Management Commentary

Mr. Edward Menezes, Promoter & Executive Chairman, and Mr. Sunil Chari, Promoter & Managing Director, provided a joint statement on Q2FY27 performance. The company delivered robust consolidated growth of 19% YoY, achieving record quarterly revenue of ₹698 crores. Performance was driven by healthy momentum in domestic business and continued expansion of international presence. H1FY27 revenue reached ₹1,395 crores, representing 23% YoY growth, driven by healthy volume, improved product mix, and focused execution across businesses.

The company continues to operate under dynamic business environment marked by raw material volatility, geopolitical uncertainty, and cautious customer behavior. Despite these headwinds, gross margin was maintained at approximately 32% and EBITDA margin at approximately 12.5% in Q2FY27.

During H1FY27, the company strengthened its balance sheet and improved cash flow generation. Net working capital cycle improved to 86 days as of September 30, 2026, compared with 97 days as of March 31, 2026. Net debt declined to ₹221 crores from ₹281 crores over the same period.

The Board approved the leasing of land to Rossari International Limited Company (RILC), a wholly owned subsidiary, for setting up a greenfield manufacturing facility in the Kingdom of Saudi Arabia (KSA). This builds on the in-principle approval granted earlier and marks a key milestone in Rossari's international growth journey.

Strategic initiatives include monetizing non-core assets, rationalizing lower-margin businesses, and improving product mix. The management remains confident that operating leverage, scale benefits, and these initiatives will support progressive improvement in profitability.

Q2FY27 Financial Performance

Revenue: ₹697.6 crores (19.0% YoY growth)

Cost of Goods Sold: ₹477.3 crores

Gross Profit: ₹220.3 crores (18.9% YoY growth)

Gross Profit Margin: 31.6% (consistent with Q2FY26)

Employee Expense: ₹43.6 crores

Other Expenses: ₹89.7 crores

EBITDA: ₹87.0 crores (20.9% YoY growth)

EBITDA Margin: 12.5% (vs. 12.3% in Q2FY26)

Other Income: ₹0.6 crores

Depreciation and Amortization: ₹30.1 crores

EBIT: ₹57.5 crores

EBIT Margin: 8.2% (vs. 9.4% in Q2FY26)

Finance Costs: ₹8.7 crores

Share of profit of joint venture and associate: ₹0.5 crores

PBT: ₹49.3 crores

Tax Expense: ₹10.4 crores

PAT: ₹38.9 crores (5.4% YoY growth)

PAT Margin: 5.6% (vs. 6.3% in Q2FY26)

EPS Diluted: ₹7.02 (not annualized)

H1FY27 Financial Performance

Revenue: ₹1,394.8 crores (23.5% YoY growth)

Cost of Goods Sold: ₹968.1 crores

Gross Profit: ₹426.7 crores (19.3% YoY growth)

Gross Profit Margin: 30.6% (vs. 31.7% in H1FY26)

Employee Expense: ₹87.7 crores

Other Expenses: ₹171.4 crores

EBITDA: ₹167.6 crores (20.0% YoY growth)

EBITDA Margin: 12.0% (vs. 12.4% in H1FY26)

Other Income: ₹3.8 crores

Depreciation and Amortization: ₹55.7 crores

EBIT: ₹115.7 crores

EBIT Margin: 8.3% (vs. 9.4% in H1FY26)

Finance Costs: ₹19.7 crores

Share of profit of joint venture and associate: ₹0.9 crores

PBT: ₹96.9 crores

Tax Expense: ₹22.9 crores

PAT: ₹74.0 crores (5.0% YoY growth)

PAT Margin: 5.3% (vs. 6.2% in H1FY26)

EPS Diluted: ₹13.36 (not annualized)

Business Segment Performance

Home, Personal Care and Performance Chemicals (HPPC): 18% YoY growth

Textile Specialty Chemicals (TSC): 26% YoY growth

Animal Health and Nutrition (AHN): 11% YoY growth

Key Business Updates

Kingdom of Saudi Arabia (KSA) Facility: Board approved leasing of land by Rossari International Limited Company (wholly owned subsidiary) for setting up greenfield manufacturing facility in KSA.

Export Performance: Highest-ever export sales of ₹216.4 crores, representing 33.8% YoY growth.

Cash Flow: Strong Cash flow from Operations at ₹131 crores.

Working Capital: Net working capital improved to 86 days as of September 2026 from 97 days as of March 2026.

Debt Reduction: Net debt declined to ₹221 crores from ₹281 crores as of March 2026.

