RUSHIL - Rushil Decor

📊 NSE: RUSHIL 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 12:31

💰 Financial Performance

Revenue Growth by Segment

In Q2 FY26, the MDF segment generated INR 1,695 million, a marginal decline of 1.3% YoY but a 36.4% sequential recovery. The Laminate segment revenue reached INR 562 million, growing 11.7% YoY from INR 503 million. Overall Q2 FY26 consolidated revenue was INR 2,356 million, up 2.3% YoY.

Geographic Revenue Split

Domestic MDF revenue grew 5.2% YoY in Q2 FY26. Exports accounted for 26% of MDF sales volume and 18% of revenue in Q2 FY26. The company exports to 57 countries, including the USA, Europe, Russia, and Australia.

Profitability Margins

Gross profit margin for Q2 FY26 was 44.9% (INR 1,059 million). Net Profit Margin for FY25 was 5.42%, up from 5.11% in FY24. Profit After Tax (PAT) for Q2 FY26 was INR 51 million with a 2.2% margin, a 55% decline YoY due to operational disruptions.

EBITDA Margin

Consolidated EBITDA margin for Q2 FY26 was 9.5% (INR 225 million), down from 12.1% YoY. Excluding forex losses, the margin would have been 10.3% (INR 242 million). The MDF segment EBITDA margin stood at 10.8%.

Capital Expenditure

The company has invested in the 'Jumbo Project' for laminate expansion and a new MDF facility in Visakhapatnam. Property, Plant, and Equipment was valued at INR 6,988.7 million as of September 2025.

Credit Rating & Borrowing

As of October 2024, Infomerics reaffirmed the Long Term Bank Facilities rating at IVR A-/Stable and Short Term Bank Facilities at IVR A2+. The company has successfully deleveraged, reducing its Net Debt-to-Equity ratio from 1.10x in FY23 to 0.42x in H1 FY26.

⚙️ Operational Drivers

Raw Materials

Key raw materials include wood and resin. Resin prices increased during Q2 FY26, impacting margins. Wood is sourced through an agroforestry program involving 24 million saplings.

Import Sources

Approximately 60% of sourcing is conducted from domestic vendors and producers within India, specifically supporting local farming communities in Andhra Pradesh.

Key Suppliers

Not specifically named in the documents, but the company utilizes a network of domestic vendors and local farmers for its agroforestry program.

Capacity Expansion

Current MDF capacity utilization reached 79% in Q2 FY26, while Laminate utilization was at 90%. The new 'Jumbo Laminate' line is ramping up to target export markets in the USA and Europe.

Raw Material Costs

Raw material price fluctuations, particularly resin, were cited as a primary headwind. Blended realizations for MDF improved 7.7% YoY to offset some cost pressures.

Manufacturing Efficiency

Capacity utilization normalized to 79% for MDF and 90% for Laminates following a fire-related shutdown at the Andhra Pradesh plant in Q1 FY26.

Logistics & Distribution

The company added 10 direct distributors and 40 retail dealers in Q2 FY26 to strengthen its extensive distribution network across 57 countries.

📈 Strategic Growth

Expected Growth Rate

22%

Growth Strategy

Growth is driven by the 'Jumbo Laminate' project targeting high-value export markets, the commencement of operations at the Singapore office, and a focus on value-added MDF products which now contribute 56% of segment value. The company targets a total revenue of INR 970 crores for FY26.

Products & Services

Medium Density Fiberboard (MDF) boards, Jumbo-sized laminates, and regular laminates sold under the VIR brand.

Brand Portfolio

VIR, Rushil Decor.

New Products/Services

Jumbo sized laminates for Europe and USA markets; expected to help regain laminate margins to the 10% level.

Market Expansion

Expansion into 57 countries with a new focus on the USA, Europe, Russia, and Australia through the Singapore office and Jumbo Laminate line.

Market Share & Ranking

India is a leading manufacturer of laminates globally; Rushil Decor is a major player in the MDF and Laminate segments, though specific % rank is not stated.

Strategic Alliances

The company operates a Singapore office to facilitate global sales and maintains an agroforestry partnership with local farmers in Andhra Pradesh.

🌍 External Factors

Industry Trends

The industry is shifting toward value-added MDF and jumbo-sized laminates. India is becoming a global hub for cost-effective, high-quality laminate manufacturing.

Competitive Landscape

Competes in the fragmented MDF and Laminate industry; differentiates through value-added products (56% of MDF value) and global certifications.

Competitive Moat

Sustainable moat built on a 24-million sapling agroforestry chain, brand reputation (VIR), and a significantly deleveraged balance sheet (0.42x D/E).

Macro Economic Sensitivity

Highly sensitive to real estate sector growth, urbanization trends, and modernization of furniture demand.

Consumer Behavior

Increasing consumer preference for premium, value-added furniture materials and modern aesthetics in home furnishing.

Geopolitical Risks

Exposure to international market dynamics in 57 countries, including trade barriers in regions like Russia, UAE, and Europe.

⚖️ Regulatory & Governance

Industry Regulations

Complies with the Industrial Development Policy 2015–20 of Andhra Pradesh and Indian Accounting Standards (Ind AS).

Environmental Compliance

The company maintains an AI-powered ESG disclosure platform and has planted 24 million saplings to ensure sustainable raw material supply.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility (resin and wood) and potential operational disruptions (fire incidents) are primary risks. Resin price increases recently impacted margins by approximately 200-300 bps.