Rossari Biotech Q2 FY27 Revenue Up 19% to Rs 698 Cr

Event Type: Earnings Conference Call for Q2 and H1 FY27 results discussion and investor interaction.
Date and Time: The conference call was held on Monday, October 19, 2026 (time and time zone not specified in transcript).
Purpose: Discussion of operational and financial performance for Q2 and H1 FY27, including strategic updates and future outlook.
Management Participants: Mr. Edward Menezes (Promoter and Executive Chairman), Mr. Sunil Chari (Promoter and Managing Director), Mr. Ketan Sablok (Group Chief Financial Officer).
Availability of Materials: The financial results and investor presentation were available on stock exchanges and the company's website. The transcript of the call is available on the company website at www.rossari.com/announcement under 'Investor Call'.
UPSI Statement: The conference call contained forward-looking statements but no specific mention of UPSI non-disclosure in the transcript.

Q2 FY27 Financial Performance:

Revenue from operations: Rs. 697.6 crore (19% YoY growth from Rs. 586.1 crore in Q2 FY26)
Gross profit: Rs. 220.3 crore (19% YoY growth, 6.7% QoQ growth)
Gross margin: 31.6% (in line with Q2 FY26, 200 bps higher than Q1 FY27)
EBITDA: Rs. 87 crore (21% YoY growth)
EBITDA margin: 12.5% (vs 12.3% in Q2 FY26, 11.6% in Q1 FY27)
Profit after tax: Rs. 38.9 crore (5.5% YoY growth, 11% QoQ growth)
Diluted EPS: Rs. 7.02

H1 FY27 Financial Performance:

Divisional Performance Q2 FY27:

HPPC Division: Rs. 541.9 crore (18% YoY growth)
Textile Specialty Chemicals: Rs. 120.8 crore (26% YoY growth, 14% sequential growth)
Animal Health and Nutrition: Rs. 34.8 crore (11% YoY growth)

Business Segment Analysis:

Core B2B Business: Rs. 619.9 crore (21% YoY growth) with EBITDA of Rs. 87.2 crore (EBITDA margin 14.1%)
Institutional and B2C Business: Rs. 77.7 crore (3% YoY growth) with positive EBITDA of Rs. 0.2 crore (vs EBITDA loss of Rs. 3.7 crore in Q2 FY26)

Balance Sheet and Capital Structure:

Gross borrowings reduced by Rs. 46 crore during H1 to Rs. 361.8 crore
Net debt: Rs. 221 crore (vs Rs. 248 crore in June 2026, Rs. 281 crore in March 2026)
Net debt-to-equity ratio: 0.16
Working capital days: 86 days in Q2 FY27 (improved from 97 days at FY26-end)

Strategic Initiatives:

Board approved leasing land in Saudi Arabia for Greenfield manufacturing facility through wholly-owned subsidiary Rossari International Limited Company
Thailand blending facility ramping up steadily
New Rossari Global Research and Innovation Centre at Navi Mumbai operational
Over 70 new products launched in FY26 with focus on biosurfactants, personal care ingredients, pharma excipients, agro formulations, and oil & gas solutions
EXCiPACT registration obtained for Unitop plant enabling pharma exports without customer audits

Operational Highlights:

Export contribution reached 31% of revenue in Q2 FY27 (27% for H1 FY27)
Export revenue growth: 34% YoY, 35% QoQ
Target: Exports to contribute 30%+ of revenue by year-end
Capacity utilization: ~60% blended, new ethoxylation facility at ~30% utilization
Raw material constraints: Ethylene oxide supply limitations from Reliance, expected improvement in Q1 FY28 with Reliance expansion

Guidance and Outlook:

FY27 EBITDA margin expected around 12% (similar to current levels)
Revenue growth expected in mid-to-high teens for FY27
Margin improvement expected in FY28 with ramp-up of higher-margin products (pharma, aroma chemicals)
Debt reduction priority with aim to become debt-free on working capital by mid-FY28
Saudi Arabia project details to be finalized over next 8-12 months

The document is a transcript of the earnings conference call submitted as a regulatory filing pursuant to SEBI LODR Regulations
No financial data was disclosed in the announcement itself - all financial information was derived from the conference call transcript
The transcript includes full Q&A session with analysts from Sapphire Capital, Emkay Global, Anand Rathi, Green Portfolio, 360 ONE, and others
Management emphasized uncertainties due to geopolitical situation, raw material volatility, and freight/logistics challenges