Revenue growth outpaced costs, lifting Euro Pratik's margin 3.67 points
Q2 consolidated net profit rose 30.62% sequentially, though other income supplied 9.42% of pre-tax profit.
Filed 05 Nov 2026, 18:21 IST · after market close · Euro Pratik Sales Ltd (EUROPRATIK)
Key takeaways
- QoQ revenue grew 12.00% while expenses rose 6.46%, lifting operating margin by 3.67 percentage points.
- Net profit rose 30.62% QoQ to Rs 26.19 cr as lower interest and operating leverage lifted pre-tax profit, despite the tax rate rising 0.94 percentage points.
- Operating margin at 29.46% was 17.88 percentage points above the 11.58% median for 265 reported Consumer Discretionary peers.
Price around the results
Q2 revenue growth translated into faster profit growth
Euro Pratik reported consolidated revenue of Rs 115.73 cr in Q2FY27, up 12.00% QoQ, while operating profit grew 27.95% to Rs 34.10 cr. Net profit rose 30.62% to Rs 26.19 cr, helped by the stronger operating result and a 23.02% decline in interest expense. The results were filed after market close.
Lower cost growth widened the operating spread
Expenses increased 6.46%, well below the 12.00% revenue growth, so operating margin expanded 3.67 percentage points to 29.46%. Interest expense fell 23.02%, adding support below operating profit, although the tax rate increased 0.94 percentage points to 24.58%. Other income accounted for 9.42% of pre-tax profit, so a part of reported profit came from non-operating income.
Margin moved above both Q1 and the peer median
The available sequential trend shows operating margin rising from 25.79% in Q1FY27 to 29.46% in Q2FY27. Euro Pratik's margin was 17.88 percentage points above the 11.58% median among 265 Consumer Discretionary peers that had reported the quarter.
Fabwood acquisition is the stated expansion focus
The company said it plans to acquire a 56% stake in Fabwood Solutions LLP for Rs 42.70 cr, including an Rs 8.40 cr capital infusion. The presentation said the transaction was scheduled to close by 8 October 2026. Management said Fabwood is projected to generate revenue of Rs 53 cr in FY27.
No post-results market reaction is covered yet
The results were filed after market close, so the stock's post-results response is not yet part of this read. There is also no recent reaction history to establish whether the eventual move would be typical for Euro Pratik.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹116 cr | ₹103 cr | +12.00% |
| Other income | ₹3 cr | ₹3 cr | +30.80% |
| Expenses | ₹82 cr | ₹77 cr | +6.46% |
| Operating profit | ₹34 cr | ₹27 cr | +27.95% |
| Operating margin (%) | 29.46% | 25.79% | — |
| Interest | ₹1 cr | ₹1 cr | -23.02% |
| Depreciation | ₹2 cr | ₹2 cr | +1.83% |
| Profit before tax | ₹35 cr | ₹26 cr | +32.25% |
| Tax | ₹9 cr | ₹6 cr | +37.52% |
| Net profit | ₹26 cr | ₹20 cr | +30.62% |
| EPS (₹) | ₹2.38 | ₹1.84 | +29.35% |
Operating margin of 29.46% compares with a Consumer Discretionary sector median of 11.58% across 265 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -9.86% | -11.87% |
Volume on the results session was 0.13× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- Fabwood Solutions LLP is projected to generate revenue of ₹53 crore in FY27.
Expansion
- Euro Pratik plans to acquire a 56% stake in Fabwood Solutions LLP.
- The acquisition purchase consideration is ₹42.70 crore, including an ₹8.4 crore capital infusion into Fabwood Solutions LLP.
- The transaction is scheduled to close by 8 October 2026.
What to watch
- Whether operating margin holds above 29.46% after the 3.67 percentage-point sequential expansion.
- Whether revenue growth remains ahead of expense growth, after 12.00% versus 6.46% in Q2FY27.
- Progress on the company's reported 56% Fabwood stake acquisition and its stated Rs 53 cr FY27 revenue projection.