Varmora Granito IPO (22 Sep-24 Sep) Analysis

Premium Tiles and Bathware  |  Mainboard IPO  |  BSE and NSE  |  Brand: VARMORA

Based on the Red Herring Prospectus (RHP) filed by Varmora Granito Limited, September 2026

STATUS: CLOSED  |  Issue Dates: September 22 to 24, 2026  |  Fresh Issue + OFS  |  BSE and NSE

Varmora Granito Limited, operating under the VARMORA brand, is a Gujarat-based manufacturer and marketer of premium tiles and bathware products with over 23 years of operating history. The company sells across two primary verticals: VARMORA Tiles and VARMORA Bathware.

Manufacturing operations are spread across 8 facilities in the Morbi cluster, Gujarat, operated through the company and its subsidiaries. Morbi is India's dominant tile manufacturing hub, accounting for the majority of India's tile production and exports. The promoter group comprises Bhavesh Vallabhdas Varmora, Hiren R Varmora, and Pramodkumar Parsotambhai Patel.

Institutional investor Katsura Investments (a Carlyle Group affiliate) invested Rs. 64,035.20 Lakhs in the company in FY2023 and is partially exiting through the IPO's OFS component.

The product portfolio spans Glazed Vitrified Tiles (GVT), Polished Vitrified Tiles (PVT), Ceramic Tiles, Bathware products (sanitaryware and fittings), and Tile Adhesives, with over 3,500 tile SKUs across 20 surface types.

The defining characteristic of the product strategy is the deliberate premiumisation toward GVT and technical tiles: GVT and technical products constituted 84.19% of tile revenues in FY2026, a share that has grown consistently over the past three years. Average tile realisation reached Rs. 352.26 per square metre in FY2026, well above commodity ceramic tile realisations.

Total tile sales volume was 38.34 million square metres in FY2026. In 2024, the company became the first in Asia to deploy SACMI IST (Integrated Stone Technology) V-NATURE BLOCK technology, enabling the production of large format premium slabs with natural stone aesthetics that command the highest realisations in the tile segment.

Varmora's distribution infrastructure is extensive for its market position: 305 Exclusive Brand Outlets (EBOs) and 2,758 Multi Brand Outlets (MBOs) spread across 988 cities in India.

The EBO network provides a controlled premium retail experience critical for higher-value tile and bathware categories where in-store display strongly influences purchase decisions.

Exports are a meaningful revenue contributor at 20.97% of FY2026 revenues across 100-plus countries, providing geographic diversification and serving as a quality signal for the premium brand positioning.

A Technopak consumer study cited in the RHP ranked Varmora as holding the second highest consumer consideration rate and the highest purchase conversion rate in its category, indicating strong brand pull that translates into actual sales.

In July 2026, the company commenced operations at the Allemby Ceramics joint venture (50% stake) located at Tezpur, Assam, adding 6.40 million square metres of GVT capacity targeting the eastern and northeastern India markets.

These are historically underserved regions for premium tile brands given the logistics cost advantage that a local manufacturing presence provides. The JV structure limits upfront capital commitment while delivering meaningful geographic expansion.

Revenue from operations grew from Rs. 1,43,548.10 Lakhs in FY2024 to Rs. 1,51,246.40 Lakhs in FY2026, while EBITDA margins expanded from 10.21% to 14.18% over the same period, demonstrating meaningful operational leverage and product mix improvement even in a relatively low-revenue-growth environment.

