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.

Rossari Biotech Limited , a leading specialty chemicals manufacturer, has announced its financial results for the first quarter, showcasing a mixed performance with revenue growth and varying profitability metrics.

Revenue Growth

The company reported a consolidated revenue from operations of ₹5,437.16 crore for Q1, marking an 11% increase compared to ₹4,896.50 crore in the same quarter last year. This growth indicates the company's ability to expand its market presence and increase sales despite challenging market conditions.

EBITDA Performance

Rossari Biotech reported Q1 EBITDA of ₹680.00 crore, up from ₹649.00 crore in the same period last year. This represents a 4.8% increase in absolute EBITDA. However, the company's EBITDA margin declined to 12.51% from 13.25% year-over-year, indicating lower profitability despite higher absolute earnings.

Profit Performance

Despite the revenue growth and increased EBITDA, Rossari Biotech experienced a marginal decline in its bottom line. The consolidated net profit for Q1 stood at ₹335.96 crore, down by 3.7% from ₹348.99 crore in the corresponding quarter of the previous year. This slight decrease in profitability could be attributed to various factors such as increased operational costs or changes in the product mix.

Segment-wise Performance

The company's Home, Personal Care and Performance Chemicals (HPPC) and Animal Health and Nutrition (AHN) segments demonstrated strong growth:

• HPPC segment grew by 16% year-on-year
• AHN segment recorded a 12% year-on-year increase

These growth figures underscore Rossari Biotech's strong position in these key business areas.

Operational Highlights

While the EBITDA improved by 4.8% year-on-year, the EBITDA margin experienced a compression of 74 basis points.

Management Commentary

Edward Menezes, Promoter & Executive Chairman, and Sunil Chari, Promoter & Managing Director, in a joint statement, said: "We delivered a steady performance in Q1, with topline growth driven by strong momentum in our HPPC and AHN segments. Despite a challenging and evolving operating environment, our core businesses continued to demonstrate resilience."

They also highlighted that while the export business was lower compared to the previous quarter, it has shown healthy growth over the last year.

Future Outlook

The management expressed confidence in their ongoing efficiency initiatives and focused efforts on optimizing the product mix to drive growth in the coming quarters. They also mentioned that capacity expansion projects across verticals are progressing in a phased manner, with commissioning scheduled over the coming quarters.

These strategic investments are aimed at:

• Enhancing manufacturing capabilities
• Improving supply chain agility
• Strengthening the company's responsiveness to high-growth sectors such as personal care, agrochemicals, oil & gas, and pharma

Conclusion

Rossari Biotech's Q1 results demonstrate the company's ability to grow its revenue and EBITDA in a challenging environment, although with some pressure on profitability margins. The strong performance in key segments and ongoing expansion initiatives position the company well for future growth, despite the slight dip in overall profitability this quarter.