Varmora Granito’s ₹708‑crore IPO opened on the NSE, while the company announced a FY29 revenue target of ₹2,500 crore and a projected PAT of ₹250 crore—nearly five times the ₹55 crore it earned in FY24.
The ₹450 crore capital‑expenditure plan, split between FY24 and FY25, is expected to generate an asset turnover of 2.5×, creating an additional ₹800‑₹900 crore in revenue potential. Depreciation will fall to ₹85 crore from ₹105 crore, tightening operating leverage.
Premium tile sales have surged: glazed vitrified tile (GVT) now accounts for 84% of sales, up from 57% in FY23, and is projected to reach 95% this year. The lab‑grown marble unit—formerly IST—recorded ₹19 crore in sales last year against a ₹41,000‑₹42,000 crore market.
Debt reduction is a focus: the IPO proceeds will be used to repay ₹240 crore of net debt, cutting annual interest expense by about ₹40 crore, with an immediate ₹20 crore benefit reflected in the current year’s earnings.
Working‑capital optimisation is underway; the company aims to trim days’ sales outstanding from 96 to 75‑80 days starting FY25, while trimming its dealer network to 3,063 high‑margin outlets.
No major capex is expected beyond FY25 until FY29, when the company will fully capitalize on its 2.5× asset turnover strategy. Analysts are watching the first earnings release for confirmation of the 18.5‑19.2% EBITDA margin and 9.5‑10% PAT margin targets.