Rushil Decor’s MDF exports nearly vanish as domestic sales rise

Rushil Decor Limited’s MDF export revenue fell 97.9% to Rs 90 lakh in H1 FY27, while domestic MDF revenue rose 37.4% to Rs 340.9 crore and lifted total segment revenue 16.4% to Rs 341.8 crore. The reported mix shifted almost entirely to India sales, with no export revenue recorded in Q2 FY27.

Why did Rushil Decor’s MDF export revenue fall?

Rushil Decor’s MDF export revenue declined to Rs 90 lakh in H1 FY27 from Rs 45.7 crore in H1 FY26, a 97.9% decrease. Export sales volume fell 98.7% to 255 cubic metres, or CBM, from 20,302 CBM. The presentation reports the decline but does not disclose its cause, a freight-related factor, or an MDF export recovery plan.

The contraction was concentrated in the second quarter. Rushil Decor recorded no MDF export revenue or export volume in Q2 FY27, against Rs 30.3 crore of revenue and 13,152 CBM in Q2 FY26. In Q1 FY27, export revenue was Rs 90 lakh and volume was 255 CBM, leaving that first-quarter activity as the entire H1 FY27 export contribution.

Export realisation was Rs 37,023 per CBM in H1 FY27, compared with Rs 22,513 per CBM in H1 FY26, an increase of 64.5%. However, the reported 255 CBM export volume was far below the 20,302 CBM a year earlier, so the higher realised price did not prevent export revenue from falling by Rs 44.8 crore.

How did Rushil Decor’s domestic MDF business change?

Rushil Decor’s domestic MDF revenue increased by Rs 92.9 crore year on year to Rs 340.9 crore in H1 FY27, while domestic volume rose 34.6% to 128,261 CBM. Domestic revenue was Rs 248 crore in H1 FY26, meaning India sales offset the Rs 44.8 crore reduction in exports and supplied virtually all of the Rs 341.8 crore segment revenue in the latest half year.

Q2 FY27 was the largest reported domestic quarter in the half. India revenue reached Rs 196.2 crore, up 41.0% from Rs 139.2 crore in Q2 FY26 and 35.6% from Rs 144.7 crore in Q1 FY27. India sales volume rose to 76,099 CBM, a 51.1% year-on-year increase and 45.9% sequential increase from 52,162 CBM.

The Q2 volume increase exceeded the revenue increase because India realisation declined. Domestic realisation was Rs 25,786 per CBM in Q2 FY27, down 6.7% from Rs 27,638 per CBM in Q2 FY26 and 7.0% from Rs 27,736 per CBM in Q1 FY27. For H1 FY27, India realisation of Rs 26,579 per CBM was still 2.1% above Rs 26,035 per CBM in H1 FY26.

Did total MDF sales grow despite the export decline?

Rushil Decor’s total MDF revenue grew 16.4% to Rs 341.8 crore in H1 FY27 from Rs 293.8 crore in H1 FY26, while total volume rose 11.2% to 128,516 CBM from 115,578 CBM. The Rs 92.9 crore domestic revenue increase was larger than the Rs 44.8 crore export revenue decrease, producing a net revenue gain of Rs 48 crore.

Q2 FY27 total MDF revenue was Rs 196.2 crore, 15.8% above Rs 169.5 crore in Q2 FY26, and total volume was 76,099 CBM, 19.8% above 63,505 CBM. The presentation specifies that Q2 FY27 total volume and blended realisation represent India operations only, because no MDF export sales were recorded in that quarter.

Blended MDF realisation was Rs 26,599 per CBM in H1 FY27, up 4.7% from Rs 25,416 per CBM in H1 FY26. The Q2 FY27 blended figure was Rs 25,786 per CBM, down 3.4% year on year and 7.2% from Rs 27,781 per CBM in Q1 FY27. The changing export mix is relevant because H1 FY26 included export sales, whereas Q2 FY27 did not.

What happened to Rushil Decor’s MDF profitability and utilisation?

Rushil Decor’s reported MDF earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 188.1% to Rs 31.7 crore in H1 FY27 from Rs 11 crore in H1 FY26. Reported EBITDA margin increased to 9.3% from 3.7%, alongside the segment’s 16.4% revenue growth and 11.2% volume growth.

Adjusted EBITDA, which excludes foreign-exchange gain or loss, increased 70.8% to Rs 31.8 crore from Rs 18.6 crore in H1 FY26. Its margin was 9.3%, compared with 6.3% a year earlier. The difference between reported and adjusted H1 EBITDA reflects a Rs 10 lakh foreign-exchange loss in FY27, versus a Rs 7.6 crore loss in H1 FY26.

Quarterly profitability did not rise at the same rate as H1 profitability. Q2 FY27 reported EBITDA was Rs 19.4 crore, 6.0% above Rs 18.3 crore in Q2 FY26, but reported margin declined to 9.9% from 10.8%. Q2 adjusted EBITDA was Rs 19.9 crore, 1.3% below Rs 20.1 crore a year earlier, while adjusted margin declined to 10.1% from 11.9%.

MDF capacity utilisation reached 87% in Q2 FY27, compared with 79% in Q2 FY26 and 66% in Q1 FY27. H1 FY27 utilisation was 76%, up from 69% in H1 FY26. The 21-percentage-point sequential rise in quarterly utilisation coincided with a 23,937-CBM increase in India sales volume from Q1 FY27 to Q2 FY27.

Conclusion

Rushil Decor’s H1 FY27 MDF results show that domestic sales more than replaced a near-complete loss of exports. India revenue increased by Rs 92.9 crore to Rs 340.9 crore, exceeding the Rs 44.8 crore decline in exports and raising total MDF revenue by Rs 48 crore. Higher domestic volume and utilisation supported a rise in reported EBITDA to Rs 31.7 crore, although Q2 reported and adjusted margins were below their respective year-earlier levels.

What to watch next is whether exports remain absent after Q2 FY27 and whether domestic demand can maintain Q2 capacity utilisation of 87% as India realisation declined 7.0% sequentially to Rs 25,786 per CBM. The presentation discloses no MDF export target, restart schedule, or explanation for the export reduction, leaving the future domestic-export sales mix unresolved.