Euro Pratik Sales Ltd Management Discussions

Global economy

Global economic grew marginally at an 3.4% in 2025 compared to 3.3% in the previous year, influenced by the US tariff shock of April 2025. Despite being partially unwound through subsequent trade deals, it left effective tariff rates well above pre-2025 levels and heightened trade policy uncertainty.

Advanced economies witnessed a marginal growth from 1.8% in 2024 to 1.9% in 2025, while emerging market and developing economies demonstrated relative resilience, expanding by 4.4% in 2025 compared to 4.3% in 2024.

Global inflation continued its multi-year downward trend in 2025, declining to an estimated 4.1% from 5.8% in 2024.

Regional growth (%)	2025	2024
World output	3.4	3.3
Advanced economies	1.9	1.8
Emerging and developing economies	4.4	4.3

(Source: IMF, un.org)

Performance of the major economies, 2025

United States: GDP growth of 2.1% in 2025 compared to 2.8% in 2024.

China: GDP growth was 5.0% in 2025 compared to 5.0% in 2024.

United Kingdom: GDP growth was 1.3% in 2025 compared to 1.1% in 2024.

Japan: GDP growth was 1.2% in 2025 compared to (0.2)% in 2024.

Germany: GDP growth was 0.2% in 2025 compared to a -0.5% in 2024.

Outlook

Given the challenge of forming stable, real-time assumptions for projections, the IMF World Economic Outlook report adopted a reference forecast instead of a conventional baseline, assuming the war remains contained in duration, intensity, and reach, with disruptions easing by mid-2026, in line with commodity futures as of 10 th March, 2026.

Under this reference view, global growth is projected at 3.1% in 2026 and 3.2% in 2027. Global inflation is expected to rise to 4.4% in 2026 before easing to 3.7% in 2027.

Indian economy

The Indian economys real GDP grew at 7.7% in FY 2025-26, compared to 7.1% in FY 2024-25. This growth was driven by strong consumption and increasing investments, reaffirming Indias position as the fastest-growing major economy.

Indias Real GDP at Constant Prices was estimated at _323.12 Lakh Crore in FY 2025-26, compared with RS. 299.89 Lakh Crore in FY 2024-25.

Growth of the Indian economy

	FY 23	FY 24	FY 25	FY 26
Real GDP growth (%)	7.0*	7.2	7.1	7.7

* The FY23 figure (7.0%) is from the old base year series (2011-12) as the new series back-data for FY23 will only be available after December 2026.

Growth of the Indian economy quarter by quarter, FY 2025-26

	Q1 FY 26	Q2 FY 26	Q3 FY 26	Q4 FY 26
Real GDP growth (%)	6.7	8.4	7.8	7.8

Note: Q2 revised upward from 8.2% and Q3 from 7.35% under the new base year 2022-23 series released February 27, 2026. Q4 remains an estimate. (Source: MoSPI)

Inflation, policy and currency dynamics

Inflation remained benign through much of FY 2025-26, with full-year CPI estimated at an exceptionally low 2.1%. This created room for 125 basis points of cumulative rate cuts, supporting consumption and investment.

However, macro stability was accompanied by currency volatility. The Indian rupee depreciated sharply by 9.88% during FY 2025-26 - its steepest fall since FY12 - touching _94.83 against the US dollar. This reflected global capital flows, a strong dollar environment, and geopolitical uncertainties.

Capital flows and market behaviour

Foreign portfolio investors remained risk-averse, withdrawing a record _1.8 Trillion during FY 2025-26 - the largest outflow in 36 years. However, strong domestic institutional inflows of _8.50 Trillion provided a crucial counterbalance, highlighting the growing maturity and depth of Indias domestic capital markets.

Indias market capitalisation declined 8% year on year in FY 2025-26 to USD 4.5 Trillion from USD 4.83 Trillion in FY 2024-25, marking the sharpest drop since FY23. The downturn was largely driven by the ongoing West Asia conflict and concerns around potential tariff measures by USA, which weighed on global investor sentiment.

Banking sector

Indias banking sector reflected improving financial health, with the gross non-performing asset ratio declining to a robust 2.1% as of September 2025, indicating stronger asset quality and disciplined lending practices. This stability was mirrored in profitability metrics, as scheduled commercial banks reported a return on assets of 1.3% and a return on equity of 12.5% during the first half of 2025-26, underscoring sustained operational efficiency and a healthier balance sheet trajectory.

