Rushil Decor Limited (NSE: RUSHIL) Q1 2026 Earnings Call dated Aug. 11, 2025
Corporate Participants:
Unidentified Speaker
Karan Bhatelia — Asian Market Securities
Rushil K. Thakkar — Executive Director
Hiren Padhya — Chief Financial Officer
Keyur Gajjar — Chief Executive Officer
Analysts:
Unidentified Participant
Rehan Syed — Analyst
Sandy Mehta — Analyst
Smant Jane — Analyst
Maitri Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The Rushield Decor Limited Q1 FY26 earnings conference call hosted by Asian Market Securities Pvt Ltd. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing 0 on your touchtone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Karan Bhattalia. Thank you. And over to you, sir.
Karan Bhatelia — Asian Market Securities
Thank you, Anushka. A very good afternoon and welcome all to Rusil de Gaulle’s first quarter FY26 earning conference call hosted by Asian Market Securities. From the management side we have Mr. Rushil Thakkar, Executive Director Keru Kanjar, CEO and headed by CFO. I now hand over the call to Rushil Vai for his opening remarks post which we can open the floor for Q and A. Thank you. And over to you sir.
Rushil K. Thakkar — Executive Director
Good afternoon ladies and gentlemen. Welcome to Rushil Decor Limited’s earning conference call for the first quarter ended 30 June 2025. I would like to thank everyone for taking the time to join us. Today. I am joined by our CEO, Mr. Keru Gachar and our CFO, Mr. Hiren Patia. The earnings presentation has been shared with the Stock Exchange and we trust you had the opportunity to review the material. Let me begin by addressing an unfortunate event during the quarter. In early April, a fire broke out at our Andhra Pradesh MDF facility. Thankfully, there were no injuries and no damages to the core manufacturing assets or inventory. The incident was contained to an area outside the main operational zone. Production was disrupted temporarily and resumed in mid May. While this impacted our performance for the quarter, we have initiated the insurance claim for the process and are covered for both material loss and the loss of.
Profit in the MDF business. The revenue for the quarter was Rupees 12,42 million as compared to 1692 million in quarter one financial year 25. On the profitability front, the temporary shutdown affected our EBITDA margins and the business reported a negative EBITDA of rupees 73 million. The loss of 43 days of production which also includes eight days of planned maintenance. Shutdown has led to a decrease in volumes which stood to 52,074 cubic meters during the quarter. However, it is encouraging to note that the blended realization improved by 4.5% year over year supported by the disciplined pricing and improved product mix. Despite of disruption, we have observed A steady recovery in the operations since the resumption.
Turning to the laminate business, revenue was rupees 445 million at 5.6% decline year over year. The decline was primarily due to the lower export volumes which were down by 16.9% year over year. However, the blended realization improved by 5% year over year with export market realization rising 5.7% and the Indian market realization increasing 7.3% year over year respectively driven by the selective price adjustments and a favorable product mix during the quarter, Phase one of Jumbo Laminate facility in Gandhi Nabar began the commercial production. However, the dispatches were deferred as we awaited key certifications required for exporting to certain regions.
With these certifications now secured and the machinery aligned to the targeted production mix, we are set to begin the dispatches for this from the second quarter. Additionally, Phase two of Jumbo Laminates project is progressing well and is expected to be operational by October 2025. As part of our sustainability efforts, we continued our plantation program in Andhra Pradesh and Karnataka having planted over 24 million saplings to date. This initiative, which works closely with the local farmers, reinforces our commitment to responsible sourcing and long term environmental stewardship. Looking ahead, the impact of the fire incident was limited to quarter one.
Operations at Andhra Pradesh NDF facilities are now running at the close to optimal level with normalized production, improved capacity, utilization and contribution from the Jumbo Laminates facility. We expect a strong performance in quarter two and we remain committed to disciplined execution and strengthening our product offerings. That concludes my remark. I will now hand over the call to our CFO Mr. Hiren Padia who will take you through the financial performance in the greater detail. Thank you.
Hiren Padhya — Chief Financial Officer
Good afternoon everyone. Thank you Mr. Roshan and warm welcome to all participants joining us today. Let me take you through our financial performance for the quarter ended 30 June 2025. The first quarter of FY26 was operationally challenging largely due to temporary disruption at Andhra Pradesh plant. As previously shared, a fire incident in April led to a suspension of production which had a significant impact on revenue volumes, capacity, utilizations and overall profitability during the quarter. Our consolidated revenue from operations was 179.2 crore reflecting a decline of 20.4% year over year and 22.4% quarter on quarter. Gross profit was rupees 74.4 crore with a gross margin of 41.5% compared to 45.4% in Q1 FY25 EBITDA for the quarter stood act was negative.
