Euro Pratik Sales Limited — Q3 FY26 earnings call

Call held 9 Feb 2026

Management summary

Euro Pratik Sales Limited delivered a strong Q3 FY26 with robust margin expansion, despite revenue growth being tempered by temporary pollution restrictions in North India. The company reported 7% YoY revenue growth to INR 80.4 crores and 17% YoY PAT growth to INR 23.6 crores, driven by a 43.1% EBITDA margin. Management is optimistic about Q4 FY26, targeting at least 25% YoY revenue growth, fueled by the lifting of restrictions and strategic acquisitions like URO Veneer World.

Highlights

  • Q3 FY26 Revenue of INR 80.4 crores, up 7% YoY, despite regional headwinds.

  • Q3 FY26 Operating EBITDA of INR 34.6 crores, up 26% YoY, with EBITDA margin expanding to 43.1%.

  • Q3 FY26 PAT of INR 23.6 crores, up 17% YoY, achieving a PAT margin of 29.4%.

  • 9M FY26 Revenue grew 14.3% YoY to INR 241.5 crores, with EBITDA margin at 36.2% and PAT margin at 23%.

  • Management targets a minimum 25% YoY revenue growth for Q4 FY26, expecting recovery from postponed sales and M&A contributions.

Concerns

  • Q3 FY26 revenue growth of 7% was lower than the industry average (18-20%) due to pollution restrictions in North India.

  • The company suffered a loss in Q1 FY26 due to a fire incident, impacting the overall 9-month performance.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹80.4 Cr
    YoY +7%
  • Operating EBITDA
    ₹34.6 Cr
    YoY +26%
  • EBITDA Margin
    43.1%
  • PAT
    ₹23.6 Cr
    YoY +17%
  • PAT Margin
    29.4%

9M FY26

  • Revenue
    ₹241.5 Cr
    YoY +14.3%
  • EBITDA
    ₹87.5 Cr
  • EBITDA Margin
    36.2%
  • PAT
    ₹55.6 Cr
  • PAT Margin
    23%

What they filed

Q1 FY27: revenue up 2.3%, net profit up 175.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue70 54 50 44 65 −7%52 −4%49 −2%45 +2%
EBITDA28 18 13 12 22 −21%20 +11%12 −8%11 −8%
Net profit20 15 11 4 17 −15%15 +0%14 +27%11 +175%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Decorative Wall Panels (9M FY26)
    66.5% Revenue Contribution
  • Decorative Laminates (9M FY26)
    26.9% Revenue Contribution
  • Allied Products (9M FY26)
    6.6% Revenue Contribution

Capital allocation

high confidence
  • M&A URO Veneer World Acquisition · Integrated

    Acquired 51% stake in 2025 to strengthen entry into B2C retail segment, gain direct insights into end-customer preferences, and find better suppliers for non-core products.

    Provides a platform for organic growth by increasing product basket and connecting to retailers; inter-company sales are eliminated in consolidation.

    In 2025, we continue to build on this momentum and took a significant step forward through forward integration of acquiring a 51% stake in URO Veneer World, one of the South India's respected interior surface brands. This acquisition strengthens our entry into B2C retail segment, provides direct insights into end-customer preferences. As we look ahead, we remain confident about the road before us. Strong industry tailwinds, a clear shift toward organized players, GST rationalization, rapid urbanization, and growing consumer preference for aesthetic and eco-friendly interior solutions creates a powerful environment for sustainable growth.
  • M&A Hues Ply Decor Joint venture · Announced · Consideration ₹[object Object] (cash)

    To cater to the South India market with acrylics or ASA products, leveraging Hues Ply Decor's 20-year legacy and extensive distributor/dealer network.

    Initial investment of around INR 2 crores from Euro Pratik's side, with plans to introduce 300-400 SKUs in the next year.

    So we plan to start this by Q1 next year. We have put a upper limit of around INR8 to INR10 crores, but I think it would be done lesser than that. Initially, it should be around, total investment should be around INR2 crores from the company side, plus minus 10%-15%.

Guidance & targets

Revenue

  • Q4 FY26 Revenue Growth Revenue · Q4 FY26 · High confidence minimum 25%
    I think 25% is the minimum that we are targeting for the Q4 Y-on-Y.

    — Pratik Singhvi

Profitability

  • Q4 FY26 Bottom-line Growth Profitability · Q4 FY26 · High confidence 25%
    So, as I said earlier, I think we should be on target to grow at 25%.

