Rushil Decor Limited , a prominent player in the Indian decorative surfaces industry, has announced a move to divest up to 29% of its equity stake in its subsidiary, Rushil Modala Ply Limited (RMPL). This decision, disclosed through a regulatory filing, marks a notable development in the company's corporate structure.

Key Details of the Divestment

The company has executed an Amendment Agreement-cum-Share Purchase Agreement with Dr. Modala Nageshwar Rao and his family members. Here are the crucial aspects of the deal:

Financial Implications

The divestment comes in the context of RMPL's recent financial performance:

Strategic Considerations

While the immediate financial impact of this divestment appears modest, given RMPL's relatively small contribution to Rushil Decor's consolidated turnover, the move may be part of a broader strategic realignment. The company has not disclosed specific reasons for the divestment in the available information.

Regulatory Compliance

Rushil Decor has emphasized its compliance with regulatory requirements, including:

• Execution of the agreement
• Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
• Confirmation that the transaction is at arm's length pricing

Market Implications

This divestment may signal Rushil Decor's intent to streamline its operations or focus on core business areas. Investors and market analysts will likely watch closely for any impact on the company's future financial performance and strategic direction.

As the transaction unfolds over the next 18 months, stakeholders should monitor further announcements for additional insights into Rushil Decor's evolving corporate strategy and the potential implications for its market position in the decorative surfaces industry.

Rushil Decor Limited , a leading player in the Indian wood-based panel industry, has reported a strong recovery in its Q2 performance, with revenue reaching INR 2,356.00 million, marking a 31.5% sequential growth. The company's operations have normalized following the fire incident at its Andhra Pradesh MDF plant earlier in the year.

Key Highlights

• Q2 revenue stood at INR 2,356.00 million, up 31.5% quarter-on-quarter
• MDF segment revenue at INR 1,695.00 million, with capacity utilization reaching 79%
• Laminate segment revenue grew to INR 562.00 million, up 8.9% year-over-year
• Company expects revenue of INR 9,700.00 million with 10-12% EBITDA margins

Segment Performance

MDF Segment

The MDF segment, which forms the backbone of Rushil Decor's operations, delivered a revenue of INR 1,695.00 million in Q2. Despite facing challenges such as higher resin prices and raw material sourcing issues, the segment showed resilience. The company's Andhra Pradesh MDF facility has resumed normal operations, with capacity utilization reaching 79% during the quarter.

Domestic MDF revenue grew by 5.2% year-over-year, supported by steady demand in the housing and furniture markets. Export revenue nearly doubled sequentially as shipments resumed post-normalization of operations. However, year-over-year export volumes were lower due to shipment delays arising from U.S. tariff-related uncertainty and logistics challenges in selected markets.

The company reported a 7.7% improvement in blended realization at the MDF segment level, driven by a better product mix and disciplined pricing strategy. Value-added MDF products now contribute 45% by quantity and 56% by value, reflecting the company's focus on premium, higher-margin categories.

Laminate Segment

The laminate segment continued its growth momentum, with revenue increasing to INR 562.00 million in Q2, up 8.9% year-over-year. Export revenue in this segment grew by 8.9% year-over-year, driven by improved realization in premium product categories and expansion into new international markets. The blended realization in laminates improved by 4% year-over-year, supported by selective price adjustments and a higher share of premium products.

Notably, the company's new Jumbo Laminate facility has started contributing to revenues, marking a key milestone in Rushil Decor's growth journey. The company has also commenced trial production for Phase 2 of this facility, which adds an additional capacity of 1.60 million sheets per annum.

Outlook and Guidance

Rushil Decor expects to maintain its growth momentum in the coming quarters, supported by:

1. Incremental contribution from the Jumbo Laminate facility
2. Improved capacity utilization in MDF
3. Continued expansion in international markets

The company has provided a revenue guidance of INR 9,700.00 million, with expected EBITDA margins of 10-12%. This guidance factors in the ramp-up of the Jumbo Laminate facility and improved capacity utilization across segments.

Management Commentary

Rushil Thakkar, Managing Director of Rushil Decor Limited, commented on the results, stating, "After the temporary disruption in operations during the first quarter, I am pleased to inform you that our manufacturing facilities are now operating at optimum levels. The fire incident at our Andhra Pradesh MDF facility is well behind us, and the business has returned to full operational normalcy."

He further added, "Looking ahead, we expect the momentum to sustain in the coming quarters, supported by the incremental contribution from the Jumbo Laminate facility, improved capacity utilization in MDF, and continued expansion in international markets."

As Rushil Decor continues to navigate opportunities ahead, it remains committed to achieving its strategic objectives and delivering consistent value to stakeholders. The company's focus on value-added products, expansion into new markets, and operational efficiency are expected to drive growth in the coming quarters.