Rushil Decor Ltd (RUSHIL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Neerav (Concept Investor Relations): Good afternoon, ladies and gentlemen. I am Neerav, moderator for the conference call. Welcome to the concall of Rushil Decor Limited, organized by Concept Investor Relations, to discuss
Moderator: Ladies and gentlemen, good day, and welcome to the Rushil Decor Q2 FY '27 earnings conference call, hosted by Asian Markets Securities 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 this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Karan Bhatelia from Asian Market Securities Private Limited. Thank you, and over to you, sir.
Karan Bhatelia (Asian Market Securities Private Limited): Thank you, Palak. On behalf of Asian Markets Securities, we welcome all of you to the Rushil Decor Q2 and first half FY '27 investor con-call. From the management side, we have Mr. Rushil Thakkar, Managing Director and Hiren Padhya, CFO. Now I would like to hand this call to Rushil Bhai for his opening remarks. Post which, we shall open the floor for Q&A. Thank you, and over to you, sir.
Rushil Thakkar (Rushil Decor Ltd): Thank you, Karan Bhai. Good afternoon, ladies and gentlemen. Welcome to Rushil Decor Limited earnings conference call for the second quarter and half year ended 30th September 2026. I would like to thank you everyone for joining us today. I am joined by our CFO, Mr. Hiren Padhya. The earning presentation has been shared with the stock exchange, and I hope you have an opportunity to review it. Let me begin by sharing an overview of our performance and the operating environment during the quarter. I am pleased to share that Rushil Decor achieved its highest-ever quarterly revenue during the quarter to financial year 2027, reflecting improved business performance across our businesses. The quarter particularly encouraging for our laminate business supported by increasing contribution from Jumbo laminate, while the MDF business benefited from strong domestic demand and higher capacity utilization. The improvement reflects the progress made over the past few quarters in stabilizing the operation, improving capacity utilization, and expanding our portfolio. Coming to our consolidated financial performance, revenue from operation increased by 25.3% year-over-year to rupees 2,956 million in quarter 2 financial year 2027. EBITDA increased by 24.5% to rupees 280 million with an EBITDA margin of 9.5%, while profit after tax increased by 96.6% year-over-year to INR 101 million. For the first half of 2027, revenue from operations increased by 26.4% year-over-year to rupees 5,243 million, while EBITDA reached to rupees 462 million with an EBITDA margin of 8.8%. Coming to the laminate business, it continued to be an important growth driver during this quarter. The business achieved its highest-ever quarterly revenue of rupees 884 million in quarter 2 financial year 2027,
Rushil Thakkar (Rushil Decor Ltd): representing a growth of 61.7% year-over-year, supported by the higher domestic and export sales and and an increasing contribution from Jumbo Laminates. EBITDA more than doubled to INR 85 million with an EBITDA margin of 9.6% compared to 7.7% in quarter 2 financial year 2026. On the realization front, blended realization increased by 21.7% year-over-year to ₹847 per sheet, reflecting an improved product mix and higher contribution from the premium laminate product. The improvement in both revenue and profitability is encouraging and reflects the progress made in strengthening our process across domestic and international market. The Jumbo Laminate business in particularly has gained significant momentum during the quarter. Revenue increased by 97.3% subsequently to ₹217 million while EBITDA grew by 86.5% to 42 million rupees with an EBITDA margin of 19.4%. Total sales volume more than tripled subsequently, while capacity utilization reached to 41% in quarter 2 financial year '27, reflecting the gradual scale up of the operations. We have invested considerable efforts in the product development, certification, customer approvals and expanding our presence across the international market are now beginning to see the efforts translate into the higher sales and improved early contribution. Going forward our focus focus remains on expanding our customer base, increasing capacity utilization, and building on the progress achieved in the Jumbo Laminate business. Turning to the MDF business, I am pleased to share that the segment also achieved its highest ever quarterly revenue of ₹1962 million in quarter 2 financial year 2027, representing a 15.8% year-over-year increase. EBITDA increased by 6% year-over-year to ₹194 million. The performance was preliminary supported by the domestic demand across the retail and OEM channels with India MDF revenue increased by 41% year-over-year. During the quarter, we continue to adopt a calibrated approach towards the export in global trade uncertainties and elevated freight cost. Accordingly, we did not undertake any MDF exports during the quarter and continue to prioritize the domestic market. Despite the absence of the export sales, the business achieved a record quarterly revenue supported by the higher domestic sales, improved capacity utilization. MDF capacity utilization increased to 87% from 66% in previous quarter, reflecting a significant improvement in operating levels. We also remain focused on increasing the contribution from value-added MDF products during the first half of financial year 2027. Value-added products contributed 44% of MDF volumes and 55% of the revenues during the H1 financial year 2027. We are making the progress towards our target of achieving 50% of MDF volumes and 60% of MDF revenues from value-added products during the year financial year 2027. Increasing the contribution of this products remains an important priority as we work towards improving the product mix and profitability of the MDF business. Furthermore, during the quarter, we continued to strengthen our domestic distribution network by adding eight new direct distributors and 27 dealers. Expanding our distribution presence remains improvement from improving product availability and increasing our reach across the domestic market. Looking ahead, our focus for the remaining of financial year 2027 remains on sustaining the improvement in business performance, particularly in the laminate and Jumbo Laminate business. We are encouraged by the progress achieved in Jumbo Laminates where the efforts were made towards the product development and market expansion are now translating into the higher sales and improved profitability. In the MDF business, we will continue to focus
Rushil Thakkar (Rushil Decor Ltd): maintaining the higher capacity utilization, strengthening the domestic market presence and increasing contribution from the value-added products. Alongside this initiative, we remain focused on improving our overall product mix and managing operating costs across the businesses. We believe the progress made during the first half of financial year 2027 provides a good foundation to build on the current business momentum and improve our financial performance in coming quarters. That concludes my remarks. I would now like to hand over our call to our CFO, Mr. Hiren Padhya, who will take you through the financial performance in a great details. Thank you.
