Rushil Decor records robust Q2 FY25 results, eyes expansion with new subsidiary and mega project

Rushil Decor Limited has revealed impressive growth in its Q2 FY25 financial performance, showcasing significant gains in revenue and profit. The company’s revenue reached INR 2,304 million, marking a year-on-year growth of 12.6%, while net profit after tax (PAT) rose by 7.9%, underlining a strong quarterly performance. The Ahmedabad-based interior infrastructure leader continues to solidify its market position, with its MDF (medium-density fiberboard) boards division being the primary growth driver.

Key Financial Highlights Drive Confidence in Expansion Plans

Rushil Decor Limited reported that revenue from MDF boards grew by 14.7% to INR 1,717 million, reaffirming the division’s role in the company’s financial health. Gross profit also saw a boost, recording a 13.8% rise, driven by increased price realizations, especially in export markets. According to Managing Director Rushil Thakkar, improved sales volumes, optimized capacity, and a notable increase in value-added products contributed to these gains.

The company’s EBITDA stood at INR 296 million for the quarter, achieving a 2.4% growth year-on-year. Excluding forex losses, adjusted EBITDA reached INR 311 million, translating into a more favorable 13.5% margin. Analysts observe that this margin underscores Rushil Decor’s effective cost management and streamlined operations, even as inflationary pressures continue to impact production costs across industries.

Expansion Ambitions: New Subsidiary in Singapore and Jumbo Laminate Project

The company also highlighted its expansion efforts, including the establishment of a wholly-owned subsidiary in Singapore. This new entity aims to increase the company’s footprint in Southeast Asia, enhancing access to one of the world’s fastest-growing laminate markets. The company anticipates this strategic move will not only drive regional sales but also boost profit margins by leveraging proximity to key Asian markets.

Rushil Decor’s Jumbo Laminate Project in Gandhinagar, however, encountered minor delays due to machinery supply issues and adverse weather conditions. Despite this, the company expects operations to commence by Q4 FY25. Once operational, the new facility will add a capacity of 2.8 million sheets annually, positioning the company as a stronger player in the jumbo-sized laminate market. Thakkar expressed optimism, noting that this project aligns with Rushil Decor’s vision of scaling production capabilities to meet rising market demand.

Strategic Distributor and Dealer Growth Boosts Domestic Market Presence

In Q2, Rushil Decor expanded its distribution network, adding 105 new dealers and 65 distributors. The company emphasized that this growth strategy aims to strengthen its market presence across India and drive deeper customer engagement. The expanded network is expected to support revenue growth while enabling better penetration in underserved regions.

Additionally, Rushil Decor plans a routine maintenance shutdown at its MDF manufacturing unit in Chikmagalur. This maintenance, scheduled every 3 to 4 years, is intended to ensure consistent product quality and operational efficiency, further enhancing its capacity to meet increasing demand.

Expert View on Rushil Decor’s Sustainability and Market Leadership

Industry experts note Rushil Decor’s commitment to sustainable growth as a key differentiator in the competitive landscape. Through agroforestry initiatives, the company secures a stable supply of raw materials, ensuring both environmental and operational benefits. Furthermore, with six state-of-the-art manufacturing plants, Rushil Decor is well-equipped to lead innovation in sustainable, eco-friendly wood-based products.

As a major player in the global wood panel industry, Rushil Decor leverages cutting-edge German technologies to maintain a competitive edge. Analysts believe the company’s diversified product offerings, including VIR Laminates, VIR MDF, and VIR PVC boards, reinforce its appeal to both domestic and international markets.

Market Reactions and Stock Sentiment Analysis

The announcement prompted positive responses in the stock market, with shares of Rushil Decor Limited (BSE: 533470, NSE: RUSHIL) showing increased investor interest following the financial report. The company’s consistent quarterly performance and ambitious expansion plans are seen as potential catalysts for future growth, driving favorable sentiment among analysts and investors alike.