Varmora Granito
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Subscription
- Qualified institutionalQIB
- 3.16×
- Big non-institutionalbNII · above ₹10 lakh
- 0.92×
- Small non-institutionalsNII · ₹2–10 lakh
- 0.87×
- Retail individualRII · up to ₹2 lakh
- 0.94×
Grey market premium
Unofficial and indicative — not a forecast
Day-wise premium · 13 observations
| Date | GMP | % | Sauda | Est. listing | Gain / lot |
|---|---|---|---|---|---|
| 29 Sep 2026 | ₹1 | — | ₹100 | ₹149 | ₹101 |
| 28 Sep 2026 | ₹1 | — | ₹100 | ₹149 | ₹101 |
| 27 Sep 2026 | ₹0 | — | ₹0 | ₹148 | ₹0 |
| 26 Sep 2026 | ₹0 | — | ₹0 | ₹148 | ₹0 |
| 25 Sep 2026 | ₹0.50 | — | ₹0 | ₹148.50 | ₹50.50 |
| 24 Sep 2026 | ₹0.50 | — | ₹0 | ₹148.50 | ₹50.50 |
| 23 Sep 2026 | ₹0 | — | ₹0 | ₹148 | ₹0 |
| 22 Sep 2026 | ₹3 | — | ₹200 | ₹151 | ₹303 |
| 21 Sep 2026 | ₹9 | — | ₹700 | ₹157 | ₹909 |
| 20 Sep 2026 | ₹9 | — | ₹700 | ₹157 | ₹909 |
| 19 Sep 2026 | ₹12 | — | ₹900 | ₹160 | ₹1,212 |
| 18 Sep 2026 | ₹15 | — | ₹1,200 | ₹163 | ₹1,515 |
| 17 Sep 2026 | ₹10 | 0.00% | ₹800 | ₹158 | ₹1,010 |
Gain per lot assumes the premium holds to listing and that the application is allotted — allotment in an oversubscribed issue is a lottery, so it is indicative, not expected. Sauda is the rate paid for a submitted application itself.
Bids received
The demand behind each multiple — what was offered, what was bid for, and what those bids are worth
| Category | Shares offered | Shares bid for | Bids (₹ Cr) | Times |
|---|---|---|---|---|
| Qualified institutional | 95,67,653 | 2,96,22,290 | ₹438 Cr | 3.10× |
| Non-institutional | 71,75,828 | 67,70,838 | ₹100 Cr | 0.94× |
| Big non-institutionalwithin NII | 47,83,886 | 44,90,662 | ₹66.46 Cr | 0.94× |
| Small non-institutionalwithin NII | 23,91,943 | 22,52,401 | ₹33.34 Cr | 0.94× |
| Retail individual | 1,67,43,599 | 1,70,92,634 | ₹253 Cr | 1.02× |
| Total | 3,34,87,080 | 5,34,85,762 | ₹792 Cr | 1.60× |
Times subscribed is the figure published for each category, not shares bid for divided by shares offered — a category's multiple is struck against its own allottable base, which is not always the offered count shown beside it. Observed 24 Sept, 05:41 pm IST; the registrar publishes the final basis of allotment.
Issue details
- IPO date
- 22 Sep 2026 – 24 Sep 2026
- Listing date
- 29 Sep 2026
- Face value
- ₹2 per share
- Price band
- ₹140 – ₹148
- Lot size
- 101 shares
- Sale type
- Fresh capital cum OFS
- Issue type
- Book Building issue
- Listing at
- BSE
- Total issue size
- ₹708 Cr
- Fresh issue
- ₹320 Cr 2,16,21,621 shares
- Offer for sale
- ₹388 Cr 2,62,17,634 shares
- Market cap at offer price
- ₹3,345 Cr
- Promoter holding
- 52.00% → 47.04% pre-issue → post-issue
- ISIN
- INE0M5301040
- CIN
- U26914GJ2003PLC043194
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- JM Financial Ltd.
- Registered office
- 8-A, National Highway, Dhuva, Taluka Wankaner, Rajkot – 363 641, Gujarat, India
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| QIB | 93,65,510 | 27.62% | 27.62% |
| Anchor investor · within QIB | 1,43,51,775 | — | 42.33% |
| NII (HNI) | 73,61,217 | 21.71% | 21.71% |
| bNII > ₹10L · within NII | 49,07,478 | — | 14.48% |
| sNII < ₹10L · within NII | 24,53,739 | — | 7.24% |
| Retail (RII) | 1,71,76,172 | 50.66% | 50.66% |
| Employee | 0 | — | 0.00% |
| Market maker | 0 | — | 0.00% |
| Total issue | 3,39,02,899 | — | 100.00% |
Net offer to the public of 3,39,02,899 shares, out of a total issue of 3,39,02,899. Indented rows sit inside the category above them and are not added to it.
