Rushil Decor Limited (NSE: RUSHIL) Q4 2025 Earnings Call dated May. 15, 2025
Corporate Participants:
Unidentified Speaker
Karan Bhartelia — Investor Relations
Rushil Thakkar — Managing Director
Keyur M. Gajjar — Chief Executive Officer
Hiren B. Padhya — Chief Financial Officer
Analysts:
Unidentified Participant
Sandy Mehta — Analyst
Moksh Ranka — Analyst
Rudraksh Dahija — Analyst
Yash Sonthalia — Analyst
Krishna S — Analyst
Ashutosh Ketan — Analyst
Resha Mehta — Analyst
Karan Bhartelia — Analyst
Presentation:
operator
IT. Ladies and gentlemen, you are connected to Dushield Decor Investor Q4FY25 earnings conference call. The call will begin shortly. Please stay connected. I repeat ladies and gentlemen, you are connected to Tushield Decor Investor Q4FY25 earnings conference call. Please stay connected. The call will begin shortly. IT. Ladies and gentlemen, good day and welcome to the Rusheel Decor Investor Q4FY25 earnings conference call hosted by Asian Market Security Private Limited. 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 star 100 on your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Karan Bhartelia. Thank you. And over to you sir.
Karan Bhartelia — Investor Relations
Thank you Anushka. A very good afternoon and welcome all to Rushantegov’s fourth quarter FY25 earnings conference call hosted by Asian Market Securities. From the management side we have Mr. Rushantakar executive director Seyer Gajjar, CEO. I now hand over the call to Rushil Bhai for his opening remarks post which you can attend the floor for Q and A. Thank you. And over to you Rushin Bhai.
Rushil Thakkar — Managing Director
Good afternoon ladies and gentlemen. Welcome to Limited’s earning conference call for the fourth quarter and the full year ended 31 March 2025. I would like to express my gratitude to everyone for joining us today. I am joined by Mr. Tudor, our CEO and Mr. Hiran Khadya our CFO. The investor presentation has been shared and uploaded on the exchanges and we hope you had an opportunity to review the material in advance. Let me begin by reflecting on our performances in the quarter 4 financial year 2025 in the MBF business. We reported a strong growth in exports with the export revenue increasing by 52.8% year over year and 9.8% quarter over quarter.
The growth reflects our strong position in international markets with the volume rising 37% year over year. The total revenue from the MBF business reached to Rs. 1688 million with 9.6% increase quarter over quarter. EBITDA in this segment was Rupees 181 million and with an EBITDA margin of 10.7%. Despite challenges in the domestic market, export volumes and realization remained robust helping offset the decline in the domestic revenue. For the financial year 2025, MBS business showed a 5.2% year over year growth in revenue driven by 42.8% growth in export revenues. We remain focused on expanding our international footprint and optimizing operations to sustain growth.
Turning to the laminate business, we saw a 9.1% increase in revenue quarter over quarter with 5.9% growth year over year. Our export revenue increased by 10.3% year over year with the blended realization improving by 9.5%. This performance reflects the growing demand of our premium lemonade in international markets. In financial year 2025, our lemonade division reported 4.7% year over year revenue growth supported by 7% increase in export sales. Export demands continue to be strong, contributing in significant share to overall revenue and strengthening our presence in international market. We are also pleased to share the phase one of our Jumbo Lamyat facility begin commercial production in April 2025 with an annual capacity of 1.2 million sheets.
We have already issued export order utilizing 15% of the kick of this capacity indicating encouraging market response. Furthermore, we are on track to commence the phase two production by the month of October this year. On the Profitability front, our PET for quarter four, financial year 2025 reached to rupees 126 million showing a 40% increase year over year and 9.7% growth quarter over quarter. With the PET margin of 5.5%. For the financial year 2025, PET increased by 11.1% year over year to rupees 479 million with the net margin of 5.3%. This performance reflects ongoing focus on improving the profitability and maintaining the cost efficiency.
In conclusion, we remain confident in our growth path ahead. We remain. We are aiming to cross rupees eleven thousand million in consolidated revenues in the financial year 2026. Our strong export performance, new products in productions and well executed expansion strategy has positioned us for the future. We remain dedicated to delivering consistent value to our investors and stakeholders. Thank you for your continued trust and support. I will now hand over call to Mr. Hiren Padhya, our CFO who will provide you with further insights into our financial performance. Thank you.
