Summary
Euro Pratik Sales Limited - Q3 FY26 Earnings Call Summary Monday, February 09, 2026, 11:30 A.M. IST
Event Participants
Executives 3 Alpesh Sangoi (Finance Controller), Jai Singhvi (Executive Director and CFO), Pratik Singhvi (Chairman and Managing Director)
Analysts 6 Aasim (Dam Capital), Atul Mehra (Motilal Oswal AMC), Devanshi Shah (HUF Capital), Hiten Boricha (Sequent Investments), Hrushikesh Shah (Alchemy Capital), Love Gupta (Countercyclical Investments), Pritesh (Lucky Investments), Rajiv Jain (Arcane Investments)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹80.4 crores | +7% YoY; Growth tempered by pollution-related construction bans in North India. |
| Operating EBITDA | ₹34.6 crores | +26% YoY; Driven by operating leverage and focus on high-margin products. |
| EBITDA Margin | 43.1% | +660 bps YoY; Reflects the company’s “bottom-line driven” asset-light model. |
| Profit After Tax (PAT) | ₹23.6 crores | +17% YoY; PAT margin stood at 29.4%. |
| 9M FY26 Revenue | ₹241.5 crores | +14.3% YoY; Consistent growth despite Q1 fire-related disruptions. |
| 9M FY26 PAT | ₹55.6 crores | 23% PAT margin for the nine-month period. |
| Segment Mix (9M) | 66.5% / 26.9% | Decorative wall panels (66.5%) and laminates (26.9%) remain core drivers. |
Geographic & Segment Commentary
- South India: This region showed strong performance, growing 42.2% in Q3. It served as a critical hedge against North India’s temporary slowdown, benefiting from the recent acquisition of URO Veneer World.
- North India: Revenue contribution dropped to 22.4% in Q3 due to “GRAP 4” pollution restrictions and construction bans. Management expects these “postponed” sales to recover in Q4 FY26.
- International: The company is advancing its global footprint with recent entries into the United States and UAE markets to diversify revenue beyond the domestic 25 states.
Company-Specific & Strategic Commentary
- Fast Fashion Strategy: Euro Pratik launched 113 catalogs in 4 years (avg. 2/month) to prevent product obsolescence. In Q3, new series like Canfour and Leatherlite were introduced to maintain trend relevance.
- Asset-Light Model: Operations are conducted through 36+ contract manufacturers globally (India, S. Korea, China, USA). This allows for scaling without heavy capex, focusing instead on in-house R&D and design.
- M&A Integration: The 51% acquisition of URO Veneer World (effective Dec ‘25) provides a B2C retail platform and direct architect access in South India, facilitating forward integration.
- Joint Venture: A new JV, Hues Ply Decor (Hyderabad), is set to launch in Q1 FY27 with an investment of ~₹2 crores to leverage local distribution for acrylic and ASA products.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Q4 FY26 Revenue Growth | 25%+ YoY | Includes recovery of North India postponed sales and consolidation of URO Veneer World. |
| EBITDA Margin | 40% (+/- 2-3%) | Management aims to sustain current profitability levels through its premium product mix. |
| Channel Expansion | 12% - 15% Annual Growth | Target to increase the current 188-distributor network, focusing on B and C-tier cities. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory/Environmental | Pollution-related construction bans in North India (GRAP) can abruptly halt sales, as seen in Q3 FY26. |
| Inventory/Obsolescence | The “Fast Fashion” model requires constant design updates; failure to innovate could lead to rapid product obsolescence (15-20 month lifecycle). |
| Supply Chain | Reliance on 36+ global contract manufacturers; mitigated by having 2-3 suppliers for every major product line to ensure consistency. |
Q&A Highlights
Revenue Growth & North India Impact
- Question: What caused the 7% growth rate, and is there a miss compared to the 18% industry growth? (Pritesh)
- Answer: Performance was hit by pollution-related construction bans in North India; however, South India grew 42%. Approximately 8-10% of expected North India sales were postponed to Q4 (Pratik Singhvi).
Margin Sustainability
- Question: Can the 43% EBITDA margin be sustained in Q4? (Hiten Boricha)
- Answer: The company is bottom-line driven and operates an asset-light model. Management expects to remain in the 40% bracket (+/- 2-3%) consistently (Pratik Singhvi).
M&A and Organic Growth Clarification
- Question: Does the 25% Q4 guidance include acquisitions, and what is the standalone growth? (Atul Mehra / Hrushikesh Shah)
- Answer: The 25% target is on a consolidated basis. While inter-company sales eliminate some volume, the URO Veneer platform provides access to new B2C customers and non-core products, which management views as a form of indirect organic expansion (Alpesh Sangoi).
Design Strategy
- Question: How do you prevent cannibalization with so many new catalog launches? (Devanshi Shah)
- Answer: Products typically have an 18-20 month lifecycle. Old catalogs are phased out as new ones launch to satisfy architect demand for fresh designs (Alpesh Sangoi).
Key Takeaway
Euro Pratik Sales Limited delivered a resilient Q3 FY26 with 7% revenue growth to ₹80.4 crores, significantly bolstered by a 42.2% surge in South India which offset regulatory construction bans in the North. The company’s asset-light, “fast fashion” model continues to yield high profitability, characterized by a 43.1% EBITDA margin and a 26% YoY increase in operating EBITDA. Strategically, the company is shifting toward forward integration through the acquisition of URO Veneer World and a new JV in Hyderabad, aiming to capture B2C insights and expand its 3,000+ SKU portfolio. Management guided for a robust Q4 with 25%+ growth in both top and bottom lines, supported by the resumption of activity in North India and full consolidation of recent acquisitions. The firm remains focused on maintaining a 40% margin profile while aggressively expanding its distribution footprint into Tier B and C cities.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: