Rossari Biotech , a leading specialty chemicals manufacturer, is poised for strong growth driven by its performance chemicals and textile specialties segments. The company anticipates significant expansion fueled by demand recovery, benefits from backward integration, and scaling up of exports.

Robust Q2 FY26 Performance

Rossari Biotech has reported impressive financial results for the second quarter of fiscal year 2026:

The company's revenue growth was broad-based, with its key segments showing strong performance:

• Home, Personal Care and Performance Chemicals (HPPC): 16% YoY growth
• Textile Specialty Chemicals (TSC): 21% YoY growth
• Animal Health and Nutrition (AHN): 29% YoY growth

Export-Driven Growth

Rossari Biotech's focus on international markets is paying off, with exports growing by 36% year-on-year in Q2 FY26. The company has expanded its global operations, now contributing almost 28% to overall sales. This growth is attributed to deeper customer engagement in key international markets and increased wallet share with partners.

Capacity Expansion and Strategic Investments

To support its growth trajectory, Rossari Biotech has undertaken several capacity expansion initiatives:

1. Commissioned an additional 20,000 MTPA capacity at its Dahej facility, bringing the total installed capacity to 152,500 MTPA.
2. Launched 15,000 MTPA ethoxylation capacity at Unitop (Phase 1 of a 30,000 MTPA plan).
3. The second phase of expansion at Unitop is expected to be commissioned by Q3 FY26.

These expansions are aimed at supporting scale-up across high-growth verticals such as personal care, agrochemicals, oil & gas, and pharma.

International Expansion

The company's board has approved an investment of up to USD 8 million in tranches in Rossari International Limited Company (RILC), a wholly-owned subsidiary incorporated in Saudi Arabia in December 2024. This move aligns with Rossari's strategy to enhance its global presence and strengthen its position in international markets.

Management Commentary

In a joint statement, Mr. Edward Menezes, Promoter & Executive Chairman, and Mr. Sunil Chari, Promoter & Managing Director, expressed confidence in the company's growth prospects. They highlighted the company's diversified product portfolio, agile manufacturing capabilities, and strong balance sheet as key factors positioning Rossari to capitalize on emerging opportunities.

The management remains committed to innovation, continuously developing tailored solutions to meet evolving customer needs. They are also focused on expanding the global footprint through their own manufacturing setup and sales & distribution network overseas.

While robust volumes supported the top line, profitability remained steady due to subdued pricing and ongoing investments in seeding new business opportunities. The management expects profitability to improve progressively as these initiatives begin to contribute to revenues.

Rossari Biotech's strategic focus on performance chemicals and textile specialties, coupled with its export-driven growth and capacity expansion initiatives, positions the company well for sustained growth and margin expansion in the coming quarters.

Rossari Biotech Limited , a leading specialty chemicals manufacturer, has announced its financial results for the second quarter of fiscal year 2026, demonstrating strong performance and strategic initiatives for future growth.

Financial Highlights

For the quarter ended September 30, 2025, Rossari Biotech reported:

The company's consolidated revenue from operations showed a significant increase, reflecting robust demand for its specialty chemical products.

Employee Stock Option Plan

In a move to align employee interests with company growth, Rossari's Board of Directors approved the granting of 35,000 stock options under its Employee Stock Option Plan 2019. The exercise price for these options has been set at Rs. 661 per option.

Additionally, the Board approved the allotment of 14,400 equity shares at Rs. 425 per share to employees who exercised their stock options. This allotment has increased the company's total issued share capital to Rs. 11,07,62,732, consisting of 55,381,366 equity shares.

Investment in Saudi Arabian Subsidiary

In a strategic move to expand its international footprint, Rossari Biotech has approved an additional investment of up to USD 8 million in its wholly-owned subsidiary, Rossari International Limited Company, located in Saudi Arabia. This investment, to be made in tranches by March 31, 2027, is aimed at supporting manufacturing and trading activities in the region.

Board Meeting Outcomes

The company's Board meeting, which commenced at 05:30 P.M. and concluded at 06:30 P.M. on October 15, 2025, also approved the following:

1. Unaudited Financial Results (Standalone and Consolidated) for Q2 and H1 FY26
2. Grant of Options under Rossari Employee Stock Option Plan - 2019
3. Allotment of Equity Shares under the Employee Stock Option Plan
4. Additional investment in Rossari International Limited Company

Market Position and Future Outlook

Rossari Biotech's strong financial performance and strategic initiatives underscore its commitment to growth and expansion. The investment in its Saudi Arabian subsidiary signals the company's focus on strengthening its international presence, particularly in the Middle East market.

The implementation of employee stock options demonstrates Rossari's commitment to aligning employee interests with the company's long-term success, which may contribute to improved productivity and retention of key talent.

As Rossari Biotech continues to navigate the dynamic specialty chemicals market, these financial results and strategic decisions position the company for potential growth and value creation for its stakeholders in the coming quarters.