Varmora GranitoIPO Review — Financials, Valuation & Peers
A data-only look at the Varmora Granito IPO: restated financials, valuation ratios, the RHP peer group and third-party analyst views. ipostation does not rate IPOs — nothing here is a recommendation.
Financials (₹ Cr)
| Period Ended | Revenue | PAT | EBITDA | Net Worth | Total Assets | Borrowings | EPS (₹) |
|---|---|---|---|---|---|---|---|
| FY 2024 | 1,472.58 | 44.94 | 150.33 | 678.59 | 1,476.16 | 412.89 | — |
| FY 2025 | 1,492.68 | 30.77 | 198.29 | 722.9 | 1,589.8 | 505.16 | — |
| FY 2026 | 1,562.53 | 55.09 | 221.56 | 796.88 | 1,509.87 | 357.95 | 2.7 |
Restated figures from the offer document. Amounts in ₹ crore; EPS in ₹ per share. FY = the 12 months ended 31 March.
KPIs & Valuation
- P/E (pre-issue)
- 54.81x
- P/E (post-issue)
- 60.66x
- RoNW
- 7.79%
- RoE
- 6.8%
- RoCE
- 9.89%
- EPS (pre-issue)
- ₹2.7
- EPS (post-issue)
- ₹2.44
- EBITDA Margin
- 14.18%
- PAT Margin
- 3.53%
- P/BV
- 3.74x
- NAV / share
- ₹39.52
- Market Cap
- ₹3,344.97 Cr
As of 31 Mar 2026 (latest reported period in the offer document). Market cap is computed on a post-issue basis at the upper price band.
Peer Comparison
| Company | EPS (₹) | NAV (₹) | P/E | RoNW | P/BV | Statements |
|---|---|---|---|---|---|---|
| Varmora Granito | 3.08 | 39.52 | — | 7.79% | — | Consolidated |
| Asian Granito India Ltd. | 0.7 | 51.36 | 72x | 1.23% | 1.1x | Consolidated |
| Kajaria Ceramics Ltd. | 30.48 | 191.11 | 40.27x | 15.89% | 4.82x | Consolidated |
| Orient Bell Ltd. | 8.46 | 222.78 | 47.67x | 3.78% | 1.14x | Consolidated |
| Somany Ceramics Ltd. | 19.8 | 202.11 | 28.55x | 8.79% | 1.77x | Consolidated |
Peer group as disclosed in the offer document, figures as of 30 Mar 2026. The issuer’s P/E is computed at the upper price band.
Promoters & Shareholding
Promoters: <p>Bhavesh Vallabhdas Varmora, Hiren R Varmora, Pramodkumar Parsotambhai Patel</p>
- Holding (pre-issue)
- 52%
- Holding (post-issue)
- 47.04%
- Dilution
- 4.96%
Broker Recommendations
| Reviewer | Verdict |
|---|---|
| Capital Market | Avoid |
Third-party analyst views on the Varmora Granito IPO, aggregated for reference. ipostation does not rate IPOs — nothing here is investment advice.
Analysis in brief
Anchor book
Before the issue opened to the public, Varmora Granito placed shares with 17 anchor investors, who together put in ₹212.4 crore. Anchor investors are institutions allotted shares at the issue price a day before bidding opens, in exchange for a mandatory post-listing lock-in — their names and cheque sizes are disclosed, which is why the anchor book is read as an institutional signal. The largest allocations went to ICICI PRUDENTIAL HOUSING OPPORTUNITIES FUND (₹25 crore), GOLDMAN SACHS FUNDS-GOLDMAN SACHS INDIA EQUITY PORTFOLIO (₹25 crore) and BANDHAN LARGE & MID CAP FUND (₹25 crore). Investor categories represented include Other and Insurance. The lock-in on half the anchor shares ends on 24 Oct 2026, with the remainder locked until 23 Dec 2026.
Analyst view tally
1 third-party review is on record for the Varmora Granito IPO — among them Capital Market. Of the 1 with a stated verdict, 1 says "Avoid". These are the views of the named reviewers, reproduced as published — they are not ipostation's recommendation, and this page does not rate the issue.
Margin and return profile
Beyond the headline pricing, the disclosed operating profile stands on its own numbers. Varmora Granito operates at an EBITDA margin of 14.18% and a net (PAT) margin of 3.53% — the share of revenue retained at the operating and the net level respectively. Capital efficiency reads at a return on capital employed (RoCE) of 9.89% and a return on equity (RoE) of 6.8%. At the upper band, the post-issue market capitalisation works out to about ₹3,344.97 crore. These are offer-document figures for the latest reported period (as of 31 Mar 2026); they describe the business as disclosed, not how the stock will trade.
Objects of the issue
Per the offer document, the company intends to deploy the net proceeds primarily toward repayment/ pre-payment, in full or in part, of all or certain outstanding borrowings and accrued interest thereon availed by: the company and wholly-owned subsidiaries namely covertek ceramica pvt.ltd. and varmora sanitarywares pvt.ltd. (formerly, varmora sanitarywares llp), and of the subsidiary, simola tiles llp, through investment in such subsidiaries (₹245 crore), alongside issue expenses (₹59.7 crore). In all, 3 objects are disclosed.
Financials
In FY2026, Varmora Granito reported revenue of ₹1,562.53 crore and a net profit of ₹55.09 crore. Revenue grew from ₹1,472.58 crore in FY2024 to ₹1,562.53 crore in FY2026 (+6.0%). Net worth stood at ₹796.88 crore at the end of FY2026. At the upper band, that puts the issue at roughly 54.8× FY2026 earnings (P/E), a figure worth comparing against listed peers in the sector.
Valuation
At the upper band, the issue is priced at 60.66× post-issue earnings and 3.74× book value, against a return on net worth of 7.79%. These ratios come from the offer document and are for comparison, not a recommendation.
Peer comparison
The offer document names listed peers including Asian Granito India Ltd. and Kajaria Ceramics Ltd., with a median peer P/E of about 44×. The issue's own post-issue P/E works out to 60.66×.
Promoters
The promoters of the company are <p>Bhavesh Vallabhdas Varmora, Hiren R Varmora, Pramodkumar Parsotambhai Patel</p>. Promoter holding stands at 52% before the issue and comes down to 47.04% after listing.
Frequently asked questions
- What is the reservation split in the Varmora Granito IPO?
- Of the total shares offered, retail investors get 35%, QIBs 20% (plus 30% anchor), non-institutional investors 15%.
- Who are the promoters of Varmora Granito and what is their holding?
- The promoters are <p>Bhavesh Vallabhdas Varmora, Hiren R Varmora, Pramodkumar Parsotambhai Patel</p>. Promoter holding is 52% before the issue and 47.04% after listing.
- What is the P/E ratio of the Varmora Granito IPO?
- At the upper price band, the Varmora Granito IPO is valued at 54.81× pre-issue earnings and 60.66× post-issue earnings, based on the financials disclosed in the offer document.
- What are the objects of the Varmora Granito IPO?
- The net proceeds go primarily toward repayment/ pre-payment, in full or in part, of all or certain outstanding borrowings and accrued interest thereon availed by: the company and wholly-owned subsidiaries namely covertek ceramica pvt.ltd. and varmora sanitarywares pvt.ltd. (formerly, varmora sanitarywares llp), and of the subsidiary, simola tiles llp, through investment in such subsidiaries, among 3 disclosed objects.