RUSHILNSEQ2 FY26November 01, 2025

Rushil Decor Limited

6,411words
133turns
7analyst exchanges
3executives
Management on call
Rushil Thakkar
MANAGING DIRECTOR – RUSHIL DECOR LIMITED
Hiren Padhya
CHIEF FINANCIAL OFFICER – RUSHIL DECOR LIMITED
Karan Bhatelia
ASIAN MARKET SECURITIES
Key numbers — 40 extracted
INR 1,695 million
has returned to full operation normalcy. In the MDF business, the segment delivered a revenue of INR 1,695 million in Q2 FY26. During the quarter, we faced external challenged such as a higher resin price and sour
79%
-over-year. However, the production resumed to the normal level with capacity utilization reaching 79% during the quarter. Domestic demand remained encouraging, supported by the steady activities in t
5.2%
encouraging, supported by the steady activities in the housing and furniture market, leading to a 5.2% year-over-year growth in Indian revenue. Export revenue nearly doubled subsequently as the shipmen
7.7%
nty and logistics challenges in the selected markets. On the realization side, we have recorded a 7.7% improvement year-over-year at the blended level with both domestic and export realization showing
45%
ven by a better product mix and disciplined pricing strategy. Value-added MDF products contributed 45% by quantity and 56% by value, reflecting our ongoing focus on a premium higher-margin categories.
56%
uct mix and disciplined pricing strategy. Value-added MDF products contributed 45% by quantity and 56% by value, reflecting our ongoing focus on a premium higher-margin categories. The segment's EBITDA
INR 183 million
reflecting our ongoing focus on a premium higher-margin categories. The segment's EBITDA stood at INR 183 million with a margin of 10.8%. Moving to our laminate business. Revenue from the operations was INR 562 m
10.8%
a premium higher-margin categories. The segment's EBITDA stood at INR 183 million with a margin of 10.8%. Moving to our laminate business. Revenue from the operations was INR 562 million in Q2 FY26 comp
INR 562 million
3 million with a margin of 10.8%. Moving to our laminate business. Revenue from the operations was INR 562 million in Q2 FY26 compared to INR 503 million in Q2 FY25. Export revenue grew by 8.9% year-over-year, dr
INR 503 million
g to our laminate business. Revenue from the operations was INR 562 million in Q2 FY26 compared to INR 503 million in Q2 FY25. Export revenue grew by 8.9% year-over-year, driven by improved realization in premium
8.9%
ions was INR 562 million in Q2 FY26 compared to INR 503 million in Q2 FY25. Export revenue grew by 8.9% year-over-year, driven by improved realization in premium product categories and expansion into th
4%
duct categories and expansion into the new international markets. The blended realization improved 4% year-over-year, supported by a selective price adjustment and a higher share of premium products.
Guidance — 20 items
Rushil Thakkar
opening
“In the MDF business, the segment delivered a revenue of INR 1,695 million in Q2 FY26.”
Rushil Thakkar
opening
“Revenue from the operations was INR 562 million in Q2 FY26 compared to INR 503 million in Q2 FY25.”
Rushil Thakkar
opening
“With both phases in operation, we expect a meaningful scale up in the production volumes and export contributions over the coming quarters.”
Rushil Thakkar
opening
“Looking ahead, we expect the momentum to sustain in the coming quarter, supported by the incremental contribution from the Jumbo Laminate facility, improved capacity utilization in MDF and continued expansion in the international markets.”
Hiren Padhya
opening
“Revenue from operations for Q2 FY26 was INR 2,356 million, reflecting a 2.3% growth year-over-year and a strong 31.5% increase sequentially, supported by normalization of operations and improvement in realizations across both product categories.”
Hiren Padhya
opening
“For the first half of FY26, revenue from operations stood at INR 4,148 million, lower by 8.9% year-over-year, primarily due to the plant shutdown in Q1.”
Hiren Padhya
opening
“We expect performance to improve in the second half.”
