Rushil Decor returns to H1 profit as EBITDA reaches Rs 46.2 crore

Rushil Decor Limited returned to a Rs 12.1 crore profit in H1 FY27 from a Rs 8.9 crore loss a year earlier as earnings before interest, tax, depreciation and amortisation (EBITDA) rose 127.4% to Rs 46.2 crore. Revenue grew 26.4% to Rs 524.3 crore, while EBITDA margin rose to 8.8% from 4.9% despite gross margin declining to 39.5%.

How did Rushil Decor return to H1 profit?

Rushil Decor returned to profit as H1 FY27 EBITDA increased by Rs 25.9 crore year on year to Rs 46.2 crore and profit after tax (PAT) improved by Rs 21 crore to Rs 12.1 crore. The H1 FY26 loss carried a negative PAT margin of 2.2%, compared with a positive 2.3% margin in H1 FY27. Revenue from operations increased by Rs 109.5 crore from Rs 414.8 crore to Rs 524.3 crore.

The recovery accelerated in Q2 FY27. Q2 PAT was Rs 10.1 crore, versus Rs 5.1 crore in Q2 FY26 and Rs 2 crore in Q1 FY27. Quarterly revenue reached Rs 295.3 crore, up 25.3% year on year and 29.0% sequentially, while EBITDA was Rs 28 crore, compared with Rs 22.5 crore a year earlier and Rs 18.2 crore in Q1 FY27.

Why did EBITDA rise while gross margin declined?

Rushil Decor increased EBITDA while gross margin declined because revenue grew faster than several operating-cost lines in H1 FY27. Gross profit increased by Rs 26.7 crore to Rs 207 crore, but gross margin declined to 39.5% from 43.5%. Employee cost fell by Rs 70 lakh to Rs 36.1 crore, while other expenses rose by Rs 1.3 crore to Rs 124.4 crore against the Rs 109.5 crore revenue increase.

Reported EBITDA margin expanded by 3.9 percentage points to 8.8%, even as material consumption rose to Rs 299.1 crore from Rs 230.3 crore and inventory changes increased to Rs 18.2 crore from Rs 4.1 crore. Adjusted EBITDA, which excludes foreign-exchange gain or loss, was Rs 45.5 crore, up 64.0% from Rs 27.7 crore. Reported results also included a Rs 70 lakh foreign-exchange gain in H1 FY27, compared with a Rs 7.4 crore loss a year earlier.

Below EBITDA, depreciation increased to Rs 17.8 crore from Rs 16.9 crore and finance cost rose to Rs 16.3 crore from Rs 15.5 crore. Reported profit before tax changed to Rs 13.1 crore from a Rs 11 crore loss. Tax was Rs 1 crore in H1 FY27, compared with a Rs 2.1 crore tax credit in H1 FY26.

Which businesses drove Rushil Decor’s H1 earnings recovery?

Rushil Decor’s medium-density fibreboard (MDF) segment supplied the largest EBITDA increase, with H1 EBITDA rising by Rs 20.7 crore to Rs 31.7 crore. MDF revenue rose 16.4% to Rs 341.8 crore, and its EBITDA margin increased to 9.3% from 3.7%. Sales volume grew 11.2% to 128,516 cubic metres (CBM), while blended realisation rose 4.7% to Rs 26,599 per CBM.

The laminates business, including Jumbo Laminates, delivered the fastest revenue growth. H1 laminates revenue rose 63.3% to Rs 162 crore and EBITDA increased 56.6% to Rs 13.7 crore. Sales volume grew 30.5% to 1,924,711 sheets normalised to 1.0 millimetre equivalent thickness, while blended realisation rose 25.1% to Rs 842 per sheet. Its EBITDA margin was 8.4%, compared with 8.8% in H1 FY26.

PVC revenue increased 13.7% to Rs 20 crore in H1 FY27, but EBITDA declined 25.0% to Rs 1 crore and margin fell to 5.1% from 7.7%. PVC sales volume rose 9.4% to 1,988 tonnes and realisation increased 3.9% to Rs 100,385 per tonne. MDF therefore accounted for most of the consolidated EBITDA increase, while laminates generated the highest segment revenue growth.

What changed in MDF and laminates during Q2 FY27?

Rushil Decor’s MDF business recorded quarterly revenue of Rs 196.2 crore in Q2 FY27, supported by domestic demand rather than exports. India MDF revenue increased 41.0% year on year to Rs 196.2 crore, while the business reported no export revenue, against Rs 30.3 crore in Q2 FY26. India sales volume rose 51.1% to 76,099 CBM and capacity utilisation reached 87%, compared with 66% in Q1 FY27.

MDF Q2 EBITDA rose 6.0% to Rs 19.4 crore, while reported margin declined to 9.9% from 10.8%. India realisation fell 6.7% to Rs 25,786 per CBM. Management said it adopted a calibrated approach to exports amid global trade uncertainty and elevated freight costs, prioritising domestic retail and original equipment manufacturer channels.

Laminates reported Q2 revenue of Rs 88.4 crore, up 61.7%, and EBITDA of Rs 8.5 crore, up 102.0%. India revenue rose 82.1% to Rs 40.4 crore, while export revenue increased 47.7% to Rs 48 crore. Blended realisation increased 21.7% to Rs 847 per sheet and EBITDA margin improved to 9.6% from 7.7% in Q2 FY26.

Can Jumbo Laminates support Rushil Decor’s growth plan?

Rushil Decor’s Jumbo Laminates revenue rose 97.3% sequentially to Rs 21.7 crore in Q2 FY27, while EBITDA increased 86.5% to Rs 4.2 crore. Sales volume increased 216.9% to 359,446 normalised sheets and capacity utilisation reached 41%. Jumbo Laminates represented about half of the laminates segment’s Rs 8.5 crore Q2 EBITDA.

The increase in Jumbo Laminates volume was accompanied by lower blended realisation. Realisation declined 37.8% sequentially to Rs 603 per sheet from Rs 969 per sheet, while EBITDA margin was 19.4%, compared with 20.6% in Q1 FY27. Export revenue was Rs 20 crore of the Rs 21.7 crore quarterly total, while India revenue was Rs 1.7 crore.

Management said it is focused on expanding the Jumbo Laminates customer base, raising capacity utilisation and increasing the share of value-added MDF products. Rushil Decor added eight direct distributors and 27 dealers in Q2 FY27. Its three laminate plants have annual installed capacity of 6,292,000 sheets, including 2,800,000 sheets of Jumbo Laminates capacity, and reported H1 FY27 utilisation of 62%.

Conclusion

The H1 FY27 result shows a recovery driven by a substantial increase in operating earnings, led principally by MDF margin expansion and laminates revenue growth. The consolidated gross margin declined, but lower employee cost and limited growth in other expenses relative to revenue supported the expansion in EBITDA margin. PVC remained a smaller contributor, with H1 EBITDA declining to Rs 1 crore.

The next results will indicate whether the Q2 FY27 pattern can continue as management pursues higher Jumbo Laminates utilisation from 41%, a wider customer base and a higher share of value-added MDF. MDF realisation of Rs 25,786 per CBM in Q2 FY27 and management’s export stance, after no MDF exports in the quarter, remain disclosed factors to watch.