Rossari Biotech (ROSSARI) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue reached ₹586.1 crore, up 18% year-over-year, driven by strong volume growth across HPPC, TSC, and AHN segments, and record export growth of 36%, now contributing 28% of total revenue.

• Profitability remained steady despite subdued pricing, margin pressures, and ongoing investments in new business lines.

• New product development focused on green chemistry and advanced formulations, enhancing the technology pipeline and export opportunities.

• Successful commissioning of additional capacity at Dahej and Unitop, with further expansions underway.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved and reviewed by the Board and Audit Committee.

Financial highlights

• Q2 FY26 consolidated revenue: ₹5,861.07 million, up from ₹4,983.51 million in Q2 FY25; standalone revenue: ₹4,195.12 million, up from ₹3,359.89 million.

• Q2 FY26 EBITDA: ₹71.9 crore, margin at 12.3% (down from 13.2% last year); PAT at ₹36.9 crore, up 4.5% year-over-year.

• Core EBITDA margin (excluding institutional and B2C) steady at ~15%.

• Net working capital increased to 102 days from 95 days in March, mainly due to stretched receivables and strategic inventory stocking.

• CapEx outflow for the year expected to be around ₹162–167 crore, with asset turns of about 4x at peak utilization.

Outlook and guidance

• Margin guidance for core B2B business remains at 14–16% EBITDA for H2 FY26.

• Management expects profitability to improve as new capacities reach full utilization and new business initiatives contribute to revenue.

• Revenue ramp-up anticipated from new non-EO product lines and international expansion, though margin and sales outlook remain cautious due to global uncertainties and tariff pressures.

• Additional investment of up to USD 8 million approved for the Saudi Arabia subsidiary to support business expansion, to be completed by March 31, 2027.