Indias growth story

Real Gross Value Added (GVA), which measures economic output excluding taxes and subsidies, grew 7.9% in FY 2025-26, compared with 7.3% in FY 2024-25. At current prices, nominal GVA rose 9.1% to RS. 314.87 Lakh Crore from RS. 288.54 Lakh Crore a year earlier. The tertiary services sector remained a key growth driver, expanding by 9.0% in FY 2025-26 and increasing its share in nominal gross value added to 54.3% from 52.8% in FY 2024-25, supported by broad-based momentum across segments.

During FY 2025-26, financial, real estate, IT and professional services grew by 9.9%, while trade, hotels, transport, communication and broadcasting recorded a strong 10.1% growth, and public administration and other services expanded by 5.8%. The secondary sector grew 9.1%, accelerating from 8.0% in the previous year, driven by manufacturing alongside construction growth of 7.1%. This combination of services-led scale and manufacturing acceleration is shaping a more balanced and resilient economic structure.

Growth catalysts

Policy-led consumption boost: The Union Budget FY27s tax relief measures -particularly income tax exemptions up to _12 Lakh - are expected to stimulate discretionary spending and reinforce consumption-led growth.

Anticipatory Pay Commission impact: The 8 th Pay Commission, though expected to be implemented from FY28, is already shaping consumer sentiment, creating a forward consumption impulse.

Monetary stability: The Reserve Bank of Indias calibrated stance, with the repo rate at 5.25%, balances inflation risks with growth support, ensuring macroeconomic stability.

Credit expansion: Improved banking health and liquidity conditions are expected to sustain strong credit growth across MSMEs, housing, and retail segments.

Fiscal prudence with growth focus: The Union Budget maintains fiscal discipline while prioritising infrastructure, MSME support, skilling, and innovation - key levers for long-term productivity.

Outlook

The year under review underscores a defining divergence: a world grappling with uncertainty, and an India navigating it with confidence.

In a global environment marked by fragmentation and caution, India stands out as a rare convergence of stability, scale and structural opportunity. The World Bank has revised its FY27 growth estimate upward to approximately 6.6%, reflecting resilient domestic momentum even as growth moderates from the previous year. India is expected to retain its position as the fastest-growing major economy. Growth will be shaped by a combination of strong domestic demand and resilient private consumption, supported by low inflation and GST rationalisation, alongside stable export performance with improved access to key markets. This momentum is further reinforced by sustained policy support, ongoing economic reforms, and a favourable demographic advantage.

While risks persist, particularly from elevated energy prices, subsidy pressures on government spending, and uncertainty in global demand, Indias macroeconomic fundamentals remain strong.

Over the medium term, sustained consumption, gradual investment recovery, and expanding global trade linkages are expected to reinforce Indias position as a key driver of global economic growth.

Decorative laminates industry

The global decorative laminates market was valued at USD 49.3 Billion in 2025 and is projected to reach USD 64.9 Billion by 2034, registering a CAGR of 3.01% during 2026-2034. Asia Pacific remained the largest regional market, accounting for more than 45.1% of global demand in 2025. The regions leadership is being driven by rapid urbanisation, robust construction activity, and rising demand for stylish, durable, and cost-effective interior solutions.

A key driver of industry growth is the increasing consumer preference for aesthetically appealing yet practical interior spaces. Rising urbanisation, improving disposable incomes, and evolving lifestyle aspirations are encouraging consumers to invest in modern home and office decor. Decorative laminates have emerged as a preferred choice owing to their versatility, durability, and ability to replicate the appearance of premium materials such as wood, stone, and metal at a significantly lower cost. The Indian decorative laminates market was valued at USD 1.32 Billion in 2025 and is expected to grow from

USD 1.39 Billion in 2026 to USD 1.81 Billion by 2031, registering a CAGR of 5.35% during the forecast period. Market expansion is being supported by sustained residential construction, increasing adoption of modular furniture, and regulatory emphasis on ultra-low formaldehyde grades. At the same time, manufacturers are navigating rising input cost complexities while continuing to rely on particle board and medium density fibreboard as the primary substrate materials.

(Source: IMARC Group, Mordor Intelligence)

Decorative Wall Panels Industry

The Indian decorative wall panels market was valued at USD 7.5 Billion in 2025 and is projected to reach USD 11.5 Billion by 2034, registering a CAGR of 4.70% during 2026-2034. The market is witnessing steady growth, driven by rapid urbanisation, rising middle class incomes, and increasing consumer preference for contemporary interior design solutions.

