Rossari Biotech (ROSSARI) Q1 24/25 earnings summary

Executive summary

• Record Q1 FY25 consolidated revenue of ₹489.7 crore and PAT of ₹34.9 crore, up 19.3% and 19.5% YoY; growth led by HPPC and TSC, while AHN declined.

• Volume growth drove recent revenue gains with prices broadly stable; management expects healthy domestic and export demand in HPPC and textiles.

• R&D and innovation remain central to strategy, with emphasis on sustainable and bespoke solutions and expanding the customer base and geographies.

Financial highlights

• Consolidated revenue from operations rose 19.3% YoY to ₹4,896.50 million from ₹4,106.06 million; consolidated PAT increased to ₹348.99 million from ₹292.19 million.

• Consolidated EBITDA increased 12.5% YoY to ₹64.9 crore; EBITDA margin was 13.3% versus 14.1% a year earlier.

• Standalone revenue was ₹3,007.08 million versus ₹2,583.42 million; standalone PAT was ₹243.28 million versus ₹215.57 million.

• Consolidated basic EPS was ₹6.32 and diluted EPS ₹6.3; standalone basic EPS was ₹4.40.

• Higher freight, travel, maintenance, selling and distribution costs weighed on margins; other expenses included ₹3–4 crore of one-off costs, including Tristar shutdown maintenance and HR restructuring consulting.

Outlook and guidance

• FY25 consolidated EBITDA margin expected at 13%–13.5%.

• Exports reached 24%–25% of revenue versus 20% in Q1 FY24; target is a 25%–30% share over the next two years while growing absolute sales.

• Institutional cleaning revenue target is ₹250 crore in FY25, from ₹150 crore last year; Q1 sales were ₹60 crore, with operating leverage expected nearer ₹500–600 crore revenue.

• Dahej expansions are expected to complete by March 2025; full utilization of added capacity is expected in FY26–FY27 after customer approvals.

• Management expects improved textile sales, supported by home-textile orders for Indian and Bangladesh exporters and initiatives in Bangladesh, Vietnam and Egypt.