Euro Panel Products' revenue rises 17% as profit falls 18%

Euro Panel Products Limited reported standalone revenue from operations of Rs 152.06 crore for the quarter ended September 30, 2026, up 17% year on year, while profit after tax fell 18% to Rs 5.42 crore as total expenses increased 20% to Rs 145.44 crore. The Board approved the unaudited results on November 14, 2026.

How did Euro Panel Products perform in the September 2026 quarter?

Euro Panel Products increased standalone revenue from operations to Rs 152.06 crore in the quarter ended September 30, 2026, from Rs 129.86 crore a year earlier, an increase of Rs 22.20 crore. Revenue was also higher than Rs 119.62 crore in the quarter ended June 30, 2026, while other income rose to Rs 66.68 lakh from Rs 2.48 lakh in the September 2025 quarter.

Profit did not follow the revenue increase in the September quarter. Profit before tax declined to Rs 7.29 crore from Rs 9.06 crore a year earlier, and profit after tax fell to Rs 5.42 crore from Rs 6.62 crore. Basic and diluted earnings per share were Rs 2.21, compared with Rs 2.70 in the September 2025 quarter and Rs 2.02 in the June 2026 quarter.

For the half year ended September 30, 2026, Euro Panel Products reported revenue from operations of Rs 271.68 crore, compared with Rs 234.70 crore in the corresponding six months of 2025. Half-year profit after tax declined to Rs 10.38 crore from Rs 12.34 crore, while profit before tax fell to Rs 14.25 crore from Rs 16.91 crore. The company identifies Aluminium Composite Panels as its sole reportable segment.

Why did Euro Panel Products' profit decline despite revenue growth?

Euro Panel Products' September-quarter profit declined because total standalone expenses rose faster than revenue, increasing 20% year on year to Rs 145.44 crore. Cost of materials consumed increased to Rs 103.11 crore from Rs 88.03 crore, employee-benefit expense rose to Rs 11.51 crore from Rs 9.15 crore, and other expenses increased to Rs 17.01 crore from Rs 15.30 crore.

Finance cost increased to Rs 4.03 crore in the September 2026 quarter from Rs 3.62 crore a year earlier, while depreciation and amortisation rose to Rs 2.65 crore from Rs 2.21 crore. The change in inventories of finished goods and stock-in-trade was an expense of Rs 7.13 crore, compared with Rs 1.98 crore in the September 2025 quarter, contributing to the decline in profit before tax.

For the half year ended September 30, 2026, material consumption rose to Rs 193.60 crore from Rs 167.45 crore and employee costs increased to Rs 22.53 crore from Rs 17.73 crore. Finance costs rose to Rs 7.75 crore from Rs 6.69 crore, while total expenses increased to Rs 258.46 crore from Rs 218.98 crore. The half-year inventory-change line was a credit of Rs 1.11 crore, against a Rs 6.84 crore credit in the prior-year period.

What changed in Euro Panel Products' working capital and assets?

Euro Panel Products' inventory increased to Rs 223.02 crore at September 30, 2026, from Rs 200.59 crore at March 31, 2026, an increase of Rs 22.44 crore. Trade receivables rose by Rs 4.20 crore to Rs 61.30 crore and other current assets increased by Rs 2.63 crore to Rs 21.58 crore. Total current assets consequently rose to Rs 311.37 crore from Rs 284.40 crore.

Non-current assets increased to Rs 116.26 crore at September 30, 2026, from Rs 103.64 crore at March 31, 2026. Capital work-in-progress rose to Rs 14.29 crore from Rs 2.64 crore, while property, plant and equipment declined to Rs 82.02 crore from Rs 85.03 crore. Investments increased to Rs 96.80 lakh from Rs 53.80 lakh and non-current loans rose to Rs 1.44 crore from Rs 47.56 lakh.

During the September 2026 quarter, Euro Panel Products acquired 175,000 shares in Eurobond Dimensions Private Limited for Rs 17.50 lakh, giving it a 70% stake, according to the results note. The filing says Eurobond Dimensions Private Limited was incorporated on July 15, 2026. Trade payables, loans and advances, and other current liabilities remain subject to confirmation and reconciliation, with consequential adjustments to be accounted for when confirmation or reconciliation occurs.

How did Euro Panel Products fund investment and working-capital needs?

Euro Panel Products used Rs 2.07 crore in operating activities during the half year ended September 30, 2026, after generating Rs 1.53 crore from operations and paying Rs 3.60 crore of net taxes. Working-capital movements used Rs 25.14 crore of cash, led by the Rs 22.44 crore inventory increase and the Rs 4.20 crore increase in trade receivables. Trade payables provided Rs 96.36 lakh of cash during the period.

Investing activities used Rs 15.83 crore in the six months to September 30, 2026, including Rs 13.51 crore spent on property, plant and equipment, Rs 2.50 crore placed in fixed deposits and Rs 43 lakh used to purchase investments. Financing activities provided Rs 15.72 crore, including Rs 6.47 crore of short-term borrowings and Rs 17.83 crore of long-term borrowing proceeds, partly offset by Rs 7.75 crore of finance costs.

Long-term borrowings rose to Rs 34.80 crore at September 30, 2026, from Rs 16.97 crore at March 31, 2026, while short-term borrowings increased to Rs 144.06 crore from Rs 137.58 crore. Cash and cash equivalents, including other bank balances in the cash-flow statement, declined to Rs 3.74 crore at September 30, 2026, from Rs 5.92 crore at the beginning of the half year.

Conclusion

Euro Panel Products recorded higher standalone sales in the September 2026 quarter, but costs increased faster than revenue and reduced profit after tax to Rs 5.42 crore. Across the first half, revenue increased by Rs 36.98 crore year on year, while profit after tax declined by Rs 1.96 crore and operating activities used Rs 2.07 crore of cash.

The next disclosed matters to watch are the confirmation and reconciliation of trade payables, loans and advances, and other current liabilities, which could result in later adjustments. The financial effect of Eurobond Dimensions Private Limited, in which Euro Panel Products acquired a 70% stake for Rs 17.50 lakh during the September quarter, will also remain relevant in subsequent consolidated results.