The expansion of residential and commercial construction is creating sustained demand for wall panel solutions that combine visual appeal with functional performance. At the same time, advancements in manufacturing technologies have enabled the development of innovative, customisable, and environmentally responsible products that cater to evolving customer preferences.

The growing reach of e commerce platforms has significantly improved product accessibility across urban and semi urban markets, enabling manufacturers to engage a wider consumer base. Together, these factors are strengthening market growth and creating new opportunities for innovation and expansion in Indias decorative wall panels industry.

(Source: IMARC Group)

Growth drivers

Demographic momentum: Indias status as the worlds most populous nation, combined with a young demographic profile, creates a strong and enduring demand driver for the housing and interiors market. With a median age of around 28 years and over 40% of the population below 25, the country is witnessing rising household formation, increasing first-time homeownership, and a growing preference for aspirational, design-led living spaces.

Rapid urbanisation: Indias urban population is expected to reach nearly 600 Million by 2036, contributing close to 70% of GDP, necessitating significant investment in both residential and commercial infrastructure. At the same time, the growth momentum is broadening beyond metros, with emerging Tier II cities such as Surat, Indore, Lucknow, Jaipur and Visakhapatnam increasingly absorbing internal migration as manufacturing and IT services decentralise. This shift is expanding demand for mid-range and value-driven furnishing and surface solutions across a wider geographic base.

Rising consumption class: Indias middle class has grown at a CAGR of 6.3% between 1995 and 2021 to account for 31% of the population and is projected to reach 38% by 2031 and nearly 60% by 2047, with an addition of nearly 100 Million middle-class and affluent households by 2030. This expanding cohort, with annual incomes of USD 10,000 to USD 50,000, forms the core demand base for branded and design-led surface solutions, with rising incomes and consumer spending, expected to grow from USD 1.9 Trillion to USD 5.2 Trillion by 2031, driving sustained demand for interior infrastructure and substrate solutions.

Housing demand and policy support: Indias real estate sector is projected to expand from USD 200 Billion in 2021 to nearly USD 1 Trillion by 2030, contributing around 7.3% to GDP by 2025, thereby driving strong downstream demand for laminates, engineered wood panels, and allied surface solutions. This structural growth is further supported by large-scale government initiatives such as Pradhan Mantri Awas Yojana Gramin and Pradhan Mantri Awas Yojana Urban 2.0, under which millions of homes have been completed and sanctioned, with continued expansion planned through 2029. As beneficiaries transition into occupied homes, furnishing demand typically accelerates in subsequent years, translating into sustained consumption of modular furniture and interior surface upgrades.

Hospitality led demand expansion: Indias travel and tourism ecosystem is witnessing strong growth, with the market projected to reach USD 125 Billion by FY27 and the hotel segment expanding from USD 32 Billion in FY20 to USD 52 Billion by FY27, while international tourist arrivals are expected to touch 30.5 Million by 2028, generating over USD 59 Billion in revenue. This expansion is driving sustained investments in hotels and resorts, increasing demand for durable, high-performance interior solutions such as compact laminates, moisture-resistant panels and premium finishes suited for high-traffic environments, positioning interior solutions players to benefit from a structurally growing institutional and project opportunity supported by repeat demand and ongoing refurbishment cycles.

Medical tourism: Indias medical tourism industry is projected to reach USD 18 Billion by 2027, growing at a CAGR of 19% from USD 7 Billion in 2022, driving rapid expansion of hospitals, specialty clinics and wellness facilities. This growth is accelerating demand for surfaces that meet stringent hygiene, durability and aesthetic requirements.

Commercial real-estate momentum: Indias office market is witnessing strong absorption across both metro and non-metro cities, driven by technology, consulting, BPM, e-commerce, and global capability centres. As of August 2025, gross leasing activity is on track to surpass a record 90 Million square feet, led by sustained demand from technology, BFSI, and engineering sectors across the top eight cities. As occupiers continue to upgrade workspace quality and compliance standards, demand for specification-grade laminates and certified surface solutions is becoming increasingly integral to commercial fit-out requirements.

Brand led consumption shift: There is a pronounced, accelerating shift from unbranded to branded products in the surfaces and interiors category. Rising consumer awareness around quality, aesthetics, safety, and sustainability is driving greater trust in established brands that deliver consistency and reliability. This transition is amplified by urbanisation, improved access to product information through digital channels, and growing aspirations for premium living spaces - all of which create durable, structural tailwinds for branded players that invest in design innovation and quality assurance.