Hiren B. Padhya — Chief Financial Officer
Good afternoon Everybody. Thank you. Mr. Rochel. I am pleased to present an overview of Rachel Dagor Limited financial performance for the quarter four and full year ended 31st March 2025. For Q4FY25, our revenue from operations amounted to Rupees 2307 million representing 1.2% decline year over year but 9% increase quarter over quarter. Our gross profit for the quarter was 1011 million with a gross profit margin of 43.8%. Our EBITDA for the quarter four was 230.6 million, 21.1% down year over year and 15.6% quarter on quarter with an EBITDA margin of 10%. Although EBITDA has declined, we remain focused on maintaining operational efficiency and profitability, particularly through our strong export growth.
Pat for the quarter four was 126 million, a 40% increase year over year and 9.7% increase quarter over quarter with a margin of 5.5%. Now coming to full year performance, revenue from operations was 8,979 million marking a 6.4% year over year growth. The gross profit was 4,165 million. That is a growth of 3.8% year over year with a gross profit margin of 46.4%. EBITDA for the same period was 1,057 million. That is a decline of 11.8% year over year. Despite the decrease in the beta, our pact for the year 2025 increased by 11.1% year over year to rupees 479 million and PAT margin was 5.3%.
Now coming to MBA business Q4FY25 revenue for MBA was 1,688 million. That is 4.4% decline year over year but 9.6% improvement quarter over quarter. Our export revenue in this segment grew significantly by 52.8% year over year driven by 37% increase in export volumes. NBS EBITDA for Q4 stood at 181 billion with a margin of 10.7%. MDF revenue grew by 5.2% year over year to 6,637 million with export revenue growing by 42.8% year over year. MBS EBITDA for the year 2025 reached 8,051 million with a EBITDA margin of 12.8% in the laminate section. Again, Q4FY25 revenue increased by 5.9% year over year and 9.1% increase quarter over quarter to Rupees 530 million.
The export revenue grew by 10.3% year over year and blended realization increased by 9.5% year over year. LEM ER for Q4 was 45 million with an EBITDA margin of 8.5%. Laminate revenue was 1,989 million for the whole year, 4.7% increase year over year and export revenue grew by 7% year over year. Laminate EBITDA for the year was 190 million with a margin of 9.5% in terms of capital structure. Our net debt to equity ratio stands at 0.41x as of 31st March 2025. This is reflecting our financial discipline and commitment to maintaining a strong balance sheet.
In conclusion, while we face certain challenges in the domestic market, but our strong export performance and strategic investment continue to support our growth trajectory. We remain focused on driving operational efficiency and capitalizing on new opportunities in both domestic and international markets. Thank you for your kind 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 N1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sandy Mehta from Evaluate Research. Please proceed.
Sandy Mehta
Yes, for this new fiscal year, fiscal year 2026, can you just help us understand that the new capacity that’s coming. Online, how much will that enhance your. Revenue and profit and also with your exports, you know what is your.
Rushil Thakkar
Sorry, the question got cut in middle. Can you repeat the question again please? Hello, I think your voice is not clear.
Sandy Mehta
Can you hear me now?
Rushil Thakkar
Yeah, please go ahead.
Sandy Mehta
Yeah, so for this new fiscal year, fiscal year 26, can you help us understand the new capacity that is coming online? How much will that enhance your revenues and profitability and then also with your strong exports outlook, what is the outlook for this full year new year in terms of sales and profits? I think you had mentioned the revenue number. I missed that. But could you just help us understand the outlook for this year? Thank you.
Rushil Thakkar
Thank you for the question. So I’ll first answer your question about the new line in place. So we are targeting the new countries like America, then this Australia, New Zealand and European section where the this kind of jumbo laminates are being exported and they are the developed countries. So we have a specific product running over there which has a higher margin. So currently we are targeting about 90 crore rupees of exports to be done in this financial year which will be having an EBITDA margin margin of I would say roughly around 14 to 16%. And adding to the other part of the revenue, our target Is to reach 1100 crores of revenue this year by improving our MDF sales in value addition part and utilizing the capacity ahead, then we’ll be jumping over 10% the margin at the 10% revenue growth in the current laminate plant.
