Rossari Biotech (ROSSARI) Q3 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue in Q3 FY25, with all business segments showing year-on-year growth, led by strong export momentum amid softer domestic conditions.

• International business grew 21% year-over-year in Q3 and 28% for the nine months, offsetting domestic challenges.

• Innovation and sustainability remain core strategic pillars, with increased R&D investment and tailored solutions for global markets.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board and Audit Committee on January 21, 2025.

• Statutory auditors conducted a limited review and found no material misstatements in the results.

Financial highlights

• Consolidated revenues rose 10.5% YOY to INR 512.7 crore in Q3 FY25; consolidated EBITDA at INR 64.8 crore and PAT at INR 31.7 crore.

• Gross margins improved by 137 bps YOY, aided by favorable product mix and operational efficiencies, though EBITDA margin declined to 12.6% from 13.7% YOY due to higher expenses.

• For 9M FY25, consolidated revenue was INR 1,500.7 crore and PAT was INR 102 crore.

• Exports contributed INR 156 crore in Q3 and INR 405 crore for nine months, up 21% YOY for the quarter and 28% for nine months.

• Standalone revenue from operations for Q3 FY25 was INR 368.28 crore, with standalone net profit at INR 30.63 crore.

Outlook and guidance

• Optimistic about sustained growth across segments, with HPPC benefiting from strong demand and innovation, and textile showing early recovery signs.

• Capacity expansions at Dahej and Unitop progressing, expected to drive growth in FY26 and beyond.

• Export growth and institutional cleaning business targeted as key drivers; export traction expected to accelerate from H2 FY26.

• Management expects higher operating leverage and new capacity additions to improve margins over time.

• Institutional cleaning business aims to double revenue to INR 450-500 crore in two years, with EBITDA contribution expected at that scale.