Rossari Biotech Q2 FY27 results: net profit up 5.5% to ₹38.91 crore, revenue up 19.0%

How did Rossari Biotech perform in Q2 FY27?

Rossari Biotech reported consolidated revenue of ₹697.56 crore for Q2 FY27, up 19.0% from ₹586.11 crore in Q2 FY26 and 0.1% from ₹697.20 crore in Q1 FY27. Total income was ₹698.16 crore. EBITDA increased to ₹86.97 crore from ₹71.92 crore a year earlier and ₹80.62 crore in the previous quarter, while EBITDA margin rose to 12.5% from 12.3% and 11.6%, respectively.

Net profit attributable to owners was ₹38.91 crore, compared with ₹36.88 crore in Q2 FY26 and ₹35.09 crore in Q1 FY27. Basic EPS was ₹7.02, up from ₹6.66 and ₹6.34. Profit before tax was ₹48.80 crore, compared with ₹49.20 crore a year earlier and ₹47.22 crore in the previous quarter. On a standalone basis, revenue was ₹495.28 crore and PAT was ₹34.23 crore.

The results were reviewed by the Audit Committee and approved by the Board on 17 October 2026. The statutory auditors conducted a limited review of the consolidated quarter and first-half results, and the filing stated that nothing had come to their attention indicating that the statements had not been prepared in accordance with Ind AS 34 and applicable requirements.

What changed in Rossari Biotech's costs and profit?

Total expenses rose ₹110.85 crore, or 20.6%, to ₹649.36 crore from Q2 FY26. Cost of materials increased ₹68.43 crore to ₹475.64 crore, employee cost rose ₹5.82 crore to ₹43.62 crore, and other expenses increased ₹14.13 crore to ₹89.66 crore.

Finance costs were ₹8.68 crore, up ₹2.59 crore from a year earlier, while depreciation was ₹30.10 crore, up ₹11.87 crore. Other income fell ₹1 crore to ₹0.60 crore. There was no exceptional item. Tax expense declined ₹2.44 crore to ₹10.36 crore, while PBT decreased ₹0.40 crore to ₹48.80 crore and PAT increased ₹2.03 crore to ₹38.91 crore.

Against Q1 FY27, total expenses fell ₹3.81 crore to ₹649.36 crore. Cost of materials decreased ₹39.04 crore and finance costs fell ₹2.30 crore, while depreciation increased ₹4.49 crore and other expenses rose ₹7.95 crore. Other income fell ₹2.59 crore and tax expense declined ₹2.22 crore, helping PAT rise ₹3.82 crore to ₹38.91 crore.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹1,394.76 crore, up ₹264.94 crore or 23.4% from ₹1,129.82 crore in H1 FY26. Total income was ₹1,398.55 crore, compared with ₹1,132.63 crore, while PBT rose 1.3% to ₹96.02 crore from ₹94.78 crore.

PAT for H1 FY27 was ₹74.0 crore, compared with ₹70.47 crore in H1 FY26, while EPS was ₹13.36 against ₹12.76. Management said HPPC, Textile Specialty Chemicals, and Animal Health and Nutrition grew by 24%, 24%, and 19%, respectively, during the first half.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹2,359.46 crore, compared with ₹2,288.79 crore at 31 March 2026. Total equity increased to ₹1,407.60 crore from ₹1,333.35 crore, while borrowings fell to ₹361.77 crore from ₹407.99 crore and cash rose to ₹84.44 crore from ₹75.31 crore.

Inventories were ₹443.99 crore at the end of September 2026, up from ₹404.55 crore at the end of March. Trade receivables declined to ₹553.67 crore from ₹557.41 crore, while trade payables increased to ₹343.58 crore from ₹323.45 crore.

Operating cash flow for H1 FY27 was ₹131.42 crore, compared with negative ₹25.03 crore in H1 FY26. Investing cash flow was negative ₹49.53 crore against negative ₹106.32 crore, financing cash flow was negative ₹72.38 crore against positive ₹121.65 crore, and capital expenditure was ₹57.38 crore against ₹141.79 crore.

How has Rossari Biotech done over the last 8 quarters?

Revenue reached its highest level of the eight-quarter series at ₹697.56 crore in Q2 FY27, narrowly above ₹697.20 crore in Q1 FY27 and ₹684.86 crore in Q4 FY26. Revenue has increased year on year in each of the last eight quarters, while profit has increased year on year in each of the last five quarters.

PAT was highest at ₹45.97 crore in Q4 FY26 and lowest at ₹31.70 crore in Q3 FY25. It fell to ₹32.77 crore in Q3 FY26 before rising to ₹35.09 crore in Q1 FY27 and ₹38.91 crore in Q2 FY27. The EBITDA margin bottomed at 11.3% in Q4 FY26 and recovered to 12.5% in the latest quarter.

What did Rossari Biotech's management say?

Management maintained FY27 EBITDA-margin guidance at around 12% plus or minus and raised revenue-growth guidance to mid-teen to high-teen growth for the year-end. It also expects working-capital days to remain at 87–90 days through year-end and maintained the plan to repay all working-capital debt by mid-FY28. Management expects the new ethoxylation facility to reach healthy utilisation by Q2–Q3 FY28 once Reliance’s ethylene-oxide expansion flows in.

Management said priorities for the remainder of FY27 were to optimise existing capacity utilisation, accelerate new-product commercialisation, improve operational efficiency and raise margins. It said the Saudi Arabia greenfield project’s detailed plan and investment would be placed before the Board, with the land lease approved for the wholly owned subsidiary Rossari International Limited.

Management identified Middle East geopolitical disruption, freight and insurance costs, shipping routes through Bab el-Mandeb and Hormuz, raw-material price volatility, uncertain incremental ethylene-oxide allocation and cautious customer buying as risks. On the call, Sunil Chari said, “But what is happening is in the global market, the situation is changing so rapidly. We are not able to know whether we'll be able to ship our shipments through Bab el-Mandeb or through Hormuz, or the insurance and the freights are going up.”

Management said exports were 31% of Q2 revenue, with HPPC export growth attributed to personal care and oil and gas. The core B2B EBITDA margin was 14.1%, compared with 14.8% a year earlier, which management attributed to freight and raw-material costs. The B2C and institutional business reported EBITDA of ₹0.2 crore against a loss of ₹3.7 crore a year earlier, and management reiterated its plans to monetise non-core assets.

How did Rossari Biotech shares react?

The filing was released after market hours. From the price when it appeared, the stock was up 0.5% after five minutes, but it was down 1.3% after 15 minutes and 1.4% after 30 minutes. It closed 4.4% lower on the reaction day from the previous close of ₹455.0.

By the next day’s close, the stock was down 8.6% from its pre-results close, extending to a 10.5% decline by the fifth session. The Specialty Chemicals industry median was down 1.8% on the reaction day, 4.8% by the next close and 7.1% by the fifth session, leaving Rossari Biotech 2.6, 3.7 and 3.4 percentage points behind the industry median, respectively.

Earlier reaction-day moves were negative 2.5% on 18 July 2026, negative 7.0% on 28 April 2026, negative 3.9% on 21 January 2025 and negative 5.2% on 19 October 2024. The 20 July 2024 reaction was positive 2.7%, while the 29 April 2024 reaction was negative 4.1%.

How did other Specialty Chemicals companies do?

Among 51 Specialty Chemicals companies compared for the quarter, the median revenue growth was 28.5%. Twelve peers grew more slowly than Rossari Biotech and 39 grew faster than Rossari Biotech, whose Q2 FY27 revenue growth was 19.0%. Of 47 peers for which profit was compared, 41 reported higher profit.