Varmora Granito
What they do: The company is engaged in the production and sale of ceramic tiles and allied products, focusing on the Indian market. It manages capital to maximize shareholder value and ensure business continuity.
By IPO Milega Research · Published · Updated
The company shows a strong financial position with a healthy equity base and manageable debt levels.
- Listing gain
- +4.73%
- Listed at ₹155
- Subscribed
- 1.6x
- Total
- Retail odds
- 98%
- 1 in 1
GMP is an unofficial grey market indication.
- Price band
- ₹140-148
- Lot size
- 101 shares
- Min. investment
- ₹14,948
- Issue size
- 708.02 Cr.
- Open22 Sept 2026
- Close24 Sept 2026
- Allotment25 Sept 2026
- Listing29 Sept 2026
Overview
Estimated from the current subscription figures. Tap a category to work it out for your application size.
- QIB
- 3.1x
- NII
- 0.94x
- Retail
- 1.02x
₹149 (+0.68%)
GMP trend
Unofficial grey market quotes, times in IST
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials7.0
- Performance8.0
- Flexibility8.0
- Timing7.0
- Risk4.0
The expected gains on listing are primarily informed by the Grey Market Premium (GMP) of 153, indicating a 3.38% potential increase. This is supported by the company's strong market position, consistent revenue growth, and strategic focus on premium products, despite the presence of significant risks.
Strengths3
- Ranked among the top four players in the Indian tiles market.
- Achieved a gross margin increase from 35.26% in Fiscal 2024 to 37.92% in Fiscal 2026.
- Pioneered innovations like digitally printed wall tiles and integrated stone technology.
Concerns5
- High dependency on Morbi region for operations
- Significant revenue from glazed vitrified tiles, vulnerable to demand fluctuations
- Decline in Profit After Tax by 24.24% in Fiscal 2026
- Geopolitical tensions affecting export revenue
- Regulatory changes, including new Labour Codes and tax reforms
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum14,9481 lots, 101 shares
- Retail Maximum1,94,32413 lots, 1313 shares
- S-HNI Minimum2,09,27214 lots, 1414 shares
- S-HNI Maximum9,86,56866 lots, 6666 shares
- B-HNI Minimum10,01,51667 lots, 6767 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 101 | 14,948 |
| Retail Maximum | 13 | 1313 | 1,94,324 |
| S-HNI Minimum | 14 | 1414 | 2,09,272 |
| S-HNI Maximum | 66 | 6666 | 9,86,568 |
| B-HNI Minimum | 67 | 6767 | 10,01,516 |
Timing
7.0/10The IPO timing appears favorable due to the company's robust internal operations and strategic financial management. However, the lack of explicit market condition details suggests a moderate level of risk associated with external economic factors.
- Time to market
- The company's established operations and strategic financial transactions suggest readiness for market entry, but the absence of detailed market condition analysis introduces moderate uncertainty.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Favourable
- Time to market
- 7.0
- Listing on
- BSE, NSE
Key milestones
- 22 Sept 2026IPO Opens
- 24 Sept 2026IPO Closes
- 25 Sept 2026Basis of Allotment
- 28 Sept 2026Refunds Initiated
- 28 Sept 2026Credit to Demat Account
- 29 Sept 2026Listing Date
Financials
7.0/10- Revenue
- ₹1,563 Cr
- +4.7%
- Profit after tax
- ₹55.09 Cr
- +79.0%
- Net margin
- 3.5%
- +1.5 pts
- Assets
- ₹1,510 Cr
- -5.0%
- Return on equity
- 10%
- Debt to equity
- 0.44
- Current ratio
- 1.5
- Revenue CAGR
- 15%
- ROCE
- 9.89%
- Return on net worth
- 7.79%
- NAV per share (₹)
- 39.52
Financial performance trend
Amount ₹ in croresThe company shows a strong financial position with a healthy equity base and manageable debt levels. The revenue and profit trends are positive, indicating growth and profitability. However, the company faces market risks, including interest rate and foreign currency risks, which could impact future cash flows.
