Shares of Varmora Granito made a strong market debut on September 29, 2026, listing at ₹152 per share on BSE and ₹155 per share on NSE, representing a premium of 4.73% and 2.70% respectively over the issue price of ₹148 per share. According to LiveMint, the tiles and bathware manufacturer's IPO was subscribed 1.58 times by the end of bidding, with the ₹708.02 crore issue comprising a fresh issue of 2.16 crore shares worth ₹320 crore and an offer-for-sale of 2.62 crore shares worth ₹388.02 crore. The qualified institutional buyers' portion was subscribed 3.10 times, while the retail individual investors' segment was subscribed 1.02 times and the non-institutional investors' category was subscribed 0.94 times. The allotment was finalised on September 25, 2026, with shares scheduled to list on both BSE and NSE on September 29, 2026. The company's market capitalisation post listing stood at ₹3,474.93 crore, as reported by LiveMint.
According to CNBC TV18, Varmora Granito expects its revenue potential to reach ₹2,500 crore by FY29 as it fully utilises its recent investments. The company plans to use part of the IPO proceeds to completely repay its ₹240 crore net debt, turning it into a net cash company. This move is expected to reduce interest costs by around ₹40 crore on an annualised basis, with the company seeing a benefit of around ₹20 crore in the current year, with the full impact expected from next year. The company has completed ₹450 crore of capital expenditure across FY24 and FY25 and does not expect to require any major additional capex until FY29. At full utilisation by FY29, the company expects its EBITDA margin to reach 18.5%-19.2% and its profit after tax margin could be between 9.5% and 10%, translating into a profit after tax of around ₹250 crore, compared with ₹55 crore previously.
As reported by CNBC TV18, the company is increasingly shifting towards higher-value products, particularly glazed vitrified tiles (GVT). GVT's contribution to total sales increased from 57% in FY23 to 84% last year and is expected to reach 95% this year. The company is also expanding its integrated stone technology (IST) business, which produces lab-grown marble. The company sees an opportunity in both the premium tile and marble markets, with the marble market worth around ₹41,000 crore-₹42,000 crore, while the company's IST product generated ₹19 crore in sales last year. The ₹450 crore investment is expected to generate an asset turnover of roughly 2.5 times, creating an additional revenue potential of around ₹800 crore to ₹900 crore.
According to CNBC TV18, Varmora Granito is focusing on premium products, higher margins and reducing debt. The company has reduced its dealer network to 3,063 by removing lower-end ceramic dealers and adding dealers focused on GVT and lab-grown marble. It aims to bring working capital days down from 96 days last year to 75-80 days from next year onwards. The company has also completed ₹450 crore of capital expenditure across FY24 and FY25 and does not expect to require any major additional capex until FY29. The company expects depreciation to fall to around ₹85 crore this year from ₹105 crore last year. On costs, Varmora said gas prices have settled at around ₹90 per cubic metre, but since the company has passed the higher costs on to customers, it does not currently expect significant pressure on margins.
According to LiveMint, Varmora Granito operates as a manufacturer and marketer of ceramic and vitrified tiles, including glazed vitrified tiles (GVT), polished vitrified tiles (PVT) and ceramic tiles under the Varmora brand. The company operates eight manufacturing facilities in Gujarat's Morbi cluster and maintains a wide distribution network comprising 305 exclusive brand outlets and 2,758 multi-brand outlets across India and overseas. VGL focuses on premium and technology-driven products, with GVT and technical tiles contributing around 84% of tile revenue in FY2026. The company also caters to B2B customers, including builders, contractors, developers and government entities, and has 16.22 MW of renewable energy capacity from wind and solar. JM Financial served as the book-running lead manager for the IPO, while KFin Technologies acted as the registrar. The IPO opened for subscription on September 22, 2026 and closed on September 24, 2026, with the minimum lot size of 101 shares requiring a retail investor to invest ₹14,948 at the upper end of the price band.
