Rushil Decor Limited disclosed on July 24, 2026, that its statutory auditors, M/s. Pankaj R. Shah & Associates, have declined re-appointment for a second five-year term. The firm, originally appointed via shareholder resolution on September 27, 2021, will continue serving until the conclusion of the company’s forthcoming Annual General Meeting (AGM) scheduled for calendar year 2026. This transition requires the Board of Directors to appoint a new statutory auditor at the upcoming general meeting.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. Additionally, the company filed Annexure 1 as required by SEBI Master Circular No. HO/49/14/14(7) 2025-CFD-POD2/I/3762/2026 dated January 30, 2026, detailing the change in auditors.

Reasons for Non-Reappointment

In a letter dated July 23, 2026, Pankaj R. Shah & Associates attributed their decision solely to internal professional considerations. The firm cited increasing professional commitments and audit engagements that limit their capacity to devote adequate time to Rushil Decor’s operations in Andhra Pradesh and Karnataka. Partner CA Nilesh Shah confirmed that the decision is not due to any disagreement with management or the Board of Directors regarding audit matters, financial statements, accounting policies, or disclosures.

Audit Tenure and Reporting Details

The outgoing auditors completed their statutory audit for the financial year ended March 31, 2026, submitting their independent auditor’s report on May 29, 2026. Their current term expires upon the conclusion of the 32nd Annual General Meeting. The Board of Directors and Audit Committee are scheduled to review the unwillingness letter and initiate the process for appointing a new statutory auditor.

Regulatory Compliance

The filing confirms that there were no concerns raised by the auditor prior to their decision, nor were there any instances where information requested by the auditor was withheld by management. The declaration attached to the disclosure states that the provided information is correct and complete, with no other material reasons for the unwillingness beyond those explicitly stated.

Rushil Decor Limited reported a consolidated Profit After Tax (PAT) of ₹64 million for the financial year ended March 31, 2026 (FY26), a sharp decline of 86.7% from ₹479 million in the previous year. Revenue from operations for FY26 stood at ₹8,622 million, down 4% year-on-year, impacted by external disruptions including a fire incident at the Andhra Pradesh MDF facility and sustained pressure from elevated resin prices and volatile raw material costs. Despite the annual decline, the company improved its operational metrics in the fourth quarter, with EBITDA rising 18.6% to ₹286 million and EBITDA margin expanding to 12.4%. To discuss these audited standalone and consolidated financial results, the company held an earnings conference call with analysts and investors on June 03, 2026, pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

The company's Adjusted EBITDA for FY26 decreased by 22.6% to ₹801 million, resulting in an EBITDA margin of 9.3%. In Q4FY26, revenue grew marginally by 0.1% to ₹2,309 million, while PAT for the quarter fell 19.7% to ₹101 million. The MDF Boards segment reported revenue of ₹6,091 million for the full year, while the Laminates segment revenue increased 6.1% year-on-year to ₹2,111 million, supported by domestic demand and improved export realizations.

Operational Updates and Strategic Measures

In response to continued inflationary pressure and elevated input costs, Rushil Decor undertook price increases across both MDF and Laminates segments effective from April 1, 2026. The company implemented a price hike of about 15% in MDF and about 10% in Laminates. The Laminates business remained a strategic focus, with the ramp-up of the Jumbo Laminates facility at Gandhinagar and gradual traction in international markets such as Russia, Portugal, and Israel.

Segmental Performance

The MDF business faced lower export volumes due to a calibrated approach amid global uncertainties, though India revenues grew 12.5% year-on-year with realization improving 4.8%. Capacity utilization for MDF Boards stood at 75% for FY26, while Laminates capacity utilization was 89%. The company added 67 new direct distributors and over 131 retailers and dealers during the year to expand its domestic distribution network.

Board Decisions and Dividend

The Board of Directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The statutory auditor, M/s Pankaj R. Shah & Associates, provided an unmodified opinion on the results. Additionally, the Board recommended a final dividend of ₹0.05 (Five Paisa) per equity share of face value of ₹1 each (5%) for FY26, subject to shareholder approval at the ensuing Annual General Meeting. The Board also appointed M/s. G. B. & Co., Chartered Accountants as the Internal Auditor for the financial year 2026-27.