    — Pratik Singhvi

Margin

  • EBITDA Margin Band Margin · ongoing · High confidence around 40% plus minus 2%-3%
    So we want to remain in the bracket of around 40% plus minus 2%-3%. That's the endeavor of the company and that has been consistent over the years.

    — Pratik Singhvi

Distribution

  • Channel Partner Growth Distribution · every year · High confidence at least 12% to 15% more channel partners
    So our internal target is to grow at least 12% to 15% more channel partners every year.

    — Pratik Singhvi

Growth

  • Medium-term Organic Growth Growth · next 3 years · Medium confidence much better than the market growth
    And in the next 3 years, we are hopeful to do much better than the market growth.

    — Pratik Singhvi

Investment

  • Hues Ply Decor JV Investment Investment · Q1 next year · High confidence around INR 2 crores
    Initially, it should be around, total investment should be around INR2 crores from the company side, plus minus 10%-15%.

    — Pratik Singhvi

What to watch in Q4 FY26

North India Sales Recovery

Next quarter (Q4 FY26)
Current Contributed 22.4% to Q3 FY26 sales, impacted by restrictions.
Target Increased sales from North India, reflecting the lifting of construction bans and postponed sales materializing.

Why it matters

Verifies the recovery from Q3 headwinds and contributes significantly to achieving overall Q4 growth targets.

And that has dissected the revenue growth in the northern part of India. But we are hopeful that lifting up all this pollution bans, now we are hoping that this particular sales will come in the coming quarter, which was slightly halted in Q3.

Risks & concerns

  • Pollution Restrictions in North India

    medium

    Temporary construction bans due to pollution in North India resulted in a 'slip' in Q3 FY26 sales, though compensated by South India growth. The ban has since been lifted.

    Management acknowledged

  • Q1 FY26 Fire Incident

    medium

    The company suffered a loss in Q1 FY26 due to a fire, which impacted the overall 9-month financial performance.

    Management acknowledged

Q&A highlights

7 direct
Q3 Revenue Growth and Regional Performance Direct
There was in the last quarter, quarter 3, as you know that there was some pollution restrictions in north part of the country that resulted a little bit of slip in the sales in the north India, but it was very well recovered from the south India sales, which we did almost 40% in our sales in the third quarter.

Clarifies the reason for lower-than-industry Q3 revenue growth and highlights the regional diversification strategy, with North India sales contributing 22.4% and South India growing 42.2%.

Asked by Pritesh from Lucky Investments

Q4 Revenue Growth Target and M&A Contribution Direct
I think 25% is the minimum that we are targeting for the Q4 Y-on-Y. Also, the sales in this quarter is picking up. And as what Mr. Alpesh said, there is a little bit postponement of the North India, which is now almost streamlined. And that is the sales that we hope to achieve in the Q4.

Sets a clear quantitative target for Q4 revenue growth, indicating confidence in recovery from Q3 headwinds and the impact of recent acquisitions.

Asked by Atul Mehra from Motilal Oswal Asset Management

Sustainability of EBITDA Margins Direct
So if you see the history of the company, we are always a bottom-line driven company, asset light model and new innovative products where we work with handsome margins. It is not a one-off case. It's been consistent for the last 5 years. And we hope to continue to deliver the same way in the future as well.

Reassures investors about the durability of the high EBITDA margins (43.1% in Q3), attributing it to the company's core business model and consistent performance.

Asked by Hiten Boricha from Sequent Investments

Lifting of North India Construction Ban Direct
Yes. I think like 2 weeks back, now there are no restrictions. And they had a GRAP 4 where the entire construction interior, exterior was at a hault. Now it has been lifted and the business is now as usual.

Confirms the removal of a significant external factor that negatively impacted Q3 sales, providing a positive outlook for Q4 performance in the region.

Asked by Hiten Boricha from Sequent Investments

Synergies from URO Veneer World Acquisition Direct
So synergy is like most of our business is currently B2B. URO Veneer World is more than a 25-year-old company, which is based out of South India, which are dealing with more than 2000 architects, contractors in southern part of the country. So it's a front-end pure retail business where we have a better understanding of the market requirement, also the trends which are going on in the market.

Explains the strategic rationale behind the 51% acquisition, highlighting its role in B2C market entry, gaining market insights, and expanding product offerings through a new platform.

Asked by Prateek Shah from Investing Alpha

Hues Ply Decor Joint Venture Strategy Direct
So the idea is our main strength, our core strength is sourcing and designing, which we bring to the table. We will try to encash their distribution network based out of their legacy, their distribution network. And that's how the joint venture is. We hope that it's win-win for both sides.

