Rossari Biotech (ROSSARI) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue reached ₹586.1 crore, up 18% year-over-year, driven by strong volume growth across HPPC, TSC, and AHN segments, with exports rising 36% and now comprising 28% of total revenue.

• Profitability remained steady despite subdued pricing and ongoing investments in new business lines, supported by new product development in green chemistry and sustainability.

• Successful commissioning of new capacities at Dahej (20,000 MT) and Unitop (15,000 MT), with further expansions underway to support future growth.

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

Financial highlights

• Q2 FY26 consolidated revenue: ₹5,861.07 million, up from ₹4,983.51 million in Q2 FY25; standalone revenue: ₹4,195.12 million, up from ₹3,359.89 million.

• Q2 FY26 EBITDA: ₹71.9 crore, margin at 12.3% (down 90 bps year-over-year); PAT at ₹36.9 crore, up 4.5% year-over-year.

• Core segment EBITDA margin (excluding Institutional and B2C) remained healthy at ~15%.

• Institutional and B2C businesses grew 1% year-over-year and 7% quarter-on-quarter, with reduced losses.

• Net working capital increased to 102 days due to stretched receivables and strategic inventory stocking.

Outlook and guidance

• Management remains optimistic about sustaining growth momentum, supported by new capacities, product launches, and global initiatives.

• Margin guidance for core B2B business remains at 14–16% EBITDA; overall margins expected to remain stable for FY26.

• CapEx outlay of ₹192 crore, with remaining projects to be commissioned in the coming months; asset turns expected at 3–4x at full utilization.

• Revenue potential at peak utilization estimated at ₹3,500 crore.

• Additional investment of up to USD 8 million approved for Saudi Arabia subsidiary, to be completed by March 31, 2027.