Rushil Decor , a leading manufacturer of Medium Density Fiberboard (MDF) and laminates, reported a challenging first quarter, with consolidated revenue declining 20.4% year-on-year to ₹179.20 crores. The company's performance was significantly impacted by a fire incident at its Andhra Pradesh MDF facility in early April, which resulted in 43 days of production loss.

MDF Business Takes a Hit

The company's MDF business bore the brunt of the disruption, with revenue dropping 26.6% to ₹124.20 crores. MDF volumes declined by 30% due to the fire incident, which affected the Andhra Pradesh plant's utilization rate, bringing it down to just 43%. However, the Chikmagalur plant continued to operate at near-full capacity of 99%.

Despite the setback, Rushil Decor managed to improve its blended realization by 4.5% year-over-year, supported by disciplined pricing and an improved product mix.

Laminate Business Shows Resilience

The laminate segment demonstrated resilience, with revenue of ₹44.50 crores, down only 5.6% year-on-year. Notably, domestic market revenue for laminates grew by 9.3%. The segment's EBITDA increased by 5.9% to ₹4.50 crores, with a margin of 10.2%.

During the quarter, Phase-I of the new Jumbo Laminate facility in Gandhinagar commenced commercial production. However, dispatches were deferred pending key certifications required for exports to certain regions.

Financial Performance

The company reported negative EBITDA for the quarter. However, excluding a forex loss of ₹5.70 crores, the EBITDA would have been ₹3.50 crores with a 2% margin. Gross profit stood at ₹74.40 crores with a gross margin of 41.5%, compared to 45.4% in the same quarter of the previous fiscal year.

Future Outlook

Rushil Decor's management remains optimistic about the company's prospects:

1. The company targets revenue of ₹1,000.00 crores for the current fiscal year and ₹1,150.00-1,200.00 crores for the next fiscal year.
2. EBITDA margins are expected to reach 11-12% in the current fiscal year and 13-14% in the next fiscal year.
3. The MDF plant in Andhra Pradesh has resumed operations and is now running close to optimal levels.
4. Phase-II of the Jumbo Laminate project is progressing well and is expected to be operational by October.

Sustainability Initiatives

Rushil Decor continues its commitment to sustainability, having planted over 24 million saplings in Andhra Pradesh and Karnataka as part of its plantation program. This initiative works closely with local farmers and reinforces the company's dedication to responsible sourcing and environmental stewardship.

As Rushil Decor navigates through the challenges posed by the recent fire incident, the company remains focused on disciplined execution and strengthening its product offerings. With normalized production, improved capacity utilization, and contribution from the new Jumbo Laminate facility, management expects a strong performance in the upcoming quarters.

Rushil Decor , a leading manufacturer of MDF boards and laminates, has reported a challenging first quarter for the fiscal year 2026, marked by a temporary production disruption and financial setbacks. The company also provided an update on the utilization of funds raised through its preferential issue.

Financial Performance

For the quarter ended June 30, 2025, Rushil Decor reported:

• Consolidated revenue from operations of Rs. 1,791.57 crore, down 20.4% year-on-year
• EBITDA loss of Rs. 22.00 crore, compared to a profit of Rs. 257.00 crore in Q1 FY25
• Net loss of Rs. 140.69 crore, versus a profit of Rs. 123.95 crore in the same quarter last year

The company's performance was significantly impacted by a fire incident at its MDF manufacturing plant in Andhra Pradesh on April 9, 2025, which led to a temporary disruption in production for 43 days.

Segment-wise Performance

MDF Boards

• Revenue: Rs. 1,242.00 crore, down 26.6% year-on-year
• EBITDA: Loss of Rs. 73.00 crore
• Capacity utilization: 58%
• Blended realization improved by 4.5% year-on-year to Rs. 23,858 per CBM

Laminates

• Revenue: Rs. 445.00 crore, down 5.6% year-on-year
• EBITDA: Rs. 45.00 crore, with a margin of 10.2%
• Capacity utilization: 83%
• Blended realization improved by 5.0% year-on-year

Preferential Issue Utilization

Rushil Decor provided an update on the utilization of funds raised through its preferential issue:

The company has utilized Rs. 809.77 crore out of the Rs. 930.35 crore received from the preferential issue as of June 30, 2025. The balance unutilized amount stands at Rs. 120.58 crore.

Warrant Conversion and Forfeiture

During the quarter, Rushil Decor converted 6,60,000 convertible warrants into 66,00,000 equity shares of Rs. 1 each. However, 3,30,000 warrants were forfeited as some warrant holders did not exercise their conversion option within the stipulated 18-month timeline.

Additionally, the conversion of 10,00,000 warrants held by Vespera Fund Limited is subject to a "status quo" order from the Securities Appellate Tribunal, Mumbai.

Outlook

Mr. Rushil K. Thakkar, Managing Director, commented on the company's performance and future prospects: "While Q1 FY2026 was impacted by a one-off event, we expect Q2 FY2026 to reflect significantly improved performance compared with the same quarter in the prior year. This improvement will be driven by higher capacity utilization at the Andhra Pradesh MDF plant, along with increased contribution from value-added products, increased profitability in the PVC business and full quarter of revenue from jumbo laminates Phase 1."

The company remains focused on disciplined execution, improving operational efficiency, and enhancing long-term value for all stakeholders.

Rushil Decor has also made progress in its expansion plans, with commercial production commencing under Phase 1 of the Jumbo Laminates facility in Gandhinagar, Gujarat. The company is on track to begin dispatches from Q2 FY2026 and plans to start Phase 2 production by Q3 FY26, which will add another 1.6 million sheets of capacity.

Despite the challenges faced in Q1 FY26, Rushil Decor's management remains optimistic about the company's future performance and growth prospects.