Rushil Decor posts Q1FY27 EBITDA turnaround, revenue surges 27.8%
Rushil Decor Limited achieved a significant operational turnaround in Q1FY27, posting consolidated EBITDA of ₹182 million and PAT of ₹20 million against losses in Q1FY26. Consolidated revenue grew 27.8% to ₹2,290 million, fueled by robust laminates demand and export expansion. Despite gross margin compression to 39.0% due to input cost pressures, the company strengthened its distribution network and entered new international markets.
*this image is generated using AI for illustrative purposes only.
Rushil Decor Limited reported a sharp operational turnaround in the first quarter ended June 30, 2026, with consolidated EBITDA swinging to a profit of ₹182 million compared to a loss of ₹22 million in the corresponding period of the previous year. The company posted a consolidated net profit (PAT) of ₹20 million, up from a loss of ₹141 million in Q1FY26. Consolidated revenue from operations rose 27.8% year-on-year to ₹2,290 million, driven by robust demand in its laminates and medium density fiberboard (MDF) segments. This performance marks a significant recovery for the decorative surfaces manufacturer, which also expanded its international footprint by entering Honduras and Greece.
The Board of Directors approved the unaudited standalone and consolidated financial results on August 08, 2026. The results were reviewed by statutory auditor Pankaj R Shah & Associates under Standard on Review Engagement (SRE) 2410. The filing was submitted pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Financial Performance Highlights
The following table summarises the consolidated financial performance for the quarter:
| Metric: | Q1FY27 | Q1FY26 | Change: |
|---|---|---|---|
| Revenue from Operations | ₹2,290 million | ₹1,792 million | +27.8% |
| Gross Profit | ₹892 million | ₹744 million | +19.9% |
| EBITDA | ₹182 million | Loss of ₹22 million | Turnaround |
| Net Profit (PAT) | ₹20 million | Loss of ₹141 million | Turnaround |
| Gross Margin | 39.0% | 41.5% | -250 bps |
Standalone net profit also turned positive at ₹20.29 million, compared to a loss of ₹136.83 million in Q1FY26. Adjusted EBITDA, which excludes foreign exchange gains/losses, stood at ₹174 million, up significantly from ₹35 million in Q1FY26. Profit Before Tax (PBT) was ₹25 million, a sharp improvement from a loss of ₹185 million in Q1FY26.
Segment-wise Analysis
The Laminates business, including Jumbo Laminates, recorded revenue of ₹736 million, up 65.3% year-on-year. Total sales volumes increased 27.9% to 8,80,319 sheets. Blended realisation improved 29.3% to ₹836 per sheet, reflecting an improved product mix. Export revenues for laminates surged 67.9% to ₹485 million, while domestic revenues rose 60.6% to ₹251 million. The Jumbo Laminates segment specifically contributed ₹110 million in revenue with a strong EBITDA margin of 20.6%. Overall Laminates EBITDA was ₹52 million with a 7.0% margin.
The MDF business reported revenue of ₹1,456 million, up 17.2% year-on-year. Sales volume remained flat at 52,417 CBM, but blended realisation increased 16.4% to ₹27,781 per CBM. Capacity utilisation improved to 66% during the quarter following planned maintenance shutdowns. MDF EBITDA stood at ₹123 million with an 8.4% margin.
The PVC segment saw revenue rise 13.1% to ₹96 million, with sales volume increasing 6.9% to 944 tonnes. PVC EBITDA was ₹8 million with a 7.9% margin.
Strategic Developments
Rushil Decor strengthened its distribution network by adding 15 direct distributors and 46 retailers/dealers domestically. Internationally, the company entered two new markets: Honduras and Greece. Management highlighted that the Jumbo Laminates capacity expansion is building a new growth engine, with commercial production across both phases now operational. The company aims to increase the share of value-added MDF products to 60% of MDF revenues in FY2027 to drive margin expansion.
Managing Director Rushil K Thakkar noted that despite elevated raw material prices and higher freight costs due to disruptions in shipping routes arising from conflict in West Asia, the company right-sized overhead costs and streamlined inventory. He emphasized that no major capital expenditure is planned beyond maintenance capex, allowing the company to focus on strengthening cash flows and reducing debt.
What the Numbers Show
The EBITDA turnaround underscores substantial improvement in core operating performance, complementing the recovery at the net profit level. However, gross margin contracted to 39.0% from 41.5% in Q1FY26, indicating some cost pressure despite higher realisations. Managing Director Rushil K Thakkar attributed this to elevated raw material prices and higher freight costs due to disruptions in shipping routes arising from conflict in West Asia. Nevertheless, the significant divergence between the 27.8% revenue growth and the modest 0.9% PAT margin suggests operational leverage is still being built. The strong export growth in laminates, particularly Jumbo Laminates, demonstrates successful international market penetration, offsetting domestic margin pressures.
Historical Stock Returns for Rushil Decor
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.93% | +3.01% | +10.55% | -10.09% | -25.66% | -32.17% |
How will the ongoing shipping route disruptions in West Asia impact Rushil Decor's export margins and delivery timelines in the upcoming quarters?
What specific strategies is the company employing to achieve its target of increasing value-added MDF products to 60% of MDF revenues by FY2027?
Given the 250 basis point contraction in gross margins, what measures are in place to protect profitability if raw material prices remain elevated?
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