Euro Pratik Q2 profit rises 15% as EBITDA margin narrows

Euro Pratik Sales Limited reported Q2 FY27 profit after tax of Rs 26.2 crore, up 14.9% year on year, while operating EBITDA margin declined 110 basis points to 31.4% amid elevated raw-material prices, logistics disruption and higher freight costs identified by management. Revenue from operations increased 19.8% to Rs 115.7 crore.

How did Euro Pratik perform in Q2 FY27?

Euro Pratik increased income, operating earnings and profit in Q2 FY27. Total income rose 22.2% year on year to Rs 119 crore from Rs 97.4 crore in Q2 FY26, while revenue from operations grew 19.8% to Rs 115.7 crore from Rs 96.6 crore. Operating EBITDA, or earnings before interest, tax, depreciation and amortisation, increased 18.0% to Rs 37.4 crore.

Profit after tax, or PAT, grew 14.9% to Rs 26.2 crore from Rs 22.8 crore, a slower rate than total income and operating EBITDA. Operating EBIT, or earnings before interest and tax, rose 18.2% to Rs 35.7 crore from Rs 30.2 crore. The difference between total-income growth of 22.2% and operating-EBITDA growth of 18.0% coincided with the lower quarterly operating margin.

Why did Euro Pratik's EBITDA margin decline?

Euro Pratik's operating EBITDA margin declined to 31.4% in Q2 FY27 from 32.5% in Q2 FY26, a 110-basis-point reduction. A basis point is one-hundredth of a percentage point. Management cited geopolitical uncertainty, elevated raw-material prices, logistics disruptions and increased freight costs in describing the operating environment, even as operating EBITDA rose to Rs 37.4 crore.

The margin movement was larger in the first half. Operating EBITDA margin was 29.6% in H1 FY27, compared with 33.8% in H1 FY26, a decline of 420 basis points, while operating EBITDA increased to Rs 66.5 crore from Rs 55.1 crore. Thus, first-half operating profit increased in rupee terms but accounted for a smaller share of total income than in the corresponding prior period.

PAT margins followed a different pattern across the two periods. The Q2 FY27 PAT margin declined to 22.0% from 23.4%, alongside PAT growth to Rs 26.2 crore. In H1 FY27, PAT margin increased to 20.6% from 19.7%, while PAT rose to Rs 46.2 crore from Rs 32.1 crore; the release does not provide a reconciliation for the differing operating- and post-tax-margin movements.

What were Euro Pratik's first-half FY27 results?

Euro Pratik reported H1 FY27 total income of Rs 224.8 crore, compared with Rs 163.2 crore in H1 FY26, and revenue from operations of Rs 219.1 crore, compared with Rs 161.1 crore. The company released the unaudited quarter and half-year results on November 5, 2026, for the periods ended September 30, 2026.

Operating EBITDA increased by Rs 11.4 crore to Rs 66.5 crore in H1 FY27, while operating EBIT rose by Rs 11 crore to Rs 63.2 crore. PAT increased by Rs 14.1 crore to Rs 46.2 crore. H1 FY27 operating EBITDA margin of 29.6% was also below the 31.4% reported for Q2 FY27.

Which products generated Euro Pratik's Q2 revenue?

Euro Pratik's largest disclosed Q2 FY27 revenue category was decorative wall panels, contributing 55.5% of the mix. Decorative laminates accounted for 24.0%, while other products contributed 20.5%. Wall panels and laminates therefore represented 79.5% of the quarterly revenue mix disclosed by management.

Euro Pratik reported more than 16% market share in the organised wall-panel segment and offers more than 30 product categories and more than 3,300 designs through more than 113 catalogues. Its asset-light model uses 45 contract manufacturers in India and abroad, while its network spans more than 195 cities through around 208 distributors. The release does not disclose category-level quarterly sales or margins.

What does the Drashti Surfaces acquisition mean for Euro Pratik?

Euro Pratik said its most recent acquisition of Drashti Surfaces, a manufacturer of premium laminates and veneers, is intended to expand the customer base, broaden the product portfolio and add in-house manufacturing capabilities. Management said it aims to use these expanded capabilities to accelerate growth and strengthen the company's market position.

The disclosed rationale relates to decorative laminates, which represented 24.0% of Q2 FY27 revenue, but the release provides no acquisition price, completion date, financing details or financial contribution. It also does not separate Drashti Surfaces from the business that generated Q2 FY27 revenue from operations of Rs 115.7 crore and operating EBITDA of Rs 37.4 crore.

Conclusion

Euro Pratik's Q2 FY27 result combined double-digit growth in income, operating EBITDA and PAT with a narrower operating margin. Total income increased 22.2% to Rs 119 crore, operating EBITDA increased 18.0% to Rs 37.4 crore and PAT increased 14.9% to Rs 26.2 crore. Decorative wall panels remained the largest disclosed revenue category at 55.5%.

Future disclosures will need to clarify whether raw-material, logistics and freight pressures continue to affect the H1 FY27 operating EBITDA margin of 29.6%, down from 33.8% a year earlier. They may also provide the unresolved financial details and integration progress for Drashti Surfaces, including its contribution to premium laminates, veneers and in-house manufacturing capabilities.