Rossari Biotech Limited, a leading specialty chemicals manufacturer, has reported a robust 18% year-over-year revenue growth for the second quarter of fiscal year 2026, reaching Rs. 586.1 crore. The company's performance was primarily driven by volume expansion across all three of its core business segments.

Key Financial Highlights

• Revenue: Rs. 586.10 crore (18% YoY growth)
• EBITDA: Rs. 71.90 crore
• EBITDA Margin: 12.3% (compared to 13.2% in Q2 FY25)
• Core EBITDA Margin (excluding institutional and B2C verticals): Approximately 15%

Segment-wise Performance

Export Performance

• Q2 Export Growth: 36% YoY
• H1 Export Growth: 27% YoY
• Export Contribution: 28% of total revenues

Operational Highlights

• Commissioned additional capacity of 20,000 metric tons per annum at Dahej facility
• Added 15,000 metric tons per annum of ethoxylation capacity at Unitop (first phase of planned 30,000 MTPA expansion)

Market Challenges and Outlook

The company faces pricing pressures due to tariff uncertainties affecting textile exports to the US. Management expects margin levels to remain similar in H2 FY26, with the core business maintaining 14-16% EBITDA margins.

Working Capital

Working capital increased to 102 days from 95 days in March due to stretched receivables and strategic inventory stocking.

Edward Menezes, Promoter and Executive Chairman of Rossari Biotech, commented on the company's innovation efforts: "Over the past six to nine months, our teams have developed new products, both in Ethylene Oxide-based and non-EO-based, guided by green chemistry principles to deliver sustainable, scalable, and customized solutions for customers across industries."

Sunil Chari, Promoter and Managing Director, highlighted the export performance: "Our international business delivered robust growth with exports rising 36% YoY in Q2 and 27% in H1. This growth was driven by improved traction with key customers, higher wallet share with strategic partners, and deeper penetration in both existing and new geographies."

The company's management remains optimistic about sustaining healthy growth momentum in the coming fiscal year, supported by new capacities coming on stream and a robust pipeline of new products developed through focused R&D efforts.

Despite the challenges posed by global tariff uncertainties, Rossari Biotech's diversified product portfolio and expanding international presence have helped the company maintain its growth trajectory. The company's focus on innovation and capacity expansion positions it well to capitalize on emerging opportunities in the specialty chemicals sector.

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.