revenue in FY26, up from 75.4% in FY24, supporting an improvement in gross margin from 35.3% in FY24 to 37.9% in FY26. The company manufactured 81.7% of its revenue-generating products in-house in FY26 and operates eight manufacturing facilities in the Morbi cluster of Gujarat, providing greater control over product quality, technology and costs. Varmora has also built a strong multi-channel distribution network, comprising 305 exclusive brand outlets and 2,758 multi-brand outlets across India and outside India as of March 31, 2026. Its B2B network includes builders, contractors, developers and government institutions. The company supports its brand through ATL and BTL advertising, digital marketing, product launches, exhibitions and an influencer network of architects, builders and contractors. Its business is well positioned to benefit from the premiumization of the Indian tiles industry, with GVT’s share of industry revenue expected to increase from 36.5% in FY26 to 45.5% by FY30. Given GVT’s higher realizations compared with ceramic and PVT tiles, the company’s increasing premium product mix provides scope for further improvement in realizations and margins.
Objective of Varmora Granito Ltd
The IPO consists of a fresh issue of Rs. 320 crores and an offer for sale of 388 crores.
The company proposes to utilize the proceeds from the issue towards the following objects:
- Repayment/ pre-payment, in full or in part, of all or certain outstanding borrowings and accrued interest thereon availed by: (a) the company; and (b) The wholly-owned subsidiaries namely Covertek Ceramica Private Limited and Varmora Sanitarywares Private Limited (formerly, Varmora Sanitarywares LLP), through investment in such subsidiaries; and
- General corporate purposes.
Rationale To Varmora Granito Ltd
Investment Rationale
Well positioned to capitalize on structural growth and premiumization in the tiles industry
The Indian tiles industry offers a significant long-term growth opportunity, supported by low per-capita consumption, rising disposable incomes, increasing real estate development and the growing preference for tiles over alternatives such as natural stone. India’s per-capita tile consumption stood at 0.8 sq. metre in FY24, significantly below Brazil at 3.4 sq. metres and China at 4.0 sq. metres, and is expected to increase to 1.0 sq. metre by FY30. The industry is also witnessing a structural shift towards organized and branded manufacturers, with the organized segment’s share increasing from 40% in FY19 to 47% in FY26 and expected to reach 56% by FY30. Against this backdrop, the company is well positioned to benefit from industry formalization and premiumization through its diversified product portfolio, focus on premium products such as GVT, continued product innovation, advanced manufacturing capabilities and pan-India distribution network. Its revenue from operations grew from Rs. 1,435.5 crores in FY24 to Rs. 1,512.5 crores in FY26, representing a CAGR of 2.7%. The combination of increasing tile penetration, rising preference for premium and branded products, and the company’s established market presence provides a platform for sustained growth as the organized tile industry expands.
Premium product mix and strong focus on GVT to drive realization and margins
The company has built a diversified and increasingly premium product portfolio comprising over 3,500 tile SKUs as of March 31, 2026, including GVT and technical products, PVT and ceramic tiles, with total SKUs increasing from 4,009 in FY24 to 4,289 in FY26. Its focus remains on differentiated, high-quality products, including marble-like products developed using Integrated Stone Technology (IST) and 20 different surface types catering to varied applications. The company has strategically prioritized GVT and technical products, which contributed 84.2% of tile revenue in FY26, up from 75.4% in FY24, while 100% of revenue from new product launches during FY24-FY26 came from these categories. GVT offers superior aesthetics, durability, stain resistance, low water absorption and design flexibility, while commanding a 15-30% higher realization than ceramic and PVT tiles. Industry adoption of GVT has also increased, with its share of the Indian tiles market rising from 28.5% in FY19 to 36.5% in FY26 and expected to reach 45.5% by FY30. Notably, all capacity expansions and enhancements undertaken since 2011 have been focused on strengthening the company’s GVT offering. This premiumization strategy has supported an improvement in gross margin from 35.3% in FY24 to 37.9% in FY26, while tile realization remained broadly healthy at Rs. 352.3 in FY26..