Till now our PVC unit which are slightly on the lower side of the revenue was not so big performer. But now this year it has given us the positive EBITDA margins as well as we are. We are looking forward to take a growth in that line as well. And coming back to the last point about the plywood which is the latest jv, the JV which we did last year, we are aiming at revenue of somewhere around 15 to 18 crores in that as well. So altogether we will be reaching somewhere around 1100 crores by the end of this financial year.
Sandy Mehta
And what is your margin expectation EBITDA margin percentage for this year, please?
Rushil Thakkar
So across the group, if I speak then our EBITDA margin could remain between 12 to 14%.
Sandy Mehta
12 to 14%. Okay, thank you so much.
Rushil Thakkar
Thank you very much for the question.
operator
Thank you. The next question is from the line of Moksh Ranka from Aurum Capital. Please proceed.
Moksh Ranka
Provide more color on it. And is there any regulatory changes which because of which need for that digitally created.
Rushil Thakkar
So first of all, we are already into this business for quite a long time now. And to make sure our distributors and our retail network has the complete product basket, we have done this JV in plywood to make sure that we have our non distributors, non retailers working with us in talking about the business. For the last year we were just setting up the quality of the plant and we were just making sure that we deliver the right product in the market. So we were not able to achieve much of the revenues in this financial year.
But yes, this year the target is really high. We are aiming at somewhere around 15 crores of sales this year with the margin of somewhere around 5 to 8%.
Moksh Ranka
Okay. And recently in March 2025 there was BIS guidelines among. So do you see? Because of that the organized players should gain market share from unorganized. Because Redwood has a very large unorganized market.
Rushil Thakkar
Yes, I agree a lot of cloud factory, they are probably affected. But I think we still have to wait for the results.
Moksh Ranka
Okay. And could you please help me understand the competitive intensity in the climate business? Because you can see one conglomerate has just discontinued their private business because of continuing losses. So I understand it’s very comprehensive. Could you just help me understand?
Rushil Thakkar
I think you know, everyone has a different business model. And I agree there is a discontinuation of private business by one company. But then there are a lot of other. Our competitors are instilled in the same business. We have a different model because we have a studio policy Wage studio as on that we have 100 plus studios operational in country where we display. I mean sort of our experience center for wheel laminate. Wendy fn I’m sure this will help us to push Flywheel also from this market in this store and Also we have 4000 plus dealers and distributors in our network.
We can always, you know, take advantage of this channel.
Moksh Ranka
And in the plywood segment are we targeting the most premium version of it? Because I think with MDX the lowest quality plywood I think is no longer consumed. Is my understanding correct?
Rushil Thakkar
Yeah. So already we have just targeted the premium versions of plywood that is ISO 301-71-0. So we are just focusing on that and we are not into the commercial fly as of now.
Moksh Ranka
Okay, I’ll get back in. Sorry, I’ll get back in for publication.
Rushil Thakkar
Okay, thank you.
operator
Thank you. The next question is from the line of Rudraksh Dahija from I thought pms. Please proceed.
Rudraksh Dahija
Thanks for the opportunity. Sir, considering that there has been capacity addition in going on in jumbo or let’s say large size lamin segment by both organized and unorganized players, how would you see the prices and henceforth margins. In this product going forward?
Hiren B. Padhya
So firstly I would say there are not many manufacturers who are manufacturing the jumbo sized laminate boards I.e. 14 by 6, 12 by 6 or 14 by 4.15 and other sizes. Very few of the organized players are only one who has this kind of a capacities. In talking about the margins. This product has a widely good margins. I already answered this in my earlier question that because of such a fantastic product line coming up we will be having an EBITDA margin in the positive side from 9% to somewhere around 14% in laminate or maybe I would say 13 to 4, 13 to 15% in laminates.
Rudraksh Dahija
Please go ahead.
Hiren B. Padhya
There would be a positive jump in this business because of coming with the jumbo limits coming into the basket.
