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 of FY2026, alongside significant corporate developments.

Financial Performance

For Q2 FY2026, Rushil Decor reported:

• Consolidated revenue of Rs 2,356.00 million, marking a 2.3% year-on-year increase
• EBITDA declined 24.1% to Rs 225.00 million with margins at 9.5%
• PAT fell 55% to Rs 51.00 million

The MDF division contributed Rs 1,695.00 million while the Laminates division generated Rs 547.00 million, up 8.9% year-on-year.

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

Operational Highlights

• The Andhra Pradesh MDF facility returned to full operations after a fire incident earlier in the year, achieving 79% capacity utilization.
• Commercial dispatches from the Phase 1 Jumbo Laminates unit commenced during the quarter.
• The company added 10 new direct distributors and over 40 retailers to expand its network.

Half-Year Performance

For the first half of FY2026:

• Revenue was Rs 4,148.00 million, down 8.9% year-on-year
• EBITDA stood at Rs 203.00 million
• The company reported a net loss of Rs 89.00 million

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

• Rs 103.77 million towards power subsidy
• Rs 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, including a decline in EBITDA and PAT, its strategic expansions, network growth, and government incentives may provide support for future operations.

The Securities Appellate Tribunal (SAT) in Mumbai has dismissed an appeal by Vespera Fund Limited against a Securities and Exchange Board of India (SEBI) order concerning Rushil Decor Limited 's convertible warrants. This decision upholds SEBI's stance on the matter and extends the status quo on a significant number of warrants.

Key Points of the SAT Decision

• Appeal Dismissed: SAT rejected Vespera Fund's appeal against SEBI's March 2025 order.
• Warrant Conversion: The appeal sought relaxation to pay the remaining 75% consideration for convertible warrants and exercise conversion into Rushil Decor's equity shares.
• Regulatory Context: The application was made under Regulation 43B of the SEBI (Foreign Portfolio Investors) Regulations, 2019.
• Status Quo Extended: SAT extended the status quo on 1,000,000 warrants for six weeks from October 15, 2025.

Implications for Rushil Decor Limited

Rushil Decor Limited, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, has disclosed the following actions:

1. The company will maintain the current position on the 1,000,000 warrants during the extended status quo period.
2. Appropriate action will be taken after the expiry of the six-week period or upon receiving further directions.

Background of the Case

The case stems from Vespera Fund Limited's attempt to convert warrants into equity shares of Rushil Decor Limited. The fund sought relaxation in payment terms for the remaining consideration of the warrants, which SEBI had initially denied in March 2025.

What's Next

The six-week extension of the status quo provides a temporary resolution, but the final outcome remains to be seen. Stakeholders and market observers will be watching closely for any further developments in this case, which could have implications for foreign portfolio investments and corporate actions in the Indian market.

Rushil Decor Limited has assured that it will act in accordance with applicable laws and the terms of the warrant issue once the status quo period expires or if additional directions are received.