# Varmora Granito Limited: IPO analysis

> Varmora Granito Limited (CIN U26914GJ2003PLC043194) has filed a Prospectus with SEBI for an IPO comprising a fresh issue of ₹320 Cr and an offer for sale of ₹388 Cr, priced at ₹140.00 to ₹148.00 per share. In FY26 it reported revenue of ₹1,512 Cr (+4.6% on FY25) and a net profit of ₹55 Cr. Promoters hold 52.0% before the IPO. Our fact-check of its claims found 1 medium or high concern across 51 claims checked.

- Page: https://ipo.innerkore.com/company/U26914GJ2003PLC043194/varmora-granito-limited/
- CIN: U26914GJ2003PLC043194
- Last updated: 25 Sep 2026

## Key facts

- **Company:** Varmora Granito Limited
- **CIN:** U26914GJ2003PLC043194
- **Filing stage:** Prospectus
- **Latest SEBI filing:** 25 Sep 2026
- **Fresh issue:** ₹320 Cr
- **Offer for sale:** ₹388 Cr
- **Price band:** ₹140.00 to ₹148.00 per share
- **Final offer price:** ₹148.00 per share
- **Lot size:** 101 shares
- **Bidding opens:** 22 Sep 2026
- **Bidding closes:** 24 Sep 2026
- **Listing on:** BSE, NSE
- **Revenue FY26:** ₹1,512 Cr
- **Revenue growth:** +4.6%
- **Net profit FY26:** ₹55 Cr
- **Revenue CAGR FY24 to FY26:** 2.7%
- **Promoter holding (pre-IPO):** 52.0%
- **Lead managers:** JM Financial Limited, SBI Capital Markets Limited
- **Registrar:** KFin Technologies Limited
- **Fact-check flags:** 0 high, 1 medium, 4 low

## Key signals (read from the filing; not investment advice)

- **Valuation** (concern): 60.7x P/E. At the top of the band, on FY26 profit; 4.1x book value.
- **Growth** (concern): 2.7% a year. Sales FY24 to FY26; latest year +4.6%.
- **Profitability** (concern): 3.6% net margin. FY26; operating margin steady.
- **Debt** (looks fine): 0.44x equity. ₹358 crore borrowed at the end of FY26.
- **Profit into cash** (looks fine): 425% of profit. Operations brought in ₹234 crore against ₹55.1 crore of profit in FY26.
- **One-off income** (concern): 65% of profit. Other and one-off income is 65% of pre-tax profit; management describes 8 one-off items.
- **Where the money goes** (look closer): 55% for sale. 45% is new shares issued by the company.
- **Red flags** (look closer): 1 to review. 51 claims checked: 0 high, 1 medium concern.

## Financial snapshot (₹ crore unless stated; consolidated)

| | FY24 | FY25 | FY26 |
|---|---:|---:|---:|
| Sales | 1,435 | 1,446 | 1,512 |
| Sales growth | – | 0.7% | 4.6% |
| Operating profit | 113 | 152 | 171 |
| Operating margin | 7.9% | 10.5% | 11.3% |
| Net profit | 45 | 31 | 55 |
| Net margin | 3.1% | 2.1% | 3.6% |
| Net worth | 703 | 743 | 810 |
| Borrowings | 413 | 505 | 358 |
| Return on equity | 6.4% | 4.1% | 6.8% |

