Rushil Decor

Rushil Decor Limited reported consolidated revenue of ₹179.2 crores for Q1 FY2026, declining 20.4% year-on-year and 22.4% quarter-on-quarter. The company posted negative EBITDA, though it would have been ₹3.5 crores (2% margin) excluding a forex loss of ₹5.7 crores. The MDF business revenue dropped 26.6% to ₹124.2 crores with volumes declining 30% due to a fire incident at the Andhra Pradesh facility in April that caused 43 days of production loss. The Chikmagalur plant operated at 99% capacity while the Andhra Pradesh plant ran at only 43% utilization. The laminate business showed resilience with revenue of ₹44.5 crores, down just 5.6%, and domestic market revenue growing 9.3%. Phase-I of the new Jumbo Laminate facility in Gandhinagar began commercial production. The company targets ₹1,000 crores revenue for FY2026 and ₹1,150-1,200 crores for FY2027, with EBITDA margins of 11-12% and 13-14% respectively. Management expects strong Q2 performance with normalized production and improved capacity utilization.

Rushil Decor Limited has utilized Rs. 80.98 crores out of Rs. 93.04 crores raised through its preferential issue for the quarter ended June 30, 2025. The company received Rs. 93.04 crores against the originally planned Rs. 122.66 crores due to warrant conversion issues. Some warrant holders did not exercise their conversion options, leading to forfeiture of 3.30 lakh warrants worth Rs. 7.35 crores. Additionally, 10 lakh warrants from Vespera Fund Limited (VFL) worth Rs. 22.28 crores remain unconverted due to a stay order from Securities Appellate Tribunal, Mumbai. The funds were deployed across four objectives: decorative laminates manufacturing project (Rs. 68.66 crores utilized), MDF plant machinery and civil work (Rs. 8.96 crores), general corporate purposes (Rs. 3.36 crores), and working capital requirements (no utilization yet). The monitoring agency CARE Ratings noted uncertainty regarding fund availability from VFL and potential delays in project implementation. The company has arranged interim debt financing from Bank of Baroda to bridge the shortfall. All utilization remains aligned with the Private Placement Offer Letter objectives with no deviations reported.

Rushil Decor reported a net loss of 137 million rupees in Q1, compared to a profit of 123 million rupees in the same period last year. The company's revenue declined to 1.77 billion rupees from 2.2 billion rupees year-over-year, representing a significant decrease in both profitability and top-line performance.