EUROPRATIK

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%.

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.

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.

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.

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.

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.

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.