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 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.