1. At a Glance – Blink and You’ll Miss the Profit
Rushil Decor Ltd is currently priced at ₹20.1, carrying a market cap of ₹592 crore, trading at a spicy 64.5x P/E while delivering a Q3 PAT of just ₹5.67 crore, down 50.7% YoY. Yes, you read that right. This is a laminates-and-MDF business valued like a tech startup having an identity crisis. Quarterly revenue clocked in at ₹215 crore, up a modest 2.3% YoY, while margins politely bowed and exited the room. ROCE sits at 10.1%, ROE at 7.96%, and debt at a chunky ₹277 crore. The stock is down 25% in three months, 26% in one year, and optimism is currently on ventilator support. The only thing holding up is the balance sheet’s confidence and the promoter’s poker face. Curious already?
2. Introduction – From Designer Laminates to Designer Losses
Rushil Decor Ltd, incorporated in 1993, is not new to the party. It manufactures laminate sheets, MDF boards, pre-laminated MDF, and PVC boards, selling them across India and 50+ export destinations. It boasts 1,200+ SKUs, 600+ distributors, and 4,400+ dealers, which sounds impressive until you realise profitability hasn’t RSVP’d properly in FY25–FY26.
This is a company that wants to look premium, talk premium, and expand premium, but its numbers occasionally behave like a budget hostel roommate. The MDF and laminates sector is brutally competitive, capital-intensive, and margin-sensitive. Rushil is playing in the organised segment, but so are giants who eat EBITDA for breakfast.
The last one year has been dramatic: fire at MDF plant, insurance claims, preferential allotment drama, warrant forfeitures, SAT cases, and now a -79% TTM profit collapse. If corporate life were a Netflix series, Rushil Decor would be trending in the “financial thriller” category.
So, is this a turnaround story in disguise or just decorative laminates covering structural cracks? Let’s open the cupboard.
3. Business Model – WTF Do They Even Do?
In simple
terms, Rushil Decor sells surfaces. Not metaphysical ones—actual surfaces you touch, feel, and spill tea on.
Laminates:
Used in furniture, cabinets, wardrobes, wall panels, and commercial interiors. Rushil operates 3 laminate units with installed capacity of ~3.49 million sheets per annum. In FY24, it sold 29.08 lakh sheets at ₹653 per sheet. Exports contribute 66% here, so currency swings matter more than your mood on expiry day.
MDF:
Medium Density Fibreboard used for furniture, CNC routing, doors, partitions, and interior applications. Rushil has 2 MDF units with capacity ~3.30 lakh CBM per annum. FY24 MDF sales stood at 2,60,380 CBM at ₹24,225 per CBM. Domestic demand dominates at 81%.
PVC Boards:
Smaller contributor, more of a portfolio filler than a hero product.
The business model is volume-driven, capex-hungry, and margin-sensitive. You sell more, hope raw material behaves, pray interest rates stay polite, and light a diya before quarterly results. Simple.
4. Financials Overview – The Table That Hurts
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 215.23 | 210.39 | 233.24 | 2.3% | -7.7% |
| EBITDA (₹ Cr) | 23.39 | 27.16 | 23.06 | -13.9% | 1.4% |
| PAT (₹ Cr) | 5.67 | 11.51 | 5.97 | -50.7% | -5.0% |
| EPS (₹) | 0.19 | 0.42 | 0.20 | -54.8% | -5.0% |
Annualised EPS (Q3 Rule)
Average of Q1, Q2, Q3 EPS × 4
= (0.46 + 0.42 + 0.19) / 3 × 4 ≈ ₹1.43
At CMP ₹20.1, effective P/E ≈ 14x on annualised run-rate, which looks reasonable…
