Rossari Biotech (ROSSARI) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 delivered record quarterly revenue, EBITDA and PAT; exports and HPPC supported results amid textile, domestic-demand and freight headwinds.

• HPPC led growth, TSC faced pricing and export disruption, and AHN specialty additives grew 20% YoY.

• H1 exports rose 32% YoY, helping offset softer domestic growth.

Financial highlights

• Consolidated Q2 FY25 revenue from operations was ₹4,983.51 million, up 3.1% YoY; H1 revenue was ₹988.0 crore, up 10.5%.

• Q2 EBITDA was ₹65.9 crore, up 3.6% YoY, with a 13.2% margin; PAT was ₹353.33 million, up 7.3%, and diluted EPS was ₹6.39.

• Gross margin improved 253 bps YoY, with higher freight, professional and employee costs limiting flow-through to EBITDA.

• H1 exports grew 32% to ₹248 crore from ₹187 crore; Q2 exports rose 21% YoY to ₹130 crore.

• Past three-year revenue CAGR was 11%; EBITDA and PAT CAGR were 16%.

Outlook and guidance

• FY25 revenue growth guidance remained 12%–13%, with H2 expected to outperform H1; EBITDA margin outlook was 13.2%–13.5%.

• Institutional cleaning FY25 sales guidance remained ₹250 crore; H1 sales were ₹130 crore.

• AHN was expected to strengthen in H2, with Q3 and Q4 traditionally stronger and quarterly sales potentially 1.5x normal Q1/Q2 levels.

• Bangladesh textile recovery was expected from December, subject to improved orders and banking lines; broader segment recovery was anticipated next calendar year.

• Capacity and new-product ramp-up, including projects expected to deliver 3x–4x asset turns, remained priorities.