Application size
Minimum 101 shares per lot, in multiples, at ₹148
| 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 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
₹148 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.70 | 2.44 |
| P/E (×) | 54.81 | 60.66 |
| Price to book (×) | 3.74 | — |
| Market cap | — | ₹3,345 Cr |
Key performance indicators
Latest reported period, consolidated
- Return on net worth
- 7.79%
- ROCE
- 9.00%
- PAT margin
- 3.53%
- EBITDA margin
- 14.18%
- NAV per share
- ₹39.52
- Price to book
- 3.74
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
Company financials
Consolidated ·₹ crore unless a row shows % or ×, as reported in the offer document
| Period ended | FY26 | FY25 | FY24 |
|---|---|---|---|
| Profit and loss | |||
| Total income | 1,562.53 | 1,492.68 | 1,472.58 |
| Revenue from operations | 1,512.46 | 1,446.03 | 1,435.48 |
| Other income | 50.06 | 46.65 | 37.1 |
| Total expenses | 1,486.36 | 1,456.28 | 1,412.92 |
| Operating profit | 76.17 | 36.4 | 59.66 |
| Operating margin | 4.87% | 2.44% | 4.05% |
| Profit before tax | 76.62 | 37.65 | 63.04 |
| Profit after tax | 55.09 | 30.77 | 44.94 |
| PAT margin | 3.53% | 2.06% | 3.05% |
| Balance sheet | |||
| Total assets | 1,509.87 | 1,589.8 | 1,476.16 |
| Current assets | 796.68 | 828.87 | 667.67 |
| Current liabilities | 476.68 | 556.02 | 426.08 |
| Total liabilities | 699.66 | 846.61 | 772.8 |
| Net worth | 810.22 | 743.2 | 703.36 |
| Current ratio | 1.67× | 1.49× | 1.57× |
| Return on equity | 6.80% | 4.14% | 6.39% |
| Cash flow | |||
| Operating cash flow | 234.07 | 63.21 | 88.29 |
| Investing cash flow | -45.97 | -119.95 | -336.56 |
| Financing cash flow | -188.3 | 46.62 | 115.06 |
| Net cash flow | -0.19 | -10.11 | -133.21 |
Objects of the issue
Stated use of the net proceeds— open a row for the issuer's full explanation
1 Repayment/Pre-payment of Outstanding Borrowings – Company ₹215 Cr
The company intends to utilize a portion of the Net Proceeds towards repayment/pre-payment, in full or in part, of certain outstanding borrowings and accrued interest thereon availed by the company, to reduce outstanding indebtedness and debt servicing costs.
2 Repayment/Pre-payment of Outstanding Borrowings – Wholly-Owned Subsidiaries (Covertek Ceramica Private Limited and Varmora Sanitarywares Private Limited) ₹30 Cr
The company intends to invest in its wholly-owned subsidiaries, Covertek Ceramica Private Limited and Varmora Sanitarywares Private Limited (formerly Varmora Sanitarywares LLP), to enable repayment/pre-payment of their outstanding borrowings and accrued interest, thereby improving the consolidated debt-equity ratio.
3 General Corporate Purposes —
The company intends to deploy the balance Net Proceeds towards general corporate purposes, including funding growth opportunities, brand building, marketing expenses, strategic initiatives, partnerships, acquisitions, and meeting ordinary course business expenses, subject to a cap of 25% of Gross Proceeds.
1 of 3 objects carry no stated amount — typically general corporate purposes, funded from whatever remains — so the total above is the quantified portion only, not the whole issue.
About Varmora Granito
Varmora Granito Limited is a tile and bathware manufacturing company incorporated in India in 2003 with registered offices in Rajkot and corporate offices in Ahmedabad, Gujarat. The company operates through its own manufacturing facilities and subsidiaries including Covertek Ceramica Private Limited and Varmora Sanitarywares Private Limited. For Fiscal 2026, the company generated revenue from operations of ₹15,124.64 million, with 81.72% derived from in-house manufacturing. The company manufactures tiles in various product categories including GVT and technical products (73.98% of revenues), PVT (8.52%), and ceramics (5.37%), as well as bathware (9.18%) and adhesives (1.50%). The company operates multiple manufacturing facilities across tile production, sanitaryware production, and ceramic clay manufacturing, with total installed capacity of 43.80 million square meters for tiles and 858.60 thousand pieces for sanitaryware as of March 31, 2026. The company generates revenue through two primary channels: exclusive brand outlets (EBOs) representing 18.66% of revenues and multi-brand outlets (MBOs) representing 48.67% of domestic tile sales. The company also exports products, with exports representing 20.54% of tile revenues in Fiscal 2026.
