Rushil Decor Q1 FY2027: Laminates Surge, Jumbo Scales Up, Margins Still Under Pressure

Rushil Decor Limited reported a sharp year on year recovery in Q1 FY2027, driven by a strong rebound in the laminates business and more stable operations in MDF after earlier disruptions. On a consolidated basis, revenue from operations rose 27.8% year on year to Rs 229.0 crore. EBITDA stood at Rs 18.2 crore with a 7.9% margin, and profit after tax was Rs 2.0 crore. The quarter also included a planned annual maintenance shutdown in April, which management cited as one factor affecting utilisation.

The headline growth, however, came with visible margin volatility. Gross profit margin declined to 39.0% in Q1 FY2027 versus 48.0% in Q4 FY2026. Management attributed profitability pressure to elevated chemical and other raw material prices, higher freight costs, and disruptions in shipping routes due to the ongoing conflict in West Asia.

Segment performance: Laminates leads growth while MDF remains the core

MDF continues to be the company’s largest business, contributing Rs 145.6 crore of revenue in Q1 FY2027. The MDF segment reported EBITDA of Rs 12.3 crore and an 8.4% margin. Blended realisation improved to Rs 27,781 per CBM, reflecting better pricing and product mix. Volume growth was muted, with total sales volumes broadly flat year on year, which management linked to the planned shutdown and cautious buying behaviour amid chemical price volatility.

Laminates, including Jumbo Laminates, delivered the strongest growth. Revenue rose 65.3% year on year to Rs 73.6 crore, supported by both domestic and export demand. Total sales volume increased to 8,80,319 sheets, while blended realisation improved sharply to Rs 836 per sheet, driven by product mix and higher value added sales. Despite this, segment EBITDA margin moderated to 7.0%.

PVC remained a smaller contributor at Rs 9.6 crore of quarterly revenue. The segment reported EBITDA of Rs 0.8 crore and a margin of 7.9%, with management noting steady volumes but continued pressure from broader cost inflation.

Financial summary (consolidated)

Jumbo Laminates: early margin strength and a visible scaling roadmap

A key focus area for FY2027 is Jumbo Laminates, positioned by management as a new growth engine. In Q1 FY2027, Jumbo Laminates recorded revenue of Rs 11.0 crore and delivered an EBITDA margin of 20.6%. The business remains export led, with exports contributing Rs 10.1 crore of the Rs 11.0 crore quarterly revenue.

On the conference call, management clarified that utilisation should be interpreted with care because installed capacity is presented on a 1 mm thickness equivalent basis, while actual jumbo products sold are typically thicker. Based on the company’s internal approach, management stated jumbo utilisation is currently around 29% and outlined an aspiration to reach 55% to 60% utilisation in FY2027.

Management also shared indicative revenue potential tied to higher utilisation levels. At around 60% utilisation, they referenced a revenue run rate of roughly Rs 75 crore, and at around 90% utilisation, around Rs 140 crore for Phase 1 plus Phase 2 combined. They also indicated that scaling exports across new markets requires certifications and documentation, implying that ramp up is expected to play out over multiple years.

Costs, logistics, and market dynamics: the main swing factors

Management repeatedly highlighted input costs and logistics as the key constraints in the quarter. Resin prices were cited as up roughly 35% to 40% during the period, while wood prices were said to be largely stable. Freight remained elevated, and shipping disruptions due to the West Asia conflict continued to affect export execution.

These pressures limited the company’s pricing flexibility. Management stated that MDF had already seen about a 15% price hike earlier and that further price hikes may not be accepted by the market. They also noted that the company is sustaining the existing price hikes without additional trade discounts.

MDF exports were a notable weak spot in the quarter. Export volumes were only 255 CBM in Q1 FY2027. Management described this as a calibrated approach toward exports, focusing on profitability, but also cited practical constraints such as container shortages and high container rates.

In laminates, management acknowledged that the legacy laminates business margins were impacted by chemical costs and regional mix. They stated that the older laminates business has historically delivered 9% to 10% EBITDA margins, and that combined laminates margins should improve as Jumbo Laminates scales, subject to raw material and geopolitical uncertainty.

Capital allocation: focus on debt reduction with limited capex

The company’s stated financial strategy for the near term is conservative. Management said there is no major capex planned beyond maintenance capex, with only small operational capex of around Rs 5 to 10 crore. On leverage, the CFO stated that debt including working capital is around Rs 260 crore, and that the company is following a scheduled repayment plan of about Rs 55 crore per year. They also stated that debt was reduced by about Rs 18 crore during the quarter and indicated a path to becoming debt free around Q2 FY2029.

Operationally, the company continues to invest in reach rather than capacity. During the quarter, Rushil Decor added 15 direct distributors and 46 retailers and dealers. It also entered two new export markets, Honduras and Greece.

Takeaways from Q1 FY2027

Rushil Decor’s Q1 FY2027 shows a clear return to growth, with laminates acting as the main upside driver and Jumbo Laminates emerging as a high margin contributor even at an early stage of scaling. At the same time, the quarter underlines how sensitive profitability remains to resin prices, freight costs, and export logistics.

The company’s near term execution hinges on three measurable levers that management has repeated across the presentation and call: improving Jumbo Laminates utilisation, lifting the share of value added MDF products toward the FY2027 target, and tightening working capital to accelerate debt reduction. If these levers improve while input cost pressures stabilise, management’s stated aspiration of reaching double digit EBITDA margins over the next few quarters becomes more plausible.