Rushil Decor Q1 FY27 Results (NSE: RUSHIL)
Signal: Loss reversed
The read
The key inflection is the operating turnaround: EBITDA recovered to ₹19.27 Cr from a ₹1.72 Cr loss YoY as MDF operations normalised and Laminates grew 65.3%, but the margin arc remains fragile because gross margin contracted 250bps YoY to 39.0% and EBITDA margin at 8.4% was 300bps below Q4FY26.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹229 Cr | 27.8% | -0.8% |
| EBIT | ₹10.41 Cr | N/A | |
| Net profit | ₹1.98 Cr | N/A | |
| EPS | ₹0.07 | N/A | |
| EBIT margin | 8.4% |
P&L walk
Revenue reached ₹229 Cr, up 27.8% YoY and down 0.8% QoQ, while EBITDA turned positive at ₹19.27 Cr versus a ₹1.72 Cr loss YoY; however, gross margin contracted 250bps YoY to 39.0%, leaving PAT at only ₹1.98 Cr despite the operating turnaround.
Segments
Laminates was the primary growth engine, with revenue of ₹736 Mn rising 65.3% YoY and volume up 27.9%, while MDF revenue rose 17.2% YoY to ₹1,456 Mn and utilisation reached 66%; Jumbo Laminates contributed a 20.6% EBITDA margin.
Key positives
- Revenue increased 27.8% YoY to ₹229 Cr, led by Laminates revenue growth of 65.3% YoY to ₹736 Mn.
- Laminates volume rose 27.9% YoY and blended realisation rose 29.3% YoY to ₹836, indicating both volume and mix/realisation support.
- EBITDA turned positive at ₹19.27 Cr versus a ₹1.72 Cr loss YoY, supported by normalised MDF operations and overhead rationalisation.
- Jumbo Laminates generated ₹110 Mn revenue with a 20.6% EBITDA margin, materially above the overall Laminates margin of 7.0%.
- The company added 15 direct distributors and 46 retailers/dealers and entered Honduras and Greece, expanding distribution and export reach.
Key concerns
- Gross margin declined 250bps YoY to 39.0% as elevated chemicals, raw-material prices and freight costs pressured profitability.
- EBITDA margin of 8.4% was down 300bps QoQ from 11.4%, despite the YoY turnaround.
- PAT was only ₹1.98 Cr on ₹229 Cr revenue, with other income of ₹0.94 Cr equal to 35.6% of consolidated PBT.
- MDF volume was nearly flat at 52,417 CBM, up only 0.7% YoY, while MDF capacity utilisation was 66%, below the company's stated medium-term utilisation ambitions.
Earnings quality: includes non-operating other income
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