## Non-recurring items (as described by management)

- Other income increased by 7.33% from ₹46.65 Crore in Fiscal 2025 to ₹50.06 Crore in Fiscal 2026, primarily driven by an increase in government grant income by 125.39% and net gain on foreign currency transactions by 149.50%. (p.412)
- Reversal of expected credit loss decreased by 84.32% from ₹21.04 Crore in Fiscal 2025 to ₹3.30 Crore in Fiscal 2026, primarily due to the write-off of trade receivables during the year. (p.412)
- Government grant income increased by 125.39% from ₹8.85 Crore in Fiscal 2025 to ₹19.94 Crore in Fiscal 2026 on account of a higher quantum of eligible export sales during the year. (p.412)
- Profit before exceptional items and tax significantly increased by 109.28% from ₹36.39 Crore in Fiscal 2025 to ₹76.16 Crore in Fiscal 2026, primarily driven by higher revenue contribution from GVT and technical products and further supported by reduced cost of depreciation and interest. (p.415)
- Exceptional items of ₹77.40 Lakh were recorded in Fiscal 2026, comprising an additional provision of ₹77.40 Lakh towards gratuity disclosed under exceptional items. (p.415)
- Government grant income decreased by 42.00% from ₹15.25 Crore in Fiscal 2024 to ₹8.85 Crore in Fiscal 2025 primarily due to a decrease in eligible export sales. (p.417)
- Net cash flows used in investing activities in Fiscal 2024 was ₹336.56 Crore, which primarily consisted of payment of property, plant and equipment and capital work in progress (including capital creditors and capital advances) amounting to ₹348.30 Crore in relation to capitalisation of property, plant and equipment of Varmora – Unit 2 manufacturing facility and Varmora Unit – 3; and payment towards acquisition of additional interest in subsidiaries amounting to ₹14.61 Crore relating to Covertek Ceramica Private Limited, resulting in it becoming a wholly owned subsidiary (for further details, see “History and Certain Corporate Matters – Details regarding material acquisitions or divestments of business/undertakings, mergers, amalgamation, any revaluation of assets, etc. in the last 10 years” on page 258). (p.420)
- The Company retired as a partner of Simola and divested its entire 59.00% partnership interest in Simola, comprising 30.00% and 29.00% partnership interest in favour of Chaturbhai Karamashibhai Detroja and Kiritkumar Karamashibhai Detroja. (p.427)

## Fact-checked claims

- **MEDIUM** (SubsidiaryPerformance): Simola Tiles LLP ceased to be a subsidiary of the Company with effect from September 5, 2026.. The search results mention Simola Tiles LLP in the context of Varmora Granito's activities, including acquisitions and investments, but none of the provided snippets explicitly state that Simola Tiles LLP ceased to be a subsidiary with effect from September 5, 2026. Some results reference past activities or general investment structures.
- **LOW** (SubsidiaryPerformance): Fiorenza Granito Private Limited was incorporated as a private limited company on June 9, 2015.. Search result [1] corroborates the claim by stating that Fiorenza Granito Private Limited was incorporated on June 9, 2015. This directly supports the statement found in the DRHP.
- **LOW** (SubsidiaryPerformance): The company was originally incorporated as “Varmora Granito Private Limited” under the Companies Act, 1956 pursuant to a certificate of incorporation dated November 18, 2003.. The search results corroborate the general business activities of the company, mentioning that Varmora Granito is a manufacturer of ceramic and vitrified tiles, technical products, bathware, and allied building materials. However, the search results do not explicitly confirm the exact incorporation details mentioned in the DRHP claim (specifically the name and the certificate date).
- **LOW** (SubsidiaryPerformance): The Company entered into an investment agreement with Simola Tiles LLP on August 5, 2022, to acquire a partnership interest in Simola.. The search results indicate that Varmora Granito is involved with Simola Tiles LLP, mentioning investments and borrowings related to the subsidiary. However, none of the provided snippets explicitly confirm the specific detail that the company entered into an investment agreement with Simola Tiles LLP on August 5, 2022, to acquire a partnership interest.
- **LOW** (RegulatoryAction): The Independent Chartered Accountant provided consent to include their name as required under Section 26(5) of the Companies Act, 2013 read with SEBI ICDR Regulations.. The search results indicate that Khaitan & Co advised JM Financial Ltd, Goldman Sachs (India) Securities Pvt Ltd and SBI Capital Markets Ltd for Varmora Granito Limited's IPO, and Trilegal and Khaitan & Co acted as legal advisors for the IPO. However, the search results do not explicitly confirm the specific consent mentioned in the DRHP regarding Section 26(5) of the Companies Act, 2013.
- **NONE** (PromoterBackground): Hiren R Varmora is an Executive Director of the Company.. No current web search results were found to corroborate, contradict, or provide any information regarding the claim that Hiren R Varmora is an Executive Director of Varmora Granito Limited.
- **NONE** (PromoterBackground): Bhavesh Vallabhdas Varmora is the Chairman and Managing Director of the Company.. No current web search results were found to corroborate or contradict the claim that Bhavesh Vallabhdas Varmora is the Chairman and Managing Director of Varmora Granito Limited.
- **NONE** (PromoterBackground): Pramodkumar Parsotambhai Patel holds 6.56% of the pre-Offer Equity Share capital.. No current web search results were found to corroborate, contradict, update, or provide any information regarding the claim that Pramodkumar Parsotambhai Patel holds 6.56% of the pre-Offer Equity Share capital in Varmora Granito Limited.
- **NONE** (PromoterBackground): Hiren R Varmora holds 9.35% of the pre-Offer Equity Share capital.. No current web search results were found to corroborate, contradict, update, or provide any information regarding Hiren R Varmora holding 9.35% of the pre-Offer Equity Share capital in Varmora Granito Limited.
- **NONE** (PromoterBackground): Bhavesh Vallabhdas Varmora holds 9.47% of the pre-Offer Equity Share capital.. No current web search results were found to corroborate, contradict, update, or provide any information regarding the claim that Bhavesh Vallabhdas Varmora holds 9.47% of the pre-Offer Equity Share capital in Varmora Granito Limited.
- **NONE** (PromoterBackground): The dividend distribution policy was approved and adopted by the Board on April 25, 2025, as the "Dividend Policy".. No current web search results were found to corroborate, contradict, or provide any information regarding the claim that the dividend distribution policy was approved and adopted by the Board on April 25, 2025.
- **NONE** (PromoterBackground): The declaration and payment of dividends on Equity Shares will be recommended by the Board and approved by Shareholders at their discretion, subject to the Articles of Association and applicable laws including the Companies Act, 2013.. No current web search results were found to corroborate, contradict, update, or provide any new information regarding the claim about the declaration and payment of dividends.