IPO BASICS

Parameter	Details
Document Type	This analysis is based on the Red Herring Prospectus (RHP) filed by Varmora Granito Limited for a mainboard IPO on BSE and NSE. The IPO comprises a Fresh Issue of Rs. 32,000 Lakhs and an Offer for Sale (OFS) of up to 2,62,17,634 equity shares by Katsura Investments, a Carlyle Group affiliate. The floor and cap prices have not been determined in the RHP; investors must assess this IPO without an announced price band at the time of RHP review.
Issue Structure	Fresh Issue of Rs. 32,000 Lakhs PLUS Offer for Sale (OFS) of up to 2,62,17,634 equity shares by Katsura Investments. The company will receive only the Fresh Issue net proceeds of approximately Rs. 32,000 Lakhs (less issue expenses). All OFS proceeds go to Katsura Investments (Carlyle Group) and no portion accrues to Varmora Granito Limited. This is an important distinction: the OFS represents a partial exit by an existing institutional investor, not a capital infusion into the business.
Face Value	Rs. 2 per equity share. This is a low face value reflecting prior corporate actions; the issue price will represent a substantial premium to face value.
Promoters	Three individual promoters: Bhavesh Vallabhdas Varmora, Hiren R Varmora, and Pramodkumar Parsotambhai Patel. The Varmora family has over 23 years of direct involvement in the tiles and bathware business and has built VARMORA into one of India's prominent tile brands.
OFS Selling Shareholder	Katsura Investments (Carlyle Group Inc. affiliate) invested Rs. 64,035.20 Lakhs in Varmora Granito in FY2023. The OFS of up to 2,62,17,634 shares represents a partial exit for Carlyle. The Carlyle investment at Rs. 64,035.20 Lakhs was a major institutional commitment and its presence in the capital structure from FY2023 onward provided governance discipline and management alignment with institutional investor standards.
Lead Managers (BRLMs)	Three premier BRLMs: JM Financial Limited, Goldman Sachs (India) Securities Private Limited, and SBI Capital Markets Limited. The involvement of Goldman Sachs as a co-BRLM is particularly notable; Goldman is selective in Indian IPO mandates and its participation signals high-quality institutional placement capability and international investor outreach for this offering.
Registrar and Monitoring Agency	Registrar: KFin Technologies Limited, one of India's leading registrar and transfer agents. Monitoring Agency: Crisil Ratings Limited, appointed as required under SEBI regulations for fresh issues exceeding Rs. 1,000 million. Designated Exchange: NSE.
Key Dates	Anchor Investor Date: September 21, 2026. IPO Open Date: September 22, 2026. IPO Close Date: September 24, 2026. Outstanding borrowings as of May 31, 2026 stood at Rs. 28,648.50 Lakhs.

The involvement of Goldman Sachs as a co-BRLM for this offering is a significant signal of institutional quality.

Goldman selectively participates in Indian primary market mandates and brings with it access to global institutional investors including sovereign wealth funds, long-only international funds, and global emerging market investors who typically do not participate in IPOs without a tier-1 international BRLM.

JM Financial and SBI Capital Markets add strong domestic institutional and retail distribution.

The three-BRLM structure reflects the ambition and scale of this offering, which at Rs. 32,000 Lakhs fresh issue plus the large OFS represents a substantial primary market transaction.

The Rs. 2 face value (versus the more common Rs. 10 face value for Indian companies) means that share counts are five times what they would be at standard face value. Investors comparing EPS, NAV per share, and P/E metrics against tile sector peers (which mostly carry Rs. 2 face value as well) should verify consistency.

The absence of a price band in the RHP means that analysis of entry valuation, implied P/E multiples, and market capitalisation at issue must await the filing of the Final Offer Document or Price Band announcement.

The OFS overhang from Carlyle (2,62,17,634 shares) should be factored into post-listing secondary market liquidity analysis.