Operational Highlights

HPPC Division:

  • Successfully completed Stage 1 EXCiPACT audit for Pharma business
  • Strategically expanding preservative and mild surfactant portfolio
  • Agro business was sluggish due to El Niño
  • Commissioned one of India's largest EO storage facility at Unitop site

TSC Division:

  • Expanded to new geographies: Peru and Indonesia
  • New products introduced:
  • Yarn and thread lubricants portfolio expanded
  • Spin-finish for Fully Drawn Yarn (FDY)
  • New product category for denim processing

AHN Division:

  • New range of disinfectants introduced
  • Emulsifiers for poultry feed as new product category
  • Liquid enzymes for exports
  • Biosurfactant based gut health modulator for poultry

Balance Sheet Position (as of September 30, 2026)

Total Assets: ₹2,359.5 crores (vs. ₹2,288.8 crores as of March 31, 2026)

Non-current Assets: ₹1,058.8 crores

  • Property, plant and equipment: ₹510.7 crores
  • Right of Use Assets: ₹91.7 crores
  • Capital Work-in-progress: ₹156.2 crores
  • Goodwill: ₹118.7 crores
  • Other Intangible Assets: ₹95.8 crores
  • Investments accounted using equity method: ₹27.9 crores
  • Other Financial Assets: ₹9.7 crores
  • Income Tax Assets (Net): ₹11.9 crores
  • Deferred Tax Assets (Net): ₹17.3 crores
  • Other Non-current Assets: ₹18.9 crores

Current Assets: ₹1,300.6 crores

  • Inventories: ₹444.0 crores
  • Investments: ₹30.0 crores
  • Trade Receivables: ₹553.7 crores
  • Cash and cash Equivalents: ₹84.4 crores
  • Bank balances other than cash: ₹26.4 crores
  • Loans: ₹1.0 crores
  • Other Financial Assets: ₹6.4 crores
  • Other Current Assets: ₹154.8 crores

Equity: ₹1,407.6 crores

  • Equity Share Capital: ₹11.1 crores
  • Other Equity: ₹1,396.5 crores

Non-Current Liabilities: ₹149.0 crores

  • Borrowings: ₹82.1 crores
  • Lease Liabilities: ₹17.2 crores
  • Provisions: ₹9.5 crores
  • Deferred Tax Liabilities (Net): ₹40.2 crores

Current Liabilities: ₹802.9 crores

  • Borrowings: ₹279.7 crores
  • Lease Liabilities: ₹9.1 crores
  • Trade Payables: ₹343.6 crores
  • Other Financial Liabilities: ₹123.9 crores
  • Other Current Liabilities: ₹26.0 crores
  • Provisions: ₹8.8 crores
  • Current Tax Liabilities (Net): ₹11.8 crores

Cash Flow Statement (H1FY27)

Net Profit before Tax: ₹96.9 crores

Adjustments for Non-Cash Items/Other Investment or Financial Items: ₹76.1 crores

Operating Profit before working capital changes: ₹173.0 crores

Changes in Working Capital: -₹16.1 crores

Cash generated from Operations: ₹156.9 crores

Direct taxes paid (net of refund): -₹25.5 crores

Net Cash from Operating Activities: ₹131.4 crores

Net Cash from Investing Activities: -₹49.5 crores

Net Cash from Financing Activities: -₹72.4 crores

Net Decrease in Cash and Cash Equivalents: ₹9.5 crores

Net Foreign exchange difference: -₹0.4 crores

Cash & Cash equivalents at beginning: ₹75.3 crores

Cash & Cash equivalents at end: ₹84.4 crores

Company Overview

Rossari Biotech Limited is a specialty chemical manufacturer with expertise in Ethoxylation (surfactant chemistry), Silicone chemistry, and Polymer chemistry. FY26 Revenue was ₹2,396 crores with 3,000+ products portfolio and 2,300+ customers across diverse end use industries. Top 10 customer concentration is less than 15%. The company has achieved 25% Revenue CAGR and 18% PAT CAGR from FY19-26.

Manufacturing Capabilities

  • 8 Manufacturing Facilities
  • 3,87,100 MTPA Installed Capacity
  • 3,000+ Products
  • 4 R&D Centres

Global Footprint

FY26 Revenue Mix: 74% Domestic, 26% Export. The company has expanded internationally with:

  • Thailand Facility: 5,000 MTPA capacity commissioned as a dedicated blending facility
  • Kingdom of Saudi Arabia (KSA): Exploring greenfield opportunity through wholly owned subsidiary

R&D Capabilities

  • Rossari GRIC: Global Research and Innovation Centre at Navi Mumbai
  • 70+ Team Members across 4 R&D Centres
  • 149 New Launches in FY26
  • Focus areas: Sustainable Chemistry, Biosurfactants, Process Innovation, Personal Care Ingredients

Historical Financial Performance

FY26: Revenue ₹2,396.4 crores, EBITDA ₹285.9 crores (11.9% margin), PAT ₹149.2 crores (6.2% margin)

FY25: Revenue ₹2,080.3 crores, EBITDA ₹265.1 crores (12.7% margin), PAT ₹136.4 crores (6.6% margin)

FY24: Revenue ₹1,830.6 crores, EBITDA ₹249.8 crores (13.6% margin), PAT ₹130.7 crores (7.1% margin)