Euro Pratik Sale Q1 FY27 Results (NSE: EUROPRATIK)
Signal: Margin pressure
The read
The key inflection is a consolidation-led scale-up rather than a clean margin-led acceleration: revenue rose +60.1% YoY to ₹10,333.27 lakh, but gross margin contracted 1,010bps to 39.0% and EBITDA growth of +24.6% lagged revenue by 35.5pp; PAT growth of +93.7% benefited from the absence of the prior-year fire loss, while standalone revenue grew only +2.1%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹103.33 Cr | 60.1% | 10.5% |
| EBIT | ₹27.51 Cr | 25.2% | |
| Net profit | ₹18.77 Cr | 93.7% | |
| EPS | ₹1.84 | 93.7% | |
| EBIT margin | 28.2% |
P&L walk
Consolidated revenue increased to ₹10,333.27 lakh, +60.1% YoY and +10.5% QoQ, while gross margin fell to 39.0% from 49.1% as raw material and inventory cost rose to 61.0% of revenue from 50.9%; EBITDA margin consequently declined to 28.2%, although PAT attributable to owners grew +93.7% to ₹1,877.26 lakh.
Segments
The filing reports no separate segment table, but the ₹10,333.27 lakh consolidated revenue versus ₹4,469.48 lakh standalone revenue shows that subsidiaries contributed most of the group's growth; disclosed subsidiaries generated ₹7,799.73 lakh revenue and ₹907.25 lakh PAT before consolidation adjustments.
Key positives
- Consolidated revenue reached ₹10,333.27 lakh, +60.1% YoY and +10.5% QoQ, materially accelerating from Q4FY26 revenue of ₹9,349.28 lakh.
- Subsidiary-led expansion is visible in ₹7,799.73 lakh of disclosed subsidiary revenue and ₹907.25 lakh of subsidiary PAT before consolidation adjustments.
- PAT attributable to owners rose +93.7% YoY to ₹1,877.26 lakh and EPS rose +93.7% to ₹1.84, with paid-up share capital unchanged at ₹1,022.00 lakh.
- Employee and other expenses grew 42.9% YoY to ₹1,367.59 lakh, below the 60.1% revenue growth rate, providing partial cost absorption despite gross-margin pressure.
Key concerns
- Consolidated gross margin compressed 1,010bps YoY to 39.0% as raw material and inventory cost rose to 61.0% of revenue from 50.9%; the filing does not disclose the cause.
- EBITDA grew only 24.6% YoY to ₹2,915 lakh versus 60.1% revenue growth, driving EBITDA margin down 800bps to 28.2%.
- Standalone revenue grew only 2.1% YoY to ₹4,469.48 lakh and standalone EBITDA declined 8.7% to ₹1,379 lakh, indicating that reported group growth is heavily acquisition- and subsidiary-led.
- Consolidated finance costs increased 130.3% YoY to ₹125.57 lakh, materially faster than revenue growth.
- The company acquired 51% of Chawla Brothers for ₹3,220 lakh on April 1, 2026, creating execution and integration risk that is not yet established in the reported trajectory.
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