USE OF PROCEEDS

Object of the Issue	Amount (Rs. Lakhs)	Details and Rationale
Debt repayment and prepayment of Company borrowings	21,500.00	The single largest allocation from Fresh Issue proceeds is the repayment or prepayment of outstanding borrowings at the Varmora Granito Limited parent entity level. Outstanding borrowings of Rs. 28,648.50 Lakhs as of May 31, 2026 are targeted. This Rs. 21,500 Lakh repayment represents approximately 75% of the outstanding company-level borrowings, which will substantially reduce finance costs. In FY2026, consolidated net debt stood at Rs. 24,342.60 Lakhs, already significantly down from Rs. 39,001 Lakhs in FY2025. The additional Rs. 21,500 Lakh repayment from IPO proceeds is expected to make Varmora Granito essentially net debt-free or near-zero net debt at the parent level from FY2027, materially improving free cash flow generation and return ratios.
Debt repayment of subsidiaries (Covertek Ceramica and Varmora Sanitarywares)	3,000.00	Rs. 3,000 Lakhs from Fresh Issue proceeds will be passed down to subsidiaries Covertek Ceramica and Varmora Sanitarywares Private Limited for repayment or prepayment of their respective outstanding borrowings. These subsidiaries operate within the manufacturing and distribution value chain of the parent. Reducing subsidiary-level debt improves the consolidated interest coverage ratio, reduces intercompany guarantee and support obligations on the parent balance sheet, and strengthens the credit profile of the group entities for future borrowing at competitive rates.
General Corporate Purposes	Balance (up to 25% of gross proceeds)	The residual balance of net Fresh Issue proceeds, subject to a ceiling of 25% of gross proceeds as required under SEBI regulations, will be deployed for general corporate purposes. These include but are not limited to: brand investment and marketing, technology and IT infrastructure upgrades, working capital support for expanded operations, and other operational requirements not specifically identified at the time of the RHP filing. Crisil Ratings Limited as monitoring agency will track and report on deployment against this and other stated objects.

The use of proceeds structure for Varmora Granito is fundamentally a balance sheet deleveraging exercise. Of the Rs. 32,000 Lakhs gross fresh issue, Rs. 24,500 Lakhs (76.6% of gross proceeds) is earmarked for debt repayment at the parent and subsidiary level.

This is a deliberate financial engineering decision: rather than raising capital for new manufacturing facilities or geographic expansion (which are funded via the Allemby JV model and internal accruals), the promoters have chosen to use the IPO to eliminate the debt burden accumulated during the business-building phase.

Net consolidated debt already declined from Rs. 39,001 Lakhs in FY2025 to Rs. 24,342.60 Lakhs in FY2026, a Rs. 14,658.40 Lakh reduction in a single year. The planned Rs. 24,500 Lakh IPO-funded repayment would reduce consolidated net debt to near zero.

The financial impact of near-zero net debt from FY2027 is meaningful. Finance costs, which currently depress PAT margins (PAT margin is 3.53% versus EBITDA margin of 14.18%, a gap of 10.65 percentage points), will reduce materially.

At the FY2026 EBITDA of Rs. 22,155.60 Lakhs, eliminating interest costs on Rs. 24,500 Lakhs of debt (at assumed interest rates of 8 to 10%) would save approximately Rs. 1,960 to 2,450 Lakhs in annual interest, potentially adding 1.3 to 1.6 percentage points to PAT margin.

This structural improvement in free cash flow is the primary investment thesis for this IPO: not growth capex, but a permanent improvement in earnings quality through financial deleveraging.

FINANCIAL PERFORMANCE (CONSOLIDATED)

Revenue and Profitability

Particulars	FY2024 (Audited)	FY2025 (Audited)	FY2026 (Audited)	Key Observation
Revenue from Operations (Rs. Lakhs)	1,43,548.10	1,44,602.90	1,51,246.40	Revenue broadly flat in FY2025 (+0.73%); recovered to 4.59% growth in FY2026
Gross Profit (Rs. Lakhs)	51,923.30	58,144.00	59,243.50	Gross margins improved from 35.26% to 37.92%; product mix shift visible
EBITDA (Rs. Lakhs)	15,033.00	19,829.10	22,155.60	47% EBITDA growth over two years; strongest profitability improvement metric
EBITDA Margin (%)	10.21%	13.28%	14.18%	396 bps expansion over two years reflects premiumisation and operating leverage
Profit After Tax (Rs. Lakhs)	4,493.50	3,077.30	5,509.30	FY2025 PAT dip due to higher finance costs; FY2026 strong recovery to Rs. 5,509 Lakhs
PAT Margin (%)	3.05%	2.06%	3.53%	Margins thin; finance costs a key drag between EBITDA and PAT levels
Diluted EPS (Rs.)	2.19	1.74	3.05	EPS recovered sharply in FY2026; PAT is Rs. 10 FV equivalent at 5x share count
Tiles Sales Volume (mn sqm)	36.12	38.10	38.34	Volume growth modest; realisation improvements drive revenue and margin growth
ROCE (%)	7.95%	6.32%	9.89%	ROCE improving as EBITDA grows while capital base stabilises
RONW (%)	6.39%	4.88%	7.79%	Low but improving; post-IPO debt elimination should accelerate RONW improvement

