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, despite muted domestic demand.

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

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

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were reviewed and approved by the Board and Audit Committee.

• Allotment of 2,000 equity shares under ESOP 2019 and approval for the sale of non-operational office premises in Mumbai, 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), with EBITDA at INR 68.9 crores (Rs. 421.03 million) and an EBITDA margin of 11.8%.

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

• Export contribution reached 33% of turnover in Q3 and 30% for the nine months, with export growth at 26% YoY.

• CapEx capitalized in FY26 totaled close to INR 200 crores, funded through a mix of internal accruals and debt.

• Finance costs increased 57.1% year-over-year in Q3 FY26.

Outlook and guidance

• Margin improvement expected as operating leverage and product mix benefits materialize over time.

• Optimal utilization of new Dahej and Unitop capacities expected by FY27, with ramp-up to 90% utilization.

• Margins projected to remain in the 12%-13% range until EO supply normalizes, with potential to return to 15% as B2C losses are addressed and new products scale.

• 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.

• Confident of improved return metrics as recent investments begin to yield results.