Risk
4.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks2
- Market risks2
- Operational risks2
- Regulatory risks1
High dependency on specific products and regions, coupled with regulatory and geopolitical risks, pose significant challenges to financial stability.
How the company offsets these
Diversifying product lines and geographic operations can mitigate dependency risks.
Financial risks2
- Decline in Profit After Tax by 24.24% in Fiscal 2026
- Outstanding contingent liabilities of ₹115.35 million
Market risks2
- Significant revenue from glazed vitrified tiles, vulnerable to demand fluctuations
- Geopolitical tensions affecting export revenue
Operational risks2
- High dependency on Morbi region for operations
- High supplier dependency with top ten suppliers
Regulatory risks1
- Regulatory changes, including new Labour Codes and tax reforms
Performance
8.0/10Varmora Granito Limited is a leading player in the Indian tiles market, focusing on premium products like glazed vitrified tiles (GVT). The company has shown strong growth and profitability, supported by a robust distribution network and strategic innovations. It ranks among the top four in the market and has a significant market share in GVT tiles.
- Historical growth
- Varmora has achieved a revenue CAGR that positions it as the second fastest-growing peer in the Indian tiles market., High
- Market comparison
- Varmora is the second fastest-growing company among its peers in the Indian tiles market, with a strong focus on premium products.
- Future potential
- The Indian tiles market is projected to reach ₹765.2 billion by Fiscal 2030, providing significant growth opportunities for Varmora.
- Operational consistency
- Consistent revenue growth driven by strategic focus on premium products and innovation.
- Experience
- The management team has demonstrated strong strategic focus on innovation and premiumization.
- Track record
- Successful expansion and innovation in product offerings.
Key achievements
- 01Ranked among the top four players in the Indian tiles market.
- 02Achieved a gross margin increase from 35.26% in Fiscal 2024 to 37.92% in Fiscal 2026.
- 03Pioneered innovations like digitally printed wall tiles and integrated stone technology.
Flexibility
8.0/10Varmora has a well-established market presence with a comprehensive distribution network across India and international markets. Its focus on premium products like GVT, which are gaining popularity, positions it well to capture market growth. The company's strategic expansion into Tier-II and Tier-III cities and its strong brand recognition enhance its adaptability to market changes.
Varmora shows solid financial stability with consistent revenue growth and improving gross margins. The company's focus on in-house manufacturing and premium products has contributed to its financial resilience. However, the net debt level and moderate profit margins suggest room for improvement.
The company exhibits operational agility through its advanced manufacturing capabilities and strategic location in the Morbi cluster, a major tile production hub. Its ability to innovate and launch new products rapidly, along with a strong focus on quality control, supports its operational flexibility.
Varmora Granito Limited demonstrates strong flexibility and adaptability through its diverse product offerings, strategic market positioning, and robust financial performance. The company has effectively leveraged technology and innovation to enhance its product portfolio, particularly in the premium segment of glazed vitrified tiles (GVT). Its extensive distribution network and strategic manufacturing capabilities further bolster its market adaptability and operational agility.
- Product diversification
- Varmora offers a diverse range of over 3,500 SKUs, including GVT, PVT, and ceramic tiles, catering to various applications and customer preferences. This diversification supports its adaptability to changing market demands.
- Future adaptability
- Varmora's strategic focus on premium products, continuous innovation, and expansion into new markets positions it well for future adaptability. Its investment in technology and sustainability initiatives further enhances its potential to adapt to future industry trends and consumer preferences.
Latest on Varmora Granito IPO
The data on this page has been reviewed manually by the IPO Milega research team. It is not investment advice, and IPO Milega accepts no responsibility for losses arising from any investment decision. Investments in the securities market are subject to market risks. Read all the related documents, including the full prospectus, carefully before investing.