Hiren Padhya (Rushil Decor Ltd): Good afternoon, everybody. Thank you, Mr. Rushil. A warm welcome to all participants joining us today. I will now take you through the financial and operational performance of Rushil Decor Limited for the second quarter and first half of FY '27. Starting with the consolidated financial performance, the revenue from operations for Q2 FY '27 increased by 25.3% year-over-year and 29% quarter-over-quarter to INR ₹2,953 million. Gross profit for the quarter was ₹1,178 million with a gross profit margin of 39.9%. EBITDA increased by 24.5% year-over-year to ₹280 million with an EBITDA margin of 9.5%. Profit before tax was ₹106 million, while profit after tax increased by 96.6% year-over-year to ₹101 million with a PAT margin of 3.4%. For the first half of FY '27, revenue from operations increased by 26.4% year-over-year to ₹5,243 million. Gross profit was ₹2,070 million with a margin of 39.5%. EBITDA more than doubled to ₹462 million from ₹203 million in H1 FY '26 with EBITDA margin improving to 8.8% from 4.9%. Profit after tax was ₹121 million with a margin of 2.3%. The improvement in financial performance was supported by higher revenue across businesses, better capacity utilization in MDF, and increasing contribution from the laminate business, particularly Jumbo Laminates. Moving to segmental performance, starting with MDF business. MDF revenue for Q2 FY '27 increased by 15.8% year-over-year to ₹1,962 million, marking the highest-ever quarterly revenue for the segment. The growth was driven by domestic MDF business, with India revenue increasing by 41% year-over-year. Despite the absence of export sales, capacity utilization improved to 87% compared to 66% in the previous quarter. From a profitability perspective, MDF EBITDA increased by 6% year-over-year to ₹194 million with an EBITDA margin of 9.9%. For H1 FY '27, MDF revenue increased by 16.4% year-over-year to ₹3,418 million, while EBITDA increased to ₹317 million compared to ₹110 million in H1 FY '26, with EBITDA margin improving to 9.3% from 3.7%. Moving to the laminate business, the segment reported, again, its highest-ever quarterly revenue of ₹884 million in Q2 FY '27, representing a growth of 61.7% year-over-year. India laminates revenue increased by 82.1% year-over-year to ₹404 million, while export revenue grew by 47.7% to ₹480 million.
Hiren Padhya (Rushil Decor Ltd): Total sales volume increased by 32.8% year-over-year to approximately 10.4 lakh sheets. Blended realizations improved by 21.7% year-over-year to ₹847 per sheet, supported by an improved product mix. Laminate EBITDA more than doubled to ₹85 million compared to ₹42 million in Q2 FY '26, with EBITDA margin improving to 9.6% from 7.7%. Jumbo laminate portfolio continued to scale up during the quarter. Revenue increased by 97.3% sequentially to ₹217 million, supported by higher sales volume which more than tripled compared to the previous quarter. EBITDA increased to ₹42 million from ₹23 million in Q1 FY '27, with an EBITDA margin of 19.4%. Capacity utilization in Jumbo laminate business reached to 41% during the quarter. For the first half of FY '27 laminate revenue increased by 63.3% year-over-year to ₹1,622 million, while EBITDA increased to 56.6% to ₹137 million with an EBITDA margin of 8.4%. Blended realizations improved by 25.1% year-over-year reflecting the increasing contribution from higher-value products. Coming to the PVC business, revenue for Q2 FY '27 increased by 14.3% year-over-year to ₹103 million. Sales volume increased by 11.8% while blended realization improved by 2.3% year-over-year. EBITDA for the quarter was ₹2 million with a margin of 2.4%. For H1 FY '27 PVC revenue increased by 13.7% year-over-year to ₹200 million while EBITDA was ₹10 million with a margin of 5.1%. Moving to the balance sheet net debt as of 30th September 2026 was ₹2,715 million compared to ₹2,543 million as of 31st March 2026. The net debt to equity ratio was 0.41 compared to 0.39 at the end of March 2026. On the working capital front company made progress in improving working capital efficiency during H1 FY '27. Inventory days reduced to 146 from 195 in FY '26 while receivable days improved to 78 from 81. Payables days also reduced to 157 from 189 during the same period. This improvements reflect our focus on better inventory management, faster collection and optimizing working capital requirements. Going forward we remain focused on improving cash flow generation and strengthening our overall financial position. Thank you for your attention. That concludes my remarks. I would now like to open the floor for questions and answers.
Moderator: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may please press star and one 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'll wait for a moment while the question queue assembles. The first question is from the line of Aditya Agarwal from Old Bridge Mutual Fund. Please proceed with your question.
Aditya Agarwal (Old Bridge Mutual Fund): Hey. Thanks for the opportunity and congratulations on a good set of numbers. My first question is in the MDF segment, I wanted to get some sense on the realization part. Like what's driving the de-growth on a Q-on-Q and Y-o-Y basis? Because I guess we had a healthy mix of value-add products and this year we also did a 15% price hike. So, if we can get some picture around that, that would be helpful.
Rushil Thakkar (Rushil Decor Ltd): So, first of all, the realization for the half yearly was somewhere around ₹26,600 for the half year and
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