Management
Bhavesh Vallabhdas Varmora
MD
Pramodkumar Parsotambhai Patel
COO
Hiren R Varmora
Director
Aamir Zeb
Director
Suryanarayanan Sivaramakrishnan
Director
Chandubhai Virani
Director
Sandhya Maulik Patel
Director
Vivek Vikram Singh
CEO
Shital Bharatkumar Badshah
Director
Bhaveshkumar H Koshti
CFO
Nilesh Sharma
Director of Operations
Amit Doshi
CTO
Hardik Nalinbhai Doshi
VP of Sales
Rajesh Harjivanbhai Detroja
VP of Marketing
Ashokkumar Naranbhai Patel
Director of HR
Strengths
As stated in the offer document
Established Player in a Large and Attractive Tile Market
The company is among the top four players in the Indian tiles market by revenue in Fiscal 2026, with revenue from operations growing at a CAGR of 2.65% from ₹14,354.81 million in Fiscal 2024 to ₹15,124.64 million in Fiscal 2026, well-positioned to capture premiumization and branded-player tailwinds.
Comprehensive Premium Product Portfolio
The company offers over 3,500 tile SKUs across GVT, PVT, and ceramic tiles as of March 31, 2026; GVT and technical products accounted for 84.19% of tile revenue in Fiscal 2026, driving Gross Margin improvement from 35.26% in Fiscal 2024 to 37.92% in Fiscal 2026.
Customer-Centric Innovation Led Approach Resulting in Multiple New Product Launches
The company launched over 2,900 new tile SKUs between April 1, 2023 and March 31, 2026, supported by a 17-member R&D team and 20 skilled designers, and is the first company in Asia to commercialize SACMI's Integrated Stone Technology (IST) in 2024.
Well-Diversified Pan-India Distribution Network Focused on EBOs
The company operates 305 EBOs and 2,758 MBOs across 988 cities in 24 states as of March 31, 2026; EBO average revenue was ₹9.25 million vs. ₹2.67 million for MBOs in Fiscal 2026, with EBO contribution to domestic tile sales rising from 24.90% in Fiscal 2024 to 27.72% in Fiscal 2026.
Strategically Located and Technologically Advanced In-House Manufacturing
The company operates eight manufacturing facilities in the Morbi cluster, with in-house manufacturing contributing 81.72% of revenue from operations in Fiscal 2026 (up from 66.83% in Fiscal 2024), ensuring end-to-end quality control and cost efficiency.
Entrepreneurial Founder-Led Management Team with Independent Board and Strong ESG Focus
The company is led by three promoters each with 14–20+ years of industry experience, supported by a senior management team averaging 20 years of experience; Katsura Investments (Carlyle affiliate) invested ₹6,403.52 million in Fiscal 2023, strengthening governance and ESG practices including a renewable energy capacity of 16.22 MW as of March 31, 2026.
Risk factors
As stated in the offer document
Dependence on Manufacturing Facilities and Geographic Concentration in Morbi, Gujarat
The company derives 81.72% of total revenue from operations from in-house manufacturing facilities in Fiscal 2026, all of which are concentrated in Morbi, Gujarat. Any disruption — including natural disasters (e.g., Cyclone Biparjoy caused ~3 weeks of shutdown in Fiscal 2024), agitations, or regulatory actions — could severely impact production and financial performance.
Revenue Concentration in GVT and Technical Products
The company derives 73.98% of total revenue from operations from GVT and technical products in Fiscal 2026, making it highly vulnerable to demand slowdowns in this segment. Any negative trend in the tiles market driven by economic cyclicality, changes in consumer confidence, or government policy shifts could materially impact sales and profitability.
Geopolitical Conflict in the Middle East Disrupting Fuel Supply and Export Operations
Since early 2026, the US-Israel-Iran conflict has disrupted availability and pricing of natural gas and propane — key fuels accounting for 21.06% of total income in Fiscal 2026 — and has reduced shipping vessel availability for export sales (21.11% of Sale of Products). Any escalation could further increase energy costs, disrupt supply chains, and adversely affect both domestic and export business.