Rudraksh Dahija
In this segment. Sir, do we face competition from other countries like let’s say China, Vietnam or Turkey?
Rushil Thakkar
The laminate business? Yes, we have the competition. But India dominates the world in the manufacturing of high pressure laminates across the globe because of several reasons. So yes, there is a competition from countries like Turkey, some countries, some of. The part of Europe. But we don’t see them as a threat because our cost of manufacturing is very far more lucrative than the other manufacturers in these countries.
Rudraksh Dahija
Even China or Vietnam. Our cost of manufacturing.
Hiren B. Padhya
Just manufacture the HPL for its own consumption. It does not export the HPL to Other countries in large numbers. India is the dominating market dominator of high pressure laminate across the globe. I would repeat this again.
Rudraksh Dahija
Okay, so since you mentioned pricing, considering tariffs imposed by us, does it still make sense to outsource manufacturing to countries like India? How much is the cost difference?
Rushil Thakkar
Of course, because the biggest part in manufacturing of laminate is a labor and labor in India is quite not so expensive in comparison to countries like USA where the labor laws are very strict, where the getting the labor for our is somewhere around $8 $9. So this makes a sense that the cost difference would be somewhere around 20, 25% manufacturing something in US for HPA then something to manufacture in India.
Rudraksh Dahija
Understood? Understood. One quick question sir. One of the other organized players in the market has just secured a white labeling business from Wilson Art which is a global laminates player. So do you see this as a normal course of business or this is a strategic shift where other global players might look towards India as a destination to outsource their manufacturing needs?
Rushil Thakkar
Yeah, it’s a strategic shift because Wilson AT has been always a pioneer in this business for a couple of decades now and slowly shifting their focus from manufacturing to trading has been their new strategic shift. So yes, it can be a good opportunity for people in India or the factories in India to do some of the white labeling and conquer some larger volumes across the globe.
Rudraksh Dahija
Are we seeing any traction from other global players?
Rushil Thakkar
Not yet. Because we have our own customer base ready with us. When as I mentioned in my opening speech, we have already done a tie up for 15% of our capacity of the jumbo laminates with one of the customers in Russia. And slowly and slowly, slowly and steadily we’ll be now signing the contract in other part of the globes as well.
Rudraksh Dahija
Understood sir. And Hyp, considering that we have just expanded and set up a new plant, would this satisfy the quality and testing that these global players would impose on us? Let’s say hypothetically if we get into such a contract would be. Would we be able to meet their needs with this current plant?
Rushil Thakkar
Yeah, of course. We have settled up this plant like one of the state of the art manufacturing manufacturing facility in India. So it is of course this is a good opportunity for us as well.
Rudraksh Dahija
Understood sir. Thank you.
Rushil Thakkar
We have already started securing few of the licenses which are required for exporting HPLs to Europe and US like other countries.
Rudraksh Dahija
Understood sir, Understood. So thank you for your detailed answers. I’ll come back in the kitchen.
Rushil Thakkar
Thank you.
operator
Thank you. Before I take the next question, I would like to remind participants that you may press Star in one to ask a question. The next question is from the line of Yash Son Thalia from Edwell is Public Oils. Please proceed.
Yash Sonthalia
Hi team. Congrats for good set of numbers. So I have a couple of questions regarding MDF business. So maybe first you can help me understand like what is the outlook and how has been the first few months of Q1 from the demand perspective and how the realizations are moving. Are we planning any price cut or price hike in MDF business?
Rushil Thakkar
Right? Yes, demand is now getting normal from February March it is consistent. Price cut. Yes, some of the player in some grade taking the price cut between 2 to 4 or 5% and we see huge opportunity in coming days as far as value added business is concerned because of implementation of BIS standard. We see a lot of local OEM who are dependent on imports are now shifting to local players.
Yash Sonthalia
And sir, follow up on the same. Like what will be the current price difference between domestic value added or normal MDF compared to which is currently imported by the OEMs.
Rushil Thakkar
As such, nowadays you know there is no much or I would say almost zero import from this place because of BIS standard. So it’s completely local.
Yash Sonthalia
Understood. But once the importers will also comply with BIS standards the broadly what it.
Rushil Thakkar
Could be between 10 to 15%.
