Varmora Granito Limited

LISTED

Mainboard IPO · IPO Guide

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Issue Price

₹140 – ₹148

Listed On

29 Sep 2026

Listing Price

₹152 (+2.70%)

Current Price LIVE

₹135.35 (-8.55%)

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Live Market Price (BSE: VARMORA)

Updated: 22 Oct 2026, 10:15

LIVE BSE

Current Price (LTP)

₹135.35 ▲ +1.75 (+1.31%)

Return vs Issue (₹148.00)

-8.55% From Issue Price

Return vs Listing (₹152.00)

-10.95% Since Listing Day

Day Range

H: ₹136.05 | L: ₹128.80

Prev Close: ₹133.60

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IPO Market Value (GMP)

LAST UPDATED	26 Sep 2026, 17:31
PREMIUM / SHARE As per market view	₹ 1 (0.34%)
AVG EARN (RETAIL) As per market view	R - ₹ 51 (1 Lot)
AVG EARN (S-HNI)	S-HNI - ₹ 707 (14 Lots)
AVG EARN (B-HNI)	B-HNI - ₹ 3,384 (67 Lots)

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Lot Size Calculator (Rs 148/share)

Application	Lots	Shares	Amount
🏷️ Retail (Min)	1	101	₹14,948
🏷️ Retail (Max)	13	1,313	₹1,94,324
💼 S-HNI (Min)	14	1,414	₹2,09,272
💼 S-HNI (Max)	66	6,666	₹9,86,568
💼 B-HNI (Min)	67	6,767	₹10,01,516

Retail: ≤ ₹2L • S-HNI: ₹2L–₹10L • B-HNI: > ₹10L

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Final Subscription Breakdown

✅ Final Closed Figures · 24-Sep-2026 18:49

Final Subscription 1.58x

Total Bids Recd 5.35 Cr Shares

Shares Offered 3.39 Cr Shares

QIB 3.16x

Offered: 93.66 L

Bids Recd: 2.96 Cr

FIIs: 1.61 Cr

Mutual Funds: 97.69 L

NII (HNI) 0.92x

Offered: 73.61 L

Bids Recd: 67.71 L

sHNI (₹2L–₹10L) 0.92x

Bids: 22.52 L

bHNI (> ₹10L) 0.92x

Bids: 45.18 L

Retail (RII) 1.00x

Offered: 1.72 Cr

Bids Recd: 1.71 Cr

Cut-Off Bids: 1.47 Cr

📅 Day-by-Day Subscription Growth

Day 1

22 Sep 2026

0.11x

Day 2

23 Sep 2026

0.27x

Day 3 (Final)

24 Sep 2026

1.58x

As per financials, Varmora Granito Limited has shown steady top-line growth reaching Rs 1,562.53 Cr and PAT recovery to Rs 62.06 Cr in FY26, RoNW is 6.61% and the Post-Issue P/E is 74.44, 108.7 and 60.72 respectively as per FY24, FY25, and FY26 earnings. So the issue looks fully priced on FY26 peak earnings and aggressively priced relative to historical average return metrics. The company is an integrated ceramic tiles and bathware manufacturing enterprise offering products starting from ceramic and vitrified floor/wall tiles to sanitaryware, bath fittings, tile adhesives, and engineered marble solutions that is highly competitive business segment. So, we give a AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

Key Strengths

Growth Drivers & Highlights

4 Positives

Strong B2C Brand Equity & Retail Distribution:

66.8% of sales generated from B2C channels under the "Varmora" brand, supported by 3,063+ dealer touchpoints across 249 cities.

Product Premiumization (GVT & IST):

Strategic tilt toward Glazed Vitrified Tiles (GVT) and Industrial Sustainable Technologies (IST) marble substitutes has driven gross margins from 35.26% in FY24 to 37.92% in FY26.

Comprehensive Tiles & Bathware Range:

Integrated offerings across floor, wall, GVT slabs, sanitaryware, and bathware fittings enable retail cross-selling.

Post-IPO Deleveraging:

Debt repayment of ₹245 Cr from Fresh Issue proceeds will eliminate most debt, freeing up internal accruals and reducing interest costs.