## Common questions

### How big is the Varmora Granito Limited IPO?

Varmora Granito Limited's IPO comprises a fresh issue of ₹320 Cr and an offer for sale of ₹388 Cr, according to its Prospectus. The price band was ₹140.00 to ₹148.00 per share and the final offer price was ₹148.00 per share.

### What are Varmora Granito Limited's revenue and profit?

Varmora Granito Limited reported revenue from operations of ₹1,512 Cr in FY26, +4.6% versus FY25. Net profit was ₹55 Cr (FY25: ₹31 Cr). Revenue grew at a compound rate of 2.7% a year from FY24 to FY26. Figures are read from the Prospectus, as printed there.

### How much do promoters own in Varmora Granito Limited?

Promoters and the promoter group hold 52.0% of Varmora Granito Limited before the IPO.

### What are the red flags in Varmora Granito Limited's Prospectus?

We fact-checked 51 claims from the filing against the open web: 0 raised a high concern, 1 medium and 4 low. The most notable: The search results mention Simola Tiles LLP in the context of Varmora Granito's activities, including acquisitions and investments, but none of the provided… This is an automated screen, not a verdict; each finding links to its sources.

### What does Varmora Granito Limited do?

Here is what almost nobody notices: while Varmora Granito is talking about its history, the records show that Simola Tiles LLP wasn't officially dropped as a subsidiary until September 5th, 2026. That specific date changes the entire timeline of their corporate structure.

### Who manages the Varmora Granito Limited IPO?

Book running lead managers: JM Financial Limited, SBI Capital Markets Limited. Registrar to the offer: KFin Technologies Limited. Shares are proposed to list on BSE and NSE.

### Where can I read the original Varmora Granito Limited IPO documents?

All 3 filings for Varmora Granito Limited (RHP, Addendum, Prospectus) are listed on this page with links to the original PDFs on SEBI's website. Every page reference cites the exact page of the source document.

## Source documents

- [Varmora Granito Limited - Prospectus](https://www.sebi.gov.in/sebi_data/attachdocs/oct-2026/1791286543737.pdf) (Prospectus, filed 25 Sep 2026)
- [Varmora Granito Limited - RHP](https://www.sebi.gov.in/sebi_data/attachdocs/sep-2026/1790230475459.pdf) (Red Herring Prospectus, filed 16 Sep 2026)
- [Varmora Granito Limited - RHP](https://www.sebi.gov.in/sebi_data/commondocs/sep-2026/Varmora%20Granito%20Limited%20-%20Abridged%20Prospectus_p.pdf) (Addendum, filed 16 Sep 2026)

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Source: InnerKore IPO (https://ipo.innerkore.com/). Read from public SEBI filings by automated extraction; check the linked documents. Not investment advice.