However, if Forex loss of 5.7 crore is excluded then the index EBITDA would have been 3.5 crore with a margin of 2% positive. Now moving to a segment performance starting with MBA, business revenue was 124.2 crore down by 26.6% year over year. Volumes declined by nearly 30% year over year due to the temporary shutdown of operations and significantly lower exports which were strategically reduced to optimize blended realization. As a result, blended realization improved by 4.5% year over year. Additionally, it is important to note that around 40 to 50% of our domestic MDF revenue is recorded on an ex factory basis.
If reported on for basis, our domestic realization would be approximately 4 to 5% higher than the currently stated. This will provide a more comparable view with industry peers. Now turning to Laminate’s business, revenue for the quarter was 44.5 crore, a decline of 5.6% year over year. The domestic market remained resilient with revenue growing by 9.3% year over year. Laminate’s EBITDA for the quarter increased 5.9% year over year to Rs. 4.5 crore with a margin of 10.2% and blended realization improved by 5% year over year. In terms of balance sheet position, our net debt equity ratio improved to 0.4x as of 30th June 2025.
On the fundraising part we received 93 crore out of 122.7 crore which was proposed as a preferential allotment. A small portion of allotment was forfeited due to non conversion but this has not impacted the Jumbo Laminates Phase 2 expansion plan. To summarize, Q1 impacted by an unforeseen operation disruption affected the overall performance. Having said that, we have resumed full operation at MDA plant. The laminates business continues to remain steady and we are confident of regaining growth momentum as we move into the second half of the fiscal. Thank you for your attention. I would now like to open the floor for questions and answers.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Rehan Syed from three Nether asset managers. Please proceed.
Rehan Syed
Good evening Sir. Team and thank you for giving me the opportunity. So I have a couple of questions. First on the capacity utilization side. With MDF capacity utilization at 58% this quarter, how quickly do you expect William took back to free incident level and would you be seeing any temporary outsourcing to be demand for this?
Rushil K. Thakkar
So I would like to say that first of all during this incident our chick mangalore plant reported the capacity utilization of roughly around 99%. And hopefully we’ll be doing the same in the same quarter as well. Coming back to the Andhra Pradesh plant, because of the incident, we were reported to have a 43% optimization on the earlier quarter. If you see we have already utilized the the capacity up to 80 to 85% which we are targeting for this quarter as well.
Rehan Syed
Right. Okay. Okay. And my second question is around the. MDF volume the company. So you have mentioned that company aims for 50% of MDF volumes from value products in FY26. So what proportion was assumed in quarter. One and what new SKUs is being introduced to drive this shift? This is my last question. Thank you.
Keyur Gajjar
This quarter we have achieved almost 41% in terms of quantity and usually it’s around 44 to 45%. But because of the AP plant issue we couldn’t achieve 45 or more. But I think in coming quarters we’ll be able to manage 50% and we are fully concentrating on achieving 50% of value added business. That’s our main objective because we really wish to increase our value, our realizations and I think this is one of the best way.
Rehan Syed
Okay. We are expecting this thing in second half or by quarter two.
Keyur Gajjar
Yeah. Gradually by second quarter or third quarter. We’Ll be able to close.
Rehan Syed
Okay. Okay. That’s it for my third and take and good luck.
Keyur Gajjar
Thank you very much.
operator
Thank you. Before we proceed with the next question, participants, in order to ask a question, you may press start and one on your touchstone telephone. We take the next question from the line of Sandy Mehta from Evaluate Research. Please proceed.
Sandy Mehta
Yes, good afternoon. Thanks for taking my question. I think it’s been a little bit frustrating for shareholders because the company has plans in place for higher margin products exports. The revenues have grown for the last few years, but the margins and the earnings have been disappointing, to be very honest. Can you just talk a little bit about where you expect margins to be? What are your margin expectations for this year and next year? What should shareholders look forward to as a normalized level of margins or profitability going forward?
Hiren Padhya
Yes, I think it is a good question. See in the starting of this financial year, we were just hoping for overall margin of around 12 to 13%. I mean EBITDA because of this event, I think first quarter impact has already been done. So for this financial year we will be expecting, I mean the guidance from our side would be around 11 to 12% EBITDA margin so far as this financial year is concerned. However, I think as you know, the new project of Jumbo has already started not only production, but we have received a couple of orders also and we have started dispatching also.