The financial performance of Varmora Granito presents an interesting combination of muted revenue growth and strong EBITDA margin expansion. Revenue grew at a two-year CAGR of only 2.6% from FY2024 to FY2026, reflecting a period of market consolidation in the Morbi tile cluster following post-pandemic normalisation.

However, EBITDA grew from Rs. 15,033 Lakhs to Rs. 22,155.60 Lakhs, a 47.4% increase, while EBITDA margins expanded by 397 basis points from 10.21% to 14.18%. This compression of revenue growth versus EBITDA expansion is the hallmark of a premiumisation-driven strategy: the company is growing higher-margin GVT revenues while allowing lower-margin commodity ceramic volumes to remain flat or decline, effectively upgrading the revenue mix.

The PAT trajectory requires careful interpretation. PAT dipped from Rs. 4,493.50 Lakhs in FY2024 to Rs. 3,077.30 Lakhs in FY2025, despite strong EBITDA growth, due to higher finance costs as net debt peaked at Rs. 39,001 Lakhs in FY2025. This is the precise problem the IPO's debt repayment strategy is designed to solve.

By FY2026, net debt had already reduced to Rs. 24,342.60 Lakhs and PAT recovered to Rs. 5,509.30 Lakhs, demonstrating the direct transmission from deleveraging to PAT improvement. With a planned Rs. 24,500 Lakh further debt repayment from IPO proceeds in FY2027, the PAT margin should continue to expand toward the 5 to 6% range from the current 3.53%, even without any revenue growth acceleration.

Balance Sheet and Debt Position

Particulars	FY2024	FY2025	FY2026
Net Debt (Rs. Lakhs)	31,456.70	39,001.00	24,342.60
Working Capital Days	82	112	96
NAV per Share Pre-Offer (Rs.)	N.A.	N.A.	39.52
Outstanding Borrowings as of May 31, 2026 (Rs. Lakhs)			28,648.50
Planned Debt Repayment from IPO (Rs. Lakhs)			24,500.00
Estimated Post-IPO Net Debt (Rs. Lakhs)			Approximately 0 to 4,000

The balance sheet story for Varmora Granito is primarily a debt reduction narrative. Net debt peaked at Rs. 39,001 Lakhs in FY2025 before declining sharply to Rs. 24,342.60 Lakhs in FY2026, a Rs. 14,658.40 Lakh reduction through operating cash flows and working capital management.

The planned IPO-funded repayment of Rs. 24,500 Lakhs against outstanding borrowings of Rs. 28,648.50 Lakhs (as of May 31, 2026) is expected to reduce net debt to near zero at the consolidated parent and subsidiary level.

This would represent a transformation from a leveraged tile manufacturer (D/E likely above 0.7x in FY2025) to a near-debt-free premium brand business, fundamentally changing the risk and return profile of the equity.

Working capital days increased from 82 in FY2024 to a peak of 112 in FY2025 before moderating to 96 in FY2026. This trend is worth monitoring post-IPO, as 96 days remains elevated relative to the FY2024 baseline.

In a consumer-facing branded tiles business, working capital cycles can elongate due to channel credit extended to EBO and MBO partners, which is common in competitive distribution environments. Post-IPO, with lower debt obligations, the company has greater balance sheet flexibility to tighten receivables discipline.

The NAV per share of Rs. 39.52 (pre-offer) at Rs. 2 face value provides a book value reference, though the absence of a price band means price-to-book analysis must await the formal price announcement.