Risks & Concerns

Key Challenges & Headwinds

5 Risks

Rich Valuation relative to Tier-1 Leaders:

Asking P/E of 60.72 is higher than market leader Kajaria Ceramics (32.8) despite lower RoNW (7.79% vs 17.9%).

Working Capital Tie-Up & Overdue Receivables:

Trade Receivables (₹382.67 Cr) and Inventories (₹248.33 Cr) tie up working capital, with ₹20.87 Cr in export receivables overdue >9 months.

Energy & Raw Material Price Sensitivity:

High dependence on natural gas, LPG, and raw clay prices without long-term fixed-price supplier contracts.

Unrated Subsidiary Divestments:

Recent divestment of loss-making subsidiary Simola Tiles LLP without an independent valuation report.

Pledged Promoter Equity Shares:

78,30,000 Equity Shares held by promoters Parsotambhai Jivrajbhai Patel, Ramanbhai Jivrajbhai Patel, and Vallabhbhai Jivrajbhai Patel are pledged in favor of 360 ONE Prime Limited as security for a loan facility availed by promoter group entity Varmora International.

Updated on: 24-Sep-2026 18:52
As on Date	QIB	NII	RII	Total
Shares Offered / Reserved	93,65,510	73,61,217	1,71,76,172	3,39,02,899
Day 1 22-09-26	1,414 (0.00)	3,64,812 (0.05)	33,61,583 (0.20)	37,27,809 (0.11)
Day 2 23-09-26	10,14,949 (0.11)	12,63,308 (0.17)	68,87,190 (0.40)	91,65,447 (0.27)
Day 3 24-09-26	2,96,22,290 (3.16)	67,70,838 (0.92)	1,70,92,735 (1.00)	5,34,85,863 (1.58)

Open Date	Sep 22, 2026
Close Date	Sep 24, 2026
Allotment Date	Sep 28, 2026
Listing Date	Sep 29, 2026
Face Value	₹ 2 Per Equity Share
Issue Price	₹ 140 to ₹ 148 Per Equity Share
Issue Size	Total Issue of up to 4,78,39,255 Equity Shares aggregating up to ₹708.02 Cr Fresh Issue of up to 2,16,21,621 Equity Shares aggregating up to ₹320.00 Cr Offer for Sale of up to 2,62,17,634 Equity Shares aggregating up to ₹388.02 Cr
Retail (Min)	1 Lot (101 Shares - ₹ 14,948)
Retail (Max)	13 Lots (1,313 Shares - ₹ 1,94,324)
S-HNI (Min)	14 Lots (1,414 Shares - ₹ 2,09,272)
S-HNI (Max)	66 Lots (6,666 Shares - ₹ 9,86,568)
B-HNI (Min)	67 Lots (6,767 Shares - ₹ 10,01,516)
Allocation	QIB: 50% \| NII: 15% \| RII: 35%
Promoter Shareholding	52% (Pre-Issue) 47.04% (Post-Issue)
Registrar	KFin Technologies Limited
Lead Manager	Goldman Sachs (India) Securities Private Limited, JM Financial Limited, SBI Capital Markets Limited

Varmora Granito Limited, incorporated in 2003 and headquartered in Morbi, Gujarat, is a leading Indian manufacturer and marketer of ceramic tiles, vitrified tiles, bathware, sanitaryware, and tile adhesives. The company operates an integrated building materials business model focused on premium products, brand building, and deep retail distribution. In FY26, 81.72% of operational revenues came from in-house manufacturing, enabling tight quality control, design agility, and margin expansion.

The diverse product portfolio includes Glazed Vitrified Tiles (GVT), Polished Vitrified Tiles (PVT), ceramic wall and floor tiles, sanitaryware, and bath fittings. Varmora is the first Asian manufacturer to commercialize Integrated Stone Technology (IST) through a 2024 technology partnership with SACMI Imola S.C. (Italy). IST products replicate natural stone body-veining while maintaining the technical durability of vitrified slabs. GVT and technical products accounted for 84.19% of total tile revenues in FY26 (up from 75.37% in FY24), driving gross margins from 35.26% in FY24 to 37.92% in FY26.

