Euro Pratik Sale Q2 FY27 Results (NSE: EUROPRATIK)
Signal: Growth decelerated
The read
The trajectory is a sequential margin recovery rather than a clean acceleration: consolidated revenue grew 19.8% YoY and 12.0% QoQ, EBITDA margin recovered to 32.3% from 28.2% QoQ, but gross margin compressed 948bps YoY and standalone revenue and PAT still declined 16.8% and 10.7% YoY. The key inflection to monitor is whether the Q2 margin recovery persists as the group expands through acquisitions.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹115.73 Cr | +19.8% | +12.0% |
| EBIT | ₹34.73 Cr | +17.6% | |
| Net profit | ₹26.19 Cr | +15.4% | |
| EPS | ₹2.38 | +5.8% | |
| EBIT margin | 32.3% |
P&L walk
Consolidated revenue increased 19.8% YoY to ₹11,572.91 lakh, but gross margin compressed 948bps to 72.3% as purchase-of-stock and inventory-cost intensity rose; EBITDA margin recovered sequentially to 32.3%, while PAT growth of 15.4% lagged operating growth because minority interest increased to ₹186.54 lakh from a ₹25.48 lakh loss.
Segments
There is no reportable segment table, but the ₹2,619.49 lakh consolidated PAT versus ₹1,527.18 lakh standalone PAT shows subsidiaries contributed materially to group earnings; NCI absorbed ₹186.54 lakh of quarterly profit versus a ₹25.48 lakh loss YoY.
Key positives
- Consolidated revenue reached ₹11,572.91 lakh, up 19.8% YoY and 12.0% QoQ, reversing the prior-quarter slowdown in the recent series.
- EBITDA margin recovered to 32.3% from 28.2% QoQ, a 410bps sequential improvement, while calculated EBITDA rose 18.4% YoY to ₹3,736.99 lakh.
- Consolidated PPE increased to ₹693.56 lakh from ₹530.61 lakh and H1 capex on PPE and intangibles was ₹3,053.14 lakh, supporting the move toward in-house manufacturing.
- Operating cash flow was positive at ₹2,301.27 lakh in H1FY27 despite ₹2,145.42 lakh absorbed by inventory and ₹674.27 lakh by receivables.
Key concerns
- Gross margin compressed 948bps YoY to 72.3% as purchase-of-stock and inventory-cost intensity rose, with the filing not disclosing the driver.
- Standalone revenue fell 16.8% YoY to ₹5,429.62 lakh and standalone PAT fell 10.7% to ₹1,527.18 lakh, indicating that consolidated growth is increasingly dependent on subsidiaries and acquisitions.
- Finance costs rose 69.9% YoY to ₹96.93 lakh, while consolidated borrowings increased to ₹1,346.39 lakh and cash declined to ₹844.85 lakh.
- Consolidated PAT grew 15.4% but owners' PAT only 6.0% and EPS 5.8% because NCI rose to ₹186.54 lakh from a ₹25.48 lakh loss.
Research and educational content only. Not investment advice.