PEER COMPARISON

Company	Revenue (Rs. Lakhs)	P/E (x)	RONW (%)	Diluted EPS (Rs.)
Kajaria Ceramics Limited	4,83,036.00	40.27x	15.89%	30.44
Somany Ceramics Limited	2,78,984.00	28.55x	8.79%	19.76
Asian Granito India Limited	1,85,806.20	72.00x	1.23%	0.70
Orient Bell Limited	69,145.30	47.67x	3.78%	8.43
Industry Average P/E		47.12x
Varmora Granito Limited (Issuer)	1,51,246.40	TBD	7.79%	3.05

Note: FY2026 data for all companies. Industry average P/E of 47.12x is the arithmetic mean of the four listed peers (high: Asian Granito 72.00x; low: Somany 28.55x). Varmora face value is Rs. 2 per share; peers vary. Price band for Varmora not announced as of RHP date.

The peer comparison reveals that the Indian listed tile sector commands rich valuations in the 28x to 72x P/E range, with an average of 47.12x. The outlier is Asian Granito at 72x P/E on EPS of Rs. 0.70, reflecting near-zero near-term earnings rather than a growth premium. Somany Ceramics at 28.55x is the most reasonably valued established peer.

Kajaria Ceramics, the sector benchmark, trades at 40.27x P/E with the strongest RONW at 15.89%, reflecting its superior brand positioning, distribution depth, and margin quality. Varmora's RONW of 7.79% is better than Asian Granito (1.23%) and Orient Bell (3.78%) but trails Kajaria (15.89%) and Somany (8.79%), placing it in the middle tier of peer return quality.

The key valuation question for Varmora is whether it should be priced closer to the Somany Ceramics end (28.55x P/E) or the Kajaria end (40.27x P/E) of the peer range. At the FY2026 EPS of Rs. 3.05 per share (Rs. 2 face value), a Somany-equivalent 28.55x P/E implies a share price of approximately Rs. 87, while a Kajaria-equivalent 40.27x implies approximately Rs. 123.

At the announced industry average of 47.12x, the implied price is approximately Rs. 144. Investors should note that post-IPO debt elimination will improve FY2027 EPS significantly; if IPO-funded debt repayment saves Rs. 2,000 Lakhs in annual interest (after tax savings), and the diluted share count rises modestly post-issuance, the FY2027 EPS could be substantially higher, supporting a higher valuation basis than trailing P/E implies. EBITDA margin trajectory comparison is more directly meaningful: Varmora at 14.18% is above Somany's typical range and approaching Kajaria's levels.

KEY RISKS

Price band not disclosed in the RHP: investors cannot assess entry valuation.  Unlike most IPOs where a price band is announced alongside the RHP, Varmora Granito's RHP was filed without disclosed floor and cap prices. This means investors reviewing the RHP cannot calculate implied P/E, price-to-book, EV/EBITDA, or any other valuation multiple at the time of RHP analysis. The price band will be announced before the anchor allocation date (September 21, 2026), but this compresses the investor due diligence window for valuation-based analysis.

Carlyle Group partial exit via OFS of 2,62,17,634 shares creates post-listing secondary market overhang.  Katsura Investments (Carlyle Group affiliate) is selling a significant block of shares through the OFS. When a major institutional investor is exiting, even partially, the market's question is whether the selling shareholder knows something the public does not, or whether the implied exit price signals a valuation ceiling.

Post-listing, if the lock-in period for Carlyle's remaining shares expires, the secondary market could face additional supply. Institutional exits are not inherently negative if the IPO price reflects fair value, but they warrant scrutiny of remaining institutional holding and lock-in schedules.

PAT margin of 3.53% is significantly below sector-leader Kajaria Ceramics despite comparable EBITDA margins.  The gap between EBITDA margin (14.18%) and PAT margin (3.53%) is 10.65 percentage points, primarily reflecting the burden of finance costs on net debt of Rs. 24,342.60 Lakhs. Kajaria Ceramics, with virtually no net debt, converts a similar EBITDA margin profile into a PAT margin of approximately 9 to 10%. Until Varmora eliminates its debt (which the IPO proceeds target), investors carry the risk of finance cost spikes eroding profitability, as demonstrated in FY2025 when PAT fell to Rs. 3,077.30 Lakhs despite EBITDA of Rs. 19,829.10 Lakhs.