Varmora serves domestic retail (B2C), institutional project (B2B), and international export markets:

Domestic Retail (B2C): Generated 66.80% of domestic sales in FY26 through 305 Exclusive Brand Outlets (EBOs) across 249 cities and 2,758 Multi Brand Outlets (MBOs).

Institutional (B2B): Serves real estate developers, infrastructure contractors, and government agencies.

Exports: Supplies over 100 countries across North America, Europe, the Middle East, and Africa through 154 overseas MBO touchpoints. Logistics are supported by proximity to Mundra and Kandla ports and three regional hubs in Bengaluru, Faridabad, and Mumbai.

The company's manufacturing infrastructure includes eight strategically located in-house facilities in the Morbi cluster of Gujarat. To complement this, Varmora engages 304 contract manufacturers for standard, low-complexity ceramic and PVT products. In July 2026, the company operationalized a new 6.40 million sq. meter GVT facility in Tezpur, Assam, through a joint venture, Allemby Ceramics.

FY26 Installed Capacity & Utilization:

Tiles: 43.80 million sq. meters installed | 31.75 million sq. meters produced (72.49% utilization).

Sanitaryware (Conffi Unit): 8,58,600 pieces installed | 5,71,700 pieces produced (66.59% utilization).

Ceramic Clay Plant: 83,080 metric tonnes produced (69.93% utilization).

Operational capabilities are driven by an in-house R&D (17 members) and design team (20 designers). Between FY24 and FY26, Varmora launched over 2,900 new tile SKUs, pushing its active SKU count to 5,338. The company leverages digital tools like Hybrid Varmora (an AR 3D visualization platform) and Varmora Sankalp (a loyalty app for masons and plumbers). It sources 83.20% of its power from clean energy, utilizing captive solar, wind, and waste heat recovery systems.

Based on historical financial data, total income and net profits stood at ₹1,472.58 Cr / ₹44.94 Cr in FY24, ₹1,492.68 Cr / ₹30.77 Cr in FY25, and ₹1,562.53 Cr / ₹55.09 Cr in FY26. The company demonstrated a sharp profit recovery in FY26 following a dip in FY25. It plans to utilize ₹215.00 Cr from the fresh issue proceeds toward debt prepayment. The company boasts an average EPS of ₹2.49 and an average RoNW of 6.61% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 3.74 against a NAV of ₹39.52 (as of March 31, 2026). The Post-Issue P/BV stands at 2.99. Attributing the latest earnings to the expanded post-issue equity base, the asking price translates to a Post-Issue P/E of approximately 60.72x (FY26). A comparison shows an average peer P/E of 47.12x (led by Kajaria Ceramics at 32.8x and Somany Ceramics at 21.2x), indicating the asking price demands a premium over tier-1 industry leaders.

On the Book Running Lead Manager (BRLM) front, the issue is managed by JM Financial Limited, Goldman Sachs (India) Securities Private Limited, and SBI Capital Markets Limited. Over the last three fiscal years, Lead BRLM JM Financial Limited has handled 52 IPOs. KFin Technologies Limited is acting as the Registrar to the Offer.

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Disclaimer

No financial information whatsoever published herein, should be construed as an offer to buy or sell securities, or as information to make investment decisions, or as an official confirmation of any transaction. All matter published herein is purely for educational and informational purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

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Period	Total Income	Total Expenses	Profit After Tax (PAT)
FY26	1,562.53	1,486.36	55.09
FY25	1,492.68	1,456.28	30.77
FY24	1,472.58	1,409.55	44.94

Company	P/B Ratio	P/E Ratio	RoNW	Total Revenue (Cr)
Varmora Granito Limited Current	3.74	60.72	7.79%	1,562
Kajaria Ceramics Limited	6.26	32.8	17.9%	5,056
Somany Ceramics Limited	2.77	21.2	10.4%	2,935
Asian Granito India Limited	0.97	113	1.27%	1,938
Orient Bell Limited	1.77	27.1	3.80%	744

Varmora Granito Limited

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