Franchisee Dependency and B2C Distribution Network Risk
The company operates 305 EBOs and 2,758 MBOs entirely through a franchisee-owned-franchisee-operated model, accounting for 66.80% of total domestic sales in Fiscal 2026. Since franchisees are independent third parties, any non-performance, fraud, non-compliance, or defection to competitors could damage brand reputation and materially impact revenue.
Raw Material Supply Volatility and Supplier Dependency
The company is exposed to price volatility and supply disruptions for key raw materials (clays, glaze, ink, feldspar, frit, bentonite), with cost of materials consumed at ₹3,837.94 million (24.56% of total income) in Fiscal 2026. Certain materials are sourced from a limited number of suppliers, and any discontinuation, quality failure, or price escalation could hamper manufacturing schedules and increase costs.
Significant Power and Fuel Cost Exposure
Power and fuel expenses totaled ₹3,290.35 million (21.06% of total income) in Fiscal 2026, representing a major cost driver heavily dependent on natural gas availability. Any disruption in fuel supply, price escalation, or inability to pass increased costs to customers could significantly compress margins and adversely affect operations.
Capital Intensity, Indebtedness, and Debt Covenant Risk
The company carries total borrowings of ₹3,579.48 million as of March 31, 2026, with an interest coverage ratio of 1.89x and a debt-to-equity ratio of 0.44x. Lenders hold charges over movable and immovable assets, and financing covenants restrict key corporate actions; any default or covenant breach could trigger asset forfeiture or credit facility termination.
International Operations and Trade Policy Risks
Export sales constitute 21.11% of Sale of Products in Fiscal 2026, spanning over 100 countries, exposing the company to anti-dumping duties, trade tariffs (including US 'Fair and Reciprocal Plan' tariffs), sanctions compliance risks, and foreign exchange fluctuations. The company has also disclosed dealings with entities in sanctioned jurisdictions (Syria, Russia, Belarus, Ukraine, Venezuela), creating potential regulatory exposure.
Regulatory and Compliance Risk — Permits, Licenses, and Environmental Obligations
The company requires numerous statutory approvals (factory licenses, pollution control consents, labor registrations) across all manufacturing units, and faces an ongoing National Green Tribunal matter related to coal gasifier usage with contingent liabilities of ₹18.40 million for interim compensation. Any failure to obtain, renew, or comply with these approvals could result in shutdowns, penalties, or loss of operating authorization.
Outstanding Litigation and Contingent Liabilities
The company faces contingent liabilities totaling approximately ₹114.75 million as of March 31, 2026, including claims under Central Excise Duty, GST, Income Tax, and NGT environmental compensation demands. Adverse outcomes in pending civil, tax, and regulatory proceedings could result in significant financial liabilities and reputational damage.
Company Analysis
from RHPVarmora Granito Limited manufactures and sells glazed vitrified tiles (GVT), technical tiles, plain vitrified tiles (PVT), ceramic tiles, bathware products, and adhesives for the real estate, infrastructure, and construction sectors in India and internationally.
Varmora Granito Limited is a tile and bathware manufacturing company incorporated in India in 2003 with registered offices in Rajkot and corporate offices in Ahmedabad, Gujarat. The company operates through its own manufacturing facilities and subsidiaries including Covertek Ceramica Private Limited and Varmora Sanitarywares Private Limited. For Fiscal 2026, the company generated revenue from operations of ₹15,124.64 million, with 81.72% derived from in-house manufacturing. The company manufactures tiles in various product categories including GVT and technical products (73.98% of revenues), PVT (8.52%), and ceramics (5.37%), as well as bathware (9.18%) and adhesives (1.50%). The company operates multiple manufacturing facilities across tile production, sanitaryware production, and ceramic clay manufacturing, with total installed capacity of 43.80 million square meters for tiles and 858.60 thousand pieces for sanitaryware as of March 31, 2026. The company generates revenue through two primary channels: exclusive brand outlets (EBOs) representing 18.66% of revenues and multi-brand outlets (MBOs) representing 48.67% of domestic tile sales. The company also exports products, with exports representing 20.54% of tile revenues in Fiscal 2026.
Objects of the Issue
- Repayment/pre-payment, in full or in part, of all or certain outstanding borrowings and accrued interest availed by the Company and its wholly-owned subsidiaries (Covertek Ceramica Private Limited and Varmora Sanitarywares Private Limited) p.55
- General corporate purposes p.55
- Repayment/pre-payment, in full or in part, of all or certain outstanding borrowings and accrued interest thereon availed by: (a) our Company; and (b) our wholly-owned subsidiaries namely Covertek Ceramica Private Limited and Varmora Sanitarywares Private Limited (formerly, Varmora Sanitarywares LLP), through investment in such Subsidiaries ₹2,450.00 million p.127
- General corporate purposes p.134
- Fresh Issue by our Company up to ₹3,200.00 million p.465
Issue Structure
- Total Issue
- Up to [●] Equity Shares of face value of ₹2 each, aggregating up to ₹ [●] million
- Fresh Issue
- Up to [●] Equity Shares of face value of ₹2 each, aggregating up to ₹3,200.00 million
- Offer for Sale
- Up to 26,217,634 Equity Shares of face value of ₹2 each, aggregating up to ₹ [●] million by the Investor Selling Shareholder (Katsura Investments)
- Face Value
- ₹2 per Equity Share
Business Model
The company manufactures tiles, bathware, and related products and sells them through exclusive brand outlets (EBOs), multi-brand outlets (MBOs), and export channels. Revenue from operations for Fiscal 2026 was ₹15,124.64 million. The company earns revenue from the sale of tiles (87.87% of revenue from operations), bathware (9.18%), adhesives (1.50%), and others (1.45%). Approximately 81.72% of revenue comes from in-house manufacturing, with the remainder sourced through trading. The company also earns other income including export incentive income (₹79.21 million in Fiscal 2026, representing 0.51% of total income) and interest income. Gross profit in Fiscal 2026 was ₹5,924.35 million with a gross margin of 37.92%.
Business Segments
SWOT Analysis
- • Significant installed capacity and production volumes across multiple manufacturing facilities(p.42)
- • High capacity utilization at key facilities, particularly strong at Unit 3(p.41)
- • Strong tile product portfolio with growing share of premium GVT and technical products(p.72)
- • Increasing revenue from in-house manufacturing(p.71)
- • Established player with comprehensive premium product portfolio in large attractive tile market(p.138)
- • Customer-centric innovation approach with multiple new product launches(p.138)
- • Well-diversified pan-India distribution network of EBOs strengthening brand recall(p.138)
- • Strategically located technologically advanced in-house manufacturing controlling quality and supply chain(p.138)
- • Entrepreneurial founder-led management team with independent Board focused on sustainability(p.138)
- • 81.72% of revenue from in-house manufacturing providing operational control and margins(p.141)
- • 84.19% of tile revenue from premium GVT and technical products(p.141)
- • Largest in-house manufacturing capacity among listed peers with 70.2 Mn sqm tile capacity(p.194)
- • Most capacity expansion among peers (2016-2026) with 43.8 Mn sqm added(p.194)
- • Strong distribution network with 3,063 dealers and 305 EBOs(p.196)
- • First-mover in key tile innovations including digitally printed wall tiles(p.196)
- • First to commercialize integrated stone technology in Asia(p.196)
- • Largest product portfolio with 5,338 SKUs launched between FY2023-FY2026(p.196)
- • Significant GVT market share at 6.6% of Indian GVT tiles market revenue in FY2026(p.182)
- • Strong B2C focus with 66.8% of revenue from direct consumer sales(p.195)
- • Highest GVT contribution ratio among listed peers(p.197)
- • Among top four players in GVT revenue and manufacturing capacity(p.197)
- • Highest EBITDA margin in FY2025 among listed peers(p.198)
- • Highest gross margin in FY2025 and second highest in FY2026(p.198)
- • Second fastest growing among selected listed peers(p.197)
- • Highest cumulative capex as percentage of revenue over three years(p.199)
- • Second highest brand recall and highest conversion rate(p.205)
- • Top ratings on key dealer performance criteria(p.209)
- • Specific regulatory framework for green energy access in Gujarat(p.252)
- • Multi-year tariff framework promotes regulatory certainty and long-term planning(p.252)
- • Dual regulatory compliance enables operations at central and state levels(p.252)
- • Established standards body ensures quality and consumer protection(p.252)
- • Substantial working capital facilities from multiple tier-1 banks(p.352)
- • Diversified funding structure across multiple facilities and collateral types(p.352)
