Rossari Biotech543213Quarterly results

Earnings call: record quarterly revenue and EBITDA; Board approves land lease for Saudi greenfield plant

Transcript of the Q2 & H1 FY27 earnings call held on October 19, 2026 shared with the exchanges.

By ScoutQuest · Fri 23 Oct 2026, 9:27 AM IST · 3 min read

Q2 FY27 revenue from operations: Rs. 697.6 crore, up 19% year-on-year from Rs. 586.1 crore, described as the highest-ever quarterly revenue.
EBITDA: Rs. 87 crore, up 21% year-on-year, also stated as the highest-ever quarterly EBITDA.
Gross profit: Rs. 220.3 crore, up 19% year-on-year and 6.7% quarter-on-quarter.
Profit after tax: Rs. 38.9 crore, up 5.5% year-on-year and 11% quarter-on-quarter; diluted EPS Rs. 7.02.

Gross margin was 31.6%, in line with Q2 FY26 and around 200 basis points higher than the 29.6% reported in Q1 FY27; the sequential gain is attributed to a better product mix.
EBITDA margin was 12.5%, against 12.3% in Q2 FY26 and 11.6% in Q1 FY27, an improvement of 91 basis points sequentially.

HPPC: revenue Rs. 541.9 crore, up 18% year-on-year; H1 FY27 revenue Rs. 1,095.1 crore, up 20%.
Textile chemicals: revenue Rs. 120.8 crore, up 26% year-on-year; H1 FY27 revenue Rs. 226.9 crore, up 24%.
Animal Health and Nutrition: revenue Rs. 34.8 crore, up 11% year-on-year; H1 FY27 revenue Rs. 72.8 crore, up 19%.
Core B2B (excluding institutional and B2C): revenue Rs. 619.9 crore, up 21% year-on-year; EBITDA Rs. 87.2 crore, up 15%, with a margin of 14.1% versus 14.8% in Q2 FY26 and 13.5% in Q1 FY27.

The Board has approved the leasing of land to Rossari International Limited Company, a wholly owned subsidiary, for setting up a greenfield manufacturing facility in the Kingdom of Saudi Arabia. This builds on an in-principle approval granted earlier.
Management said the project is expected to improve access to key raw materials through a strong petrochemical ecosystem and to bring the company closer to regional and international demand centres, including opportunities in the Middle East oil and gas sector.
Key details of the project are to be shared once they are finalised.

Growth was broad-based across all three divisions, with a higher share of value-added products and a larger wallet share with customers.
The external environment stayed dynamic: raw material prices were volatile, the geopolitical situation in the Middle East kept pressure on freight and logistics, and customers in several end-user industries remained cautious in their buying.
Costs: employee costs grew 15% year-on-year and other expenses 19%, reflecting investment in people, new geographies, the Thailand facility and the new R&D centre.
Constrained ethylene oxide availability continued to limit ethoxylate volumes, and cautious customer ordering kept HPPC revenue broadly stable on a sequential basis.
The new blending facility in Thailand is ramping up and serving Southeast Asian customers with customised formulations, faster turnaround and lower exposure to freight volatility.

For the remainder of FY27, the stated priorities are optimum utilisation of the capacities already built, faster commercialisation of new products and further improvement in operational efficiency.
Margins are described as not yet at their full potential; cost optimisation, monetisation of non-core assets, rationalisation of lower-margin businesses and product-mix improvement are said to be progressing, with the benefit expected to reflect over the medium term.
Management said it remains confident of delivering sustainable and profitable growth over the medium to long term, supported by R&D capabilities and a healthy balance sheet.
The transcript notes that the audio recording of the call prevails in case of any discrepancy.

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