Rushil Decor

Rushil Decor Limited achieved INR 2,356 million revenue in Q2 FY26, marking 31.5% sequential growth as operations normalized after the Andhra Pradesh MDF plant fire incident. The company expects INR 970 crores revenue for FY26 with 10-12% EBITDA margins, supported by Jumbo Laminate facility ramp-up and improved capacity utilization reaching 79% in MDF and 90% in laminates.

Rushil Decor Limited reported consolidated revenue of Rs 2,356 million for the second quarter, marking a 2.3% year-on-year increase. The MDF division contributed Rs 1,695 million while the Laminates division generated Rs 547 million, up 8.9% year-on-year. However, EBITDA declined 24.1% to Rs 225 million with margins at 9.5%, and PAT fell 55% to Rs 51 million. The company's Andhra Pradesh MDF facility returned to full operations after a fire incident earlier in the year, achieving 79% capacity utilization. Commercial dispatches from the Phase 1 Jumbo Laminates unit commenced during the quarter. The company added 10 new direct distributors and over 40 retailers to expand its network. For the first half of FY2026, revenue was Rs 4,148 million, down 8.9% year-on-year, with EBITDA at Rs 203 million and a net loss of Rs 89 million.

Rushil Decor Limited submitted its monitoring agency report for the quarter ended September 30, 2025, regarding its preferential issue of Rs. 122.66 crore. The company received Rs. 93.04 crore through the preferential issue, with Rs. 90.22 crore utilized for stated objectives. However, there are deviations from original objects due to warrant holders not exercising conversion options worth Rs. 7.35 crore by the maturity date of June 22, 2025. Additionally, uncertainty exists regarding Rs. 22.28 crore from Vespera Fund Limited (VFL) following a Securities Appellate Tribunal order that dismissed VFL's appeal but extended status quo for six weeks from October 15, 2025. The funds were primarily used for decorative laminates manufacturing project (Rs. 77.32 crore utilized out of Rs. 90 crore allocated), MDF plant machinery and civil work (Rs. 9.53 crore out of Rs. 10 crore), and general corporate purposes (Rs. 3.37 crore out of Rs. 12.66 crore). The company plans to bridge potential shortfalls through internal accruals and debt financing, though this may affect project returns due to increased interest and debt repayment liabilities.