A leading Morbi-based tiles manufacturer opens Rs 708 crore mainboard issue on September 22
Varmora Granito Ltd is an established Indian tiles manufacturer with a diversified, increasingly premium portfolio — glazed vitrified tiles (GVT), polished vitrified tiles (PVT), ceramic tiles, and other premium technology-led products, alongside bathware and adhesives.
It is a direct play on the premiumisation and formalisation of India’s tiles industry, positioning itself as a leading and fast-growing branded player.
The premiumisation strategy is the core of the story. GVT and technical products accounted for 84.2% of tile revenue in FY26 (up from 75.4% in FY24), and 100% of new product launches during FY24–FY26 came from these premium categories.
GVT commands 15–30% higher realisations than ceramic and PVT tiles, and its share of the Indian tiles market is expected to rise from 36.5% in FY26 to 45.5% by FY30.
Varmora commercialised Integrated Stone Technology (IST) in 2024 through a partnership with Italy’s SACMI Imola, enabling marble-like products, and carries over 3,500 tile SKUs across 20 surface types.
The manufacturing and distribution footprint is strong. Varmora operates eight in-house manufacturing facilities in the Morbi cluster of Gujarat — manufacturing 81.7% of its revenue-generating products in-house in FY26, giving control over quality, technology and costs — supplemented by 16.22 MW of renewable (wind and solar) capacity.
Its multi-channel distribution network spans 305 exclusive brand outlets (EBOs) and 2,758 multi-brand outlets (MBOs) across India and overseas (exports to 100+ countries), plus a B2B network of builders, contractors, developers and government institutions.
It is expanding into East and Northeast India via a 51% stake in Allemby Ceramics (a greenfield Assam facility). It had 1,153 permanent employees as of March 2026, with the Varmora family as promoters.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 22, 2026 |
| Issue Closes | September 24, 2026 |
| Listing | BSE, NSE (Mainboard) |
| Listing Date | September 29, 2026 |
| Price Band | Rs 140 – Rs 148 per share |
| Face Value | Rs 2 |
| Issue Size | Rs 708.02 crore (~4.8 crore shares) |
| Fresh Issue | Rs 320 crore (~2.16 crore shares) |
| Offer for Sale | Rs 388.02 crore (~2.62 crore shares) |
| Lot Size | 101 shares |
| Min. Retail Investment | Rs 14,948 |
| QIB / NII / Retail | 50% / 15% / 35% |
| Lead Managers | JM Financial, Goldman Sachs (India) Securities, SBI Capital Markets |
| Registrar | KFin Technologies Ltd. |
The issue is majority OFS (Rs 388.02 crore) with a Rs 320 crore fresh component. From the fresh proceeds, Varmora will utilise funds for repayment or prepayment of certain borrowings (of the company and subsidiaries Covertek Ceramica, Varmora Sanitarywares and Simola Tiles, via investment in them), and general corporate purposes.
The large debt-reduction should pare finance costs and de-risk the balance sheet — though the OFS (larger than the fresh issue) goes to selling shareholders. Ahead of the opening,
Post-issue, promoter and promoter group shareholding falls from 52.0% to 46.6%, with public shareholding rising to 53.4%.
Price Band
At the upper band of Rs 148, on FY26 diluted EPS of Rs 3.1 the company commands a P/E of approximately 48.5x — moderating from 67.6x in FY24 and 85.1x in FY25 as earnings rebounded and scale took effect.
GMP
Grey-market interest has been modest. Varmora Granito IPO GMP stood at around ₹12 (~8% premium) as of the days before opening.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from Operations | 1,435.5 | 1,446.0 | 1,512.5 |
| EBITDA | 113.2 | 151.7 | 171.5 |
| EBITDA Margin (%) | 7.9 | 10.5 | 11.3 |
| Net Profit | ~37* | ~44* | 55.0 |
| PBT | 63.0 | — | 76.6 |
*FY24/FY25 PAT approximate, implied by the P/E moderation
The financials show modest top-line growth. Revenue from operations grew only from Rs 1,435.5 crore in FY24 to Rs 1,512.5 crore in FY26 (a slow 2.7% CAGR). EBITDA expanded at a 23.1% CAGR, from Rs 113.2 crore (7.9% margin) in FY24 to Rs 171.5 crore (11.3% margin) in FY26, driven by the richer, GVT-led product mix and operating leverage.
Net profit grew to Rs 55.0 crore in FY26, with net worth strengthening to Rs 810.2 crore.
Peer Comparison
Varmora has the second-highest tile revenue among listed peers, with a large store network and high in-house manufacturing. But it demands a premium over sector leader Kajaria Ceramics despite lower return metrics
According to a note by BP Weatlh, “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… 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.”
Risks to Consider
Full valuation is the headline concern. At ~48.5x FY26 earnings — a premium to peer leader Kajaria despite lower return metrics — the pricing leaves limited margin of safety, especially for short-term listing gains.
In-house manufacturing dependence. A significant 81.7% of FY26 revenue came from in-house-manufactured products, so any disruption, shutdown or delay at its facilities (particularly dedicated product lines) could adversely impact production, supply, revenue and profitability.
GVT/premium-product concentration. Varmora derived a substantial 73.9% of total revenue (84.2% of tile revenue) from GVT and technical products in FY26 — so any slowdown in demand, adverse shift in consumer preferences, or increased competition in these segments could hurt performance.
Morbi geographic concentration. Effectively all production is concentrated in the Morbi cluster of Gujarat — any event disrupting Morbi (fuel supply, labour, regulation, natural calamity) would significantly affect the business.
Input-cost and fuel-price volatility. Tile manufacturing is energy-intensive; gas/fuel price volatility and working-capital cycles are essential monitorables that can compress margins.
