Rossari Biotech (ROSSARI) Q3 25/26 earnings summary

Executive summary

• Achieved 13% year-on-year revenue growth in Q3 FY26, reaching ₹581.7 crore, with balanced contributions across business segments and international operations.

• Profitability was impacted by ongoing investments in capacity expansion, product development, market seeding, and higher employee costs due to new labor codes.

• Board granted in-principle approval for a greenfield specialty chemicals facility in Saudi Arabia to enhance supply chain resilience and international growth.

• Allotment of 2,000 equity shares under ESOP 2019 increased paid-up capital to Rs. 11,07,66,732.

• Approval for the sale of non-operational office premises in Kanjurmarg, Mumbai, for Rs. 25 Crores, with no impact on business operations.

Financial highlights

• Q3 FY26 consolidated revenues grew 13% YoY to INR 581.7 crores (Rs. 5,816.80 million), supported by core business and international markets.

• Q3 FY26 EBITDA stood at INR 68.9 crores (Rs. 421.03 million) with an EBITDA margin of 11.8%.

• Q3 FY26 PAT was ₹32.8 crore (Rs. 327.74 million), up 3.5% year-over-year; PAT margin at 5.6%.

• Export contribution reached 33% of turnover in Q3 and 30% for the nine months.

• CapEx capitalized in FY26 totaled around INR 200 crores.

Outlook and guidance

• Operating leverage from new capacities expected to materialize by FY27 as ramp-up continues.

• Margins projected to remain in the 12%-13% range until ethylene oxide supply normalizes, with potential improvement if B2C business is restructured.

• Exports expected to continue outpacing domestic growth, with new geographies and products driving expansion.

• New R&D products and biosurfactants approvals by global MNCs expected to boost margins and growth.

• The new Saudi Arabia facility is expected to enhance supply capabilities, accelerate speed-to-market, and strengthen the company's position in specialty chemicals, subject to regulatory approvals.