Revenue growth has been subdued: 0.73% in FY2025 and 4.59% in FY2026.  While EBITDA margins have expanded significantly, top-line revenue growth has been weak. Kajaria Ceramics, Somany Ceramics, and the overall premium tile market have generally grown faster than Varmora's 2.6% two-year revenue CAGR.

This raises questions about whether Varmora is losing market share in some segments, or whether its volume growth is constrained by manufacturing capacity or distribution reach. The Allemby JV (eastern India, July 2026) and the new spinning capacity additions are designed to address this, but the benefit is mostly post-IPO.

All 8 manufacturing facilities are concentrated in the Morbi cluster, Gujarat.  Geographic concentration of the entire manufacturing base in a single industrial cluster creates a single point of failure.

Any event affecting Morbi broadly, including natural disasters (the region is seismically active), industrial accidents, environmental regulatory action, power or gas supply disruptions, or labour disputes, could affect all 8 facilities simultaneously. Kajaria Ceramics, by contrast, has manufacturing spread across multiple states, reducing this specific risk.

Natural gas and coal price volatility directly compresses tile manufacturing margins.  Kilns in the Morbi tile cluster are energy-intensive. Natural gas and coal are the primary energy inputs. Natural gas prices are global commodity prices that can spike sharply and are partially outside domestic price control. While tile prices can be increased with a lag, sudden input cost increases compress EBITDA margins in the period of transition. In a commodity-adjacent industry with partial pricing power, this is an ever-present risk.

Tile demand is correlated with Indian real estate and construction activity.  Approximately 65 to 70% of tile demand in India is linked to new construction (residential, commercial, and infrastructure), while the remainder comes from renovation.

A slowdown in housing starts, tightening of home loan availability, or reduction in infrastructure spending would reduce tile volumes and create pricing pressure across the sector. Varmora's premium positioning partially insulates it from commodity tile price erosion, but it does not eliminate demand cyclicality.

Working capital days of 96 in FY2026, up from 82 in FY2024, signals receivables elongation.  Extended credit terms to the EBO and MBO distribution channel are common in tile retail, but the 14-day increase in working capital days over two years suggests the channel is demanding longer credit or that inventory holding has increased.

If this trend continues, it will partially offset the free cash flow benefit of debt elimination and require ongoing working capital funding from operating cash flows or bank lines.

OFS proceeds do not accrue to the company.  Investors who purchase shares from Katsura Investments via the OFS are providing exit liquidity to an existing shareholder, not providing capital to the business. Only the Rs. 32,000 Lakhs Fresh Issue proceeds flow to Varmora Granito.

At the scale of Carlyle's OFS, the blended proceeds from Fresh Issue and OFS will be weighted toward secondary allocation, and investors should ensure they understand what portion of their investment is funding the business versus funding a shareholder exit.

KEY POSITIVES

EBITDA margin expanded from 10.21% to 14.18% in two years, a 397 basis point improvement driven by premium product mix shift.  This is the single most compelling financial metric in the Varmora story. A nearly 400 bps EBITDA margin improvement without meaningful revenue growth is rare and reflects genuine product mix improvement rather than cyclical tailwinds. GVT tiles at 84.19% of tile revenues carry substantially higher realisations (Rs. 352.26 per sqm average) than ceramic tiles. If the GVT mix continues to increase toward 90% and above, EBITDA margins have room to improve further.

IPO-funded debt repayment of Rs. 24,500 Lakhs will make the company near-net-debt-free in FY2027.  The transformation from Rs. 39,001 Lakhs net debt at FY2025 peak to near-zero net debt in FY2027 is a structural step change in the investment case. Near-debt-free status at EBITDA of Rs. 22,155.60 Lakhs implies substantial and growing free cash flow from FY2027 onward, available for dividends, buybacks, or growth investments. Finance cost savings alone should add 1.3 to 1.6 percentage points to PAT margin.