Yash Sonthalia
Understood? Understood. Any outlook going forward when we are planning to take price hike because the timber prices are still rising, right?
Rushil Thakkar
I think we don’t have any plan for price hike in near future. But yes, probably we are considering the scheme which was given in the market for 2 to 5% that will be withdrawn in coming days.
Yash Sonthalia
Understood? Understood. Thanks. That’s all from my side. Best of luck for the quarters.
Rushil Thakkar
Thank you.
operator
Thank you. The next question is from the line of Krishna S from Vihaan. Please proceed.
Krishna S
Yeah. Good evening to the management of Rachel Decor. So congratulations first of all on a set of decent numbers considering the market conditions which have been pretty challenging overall. So just two questions from my side. One is that the jumbo laminates is a good is a step in my opinion in the right direction in terms of focusing on exports of jumbo laminates. But so now. But because of the tariff environment, like you know, the. Because of the US tariff environment. So do you think that the tariffs will impact the sales to US market? And if yes, then what is the plan? Will we still be able to export even with the higher tariffs? Or if not, if it would be difficult whether we are planning to, you know, rethink on our strategy and probably change or probably move to some other countries.
So that is the first question and the second question would be on the fire incident. Unfortunate fire incident which has happened and so like whether we are fully recovered and what is the plan for mitigating some risk management measures in the future. So these are the two questions from my side. Thank you.
Rushil Thakkar
Thank you very much for the question. First question regarding the jumbo laminate and the tariffs. As I told in my earlier question, India dominates the market across the globe 4 hpf. So putting the tariff number won’t be an issue because already the current manufacturers who are manufacturing the jumbo size boards for the American market have been still exporting in the same volume. There has not been an air the dip in the number as we analyze. So we don’t, we also don’t see a kind of a threat that the new duties getting imposed on India would affect much in the sales of our or we need to change the strategy over this.
This is very clear from our side that yes all the developed countries and the markets are. Each and every country has a huge market potential in it. So yes, if there will be a further any kind of a tariff and we need to change the strategy then yes, we’ll be focusing on the other part of globes as well. But ultimately the main agenda is to make sure that the revenue which has to be achieved has to be achieved.
Krishna S
Okay, Understood sir. Yeah.
Rushil Thakkar
And talking about the fire incident. Yes it was very unfortunate for us that during the starting of the year on very first quarter this incident happened. So after a long battle amongst recovering the machines and everything we started our production yesterday. And coming back to the recovery part I would, I think Mr. He and Padya would answer much better than me.
Hiren B. Padhya
Okay. See the first part is like so far as insurance is concerned we have taken adequate insurance in terms of loss of material and secondly the flop that is loss of profit quality is also there. So now we have already started the operation so the process for this insurance will start and we will, we are there expecting that we’ll definitely recover in terms of material 100 in terms of profit also. So it is a process. So I think in due course of time we’ll be able to know the exact amount which we are going to recover.
Krishna S
Okay. Okay.
Hiren B. Padhya
Yeah. And. And the, the follow up is that like you know, in the future like means what are the learning because in such kind of things the more important thing would be to learned and so that you know it can be mitigated in like there could be some risk mitigation measures.
Rushil Thakkar
Yeah. So already Those least mitigation measures have been taken and this was very unfortunate because generally the sensors does not kind of escalate this kind of temperature which was escalated so we have already taken the measures and yes we have made sure that this kind of incident can, can be, there is, can be mitigated because of this kind of incidents.
Hiren B. Padhya
As an information I would like to tell you that in the history of Rush I think this would be a one off incident Otherwise for the last so many years I think we have never witnessed such incidents. I think I have answered your question.
Krishna S
Yeah, thanks, thanks for your answer sir it’s. The question has been answered, I’m much satisfied with the answer so good luck to you sir Good luck to you and keep it up, keep up the tempo. Thank you, thank you.
operator
Thank you. Before I take the next question I would like to remind participants that you may press Star in one to ask a question. The next question is from the line of Ashutosh Ketan from Asian Market Securities. Please proceed
Ashutosh Ketan
yeah hi sir, I just have a couple of questions so first is on the CAPEX side so what will be the Capex for the current year and FY27 in both of the segments or on the company level?
