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.

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.