Rossari Biotech (ROSSARI) Q1 25/26 earnings summary

Executive summary

• Achieved steady top-line growth in Q1 FY26, led by strong performance in HPPC and AHN segments despite global headwinds and challenging market conditions.

• Domestic business remained robust, while exports faced challenges due to global uncertainties and logistics delays, though export business showed healthy year-over-year growth.

• Ongoing capacity expansions and strategic acquisitions are progressing, aimed at enhancing manufacturing, supply chain agility, and market presence.

• Continued focus on R&D, innovation, and sustainable solutions, with strategic priorities including execution, customer-led innovation, and sustainable value creation.

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

Financial highlights

• Q1 FY26 consolidated revenue from operations grew 11% YoY to INR 543.7 crore (₹5,437.16 million), driven by HPPC and AHN verticals.

• EBITDA rose 4.6% YoY to INR 67.9 crore, with a margin of 12.5%; PAT declined 3.7% YoY to INR 33.6 crore, PAT margin at 6.2%.

• Standalone revenue for Q1 FY26 was ₹3,657.58 million, up from ₹3,007.08 million in Q1 FY25.

• Institutional and B2C business reported a loss of INR 7 crore, impacting consolidated margins; excluding these, adjusted EBITDA margin was about 16%.

• Basic and diluted EPS (consolidated) for Q1 FY26 were ₹6.07 and ₹6.06, respectively.

Outlook and guidance

• Management expects mid-double-digit (14%-15%) annual growth in both revenue and EBITDA over the next two years, with margin stability targeted.

• Capacity expansions and efficiency initiatives are expected to drive growth and margin expansion from FY27 as utilization ramps up.

• Q2 anticipated to be stronger, with recovery in Agri and fulfillment of delayed export orders.

• Institutional and B2C businesses are expected to show healthy annual growth, with long-term profitability focus.

• Previous period figures have been regrouped for comparability; no material changes expected.