Rushil Thakkar
Okay, go ahead Please complete the question.
Ashutosh Ketan
And. Okay and the second question is the. Debt repayment, how it will be and the net debt to equity target going. Forward.
Hiren B. Padhya
So see if you consider this financial year that is 2526 as of now we don’t have any additional capex which is required only because of the fact that the Jumbo plant has already started Phase one is already started, Phase two is already in the pipeline and if you see the actual position of our Warrant where almost 44 crore is still pending so in due course of time the fund will come as a part of legal part the last date for receipt is 22 June so we’ll definitely receive the pending amount and this will be specifically for the Jumbo Phase 2 project only in terms of normal operation Capex is concerned I think that will be, I mean taken care from internal only in case of any new project which we are considering but as of now we have not finalized anything so in case of new project I think the question will come up in terms of means of finance but as of now I think we are already planned and no further Capex is required for the current financial year so far as deep equity is concerned as of now in terms of date it is being reduced every year by at least 52 to 55 crore as a part of scheduled repayment of loan.
So date will definitely further reduce equity will increase. In terms of finalizing this warrant part and profit, I think you know it. So considering all three parameters it is relevant for dtp I think we are in positive side. So if you consider that if we make payment of 50:55 crore in the current financial year and normal profit will remain then the debt equity ratio will further reduce to around 0.35.
Ashutosh Ketan
Got it. Got it. So sir, on the CAPEX side you told that operation Capex will be there. So any quantum like how much will. Be that operation CAPEX.
Hiren B. Padhya
Would be in. The range of 15 to 20 crore max.
Ashutosh Ketan
Okay. So that’s it. Thank you.
Hiren B. Padhya
And if you know the the warrant part out of 122crore 10crore is for MDS operational capex only. So that is also resource for us.
Ashutosh Ketan
Thank you.
operator
Thank you. Before I take the next question I would like to remind participants that you may press star in one to ask a question. The next question is from the line of Resha Mehta from Green Edge Wealth Services. Please proceed.
Resha Mehta
Yeah, thank you. So what is only gross margins? So gross margins sequentially has seen a sharp dip of close to 400bps. So how do you see the input price pressure going ahead?
Hiren B. Padhya
You’re right. I think if you compare a couple of quarters along with the last quarter there’s a decline in terms of gross margin that is only because of the fact that the timber price has increased. I would simply say that for next financial year we as a management are expecting that there may not be further increase in terms of timber. We are expecting that the prices of timber will be stable and maybe after a couple of quarters I think there might be a downward trend also so far as the other chemical other part is concerned, we had seen and witnessed for the last couple of years there is a here and there 5, 10% increase decrease but there is no substantial change in terms of pricing so far as the chemical part is concerned.
So we are expecting that considering the couple of things which we are planning for next financial year. First is like the wood price will be remaining stable. Second, the new project or Dembo has already, I mean, I mean plan and started then the export we’re already on the path of not only I mean improving the quantity but the realization is also increased. Fourth is like value the proportion also we are targeting to increase further and then the positive impact of the BIS standard. I think all put together we should be at least maintaining the gross margin than the overall margin in the next financial year.
Resha Mehta
So when you say we expect timber prices to be stable for the next financial year, meaning 25, 26. Right. Is that yes?
Hiren B. Padhya
Yes. Yes.
Resha Mehta
Okay. And see, there would be some other reasons also which would be attributed to, you know, the decline in gross margins, at least on a sequential basis. Because just in Q3 we had a 48% kind of gross margin and now it’s down to something like a 44% kind of gross margin. So what would be the other reasons besides the timber price increase?
Hiren B. Padhya
There are one more thing. If you compare the last quarter, then of course there is a decline in terms of valued product proportion. So far for the whole year we have been targeting and we have been achieving the increase in the proportion of validated in terms of mdf. For the first time in this quarter there was a decline. So any decline in terms of ratio of value weight will definitely affect the margin. So that is one of the reason for these decreasing margins
Rushil Thakkar
because there was. Some maintenance part during in our pre lamination machinery, but now things are good.
Resha Mehta
Okay, and the next question is on your laminates volume. So for Q4 there’s been a marginal decline in the volume. So it’s begrun by around 3%. So what can that be attributed to?