Hiren Padhya
opening
“Revenue for MDF segment in Q2 FY26 was INR 1,695 million, a marginal decline of 1.3% year-over-year, but a strong sequential growth of 36.4%, reflecting the resumption of operations at the Andhra Pradesh facility.”
Hiren Padhya
opening
“Overall MDF EBITDA for Q2 FY26 was INR 183 million with a margin of 10.8%.”
Hiren Padhya
opening
“For H1 FY26, MDF revenue was at INR 2,938 million, which is lower by 13.8% year-over-year due to the production loss in Q1 FY26, while EBITDA was INR 110 million with a margin of 3.7%.”
Risks & concerns — 6 flagged
Revenue for MDF segment in Q2 FY26 was INR 1,695 million, a marginal decline of 1.3% year-over-year, but a strong sequential growth of 36.4%, reflecting the resumption of operations at the Andhra Pradesh facility.
— Hiren Padhya
To summarize, the fire incident impact is now behind us and operations have fully stabilized, while the quarter presented challenges such as higher raising prices external headwinds in export, our improvement in realizations, higher general trade mix and expanding distributor base have helped offset some of the pressure.
— Hiren Padhya
So for us, currently, for next financial year also, the capacity is not remaining a concern for us.
— Rushil Thakkar
So we see a slightly difficult task to take a price hike.
— Rushil Thakkar
So if we see as an overall impact, so it was an impact of current 1% to 1.5%.
— Rushil Thakkar
So whatever the impact of higher resin is there that is already factored in Q2 FY26.
— Keshav
Q&A — 7 exchanges
Q
So, my first question is on laminates. So why would the export volumes have seen a degrowth. And what is the outlook here. Because as I understand, U.S. revenue is very small for us. Hardly 2%, 3% revenue comes from the U.S. So why has there been a degrowth here?
Rushil Thakkar
So basically, degrowth was because of two things. First was the resin pricing again because the resin plays a major role in our laminate as a raw material. So we did an evaluation that we go for a high-value production first. So the value-added products have played a substantial role over there. And we will be recovering that by this quarter as well. I think I would like to add one more thing as rightly pointed by Rushil Bhai. See, when we are just having such a constraint in terms of raw material, we have just a strategic move of deciding value-added products. So that is being reflected in ou
Q
Just wanted to understand one thing, what is the maximum capacity utilization for your MDF plant.
Rushil Thakkar
So if you see the utilization of our MDF plant, our Chikmagalur facility, we have utilized up to 120% also. And currently talking about the current Andhra Pradesh plant, the utilization can again reach up to 100% and 105%. But currently, assuming and giving the guidance ahead, the utilization may stand somewhere around 90%, 95% on the blended basis. Understood. Got it. So in spite if you make more value-added with minimum utilization in 90%, 95%, because you know some of the peers talk about 85%, 90% is the peak utilization if we go for value added. So that is the reason I'm asking the questio
Q
So sir, first question is on the laminate side. So I think the initial understanding was that the additional revenue from the Jumbo plant, both the cases was INR 300 crores also according to the press release. But now I think you mentioned INR 150 crores, INR 175 crores. So can you clarify this?
Hiren Padhya
See, I think you are referring to the announcement, which was saying. I mean, the total expansion in terms of Jumbo where there are 2 phases. And when we are saying a total turnover of 250 or 270. That means on the first year, suppose when we start the production of Phase 1 and Phase 2 and once it is stabilized in the first year, then total laminate segment will have a revenue of around INR 250 crores to INR 270 crores. If you consider Jumbo, I mean, a new project, optimum capacity, then after considering both the phases and optimal capacity, then it can cross INR 200 crores. Sure. So broadly,
Q
Sir, I wanted to understand with what time lag do we pass on raw material price increase or decrease to our customers?