Details the strategy for the new JV, focusing on leveraging the partner's established distribution network in South India for new product categories (acrylics/ASA products) with a modest initial investment.

Asked by Aasim from Dam Capital

Product Cannibalization and Fast Fashion Model Direct
In terms of product cannibalization and new catalogs, it is the fast fashion model which follows. So generally the products which are being introduced in the market gets obsolete over a period of time, maybe 15-18-20 months. And that's why we phased out the old catalogs and we launched with the new catalogs.

Clarifies the company's approach to frequent new product launches, explaining it as a 'fast fashion' model where older products are phased out, rather than cannibalization, driven by continuous R&D.

Asked by Devanshi Shah from HUF Capital

Standalone vs. Consolidated Growth Post-Acquisitions Partial
No Atul my point is when we sell to them it gets eliminated in the inter-company sales. So, I hope you are understanding what I am trying to say. ... So, obviously, if the acquisition would not have been there and those sales would have been in Euro Pratik itself. So, obviously, then the growth in the company would be much higher.

Highlights the complexity of isolating standalone growth post-acquisitions due to inter-company sales eliminations, indicating that the consolidated view is now the primary focus for growth assessment.

Asked by Atul Mehra from Motilal Oswal Asset Management

3 min read 7 chapters

Detailed narrative

Q3 FY26 Financial Performance Highlights

Euro Pratik Sales Limited reported a revenue of INR 80.4 crores for Q3 FY26, marking a 7% year-on-year growth from INR 75.1 crores in Q3 FY25. The company achieved an Operating EBITDA of INR 34.6 crores, a 26% increase from INR 27.4 crores in the prior year, with the EBITDA margin expanding to 43.1%. Profit After Tax (PAT) reached INR 23.6 crores, up 17% YoY from INR 20.2 crores, resulting in a PAT margin of 29.4%.

Nine-Month FY26 Performance and Product Mix

For the nine months ended December 31, 2025, the company's revenue from operations stood at INR 241.5 crores, reflecting a 14.3% year-on-year growth. The EBITDA for this period was INR 87.5 crores, with an EBITDA margin of 36.2%, and PAT was INR 55.6 crores, achieving a PAT margin of 23%. Decorative wall panels contributed approximately 66.5% of the 9M FY26 revenue, while decorative laminates accounted for 26.9%, with allied products making up the remainder.

Impact of North India Restrictions and Q4 Outlook

The Q3 FY26 revenue growth of 7% was impacted by pollution-related construction restrictions in North India, which typically contributes 22.4% to sales. However, strong sales in South India, which grew 42.2%, helped offset this. Management expects the postponed North India sales to materialize in Q4 FY26, and is targeting a minimum 25% YoY revenue growth for the quarter, including contributions from recent acquisitions.

Strategic Acquisitions and Joint Ventures

The company acquired a 51% stake in URO Veneer World in December 2025, strengthening its B2C retail presence and gaining market insights. This acquisition is expected to drive organic growth by expanding the product basket. Additionally, Euro Pratik announced a joint venture, Hues Ply Decor, in Hyderabad, planning to launch new acrylics/ASA products in Q1 FY27 with an initial company investment of approximately INR 2 crores, leveraging the JV partner's extensive dealer network in South India.

Product Innovation and Asset-Light Manufacturing

Euro Pratik employs a 'fast fashion' model, continuously introducing new designs and phasing out older products every 15-20 months, launching over 1,000 new designs annually and 113 catalogs in the last four years. This strategy is supported by an asset-light manufacturing model, partnering with over 36 contract manufacturers globally, with in-house R&D and design capabilities ensuring quality and innovation.

Distribution Network Expansion and Market Strategy

The company's distribution network has grown significantly, from 97 distributors in FY23 to approximately 190 by December 2025, covering 188 locations in India and 2 in Nepal. Euro Pratik aims to expand this network by at least 12-15% annually, focusing on penetrating rural markets, B-Cities, and C-Cities to capitalize on growing purchasing power and infrastructure development across India.

Margin Sustainability and Medium-Term Growth Outlook

Management is confident in maintaining strong profitability, targeting EBITDA margins in the range of 40% +/- 2-3%, a level consistently achieved over the past five years. For the medium term (next 3 years), the company anticipates its organic growth to be 'much better than the industry average' of 18%, driven by its strategic initiatives, product innovation, and market expansion.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Consumer Durables earnings calls