Rushil Thakkar
So we talk about when the manufacturing of laminates, the laminates capacity is always measured with a 1 millimeter 1 millimeter thickness. And the production in this quarter of higher thicknesses than 1mm has taken place because of which the capacity remains the same. But the number is slightly different because when we produce 6 millimeters or maybe around 10 millimeters, the cycle for that goes little higher. So we don’t see any decline in production capacity. Just see that there is no one millimeter, there is higher thickness is being produced. If you compare the revenue compared to last financial year, it’s increased.
Resha Mehta
Okay, right. No, no. Understood sir. On the mds, lastly on the MDS visit. So again over here, the domestic volumes, you know, largely they’ve been kind of in a declining trend if I look at, you know, the past five, six quarters. So. With all of this, you know, how, how do you, you know, with the current demand and the pricing pressure, etc, etc, how do you see the volumes you’re shaping up along with the EBITDA margin? So for FY25 26, what would be your volume growth expectation and your EBITDA margin expectation from MDX?
Rushil Thakkar
See, if we compare last quarter it was 43,400 cbm and this quarter it is almost like 45,700 cbm. So compared to last Quarter we have, you know, a little bit 2000 plus CBM growth. Yes, I agree. If we compare with the previous quarter, it used to be 50,000 plus and likely in this quarter we’ll be able to make it.
Resha Mehta
But for the. How do you see the MBS business shaping up 2526 in terms of volume growth as well as in terms of EBITDA margins?
Rushil Thakkar
I just want to say one thing. In 2425 our domestic volume is almost 1.97 lakh compared to last year it was 1.98. And we are pretty sure that we want to cross this mark. We see this financial year. And also I would give some guidance over here on the regulated business also. So in current financial year the average was somewhere around 43 in terms of quantity and I think somewhere around 53% in terms of revenue. So we are targeting this year that we will be doing 50% of VAT in this. This year in terms of quantity and in terms of revenue will be contributing 60% roughly on the value added business which will increase the profitability into the business. And we would take an expected growth somewhere around 8% to 10% in the business of MBF.
Resha Mehta
So okay, so MBF value growth, revenue value growth would be around 8 to 10%. And in terms of EBITDA margins, would you like to give some kind of an.
Rushil Thakkar
Again as I earlier told the margins across the group would be somewhere around 13 to 16% across the all product margins or sorry, all product range is what we are providing now.
Resha Mehta
All right, all right. And lastly on the other income, so that’s you know seen a sharp increase. So from 3 crores in FY24 to 12 crores in FY24. I see there is a 2 crore exceptional item in terms of a land sale. What would be other the balance other. Income be.
Hiren B. Padhya
The other income mainly includes the Karnatak government subsidy which is almost for the whole year is around 6 crore. Then second part is like forex gain which is again more than 2 crore. And third is like we had a small incident of fire in the last year in terms of a go down where the again that claim which has been received that was also in the range of 2 crore. So these are the three things which was there which was not there in the last year. So this is exceptional item and that is how the.
Resha Mehta
And the subsidy will continue.
Hiren B. Padhya
Yes, every year it is based on the export part.
Resha Mehta
Okay, all right, all right, thank you. And all the rest.
Hiren B. Padhya
Sorry, it is that it is a basis that total turnover which is being, I mean operated in that particular region. That is.
Resha Mehta
Sure. Thank you.
operator
Thank you. The next question is from the line of Karan Bhartelia from Asian Market Securities. Please proceed.
Karan Bhartelia
Hi. Thank you. Am I audible?
Rushil Thakkar
Yeah, Please go ahead. Karan Bhatti.
Karan Bhartelia
Yes. I wanted to understand how is the demand and supply for MTS category. Are we done with majority of the TPEGs and how do we see our export contribution growing? Because 20 to 30%. So how do you want to see your export shaping especially in the MDF?
Rushil Thakkar
I’ll just speak about export first. For NBS, we have been targeting some of 7,000 cubic meters a month from the plant to be dispatched for the export for the exports of mdf. And lastly from last year when once we completed our the export obligation we have been always focusing on the new geographical countries and also we have been focusing on exporting the value addition product which has given the significant growth in terms of realization in this quarter and this financial year as well.
