Recommendation: Neutral

Key Highlights

Company Background:
 Euro Pratik Sales Limited (“EPSL”) is a design-led, product-driven company specializing in decorative interior and exterior solutions, offering over 30 product categories and 3,000+ designs as of March 31, 2025. Headquartered in Mumbai, with subsidiaries across India, UAE, USA, and Croatia, the company markets innovative products including decorative wall panels, laminates, louvers, and claddings. Its flagship offerings—such as the Chisel series, Decolite, and Miga Edge— cater to both residential and commercial spaces, providing durability, functionality, and aesthetic appeal. By combining design innovation, advanced materials, and a robust distribution network, Euro Pratik ensures premium quality and easy-to-install solutions, while enhancing customer trust and driving sustainable value across markets.

Market Opportunity:
The Indian decorative wall panels and laminates industry presents a fast-growing, underpenetrated opportunity, with a combined market of ₹130–131 billion (USD ~1.6 billion) in FY2025. Decorative wall panels, at ₹28.4 billion, are expected to grow at an 18% CAGR to ~₹55.1 billion (USD ~660 million) by FY2029, while decorative laminates will expand from ₹102 billion to ~₹146 billion (USD ~1.8 billion) at a 9–10% CAGR. Despite this growth, organized penetration remains limited, with unorganized players holding a large share. Rising urbanization, real estate growth, renovation cycles, and demand for durable, aesthetic, and eco-friendly interiors are driving adoption. Organized, design-led brands addressing quality and innovation gaps are well placed to gain from premiumization and the shift from paints & wallpapers.

Design-Led Brand Portfolio with Innovation Edge:
A key strength of EPSL is its design-driven, innovation-focused portfolio of decorative wall panels and laminates that blend durability, aesthetics, and sustainability. The company invests in R&D, trend forecasting, and advanced manufacturing to ensure products meet evolving consumer preferences. Its focus on ecofriendly materials, premium finishes, and customization enhances brand appeal, clearly differentiating it from unorganized players. With consistent quality and reliability, EPSL has built strong consumer trust and loyalty, reinforcing its position in a fragmented market. This innovation-led strategy fuels premiumization, creates high entry barriers for competitors, and positions the company well to capture rising demand from real estate, renovation, and interior design markets.

Asset-Light Business Model with Global Partnerships:
The company follows an asset-light business model, focusing on product design and development while outsourcing manufacturing to global contract partners such as Miga, South Korea, who bring advanced technology and expertise. As of March 31, 2025, it worked with 36 contract manufacturers across India, South Korea, China, the U.S., Romania, Turkey, Indonesia, and Portugal. This approach eliminates the need for heavy capital investment in plants or retail stores, enabling focus on merchandising, marketing, and inventory management. By reducing operational costs, raw material carrying cost, and overheads, the model enhances efficiency, profitability, and competitiveness while ensuring high-quality products and consistent availability for customers.

Financials:
For FY25, EPSL posted revenue of ₹284.2 crore, up from ₹221.7 crore in FY24. EBITDA stood at ₹110.1 crore with a 38.7% margin. The net profit for FY25 was ₹76.4 crore, reflecting a PAT margin of 26.9%. On the valuation front, at the upper price band of ₹247, the IPO is valued at an FY25 P/E of 33x based on post-issue capital.

Key Risks:
Euro Pratik faces key risks including heavy reliance on contract manufacturers and top distributors for revenue, which exposes it to supply and distribution disruptions. The company has reported negative operating cash flows and engages in significant related-party transactions. Limited intellectual property protection and intense competition in decorative wall panels and laminates further heighten business, operational, and financial vulnerabilities.

Issue Highlights

Offer Structure

Lead Book Running Managers

• Axis Capital Limited

• DAM Capital Advisors Limited

Registrar to the Offer

• MUFG Intime India Private Limited

Research Analyst

Vinay Kalani
vinay.kalani1@religare.com

Research Team

• Ajit Mishra – ajit.mishra@religare.com

• Abhijeet Banerjee – abhijeet.banerjee@religare.com

• Gaurav Sharma – gauravsharma2@religare.com

• Ashwani Harit – ashwani.harit@religare.com

• Divya Parmar – divya.parmar@religare.com

• Vinay Kalani – vinay.kalani1@religare.com

• Rajan Gupta – rajan.gupta1@religare.com

• Author: Religare Broking
• Last Updated: September 16, 2025