This Penny Stock, engaged in manufacturing and marketing decorative laminate sheets, MDF boards, and related products, serving domestic and international markets, is in focus after the management expected revenue growth of 24 percent, and the promoter also increased their stake by around 2 percent.
With a market capitalization of Rs. 828.90 crore, the shares of Rushil Decor Limited closed at Rs. 28.90 per equity share, down nearly 0.17 percent from its previous day’s close price of Rs. 28.95.
Management Guidance
Rushil Decor Limited has set a revenue target of Rs. 1,100 crores for FY26, up from Rs. 891 crores in FY25, a growth of around 23.5 percent. It expects an EBITDA margin of 12–14 percent across the group.
For its MDF business, the company aims to get 50 percent of volumes and 60 percent of revenue from value-added products (VAP), which will help boost profits. MDF revenue is expected to grow by 8–10 percent in FY26. In the laminate segment, jumbo exports are likely to bring higher margins of 13–15 percent.
Capacity Expansion and New Growth Areas
Timber prices are expected to stabilize in FY26, which should support better cost control. Management also expects gross and overall margins to improve as more value-added products (VAP) are sold and new projects like the Jumbo Laminate facility ramp up production.
The company started commercial production at its Jumbo Laminate facility in April 2025, with Phase 1 having a capacity of 1.2 million sheets per year. Export orders have already come in for 15 percent of this capacity.
Furthermore, Phase 2 is expected to begin by October 2025. Key export markets include the U.S., Australia, New Zealand, and Europe, where margins are higher. The FY26 export target is Rs. 90 crores, with expected margins of 14–16 percent.
Rushil Decor’s current laminate capacity is 34.92 lakh sheets per year. With an additional 28 lakh sheets planned, total future capacity will reach 62.92 lakh sheets annually. In the new business, the company has entered a joint venture to produce premium plywood, targeting Rs. 15–18 crores in revenue in FY26 with 5–8 percent margins. The PVC segment is also expected to grow in the coming year.
Also read: 2 Stocks in which promoters increased their stake in the company
Financial Position and Capex Plan
For FY26, the company has no major new capital spending planned. It will only spend around Rs. 15–20 crores on regular operational needs. As of March 31, 2025, the net debt-to-equity ratio was 0.41x. This is expected to improve to about 0.35x by the end of FY26, helped by scheduled loan repayments and the conversion of warrants into equity.
Overview: Rushil Decor Limited was established in 1993 and is headquartered in Shilaj, Ahmedabad, Gujarat. The company is a leading Indian manufacturer in the decorative laminates and MDF (Medium Density Fibreboard) panel boards industry, with a significant global presence spanning over 54 countries.
The company has built a reputation for innovative design, quality, and customer-centric solutions within the modern interior infrastructure sector. Rushil Decor operates six state-of-the-art manufacturing plants, with an annual production capacity of 3,30,000 CBM MDF and 3.49 million laminates.
Promoter Increase Stake
Rushil Decor Limited’s promoter group has increased its stake from 54.63 percent in December 2024 to 56.37 percent in March 2025, showing a rise of 1.74 percent. This reflects their confidence in the company’s future growth.
Financial Highlights: Rushil Decor Limited’s revenue has decreased from Rs. 233 crore in Q4 FY24 to Rs. 229 crore in Q4 FY25, which is a drop of 1.72 percent. The net profit has grown by 44.44 percent, from Rs. 9 crore in Q4 FY24 to Rs. 13 crore in Q4 FY25.
Rushil Decor Limited’s revenue and net profit have grown at a CAGR of 21.54 percent and 15.85 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 10.1 percent and 7.96 percent, respectively. Rushil Decor Limited has an earnings per share (EPS) of Rs. 1.68, and its debt-to-equity ratio is 0.42x.
Written By – Nikhil Naik
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