Valuation of Varmora Granito Ltd
Varmora Granito Limited is a leading Indian manufacturer and distributor of comprehensive building interior and surfacing solutions, specializing in glazed vitrified tiles (GVT), polished vitrified tiles (PVT), ceramic tiles, bathware, and adhesives. The company operates eight in-house manufacturing units strategically clustered in Morbi, Gujarat, complemented by an extensive multi-channel distribution reach comprising 305 Exclusive Brand Outlets (EBOs), 2,758 Multi-Brand Outlets (MBOs), direct institutional builder partnerships, and an export footprint spanning over 100 countries. The Indian ceramic tiles and bathware industry is experiencing sustained formalization and structural growth, propelled by rapid urbanization, expanding residential real estate launches, shorter home-renovation cycles, and government-backed infrastructure outlays. Consumer preferences are increasingly shifting toward premium, large-format glazed vitrified surfaces and integrated bathroom concepts, providing branded players with superior pricing resilience and operating margins. The broader sector also benefits from India’s global cost competitiveness, which continues to unlock multi-year export expansion across Middle Eastern, European, and American markets. The company has maintained steady financial progress between FY24 and FY26, with revenue from operations growing from Rs. 1,435.5 crores in FY24 to Rs. 1,446.0 crores in FY25 and Rs. 1,512.5 crores in FY26. Operating profitability demonstrated healthy operating leverage on the back of an enriching product mix where high-margin GVT and technical surfaces rose to 74.0% of operational revenue as EBITDA expanded at a CAGR of 23.1% from Rs. 113.2 crores (7.9% margin) in FY24 to Rs. 151.7 crores (10.5% margin) in FY25 and Rs. 171.5 crores (11.3% margin) in FY26. Profit Before Tax advanced from Rs. 63.0 crores in FY24 to Rs. 76.6 crores in FY26, while net profit grew to Rs. 55.0 crores in FY26, supporting a strengthening balance sheet with net worth expanding to Rs. 810.2 crores. On the valuation front, based on FY26 diluted EPS of Rs. 3.1, the company commands a P/E multiple of approximately 48.5x, moderating meaningfully from 67.6x in FY24 and 85.1x in FY25 as earnings rebounded and operational scale took effect. In addition, the planned Rs. 320 crores fresh issue earmarked primarily for debt pre-payment is poised to significantly pare down financing costs, accelerate return ratios, and de-risk the balance sheet. While input fuel price volatility, regional production concentration in Morbi, and working capital cycles remain essential monitorables, the medium to long term outlook stays robust given the structural housing tailwinds and continuous product premiumization. We, thus, recommend a “SUBSCRIBE” rating for this issue.
What is the Varmora Granito Ltd IPO?
The initial public offer (IPO) of Varmora Granito Ltd an early investment opportunity in. A stock market investor can buy Varmora Granito Ltd IPO shares by applying in IPO before Varmora Granito Ltd get listed at the stock exchanges. An investor could invest in Varmora Granito Ltd for short term listing gain or a long term.
How to apply for the Varmora Granito Ltd IPO through StoxBox?
To apply for the Varmora Granito Ltd through StoxBox one can apply from the website and also from the app. Click here
When will the Varmora Granito Ltd IPO open?
Varmora Granito Ltd IPO is opening on 22nd Sep 2026. Apply Now
What is the lot size of the Varmora Granito Ltd IPO?
The Lot Size of Varmora Granito Ltd 101 equity shares. Login to your account now.
When is the Varmora Granito Ltd IPO allotment date?
The allotment Date for Varmora Granito Ltd IPO 25th Sep 2026. Login to your account now.
When is the Varmora Granito Ltd IPO listing date?
The listing Date for Varmora Granito Ltd is 29th Sep 2026. Login to your account now
What is the minimum investment required for the Varmora Granito Ltd IPO?
In the Retail segment the minimum investment required is Rs 14,948 Login to your account now
What is the maximum investment allowed for Varmora Granito Ltd IPO?
In the Retail segment the maximum investment requirement Rs 1,94,324 Login to your account now
What are the risks associated with investing in the Varmora Granito Ltd IPO?
- A significant 81.7% of the company’s revenue from operations in FY26 was generated from products manufactured in-house. Any disruption, shutdown, operational issue or delay at its manufacturing facilities, particularly dedicated facilities for specific products, could adversely impact production, supply, revenues and profitability.
- The company derived a substantial 73.9% of its total revenue from GVT and technical products in FY26. Any slowdown in demand, adverse changes in consumer preferences or increased competition in these segments could negatively impact the company’s revenue, profitability and overall financial performance.
When will the Varmora Granito Ltd IPO shares be credited to my Demat account?
The Varmora Granito Ltd will be credited to the account on allotment date which is 25th Sep 2026. Login to your account
Where can I find the Varmora Granito Ltd IPO prospectus?
The prospectus of Varmora Granito Ltd IPO prospectus can be found on the website of SEBI, NSE and BSE
