Rushil Decor reported a 27.8% year-on-year increase in consolidated revenue from operations to ₹2,920 million for the quarter ended June 30, 2026. The growth was primarily driven by a significant expansion in the laminate business and stabilized operations at the Andhra Pradesh medium-density fibreboard (MDF) facility following a planned annual maintenance shutdown in April.

Profit after tax (PAT) for the quarter was ₹20 million, while earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹182 million, translating to an EBITDA margin of 7.9%. Gross profit reached ₹892 million with a gross profit margin of 39%. Management attributed the pressure on profitability to elevated chemical and raw material costs, alongside higher freight expenses due to disruptions in West Asian shipping routes.

Segment Performance

The laminate business emerged as the key growth driver, with revenue surging 65.3% year-on-year to ₹736 million. This segment contributed ₹52 million to EBITDA, resulting in a margin of 7%. Export revenue within the laminate division grew by 67.9% to ₹485 million, supported by increased acceptance of jumbo laminates in international markets. Domestic laminate revenue also rose by 60.6% to ₹251 million.

Within the laminate portfolio, the jumbo laminate business saw revenue reach ₹110 million, a substantial increase of 25%. Sales volume for jumbo laminates grew by 20.4% to approximately 1.13 lakh sheets. This high-margin segment reported an EBITDA of ₹23 million, yielding a robust margin of 20.6%.

The MDF business recorded revenue of ₹1,456 million, up 17.2% year-on-year. India-specific MDF revenue grew by 32.9% to ₹1,447 million, driven by a 16.1% increase in sales volume to 52,162 cubic meters (CBM). Realization per CBM improved by 14.4% to ₹27,736. However, export volumes remained subdued due to container shortages and high freight rates, with exports limited to approximately 255 CBM. The MDF segment reported an EBITDA of ₹123 million with a margin of 8.4%.

What the Numbers Show

A notable divergence exists between the top-line growth and margin performance in the laminate segment. While total laminate revenue surged by 65.3%, the overall segment EBITDA margin remained at 7%, down from previous periods. This contraction is largely attributable to the mix shift; the high-margin jumbo laminate business (20.6% margin) is still scaling up from a low base, while the older laminate business faced margin pressure from chemical cost hikes and plant shutdowns. As management noted, excluding jumbo laminates, the normal laminate business margin dipped to around 5%, indicating that the scale-up of the jumbo product line is critical for restoring overall segment profitability to the targeted 9-10% range.

Balance Sheet and Outlook

Management outlined a clear path toward becoming debt-free by Q2 FY29. With total debt, including working capital, standing at approximately ₹260 crore, the company reduced debt by ₹18 crore in the current quarter alone. Scheduled repayments amount to roughly ₹55 crore annually. No major capital expenditure is planned beyond maintenance capex of ₹5-10 crore for FY27, allowing cash flows to focus on debt reduction and working capital optimization.

Looking ahead, Rushil Decor aims to improve capacity utilization in the jumbo laminates business to 55-60% this fiscal year, with potential revenue reaching ₹75 crore. Long-term, full utilization could generate up to ₹140 crore in revenue from this segment. The company also expanded its distribution network by adding 15 direct distributors and 46 retailers domestically, while entering new international markets in Honduras and Greece.

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:

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.