Sustainability and eco-label demand: Rising adoption of green building practices and certified supply chains is steadily redirecting demand towards low-emission substrates and eco-certified surface solutions. Frameworks such as Forest Stewardship Council certification and Indian Green Building Council standards are gaining wider acceptance, with Indias green building market projected to reach USD 39 Billion by 2025 and over 7,000 certified projects covering 1.37 Billion square feet. Concurrently, regulatory measures including BIS standards and quality control norms are reinforcing the shift towards compliant, low-VOC materials. This evolving specification environment is consolidating demand in premium residential and certified commercial segments, closely aligning with differentiated product certifications and manufacturing capabilities.

Company review

Euro Pratik - We do not design spaces. We bring dreams to life.

Euro Pratik is a leading designer of premium decorative panel solutions, creating world-class interior and exterior spaces that inspire. As a globally expanding, design-led brand, we combine creativity with innovation to develop products that redefine aesthetics while continually enhancing our operational excellence. Backed by more than two decades of expertise, we have built a diverse portfolio of over 30 brands and 3,000+ SKUs, offering comprehensive solutions for residential, commercial, and architectural spaces. Every product reflects our commitment to transforming environments through superior design, uncompromising quality, and lasting value.

Driven by a vision to establish a strong global footprint, Euro Pratik has consistently expanded its presence across international markets. Along this journey, we have achieved numerous milestones, strengthening our position as one of the leaders in the decorative interior products industry.

Our journey is further amplified by our association with our brand ambassador, megastar Hrithik Roshan, whose pursuit of excellence mirrors our own philosophy. At Euro Pratik, we firmly believe that innovation is what separates a leader from a follower, and it continues to shape every product, every collection, and every space we create.

Sustainable and Eco-friendly collections

At Euro Pratik, sustainability is an integral part of our design philosophy. Our thoughtfully crafted portfolio of eco-friendly solutions is designed to create inspiring spaces while reducing environmental impact. Manufactured using materials containing recyclable content, our products embody responsible sourcing, innovative craftsmanship, and enduring quality. By seamlessly combining sustainable practices with contemporary design, we deliver solutions that are aesthetically appealing, high performing, and built to last. Every collection reflects our commitment to creating beautiful interiors while contributing to a more sustainable and environmentally responsible future.

Consolidated Financial review

Revenue: Revenue for the year amounted to RS. 334.96 Crore.	Interest and finance cost: Net interest and finance costs for the year amounted to RS. 3.17 Crore.	Profit after tax: Company reported a profit after tax amounting to RS. 77.16 Crore.	During the year, the
Key ratios and numbers
Particulars		FY 26	FY 25
Gross Debt-equity ratio		0.04	0.01
Net Debt-equity ratio		0	0
Return on net worth (%)		27.8%	38.8%
Book value per share (H)		31.37	22.95
Debtors Turnover (days)		105	90
Inventory Turnover (days)		119	85
Interest Coverage Ratio		28.71	15.73
Current Ratio		4.76	9.77
Operating Profit Margin (%)		23.98	21.52
Net Profit Margin (%)		23.04%	26.63%

Human resource

At Euro Pratik Sales Limited, our people remain central to our growth. We continuously invest in enhancing employee capabilities through training in technical, behavioural, managerial, and leadership skills to strengthen operational excellence, decision-making, and customer focus. We also maintain a strong emphasis on workplace safety, ethical conduct, and a culture of integrity across the organisation. As on 31 st March, 2026, the Company had a workforce of 57 employees, reflecting the strength of its human capital.

Internal control systems and their adequacy

Euro Pratik Sales Limited has established a robust internal audit framework that is continuously strengthened to safeguard assets, ensure regulatory compliance, and facilitate the timely resolution of outstanding issues. The Audit Committee plays a pivotal role in this process, regularly reviewing reports from internal auditors and addressing observations that require management attention.

In addition to overseeing corrective measures, the committee ensures effective implementation of remedial actions and maintains transparent communication channels with both statutory and internal auditors.

Cautionary statement

This Management Discussion and Analysis Report contains certain forward-looking statements, within the meaning of applicable laws and regulations, that outline the Companys objectives, projections, estimates, and expectations. However, actual results may differ materially from those expressed or implied in these statements. Several factors could impact the Companys operations, including the availability and prices of raw materials, cyclical demand and pricing fluctuations in principal markets, changes in government regulations, tax regimes, foreign exchange markets, and economic developments within India and countries where the Company conducts business. Other incidental factors may also influence the Companys performance.