Euro Pratik Sales plans to acquire a 56% controlling stake in Fabwood Solutions LLP for ₹42.70 crore. The Board of Directors approved the transaction on September 23, 2026, marking a significant expansion into the surface decorative business.

Acquisition at a glance

The following table summarises the key details of the proposed transaction:

Transaction overview

Through this acquisition, Euro Pratik Sales will secure a majority, controlling position in Fabwood Solutions LLP. The deal, valued at ₹42.70 crore, represents a significant corporate development for the company as it moves to take a 56% ownership interest in the target entity. The entire investment will be paid in cash and includes a capital infusion of ₹8.40 crore in Fabwood Solutions LLP. The transaction is expected to be funded in phases through internal accruals, reflecting the company's strong balance sheet and cash-generation capability.

Strategic rationale and target profile

Fabwood Solutions LLP is a newly incorporated entity (August 12, 2026) that will eventually own the business of M/s. Fab Wood, a proprietary firm established in 1999. The target operates as a dealer in timber and manufacturer of engineered wood solutions, cladding products, doors, and other architectural wood applications across South India.

The acquisition marks Euro Pratik's entry into the premium timber and value-added wood products segment. It aims to enhance regional presence, boost brand visibility, and enable deeper penetration in South India. By combining Fab Wood's relationships with architects, designers, and builders with Euro Pratik's pan-India distribution network, the company seeks to create cross-selling opportunities and broaden market access. No governmental or regulatory approvals are required for this deal, which does not fall under related party transactions.

The investor presentation highlights specific synergies, including leveraging Euro Pratik's presence in 148 cities across 25 states to expand Fabwood's footprint beyond South India. It also notes the combination of Fabwood's OEM and architect relationships with Euro Pratik's 205-distributor network to drive cross-selling. Additionally, the move expands Euro Pratik's offering from decorative surfaces into architectural and structural wood, strengthening its positioning as a one-stop interior solutions provider.

Financials of the underlying business

The proprietary concern M/s. Fab Wood has demonstrated fluctuating turnover over the last three fiscal years:

What the Numbers Show

This marks Euro Pratik's third strategic acquisition in a short period, following URO Veneer World and Chawla Brothers, underscoring a focused approach to geographic expansion and product diversification. The acquisition price of ₹42.70 crore for a 56% stake implies an enterprise valuation significantly higher than the target's recent annual turnover of ₹45.25 crore in FY26. This suggests Euro Pratik Sales is paying a premium for the established market presence and distribution network of M/s. Fab Wood, rather than just its current revenue generation. The inclusion of a ₹8.40 crore capital infusion indicates immediate working capital or expansion needs for the new LLP structure. Notably, the projected revenue for FY27 is set at ₹53 crore, indicating an expected growth trajectory post-acquisition.

Euro Pratik Sales Limited will host a virtual one-on-one meeting with analysts and institutional investors on September 25, 2026. The company issued the disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The session aims to facilitate interaction between company officials and market participants. Management clarified that no unpublished price-sensitive information is intended for discussion during the meet.

Meeting Details

The date remains subject to change due to exigencies involving the company, investors, or the host platform. Shruti Shukla, Company Secretary and Compliance Officer, signed the disclosure.