So compared to the existing margins of laminates which is hovering around 8 to 10% for the last one year here, the jumbo has got margin of around 14 to 16%. So overall margin of laminate, if you consider both the things together, I think next year would be relevant year for improving margin of laminates to the extent of 12 to 13% on a yearly basis. That is 26, 27 coming to MDF. Again, utilization wise, we have got ample space in terms of additional capacity. And second part is as rightly mentioned, the last question, value added proportion, which is in the range of 40 to 43% which will definitely go up to 50% in terms of quantity and 60% in terms of value.
Third is BIS standard implementation. And this all three sectors together. We can definitely, I mean expect that the margin which we are going to have this financial year will improve by at least one or two percentage in terms of EBITDA so far as next year. That is 26, 27 is concerned. So we are very much hopeful about it.
Sandy Mehta
So Overall then for 26, 27, what sort of EBITDA margin are you looking at overall next year?
Hiren Padhya
That is what I was trying to tell you. It is, we are expecting 1 or 2% higher than the current current we are targeting 11 to 12. So next year we can target, I mean around 13 or 14%.
Sandy Mehta
And earlier a few years ago the company had reported as high as 15 to 18. So is that possible or unlikely? Now going forward we should look at 13 to 14% as your normalized level going forward.
Keyur Gajjar
We are saying that’s what we are targeting to achieve. Minimum 13 to 14% next financial year. But yeah, 15 to 16% is also possible and we are working hard on that product mix.
Sandy Mehta
Okay, I wish you luck. Thank you.
operator
Thank you. Before we proceed with the next question, a reminder to the participants. In order to ask a question, you may press star and 1. The next question is from the line of sun month. Jane from Pinpoint Capital, please proceed.
Smant Jane
Yeah, hi. I hope I’m audible.
Hiren Padhya
Yeah,
Smant Jane
so I have a couple of questions. So a lot of your peers are talking about passing on the reduction in timber prices to customers in July. So are we doing the same?
Rushil K. Thakkar
So actually in the current quarter we still have a steady raw material pricings so. Yes, but in coming quarters according to the demand supply as per the requirement we see there may be a slightly decline during the quarters coming and if at all we get an advantage then we may consider that as well.
Smant Jane
Okay. Okay. And the second question is one of the largest peers is doing a capex in South India. So should we expect some realization pressure there.
Rushil K. Thakkar
As of now for this financial year we don’t see any pressure because coming up with a plant is at 18 month to 24 month process and for this financial year we don’t see any pressure for realization for the new capacity coming in.
Smant Jane
Okay, yeah,
Keyur Gajjar
sorry, that new capacity is mainly and was a lower thickness and our lower thickness volume is not very high.
Rehan Syed
Okay, and what realization can we expect from Jambool ambinants?
Rushil K. Thakkar
So roughly as we say that the EBITDA margins currently what we consider is roughly around 15 to 16% and we will make sure that we try to achieve as we commit during the call.
Smant Jane
Okay. Okay, thank you.
operator
Thank you. Ladies and gentlemen, in order to ask a question please press Star in one on your touchstone telephone. In order to ask a question you may press star N1 on your touchstone telephone. The next question question is from the line of Maitri from Sapphire Capital. Please proceed.
Sandy Mehta
Yeah, hello.
Hiren Padhya
Yeah, please go ahead.
Maitri Shah
Yeah, just one question. What sort of revenue growth are we expecting for this year and the next fiscal year?
Hiren Padhya
I think in the last, last question I’ve already answered, however the I mean amount wise in terms of sales volume and the value the turnover wise we are expecting around 1000 crore this particular financial year and next year we can further improve in terms of, I mean having, I mean achieved more than 70% capacity in terms of new plant that is jumbo we can definitely, I mean expect around 1150 to 1200 crore turnover in the next financial year. So far as EBITDA as I informed this financial year we are, I mean hoping for the best in terms of percentage would be around 11 to 12% and next financial year again at least 2% rise over current financial year.
Maitri Shah
Yeah, that is it from my side. Thank you.
Hiren Padhya
Okay, thank you.
operator
Thank you. A reminder to the participants, in order to ask a question you may press Star in one. Ladies and gentlemen, in order to ask a question you may press star and one as there are no further questions from the participants. I would now like to hand the conference over to the management for closing.
Rushil K. Thakkar
Thank you all for taking the time to join us today and for your continued interest in the Shield Echoes as we continue to navigate the opportunities ahead. We remain committed to achieving our strategic objectives and delivering the consistent value to our stakeholders. For any other questions, please reach out to our investor relations team at ChargeGate Partners. Thank you Once again.
operator
Thank you on behalf of Asian Market Securities Private Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines