Rossari Biotech management has provided an update on supply chain constraints that have been affecting the company's operations. During a recent conference call, the company addressed concerns regarding ethylene oxide availability, which has been impacting production capabilities.

Supply Chain Outlook

The management indicated that the ethylene oxide supply situation, currently acting as a near-term operational constraint, is expected to ease during the current calendar year. This guidance suggests potential relief from the supply bottlenecks that have been affecting the company's production processes.

Operational Impact

Ethylene oxide is a critical raw material for various chemical processes, and supply constraints in this area can significantly impact manufacturing operations. The expected improvement in supply availability could help normalize production schedules and support operational efficiency.

The company's guidance provides clarity on the timeline for potential resolution of these supply chain challenges, which could be important for operational planning and capacity utilization going forward.

Rossari Biotech Limited announced its financial results for Q3 FY26, demonstrating steady growth across key performance metrics despite a softer domestic demand environment. The specialty chemicals manufacturer reported consolidated revenue of ₹581.7 crores for the quarter ended December 31, 2025, representing a 13% year-on-year increase from ₹512.7 crores in the corresponding period last year.

Financial Performance Overview

The company's Q3 FY26 performance showed consistent growth across major financial parameters:

EBITDA improved by 6% to ₹68.9 crores from ₹64.8 crores, though the EBITDA margin compressed to 11.8% from 12.6% in the previous year. Profit After Tax (PAT) increased by 3% to ₹32.8 crores from ₹31.7 crores, while diluted earnings per share stood at ₹5.90 compared to ₹5.70 in Q3 FY25.

Nine-Month Performance Highlights

For the nine-month period ending December 31, 2025, Rossari Biotech maintained strong momentum:

Revenue from operations reached ₹1,711.5 crores, marking a 14% increase from ₹1,500.7 crores in 9M FY25. EBITDA grew 7% to ₹208.7 crores, while PAT improved marginally by 1% to ₹103.2 crores.

Segment-wise Growth Performance

The company achieved balanced growth across its diversified business portfolio during Q3 FY26:

• Home, Personal Care and Performance Chemicals (HPPC): Recorded 11% YoY growth, reflecting stable demand despite softer domestic conditions
• Textile Specialty Chemicals (TSC): Delivered robust 18% YoY growth
• Animal Health and Nutrition (AHN): Achieved strong 39% YoY growth

This diversified performance across segments helped offset moderation in select end-markets, while exports continued to support overall performance through focused efforts to deepen relationships in key geographies and expand the customer base.

Strategic Expansion Initiative

The Board of Directors has granted in-principle approval for establishing greenfield specialty chemicals manufacturing facilities in the Kingdom of Saudi Arabia (KSA). Key aspects of this strategic initiative include:

The project aims to strengthen the company's position as a major player in specialty chemicals manufacturing while exploring available regional incentives and evaluating optimal funding options.

Management Commentary

Executive Chairman Edward Menezes and Managing Director Sunil Chari highlighted the company's resilient performance amid challenging market conditions. They emphasized that profitability was impacted by ongoing investments in capacity expansion, product development, and market-seeding initiatives, which are intended to strengthen long-term competitive positioning. The management expressed confidence that operating leverage, scale benefits, and an improving product mix will support margin improvement over time, with the phased capacity expansion program across verticals continuing to progress well.