Rushil Decor Q1 FY27 Results (NSE: RUSHIL)
Signal: Loss reversed
The read
The key inflection is a return to positive operating profit and ₹19.83 million PAT from a prior-year loss, but the trajectory weakened sequentially: revenue was down 0.8% QoQ, operating margin fell 1,090bps from the prior quarter, and gross margin contracted 638bps YoY as raw-material intensity rose to 60.4%. MDF's turnaround to a ₹29.73 million segment profit is encouraging, but earnings are not yet back to Q4FY26 levels.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹229 Cr | +27.8% | -0.8% |
| Net profit | ₹1.98 Cr | N/A (prior-year loss base) | |
| EPS | ₹0.07 | N/A (prior-year loss base) | |
| EBIT margin | 8.0% |
P&L walk
Consolidated revenue increased 27.8% YoY to ₹2,290.03 million, but raw-material intensity rose to 60.4% from 54.1%, compressing gross margin to 39.6%; operating margin recovered from a prior-year loss base to 8.0%, while PAT declined 80.4% QoQ to ₹19.83 million.
Segments
MDF remained the largest unit at ₹1,506.03 million of revenue but its segment result fell to ₹29.73 million from ₹135.73 million loss? Actually the prior-year MDF result was a ₹135.73 million loss, so the segment turned profitable; laminates contributed ₹36.80 million and PVC ₹6.19 million, while consolidated segment result fell 51.7% QoQ.
Key positives
- Consolidated revenue reached ₹2,290.03 million, up 27.8% YoY, while operating margin recovered to 8.0% from a prior-year negative base.
- MDF turned profitable at a segment result of ₹29.73 million versus a ₹135.73 million prior-year loss, despite revenue declining 13.0% QoQ.
- Finance costs declined 7.1% YoY to ₹77.72 million, providing some below-operating-line support.
- Segment assets rose 5.7% YoY to ₹13,140.24 million while depreciation increased 5.9%, a clean depreciation-to-asset-base signal.
Key concerns
- Gross margin compressed 638bps YoY to 39.6% as raw-material costs rose to 60.4% of revenue from 54.1%; the filing does not disclose the cause or the extent of pass-through.
- Operating margin declined from 15.2% implied in Q4FY26 to 8.0% in Q1FY27, and PAT fell 80.4% QoQ from ₹101.20 million to ₹19.83 million.
- MDF segment result fell 82.8% QoQ from ₹173.21 million to ₹29.73 million even after turning positive YoY, indicating weak sequential earnings momentum.
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