Varmora Granito, one of India's best-known tile brands, is raising ₹708.02 crore through a mainboard IPO. The issue opened on 22 September 2026 and closes today, 24 September. Here are the numbers, the business and the risks you should weigh before the window shuts.
Varmora Granito IPO at a glance
| Detail | Information |
|---|---|
| Issue type | Mainboard |
| Issue size | ₹708.02 crore |
| Price band | ₹140 to ₹148 per share |
| Lot size | 101 shares |
| Minimum investment | ₹14,948 (1 lot at ₹148) |
| Open date | 22 Sept 2026 |
| Close date | 24 Sept 2026 |
| Allotment date | 25 Sept 2026 |
| Listing date | 29 Sept 2026 |
| Quota | QIB 50% · NII 15% · Retail 35% |
How much can you apply for?
| Category | 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 |
Grey market premium (GMP)
The GMP for Varmora Granito is currently ₹0, so the grey market expects a listing of about ₹148, flat to the upper price band. A flat GMP means the grey market isn't pricing in any listing-day pop. Investors applying now are betting on the business rather than a quick flip.
About the company
Varmora Granito is among the top four players in the Indian tiles market. It focuses on premium products, especially glazed vitrified tiles (GVT). Key points:
- Over 3,500 SKUs across GVT, polished vitrified tiles (PVT) and ceramic tiles.
- Manufacturing base in Morbi, Gujarat, India's largest tile-making cluster.
- An innovator in the category. It was an early mover in digitally printed wall tiles and integrated stone technology.
- A wide distribution network across India, with a push into Tier-II and Tier-III cities, plus export markets.
- The second fastest-growing company among its listed tile peers by revenue CAGR.
The industry tailwind is real. The Indian tiles market is projected to reach ₹765.2 billion (about ₹76,500 crore) by FY2030.
Financial highlights
- Gross margin is rising. It improved from 35.26% in FY2024 to 37.92% in FY2026, which suggests the premium product mix is working.
- Profit is falling. Profit after tax declined 24.24% in FY2026, even though revenue kept growing.
- Debt is manageable. The equity base is healthy, but net debt and moderate profit margins leave room to improve.
Strengths
- Scale and brand. It is a top-four player in a fragmented market.
- A premium focus. GVT is the fastest-growing, higher-margin part of the tile market.
- Innovation. It has a track record of launching new product formats early.
- Margin expansion. Gross margin rose by about 266 basis points in two years.
Risks to watch
- Geographic concentration. Operations depend heavily on the Morbi region, so any local disruption to power, gas supply or labour hits the whole business.
- Product concentration. A large share of revenue comes from GVT, which leaves it exposed to swings in demand.
- Falling profits. PAT fell 24.24% in FY2026, so growth isn't yet reaching the bottom line.
- Export exposure. Geopolitical tensions could hurt export revenue.
- Supplier dependence. A large share of purchases comes from its top ten suppliers.
- Regulatory changes. The new Labour Codes and tax reforms could raise costs.
- Contingent liabilities of ₹115.35 million (about ₹11.5 crore).
IPO Milega score: 6.8 / 10 (Moderate)
| Parameter | Score |
|---|---|
| Financials | 7.0 |
| Risk (higher = safer) | 4.0 |
| Performance | 8.0 |
| Flexibility | 8.0 |
| Timing | 7.0 |
| Overall | 6.8 |
The fundamentals-based gain potential is about 3.38%.
Our take
Varmora Granito is a genuine market leader with a strong brand, a premium product mix and improving gross margins. The problem is the 24% drop in profit in FY2026, along with a flat GMP. Together they suggest the market sees the issue as fully priced. It suits investors who want long-term exposure to India's housing and real-estate cycle more than those hoping for listing gains.
👉 See the live GMP, subscription status and allotment chances on IPO Milega.
Disclaimer: This article is for information and education only. It is not investment advice or a recommendation to buy or sell any security. Please read the Red Herring Prospectus and consult a SEBI-registered advisor before investing. GMP is unofficial and can change quickly.