Euro Pratik Sales Limited cash falls Rs 7.96 crore in six months

Euro Pratik Sales reported a Rs 7.96 crore decrease in consolidated cash and cash equivalents during the half year ended September 30, 2026, closing at Rs 8.45 crore versus Rs 16.41 crore at March 31, 2026. Net operating cash generation was Rs 23.01 crore, while investing activities used Rs 33.45 crore.

Why did Euro Pratik Sales cash fall in the September 2026 half year?

Euro Pratik Sales cash and cash equivalents declined because its Rs 33.45 crore investing outflow exceeded the combined Rs 23.01 crore operating inflow and Rs 2.48 crore financing inflow in the half year ended September 30, 2026. The resulting net decrease was Rs 7.96 crore, taking the closing cash balance to Rs 8.45 crore.

Purchases of property, plant and equipment and intangible assets were the principal cash use at Rs 30.53 crore. Net investments used another Rs 3.21 crore, and loans and advances given used Rs 0.10 crore. Interest received of Rs 0.30 crore and dividend received of Rs 0.10 crore partly offset those investing uses.

The September 2026 half-year decline contrasts with an Rs 2.43 crore increase in cash and cash equivalents during the year ended March 31, 2026. The periods are of different lengths, with the latest statement covering six months and the earlier figure covering a full year, but the direction of cash movement changed.

How did working capital affect Euro Pratik Sales operating cash flow?

Euro Pratik Sales generated Rs 31.70 crore of cash from operations before tax payments, and net income taxes paid of Rs 8.68 crore reduced net operating cash flow to Rs 23.01 crore. Profit before tax was Rs 60.99 crore, while depreciation and amortisation of Rs 3.31 crore was among the adjustments used to calculate operating profit before working-capital changes of Rs 62.65 crore.

Working capital absorbed cash through a Rs 21.45 crore increase in inventories and a Rs 6.74 crore increase in trade receivables in the cash-flow statement. A Rs 6.13 crore increase in trade payables and a Rs 1.64 crore reduction in other financial assets partly offset those uses. Other financial liabilities decreased by Rs 9.11 crore, creating a further use of operating cash.

At September 30, 2026, inventories stood at Rs 143.90 crore compared with Rs 122.45 crore at March 31, while trade receivables were Rs 105.76 crore compared with Rs 97.57 crore. Current trade payables increased to Rs 26.01 crore from Rs 19.88 crore, whereas current other financial liabilities declined to Rs 14.65 crore from Rs 23.17 crore.

The period-end balance-sheet changes do not exactly equal each cash-flow working-capital line. The filing also records Euro Pratik Sales acquiring a 51% controlling stake in Chawla Brothers on April 1, 2026, which added a business to the consolidated group during the period.

What did Euro Pratik Sales spend on investments and assets?

Euro Pratik Sales used Rs 30.53 crore to purchase property, plant and equipment and intangible assets during the half year ended September 30, 2026. The filing does not provide a project-level split of this cash-flow line, so it does not specify how much related to individual assets, business combinations or subsidiaries.

Intangible assets increased to Rs 94.70 crore at September 30 from Rs 66.61 crore at March 31, a rise of Rs 28.09 crore. Property, plant and equipment rose to Rs 6.94 crore from Rs 5.31 crore. Total non-current assets consequently increased to Rs 124.65 crore from Rs 95.78 crore.

The group disclosed two controlling-stake acquisitions in 2026. Euro Pratik Sales acquired 51% of Chawla Brothers for Rs 32.20 crore on April 1, while subsidiary Euro Pratik Trade-FZCO acquired 51% of Elements Trading LLC on July 10. HUES Plydecor LLP, another subsidiary, commenced operations during the quarter ended September 30, 2026, with no separate cash-flow amount disclosed.

Total assets reached Rs 449.03 crore at September 30, 2026, compared with Rs 396.72 crore at March 31. Current assets rose by Rs 23.44 crore to Rs 324.39 crore, including investments of Rs 19.90 crore, up from Rs 14.15 crore at the prior year-end.

How did Euro Pratik Sales finance its cash requirements?

Euro Pratik Sales generated a Rs 2.48 crore net financing cash inflow in the September 2026 half year. Borrowing proceeds were Rs 15.00 crore and non-controlling-interest holders contributed Rs 4.60 crore in respect of subsidiaries, while borrowing repayments, interest payments and lease rentals used Rs 13.11 crore, Rs 1.02 crore and Rs 3.00 crore respectively.

Total borrowings were Rs 13.46 crore at September 30, compared with Rs 11.57 crore at March 31. Non-current borrowings increased to Rs 9.80 crore from Rs 3.08 crore, while current borrowings decreased to Rs 3.67 crore from Rs 8.50 crore. This changed the balance between current and non-current borrowing while increasing total borrowings by Rs 1.89 crore.

Total equity rose to Rs 371.69 crore from Rs 320.64 crore over the six months. Other equity increased to Rs 342.91 crore from Rs 299.74 crore, and non-controlling interest rose to Rs 18.55 crore from Rs 10.69 crore. Consolidated profit for the half year was Rs 46.24 crore, compared with Rs 31.99 crore in the half year ended September 30, 2025.

Revenue from operations was Rs 219.06 crore for the September 2026 half year, up from Rs 161.09 crore a year earlier. Euro Pratik Sales reports one operating segment, surface decorative products, rather than separate reportable segments under Indian Accounting Standard 108.

Conclusion

Euro Pratik Sales produced positive operating cash flow of Rs 23.01 crore in the September 2026 half year, but investment spending of Rs 33.45 crore, including Rs 30.53 crore for property, plant, equipment and intangible assets, exceeded that inflow. Higher inventory and receivables were also cash uses, leaving cash and cash equivalents at Rs 8.45 crore.

The next disclosed unresolved matter is the insurance claim following the April 26, 2025 fire at a Bhiwandi godown. The company had recorded an exceptional net loss of Rs 7.89 crore after considering an insurance claim receivable, and stated that the surveyor had submitted its assessment to the insurance company; the filing gives no date for the insurer's decision.