- • Established tile manufacturing portfolio with allied product offerings(p.356)
- • Consistent revenue growth over three years(p.356)
- • Strategic acquisitions expanding manufacturing capability and product range(p.377)
- • Strong product portfolio with over 3,500 SKUs and 20 different surface types for tiles(p.397)
- • High-margin GVT products with 15-30% higher realisation than ceramic and PVT tiles(p.399)
- • Diversified multi-channel distribution network reducing dependency on single distributors(p.399)
- • Established brand recognition for 'Varmora' supporting market presence(p.400)
- • Advanced manufacturing technology including commercialized integrated stone technology (IST)(p.397)
- • Strong EBITDA growth with margin expansion to 14.18% in Fiscal 2026 from 13.28% in Fiscal 2025(p.423)
- • High dependence on in-house manufacturing facilities for revenue generation(p.23)
- • Geographic concentration of all manufacturing in Morbi, Gujarat(p.21)
- • Heavy reliance on franchisees for B2C retail channel operations(p.21)
- • Dependence on top suppliers for critical raw materials(p.27)
- • High attrition rate among permanent workforce(p.37)
- • Significant contingent liabilities from regulatory proceedings(p.34)
- • Low capacity utilization across majority of manufacturing units(p.41)
- • Significant delays in payment of statutory dues(p.43)
- • Reliance on specific dedicated manufacturing facilities for certain products(p.44)
- • High trade receivable levels and extended collection periods(p.47)
- • Outstanding overseas receivables beyond FEMA compliance timelines(p.46)
- • Lack of formal contracts with third-party transportation providers(p.44)
- • Geographic concentration of retail showrooms in four states(p.45)
- • High debt burden with ₹3,506.13 million in aggregate outstanding borrowings as of May 31, 2026(p.129)
- • Significant financial indebtedness requiring ₹2,450 million from IPO proceeds for debt repayment(p.129)
- • Moderate profitability with profit margin of 3.53% in Fiscal 2026(p.141)
- • Low Return on Equity of 6.80% in Fiscal 2026(p.141)
- • Working capital intensive operations with 96 days net working capital cycle(p.141)
- • Smaller scale compared to top competitor Kajaria with 48.3 bn vs 15.1 bn revenue(p.194)
- • Significant outsourcing at 17.6% of tiles revenue indicates dependency on contract manufacturers(p.194)
- • Lower ROCE (9.89%) compared to peers like Kajaria (23.87%) and Somany (13.70%)(p.144)
- • Lower ROE (6.80%) compared to peers like Kajaria (16.71%) and Somany (10.10%)(p.145)
- • Higher net working capital days (96 days) compared to Somany (42 days) and Orient Bell (38 days)(p.145)
- • Limited scale in sanitary and bathware with only 9.2% of revenue contribution(p.194)
- • Dependence on third-party contract manufacturers for significant portion of revenue(p.26)
- • Declining ROE and ROCE in FY2024-FY2025 due to new unit commissioning(p.199)
- • High working capital cycle days relative to peers(p.200)
- • Significant portion of revenue from non-EBO channels limiting margin upside(p.212)
- • Regulatory constraints on explosives handling increase operational complexity(p.252)
- • Industrial licensing requirements impose pre-approval burdens(p.252)
- • Revocation risk for industrial registrations due to regulatory non-compliance(p.252)
- • E-commerce packaging compliance increases administrative burden and liability(p.253)
- • Environmental compliance costs and approval timelines for operations(p.256)
- • Significant past-due trade receivables outstanding beyond RBI compliance timeline(p.381)
- • High proportion of floating-rate debt exposure to interest rate increases(p.374)
- • Elevated expected credit loss provisions on trade receivables(p.375)
- • Material contingent liabilities from regulatory and tax disputes(p.359)
- • Heavy reliance on collateralized borrowing with pledged factory assets(p.352)
- • High dependence on top 10 suppliers contributing 8.10% of total expenses(p.426)
- • Capital intensive operations with significant depreciation burden and ongoing investment requirements(p.400)
- • Eight manufacturing facilities concentrated in Morbi cluster creating geographic concentration risk(p.400)
- • Significant interest and finance costs of ₹394.04 million in Fiscal 2026 on total borrowings of ₹3,579.48 million(p.415)
- • Material litigation involving promoter (Bhavesh Vallabhdas Varmora) on cheque dishonour allegations(p.439)
- • Growth driven by affordable housing schemes and smart city projects(p.48)
- • Fundamental macro drivers supporting increased demand for housing and office spaces(p.48)
- • Expansion of EBO network in under-penetrated geographies(p.45)
- • Growth in advanced product segments including GVT and IST technical products(p.71)
- • Benefits available under export promotion schemes including RoDTEP(p.52)
- • Operational leverage through repayment of borrowings to reduce debt servicing costs(p.129)
- • Improved debt-equity ratio enabling competitive capital raising for business development(p.129)
- • Potential for strategic expansion through investment in Subsidiaries and business acquisitions(p.129)
- • Enhancement of brand visibility through listing on stock exchanges(p.128)
- • Flexibility to deploy 25% of gross proceeds toward strategic growth initiatives(p.134)
- • India's tiles market expected to grow at 6.0% CAGR to reach INR 765.2 bn by FY2030(p.178)
- • GVT tiles segment growing fastest at 14.5% CAGR (FY2026-2030), expected to reach 45.5% market share by FY2030(p.182)
- • Low per capita tile consumption (0.8 sq.m) vs global average (1.4 sq.m) indicates significant growth headroom(p.182)
- • Eastern region tiles market fastest-growing at 9.6% CAGR (FY2026-2030), emerging as underpenetrated market(p.179)
- • Integrated Stone Technology market aligned with INR 423.4 bn natural stone market offering significant TAM(p.187)
- • Organized flooring market growing at 8.4% CAGR vs unorganized at 0.7%, consolidation opportunity(p.177)
- • EBO channel growing with market leaders having 300+ outlets, enhancing brand premium positioning(p.185)
- • Sanitary and bathware market growing at 10.0% CAGR to reach INR 522 bn by FY2030, cross-sell opportunity(p.190)
- • Expansion into East and Northeast India through Allemby JV(p.212)
- • Growing market for GVT as premium segment driver(p.212)
- • IST technology opening new marble market addressable space(p.227)
- • Significant potential for MBO to EBO conversion(p.226)
- • Growing tiles adoption in facade applications(p.227)
- • Premiumization trend driving higher realization products(p.212)
- • Organized sector consolidation creating M&A opportunities(p.228)
- • Open access regime facilitates renewable energy expansion and market participation(p.252)
- • Foreign investment facilitation with automatic route for manufacturing sector(p.257)
- • Export promotion schemes provide duty exemption and remission benefits(p.258)
- • RoDTEP scheme reimburses previously non-reimbursable taxes and duties for exporters(p.253)
- • Geographic diversification with international export capability(p.380)
- • Expansion through strategic partnership in associates and joint ventures(p.378)
- • Debt reduction achieved in current fiscal year(p.376)
- • Government grant income and incentive realization(p.356)
- • Significant Indian domestic tiles market growth expected at CAGR of 8.4% from Fiscal 2026-2030(p.399)
- • Scope for expansion of B2C retail network with potential for EBO and MBO growth(p.399)
- • Rising demand for premium GVT products and technical solutions driving higher realization(p.399)
- • Inorganic growth through acquisitions and expansion as strategic option(p.400)
- • Slowdown in demand for GVT and technical products(p.24)
- • Geopolitical disruptions affecting fuel availability and shipping(p.31)
- • Disruptions in Morbi region affecting all manufacturing operations(p.21)
- • Volatility in raw material supply and pricing(p.27)
- • Competition from larger organized and regional players(p.29)
- • International trade policy changes and tariffs impacting exports(p.29)
- • Power and fuel availability disruptions affecting production(p.33)
- • Extended disruptions from natural disasters such as cyclones(p.44)
- • Significant sulfur dioxide pollution in the Morbi region could lead to government restrictions(p.45)
- • Exposure to international trade tariffs and sanctions affecting export business(p.59)
- • Dependence on real estate and infrastructure sector performance(p.48)
- • Vulnerability to input cost inflation and inability to pass costs to customers(p.58)
- • Exposure to foreign exchange fluctuations affecting exports(p.58)
- • Regulatory risks from new environmental and labor laws(p.56)
- • Potential withdrawal or delay in export incentive schemes(p.52)
- • Revenue growth volatility with only 4.59% growth in Fiscal 2026 compared to 0.73% in Fiscal 2025(p.141)
- • EBITDA margin compression with 14.18% in Fiscal 2026 versus historical performance volatility(p.141)
- • Working capital management challenges with significant fluctuations in NWC days (96, 112, 82 days)(p.141)
- • Increased debt service obligations from multiple borrowing facilities at 6.75%-8.65% interest rates(p.130)
- • Prepayment penalties and restrictive covenants on borrowings limiting financial flexibility(p.130)
- • Tile industry dependent on real estate and construction sectors which can face downturns(p.188)
- • Volatile raw material costs (clay, feldspar, silica, natural gas) impact profitability(p.188)
- • Supply chain vulnerabilities from labor strikes, transportation issues, natural disasters(p.188)
- • Intense competition from organized and unorganized tile manufacturers fragmenting market share(p.186)
- • Gas supply issues impacting production, e.g., expected slowdown in FY2027 due to gas supply constraints(p.178)
- • Evolving consumer preferences requiring continuous innovation and brand investment(p.188)
- • High competitive pressure in sanitary and bathware from established national players like Jaquar, Kohler, Cera(p.191)
- • Volatility in raw material and energy pricing(p.245)
- • Highly competitive market with larger organized players(p.246)
- • Regional concentration risk with majority sales in North and West(p.225)
- • Monsoon and weather dependency for raw material availability(p.198)
- • Foreign exchange volatility affecting export competitiveness(p.241)
- • Regulatory and ESG compliance requirements increasing operational costs(p.213)
- • Central government authority to restrict or prohibit industrial activities poses operational risk(p.256)
- • Environmental approval delays and exemption uncertainty complicate project timelines(p.256)
- • Strict penalties and liability exposure for environmental violations and hazardous waste mismanagement(p.257)
- • IEC suspension or cancellation risk for non-compliance with trade regulations(p.258)
- • DGFT import/export prohibitions and restrictions on specific countries and products(p.258)
- • Consumer protection liability for defective products and unfair trade practices(p.259)
- • High energy costs as major operational expense(p.358)
- • Regulatory and environmental compliance risks from multiple statutes(p.387)
- • Foreign exchange volatility exposure on export receivables(p.375)
- • Raw material and packing cost inflation pressures(p.356)
- • Dependence on bank credit facilities subject to renewal and covenant compliance(p.352)
- • Volatility in supply and pricing of raw materials and dependence on suppliers(p.399)
- • Fluctuations in power and fuel costs constituting considerable portion of expenditures(p.399)
- • Exposure to foreign exchange risk with significant export operations (20.54% of revenue)(p.425)
- • Intense competition from large organized, branded and regional unbranded players(p.401)
- • Regulatory risks from changing government policies affecting tiles and real estate sectors(p.401)
- • Environmental compliance obligations including coal gasifier closure penalty of ₹2.39 million(p.440)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Promoters and Promoter Group | Promoter Group | 52.01% | — |
| Katsura Investments | Investor Selling Shareholder | — | — |
| Bhavesh Vallabhdas Varmora | Promoter | 9.47% | — |
| Hiren R Varmora | Promoter | 9.35% | — |
| Pramodkumar Parsotambhai Patel | Promoter | 6.56% | — |
| Alpesh Babubhai Patel | Promoter | — | — |
| Babubhai Kacharabhai Patel | Promoter | — | — |
| Prashantkumar Babubhai Patel | Promoter | — | — |
| Rameshbhai Kacharabhai Patel | Promoter | — | — |
| Bhavesh Vallabhdas Varmora | Promoter | — | — |
| Hiren R. Varmora | Promoter | — | — |
| Pramodkumar Parsotambhai Patel | Promoter | — | — |
| Katsura Investments | Promoter Group | — | — |
| Bhavesh Vallabhdas Varmora | Promoter | 9.45% | — |
| Hiren R Varmora | Promoter | 9.34% | — |
| Pramodkumar Parsotambhai Patel | Promoter | 6.55% | — |
| Bhavesh Vallabhdas Varmora | Promoter | 9.45% | — |
| Hiren R Varmora | Promoter | 9.34% | — |
| Pramodkumar Parsotambhai Patel | Promoter | 6.55% | — |
| Bhavesh Vallabhdas Varmora | Promoter | — | — |
| Hiren Ramanbhai Varmora | Promoter | — | — |
| Pramodkumar Parsotambhai Patel | Promoter | — | — |
| Katsura Investments | Investor Selling Shareholder | — | — |
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Peer comparison
The comparable listed companies named in the offer document, as on 30 Mar 2026
| Company | EPS | NAV | P/E | P/BV | RoNW |
|---|---|---|---|---|---|
| Varmora Granito Limited THIS ISSUE | 3.08 | 39.52 | 60.66, computed at the offer price | 3.74, computed at the offer price | 7.79% |
| 30.48 | 191.11 | 40.27 | 4.82 | 15.89% | |
| 19.80 | 202.11 | 28.55 | 1.77 | 8.79% | |
| 0.70 | 51.36 | 72.00 | 1.10 | 1.23% | |
| 8.46 | 222.78 | 47.67 | 1.14 | 3.78% |
Blank cells are figures the offer document does not publish. This issue is unlisted, so it has no market price and the document publishes no multiple for it — its P/E and P/BV here are computed at the offer price, on the post-issue share count, and are comparable to a listed peer's.