Karan Bhartelia
But what we understand export is not a very margin accretive product compared to domestic market. So how different is your export, you know, profitability compared to the psx?
Rushil Thakkar
So we talk, when we talk about just the last financial year the export realization was standing somewhere around 19,724 which has now increased to 21,280 rupees. Right. And.
Karan Bhartelia
And on the margin side.
Rushil Thakkar
On the margin side. When we are saying that realization has improved. So whatever margin was there in the previous year, it has definitely improved because last year was the year where we were just focusing on that export obligation where we had got some obligation that we were compelled to do some export. But for the last almost 3, 4/4 now there is no obligation. So we are very much flexible in terms of taking orders where the margin should be as per our expectation. And there are a couple of countries which has now started giving inquiries also. So it is not just Middle east and Far east, it is now going beyond that.
So now any, any other continent is the market for us. And then any other continent other than the Midwest parties, the margins will definitely be high.
Karan Bhartelia
Which destinations are you referring to out here?
Rushil Thakkar
We recently started our exports of MDF to countries like Israel. Then we just did in Portugal, then we just did an export to this Canada. So these are the three countries we started this quarter.
Karan Bhartelia
Right? Right. And some color on the domestic demand supply scenario today and two years from. Here
Hiren B. Padhya
from two years. If we talk about, we don’t see any major capacity announcement. So now we see that, you know, if you want to put Up a new plant is usually take two years to two and a half years minimum. As on that, we don’t see any much major capacity announcement in pipeline. So I think capacity is almost now, you know, 3.5 to 4 million. And because of BIS we see there is a huge shift from OEM business. To. You know, local player, from import to local player. This will definitely increase the.
Karan Bhartelia
And just to, just to continue on bis, my channel check suggests, you know, few Malaysian players and Thailand players have already received the bis.
Rushil Thakkar
I think yeah, two to three players, they got the biscuit. But so far we have not received any news about India. I would also add Karanda here that the BIS standards are strictly more like more stricter than the product which we used to get imported here. The ratios of food are predefined now, the ratios of chemicals are predefined now. So it is going to be a. Slightly higher production for cost for them as well to make sure that they enter into the India market. So it is also big challenging for them just to get license won’t sell that problem because the prices what they used to quote is now not at all acceptable to the Indian market as well.
Karan Bhartelia
Right. And. And a few listed players have gone ahead with price cuts in the domestic MDF market. Are we participating too?
Rushil Thakkar
Yes. In Q1 we took a slightly dip for the prices to make sure we be competitive to the unorganized players currently in the market.
Karan Bhartelia
Right, right, right. Okay. I’ll just join the committee. Thank you.
Rushil Thakkar
Thank you.
operator
Thank you. The next question is from the line of Moksh Ranka from Aurum Capital. Please proceed.
Moksh Ranka
What is the structural reason behind the rising export realization for our mdf?
Rushil Thakkar
So typically the order booking what we used to do for just the normal MDF has changed. We have changed the ratio of booking the normal mdf. If anyone needs the normal ndf, then he has to give a certain portion for value addition which gives the higher realization. In terms, you can notice that for the Q1 the realization stood somewhere around 20,200. In the Q2 it increased by 21,300. In Q3 it increased by 21,400. Today we are standing at somewhere around 22,000. So this strategy is playing a good role in improving our MDF realization in terms of export market.
And we have been focusing in the countries where we also get a value addition like Israel is a complete value addition product. We are serving. We are not serving the normal MDF in that. So we are focusing on the right markets where we can get the volumes as well as the prices.
Moksh Ranka
Okay. And. Okay. That’s it for me, guys.
Rushil Thakkar
Thank you. Thank you very much.
operator
Thank you. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to Mr. Rusheel, sir, for closing comments.
Rushil Thakkar
Thank you all for taking the time to join us today for your continued interest in Rasheed Echo Limited as we continue to navigate opportunities ahead, we remain committed to achieving our strategic objectives and delivering the consistent value to our stakeholders. For any further questions, please reach out to our investor relations team at Church With Partners. Thank you once again.
operator
On behalf of Asian Market Securities Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.