Rossari Biotech Limited's material subsidiary, Unitop Chemicals Private Limited, has made a strategic move to support its future growth plans. The company has approved the acquisition of leasehold land rights in the Gujarat Industrial Development Corporation (GIDC) industrial estate in Dahej, Gujarat.

Transaction Details

The transaction involves the purchase of rights to approximately 12,600 square meters of leasehold land from Micro Resins Private Limited. The deal is valued at up to Rs 9.00 crores, excluding transfer charges and applicable duties. This acquisition aligns with Unitop Chemicals' long-term growth strategy, aiming to support future capacity expansion and create operational synergies with its existing facility.

Strategic Implications

The newly acquired land is adjacent to Unitop Chemicals' current operations in Dahej, Gujarat. This strategic location is expected to facilitate seamless integration with the company's existing infrastructure and potentially lead to improved operational efficiency.

Regulatory Compliance

In compliance with regulatory requirements, Rossari Biotech Limited has made the necessary disclosures under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has informed the stock exchanges about this material development involving its subsidiary.

Transaction Approval and Completion

The Board of Directors of Unitop Chemicals Private Limited approved this land acquisition in their meeting held on August 18, 2025. However, it's important to note that the completion of the transaction is subject to obtaining necessary approvals, consents, and permissions from the concerned authorities.

Arm's Length Transaction

Rossari Biotech has clarified that the parties involved in this transaction - Unitop Chemicals Private Limited and Micro Resins Private Limited - are not related to the promoter group. Furthermore, the company has confirmed that this deal does not fall under the category of related party transactions, ensuring transparency in the acquisition process.

This strategic land acquisition by Unitop Chemicals Private Limited demonstrates Rossari Biotech's commitment to expanding its operational capabilities and fostering long-term growth in the chemical sector.

Rossari Biotech Limited , a leading specialty chemicals company, has reported a steady performance in the first quarter, with revenue growth driven by its Home, Personal Care and Performance Chemicals (HPPC) and Animal Health and Nutrition (AHN) segments.

Financial Highlights

• Revenue from operations grew by 11% year-on-year to Rs 543.70 crore
• EBITDA increased by 4.6% to Rs 67.90 crore
• EBITDA margin stood at 12.5%, down from 13.3% in the same quarter last year
• Excluding the institutional and B2C business, adjusted EBITDA was Rs 75.00 crore with a margin of 16%

Segment Performance

The company's performance was marked by healthy momentum in its HPPC and AHN segments, which contributed significantly to the top-line growth. However, the export business faced headwinds due to prevailing global uncertainties, impacting the Agri and Textile segments.

Operational Challenges

Rossari Biotech experienced production disruptions for 10-12 days during the quarter due to ongoing capacity expansion activities. This intermittent closure impacted production and led to delays in some export shipments.

Institutional and B2C Business

The institutional and B2C business reported a loss of approximately Rs 7.00 crore in Q1, impacting the consolidated margins. However, management expects this vertical to demonstrate healthy growth on an annual basis as they focus on scaling platforms and strengthening market presence.

Capacity Expansion and Future Outlook

Edward Menezes, Promoter and Executive Chairman, stated, "Our capacity expansion projects across Rossari Biotech, Unitop Chemicals & Tristar Intermediates are progressing well, with phased commissioning expected over the coming quarters. These investments will enhance manufacturing capabilities, improve supply chain agility and position us to serve high growth sectors."

Sunil Chari, Promoter and Managing Director, added, "With our capacity expansion advancing towards completion, emerging vertical strengthening and our international presence expanding, we are creating a strong foundation to capture the next phase of growth with enhanced scale, agility and resilience."

International Expansion

As part of its international strategy, Rossari Biotech is setting up an overseas formulation facility in Southeast Asia with an investment of Rs 15-20 crore. This facility will serve as a strategic hub for Southeast Asian markets, enabling quicker turnaround times and improved delivery schedules.

Management Commentary

Ketan Sablok, Group Chief Financial Officer, commented on the financial performance, saying, "Excluding these verticals, our EBITDA stood at Rs 75.00 crore, growing 12% YoY with an adjusted margin of about 16%, reflecting the efficiency and resilience in our core operations."

Looking ahead, the management maintains optimism for mid-double-digit growth of 14-15% on both revenue and EBITDA for the full fiscal year. They expect Q2 to be a stronger quarter, with the Agri segment in full flow and fulfillment of delayed export orders from Q1.

Rossari Biotech remains focused on executing its growth initiatives, maintaining margin stability, and building a platform for scalable and profitable growth from FY27 onwards.