Rushil Decor Limited , a prominent player in the laminates and MDF boards industry, has released its financial results for the second quarter, revealing a mixed performance amidst ongoing challenges related to its preferential issue.

Financial Performance

For Q2, Rushil Decor reported:

The company saw a marginal increase in revenue but experienced a significant decline in profitability compared to the same quarter last year.

Segment Performance

• Laminates & Allied Products: Revenue of ₹562.57 crore with a segment profit of ₹31.18 crore
• Medium Density Fiber Board: Revenue of ₹1,747.28 crore with a segment profit of ₹117.35 crore
• Polyvinyl Chloride Board: Revenue of ₹90.43 crore with a segment profit of ₹4.14 crore

Preferential Issue Challenges

Rushil Decor faced setbacks in its preferential issue of ₹122.66 crore:

• Some warrant holders did not exercise conversion options worth ₹7.35 crore by the June 22, 2025 maturity date.
• Uncertainty persists regarding ₹22.28 crore from Vespera Fund Limited (VFL) following a Securities Appellate Tribunal (SAT) order.
• The SAT dismissed VFL's appeal but extended status quo for six weeks from October 15, 2025.

Fund Utilization

As of September 30, 2025, the company has utilized ₹90.22 crore of the ₹93.04 crore received through the preferential issue:

• ₹77.32 crore for decorative laminates manufacturing project
• ₹9.53 crore for MDF plant machinery and civil work
• ₹3.37 crore for general corporate purposes

Strategic Developments

Jumbo Plant Expansion

• Phase I commenced on April 30, 2025, with a capacity of ~1.2 million sheets per annum.
• Phase II trial production began in October 2025, adding ~1.6 million sheets per annum.
• Total installed capacity now stands at ~2.8 million sheets per annum.

Subsidiary Divestment

• The Board approved dilution of up to 29% stake in Rushil Modala Ply Limited.
• Shares to be sold at ₹10 per equity share to optimize investment portfolio.

Outlook

Rushil Decor plans to bridge potential shortfalls from the preferential issue through internal accruals and debt financing. However, this may impact project returns due to increased interest and debt repayment liabilities.

The company's expansion of its Jumbo Plant capacity demonstrates a focus on meeting growing overseas demand for jumbo-size laminates, which may contribute to future growth prospects.

As Rushil Decor navigates these challenges and strategic shifts, investors and stakeholders will be closely watching how the company manages its financial position and capitalizes on its expanded production capabilities in the coming quarters.

Rushil Decor Limited , a prominent player in the decorative laminates and medium-density fiberboard (MDF) industry, has released its financial results for the second quarter ended September 30, 2025, alongside significant corporate developments.

Financial Performance

For Q2 FY26, Rushil Decor reported:

The company faced foreign exchange losses of ₹17.08 million during the quarter due to EUR-INR exchange rate movements on its ECA loan.

Segment-wise Performance

Rushil Decor operates in three primary segments:

1. Laminates and allied products
2. Medium Density Fiber Board (MDF)
3. Polyvinyl Chloride Board

Corporate Actions

Subsidiary Stake Dilution

The board has approved reducing Rushil Decor's shareholding in its subsidiary, Rushil Modala Ply Limited, from 51% to 29%. This will be achieved by selling equity shares to existing shareholders of the Modala Group.

Expansion of Laminate Production

In a significant development post the reporting period, Rushil Decor successfully commenced Phase II trial production of its Jumbo Size Laminate Sheets Project in October 2025. This expansion adds 1.6 million sheets per annum to the company's production capacity.

Government Incentives

The company received ₹14.17 million from the Andhra Pradesh government as incentives under the Industrial Development Policy 2015-20. This includes:

• ₹103.77 million towards power subsidy
• ₹10.40 million for stamp duty reimbursement

Outlook

The expansion of the Jumbo Size Laminate Sheets Project positions Rushil Decor to meet growing overseas demand for larger format laminates. With the completion of both phases, the total installed capacity of the Jumbo Plant now stands at approximately 2.8 million sheets per annum.

The decision to dilute stake in its plywood subsidiary aligns with Rushil Decor's strategy to optimize its investment portfolio and enhance operational efficiency, potentially allowing more focus on its core laminate and MDF businesses.

While the company faces challenges from foreign exchange fluctuations, its strategic expansions and government incentives may provide support for future growth.