Carlyle Group (Katsura Investments) invested Rs. 64,035.20 Lakhs in FY2023, providing institutional validation.  Carlyle Group is among the world's largest and most sophisticated private equity investors, with extensive due diligence processes before committing large capital. Their Rs. 64,035.20 Lakh investment in FY2023 after their evaluation process provides independent institutional confirmation of the business quality, management capability, and market position of Varmora Granito. Remaining Carlyle holding post-OFS also aligns institutional interests with post-listing performance.

SACMI IST V-NATURE BLOCK: first in Asia to deploy this large-format premium slab technology.  The SACMI V-NATURE BLOCK system enables production of large format tiles and slabs (1200mm x 2400mm and above) with natural stone aesthetics that command the highest realisations in the tile segment. Being first in Asia to deploy this specific technology in 2024 provides a temporary competitive moat in the large-format premium slab category. Premium large-format slabs are the fastest-growing segment of the Indian tile market, driven by high-end residential and commercial projects.

Goldman Sachs co-BRLM brings international institutional investor access to this IPO.  Goldman Sachs participates selectively in Indian IPO mandates. Its co-BRLM role indicates confidence in the quality of the Varmora Granito investment story and brings the distribution network of one of the world's leading investment banks to the book-building process. This specifically unlocks access to global long-only funds, sovereign wealth vehicles, and international emerging market investors who specifically require a Goldman mandate to participate in Indian primary offerings.

Technopak study: 2nd highest consumer consideration rate and highest purchase conversion rate in the tile category.  Consumer research from Technopak (cited in the RHP) places VARMORA among the top tile brands by two of the most commercially meaningful brand metrics. Consideration rate measures brand salience at the point of purchase decision.

Purchase conversion rate is even more directly valuable as it measures the proportion of considering buyers who actually purchase the brand. Highest conversion rate signals that VARMORA's brand experience at the EBO and MBO level is translating consideration into closed sales more effectively than peers.

305 EBOs and 2,758 MBOs across 988 cities provide pan-India distribution at scale.  The EBO network is particularly important for a premium tile brand: EBOs provide controlled in-store display with full product range and trained staff, creating a brand experience that commodity tile suppliers cannot replicate. 305 EBOs across 988 cities is one of the more extensive exclusive retail networks among non-Kajaria tile brands in India. The MBO reach of 2,758 outlets ensures broad market coverage beyond the EBO premium channel.

Exports at 20.97% of revenues across 100-plus countries provide geographic diversification and premium quality signal.  Meaningful export revenues across 100-plus countries are an important independent verification of product quality. Export buyers in developed markets have rigorous technical and quality specifications.

Sustaining export revenues at 20.97% of total revenues indicates that VARMORA tiles meet international quality standards. It also provides a natural hedge against domestic demand cycles and gives access to higher-margin export realisations in certain geographies.

Allemby Ceramics JV in Assam (50%, July 2026) opens eastern and northeastern India at limited capital cost.  The JV structure limits Varmora's capital commitment while delivering a dedicated manufacturing presence in eastern and northeastern India, regions where freight cost from Morbi has historically provided a competitive advantage to local or closer manufacturers.

At 6.40 million square metres of GVT capacity, the Assam plant can support meaningful revenue contribution from a region that is growing rapidly in residential construction. The JV model preserves Varmora's balance sheet flexibility while extending geographic reach.

81.72% in-house manufacturing with over 3,500 SKUs across 20 surface types ensures quality control and margin preservation.  High in-house manufacturing share (81.72% of revenues in FY2026) gives Varmora control over quality consistency across its 3,500-plus SKU portfolio and preserves manufacturing margins that would otherwise be shared with third-party contract manufacturers.

The 20 surface type breadth and 3,500 SKU count ensures that the VARMORA brand can fulfil virtually any architectural specification, supporting the full-range EBO retail model effectively.

Disclaimer: This report is prepared solely for informational purposes based on the Red Herring Prospectus filed by Varmora Granito Limited with BSE and NSE. It does not constitute investment advice. Investors should read the full RHP carefully and consult registered financial advisors before making any investment decisions.