Rushil Decor Limited has completed the utilization of proceeds from its preferential issue, with the monitoring agency CARE Ratings Limited confirming full deployment of Rs. 93.04 crores for the quarter ended December 31, 2025. This marks the final monitoring report for the fund raised through preferential allotment of convertible warrants.

Fund Utilization Overview

The company successfully utilized the entire amount received through the preferential issue without any deviations from the objectives stated in the Private Placement Offer Letter. The funds were deployed across multiple strategic initiatives as originally planned.

Shortfall and Alternative Financing

While the company originally planned to raise Rs. 122.66 crores, it received Rs. 93.04 crores due to specific circumstances involving warrant conversions. The shortfall occurred due to two primary reasons:

• Few warrant holders did not exercise conversion options for 3,30,000 warrants amounting to Rs. 7.35 crores by the maturity date of June 22, 2025
• Forfeiture of 10,00,000 warrants worth Rs. 22.28 crores allotted to Vespera Funds Limited on December 12, 2025, following expiry of status quo direction from competent authority

To bridge the funding gap, the company arranged alternative financing through internal accruals and debt financing, ensuring project objectives remained unaffected.

Project Progress and Completion

The monitoring agency report highlighted significant progress across key objectives:

Decorative Laminates Manufacturing Project

The company announced commencement of commercial production for Phase 2 of Jumbo Size Laminate Sheets Project at its newly established manufacturing plant, as per BSE announcement dated December 10, 2025.

Other Strategic Initiatives

The remaining funds were allocated toward:

• MDF Plant & Machinery Enhancement: Rs. 9.67 crores utilized for existing MDF manufacturing plants
• General Corporate Purposes: Rs. 3.37 crores deployed for approved corporate activities
• Working Capital: Planned allocation adjusted based on actual fund receipt

Regulatory Compliance and Monitoring

CARE Ratings Limited, serving as the monitoring agency, confirmed that all utilization aligned with regulatory requirements under SEBI regulations. The report indicated a 24% shortfall in fund receipt compared to planned objectives, but noted that the company successfully completed its stated goals through alternative financing arrangements.

The monitoring agency emphasized that while the company used internal accruals and debt financing to complete certain objectives, these activities fell outside the purview of the monitoring report since they involved alternative funding sources.

Final Monitoring Report

This represents the concluding monitoring agency report for the preferential allotment of convertible warrants. The company has fulfilled all regulatory obligations related to fund utilization disclosure and maintained transparency throughout the process. Despite the funding shortfall, Rushil Decor demonstrated effective project management by ensuring timely completion of strategic initiatives through diversified financing approaches.

Rushil Decor has reported its third quarter consolidated financial results, showing a substantial decline in profitability compared to the same period in the previous year. The decorative materials company faced challenging conditions that significantly impacted its bottom line performance.

Financial Performance Overview

The company's consolidated net profit for the third quarter stood at ₹52 million, marking a considerable decrease from the previous year's performance. This represents a year-on-year decline that reflects the operational challenges encountered during the period.

Year-on-Year Comparison

The comparison with the corresponding quarter of the previous year reveals the extent of the decline in profitability. The company recorded ₹115 million in consolidated net profit during Q3 of the previous year, establishing a high baseline for comparison.

The significant reduction of ₹63 million in absolute terms demonstrates the magnitude of the challenges faced by Rushil Decor during the current quarter. This 55% decline in net profit indicates substantial pressure on the company's operational efficiency and market performance.

Impact Analysis

The substantial year-on-year decline in consolidated net profit represents a notable shift in the company's financial trajectory. The reduction from ₹115 million to ₹52 million suggests that various factors may have influenced the company's performance during the third quarter, though specific operational details were not disclosed in the financial announcement.