Rushil Thakkar
So currently, we have not passed the price hike to customers in MDF or laminate industry. Currently, the pricing are going on as of the requirement of the market, and we don't see an MDF price hike happening soon. Got it. Sir, I'm relatively new to the company, sir. So on the MDF business, it's more of a B2B business, should it look at from an EBITDA per metric tonne perspective or EBITDA margin perspective. So we consider it not metric tonne. We consider it as a CBM. So it's a cubic meter margins what we see. All right. Sir, so I'm trying to understand, what percentage of the raw material is
Q
Sir, in the quarter 1 call, you had said, I believe, in terms of revenue guidance, you had said INR 1,000 crores you expect in FY26, that's like 70% utilization at the Jumbo facility. But now I don't think you're expecting the Jumbo facility to contribute at those utilization levels, correct? So now going ahead, can you like give a revised outlook when it comes to the overall business combined for the whole year?
Rushil Thakkar
So currently, as you rightly said that we give a guidance for INR 1,000 crore plus, but we see still INR 970 crores of top line expected in the year ended FY26. How much, INR 970 crores? Yes. As we have started our operations from Singapore office as well. So Singapore office will also contribute in terms of sales for that. So we still see ourselves as standing at INR 970 crores approximately at the year-end. And with what kind of overall margins, EBITDA margins? At the percentage of somewhere around 10% to 12%. And considering the new capacity in Jumbo ramping up, any sort of like idea for th
Q
Thank you all for taking the time and join us today and for your continued interest in Rushil Decor. As we continue to navigate opportunities ahead, we'll remain committed for achieving our strategic objectives and delivering consistent value to our stakeholders. For any other further questions, please reach out our Investor Relations team at Churchgate Partners. Thank you once again.
Management
Q
1. This transcript has been edited for readability and does not purport to be a verbatim record of the proceedings. 2. Figures have been rounded off for convenience and ease of reference. 3. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Rushil Decor Limited.
Management
Speaking time
Rushil Thakkar
46
Resha Mehta
26
Hiren Padhya
19
Keshav
10
Deep Gandhi
10
Moderator
8
Rahil
7
Madhur Rathi
5
Karan Bhatelia
1
Notes
1
Opening remarks
Karan Bhatelia
Thank you. A very good afternoon and welcome all to Rushil Decor's Q2 FY26 Earnings Conference Call hosted by Asian Market Securities. From the management side, we have Mr. Rushil Thakkar, Managing Director and Mr. Hiren Padhya, CFO. I now hand over call to Rushil Bhai for his opening remarks, post which we can open the floor for Q&A. Thank you and over to you, sir.
Rushil Thakkar
Thank you, Karan. Good afternoon, ladies and gentlemen. Welcome to Rushil Decor Limited's earnings conference call for the second quarter and half year ended 30th September, 2025. I would like to thank you and thank everyone for joining us today. I am joined by our CFO, Mr. Hiren Padhya. The investor presentation has been shared with the Stock Exchanges, and we hope you had an opportunity to review the material in advance. Let me begin by sharing an overview of our performance for the quarter. After the temporary disruption in the operation 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 operation normalcy. In the MDF business, the segment delivered a revenue of INR 1,695 million in Q2 FY26. During the quarter, we faced external challenged such as a higher resin price and sourcing issues for raw materia
Hiren Padhya
Good afternoon, everyone, and thank you, Mr. Rushil. A warm welcome to all participants joining us today. I will now take you through the financials and operational performance of Rushil Decor Limited for the second quarter and first half of FY2026. A quarter marked by a period of steady operational recovery as our business returned to normal levels after the temporary disruption at the Andhra Pradesh MDF plant earlier this year. Production and dispatches have stabilized. Capacity utilization in MDF has reached 79%, while laminate operated at 90% utilization during the quarter. Now turning to the consolidated financials. Revenue from operations for Q2 FY26 was INR 2,356 million, reflecting a 2.3% growth year-over-year and a strong 31.5% increase sequentially, supported by normalization of operations and improvement in realizations across both product categories. Gross profit for the quarter was INR 1,059 million with a margin of 44.9%. EBITDA was INR 225 million, representing a margin
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