Rushil Decor (RDL IN) – Management Meet Update – Exports to drive margins higher – Not Rated
Published on 15 Sep 2025
We attended the management meet of Rushil Décor (RDL) to gain insights into its MDF, laminates, and value-added products (VAP) businesses, as well as demand-supply dynamics in the wood panel industry. The company is strategically focusing on margin expansion, capacity utilization, and export-led growth, despite near-term margin pressure from the recent fire incident. The management has guided for revenue of ~Rs10bn in FY26 with EBITDAM of ~11%, improving to 12–13% in FY27. Growth will be supported by price hikes, higher VAP share in exports, and ramp-up of the upcoming Jumbo Laminate plant, which is expected to be largely export-driven and deliver superior margins. The company continues to operate with prudent leverage (D/E at 0.44x) and moderate capex plans (~Rs200mn in FY26). Over FY21–25, RDL delivered sales/EBITDA/PAT CAGR of 27.9%/31.9%/36.7%. We don’t have a rating on the stock.
