Rossari Biotech Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Rossari Biotech Ltd filed with BSE on 24 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Rossari Biotech reported consolidated revenue of Rs. 697.2 crore in Q1 FY27, up 28% YoY, along with its highest ever quarterly EBITDA of Rs. 80.6 crore, up 18.7% YoY, though EBITDA margin declined to 11.6% from 12.5% a year earlier. Management attributed the margin pressure to the institutional and consumer business, raw material and freight volatility, and product mix, while noting that core B2B operations excluding these businesses delivered around 14% EBITDA margin. The company discussed ongoing initiatives including a new Thailand blending plant, a proposed Saudi Arabia project, a new Fibre Chemicals Division, and continued monetization of non-core assets such as the Andheri office.
Numbers mentioned
Revenue from operations: Rs. 697.2 crore (Q1 FY27)
p. 5
“In Q1 FY27, revenue from operations stood at Rs. 697.2 crore, registering a growth of 28% YoY.”
Ketan Sablok, page 5 of the filed PDF · View the filing
EBITDA: Rs. 80.6 crore (Q1 FY27)
p. 6
“EBITDA for the quarter stood at Rs. 80.6 crore, representing a growth of 18.7% YoY”
Ketan Sablok, page 6 of the filed PDF · View the filing
EBITDA margin: 11.6% (Q1 FY27)
p. 6
“The EBITDA margins stood at 11.6% compared to 12.5% in the corresponding quarter last year.”
Ketan Sablok, page 6 of the filed PDF · View the filing
Core B2B EBITDA: Rs. 85 crore (Q1 FY27)
p. 6
“Excluding the institutional and consumer businesses, our core B2B operations delivered EBITDA of Rs. 85 crore, registering a growth of 13% YoY, with an EBITDA margin of approximately 14%.”
Ketan Sablok, page 6 of the filed PDF · View the filing
PAT: Rs. 35.1 crore (Q1 FY27)
p. 6
“PAT for the quarter stood at Rs. 35.1 crore, representing a growth of 4.5% YoY.”
Ketan Sablok, page 6 of the filed PDF · View the filing
HPPC, TSC, AHN segment growth: around 28% YoY (Q1 FY27)
p. 4
“The quarter witnessed strong growth across each of our core business segments, with the HPPC, TSC, and AHN business all growing by around 28% YoY.”
Sunil Chari, page 4 of the filed PDF · View the filing
HPPC quarterly revenue: Rs. 550 crore (Q1 FY27)
p. 4
“Notably, the HPPC business crossed Rs. 550 crore quarterly revenue milestone, reflecting the increasing scale and depth of our presence across key applications and end user industries.”
Sunil Chari, page 4 of the filed PDF · View the filing
Export growth: 21% YoY (Q1 FY27)
p. 4
“Our international business maintained its positive momentum, with exports growing 21% YoY during the quarter.”
Sunil Chari, page 4 of the filed PDF · View the filing
Export revenue: Rs. 160 odd crore (Q1 FY27)
p. 11
“We do not target any specific number, but if you see, this quarter we have done about Rs. 160 odd crore, so about 23%-24% of our total revenue comes out of the export basket.”
Ketan Sablok, page 11 of the filed PDF · View the filing
Volume growth: about 10% (Q1 FY27)
p. 12
“The YoY growth in terms of volume v/s price, the volume has grown by about 10% and the rest of the growth has mostly come out of the higher pricing.”
Ketan Sablok, page 12 of the filed PDF · View the filing
Net debt: Rs. 248 crore (Q1 FY27)
p. 16
“Yes, Rohit. On the debt profile, this quarter our net debt is about Rs. 248 crore.”
Ketan Sablok, page 16 of the filed PDF · View the filing
Thailand plant revenue: Rs. 2 - Rs. 3 crore (Q1 FY27)
p. 9
“The first quarter revenues from this plant were about Rs. 2 - Rs. 3 crore, but I think this will slowly start ramping up in the subsequent quarters.”
Ketan Sablok, page 9 of the filed PDF · View the filing
Andheri office sale proceeds: Rs. 10.5 crore (Q1 FY27)
p. 16
“And this quarter we have sold our Andheri office, so there we sold it for about Rs. 10.5 crore.”
Ketan Sablok, page 16 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — around 15% · FY27
stated conditionally by Ketan Sablok
p. 14
“This year Sanjesh, I would still stick to our 15% kind of growth, something we had spoken about even in our last call, even though this this quarter has been a stronger quarter for us.”
Ketan Sablok, page 14 of the filed PDF · View the filing
EBITDA margin — around 15% · 2-3 years
stated as an aspiration by Ketan Sablok
p. 10
“Our aim is that once we recalibrate the whole business mix, the product mix, we should have a steady state, the EBITDA margins at around 15% at least once these steps that we are taking materialize.”
Ketan Sablok, page 10 of the filed PDF · View the filing
Pharma business revenue — Rs. 30 crore - Rs. 50 crore · FY27
stated conditionally by Ketan Sablok
p. 10
“Yes, and it could be a revenue potential of close to Rs. 30 crore - Rs. 50 crore.”
Ketan Sablok, page 10 of the filed PDF · View the filing
Pharma business revenue — Rs. 70 – Rs. 75 crore · this year
stated conditionally by Sunil Chari
p. 12
“The pharma, which is the higher value, I think we did more than Rs. 50 crore last year and this year we should do Rs. 70 – Rs. 75 crore in pharma this year.”
Sunil Chari, page 12 of the filed PDF · View the filing
FY28 growth — FY28
stated conditionally by Ketan Sablok
p. 15
“Yes, FY28 should be better, hoping that the availability of EO will come on stream by the end of this calendar year and then we will have a full year next year in FY28 with additional EO.”
Ketan Sablok, page 15 of the filed PDF · View the filing
KSA project timeline — 1.5 years post announcement
stated conditionally by Sunil Chari
p. 15
“It should take about 1.5 years for us to start the first kilo of production once we make the announcement.”
Sunil Chari, page 15 of the filed PDF · View the filing
Finance cost run rate — Rs. 9 crore to Rs. 10 crore · going forward
stated conditionally by Ketan Sablok
p. 16
“But I think now going forward the finance cost should be at close to this Rs. 9 crore to Rs. 10 crore kind of a run rate.”
Ketan Sablok, page 16 of the filed PDF · View the filing
Company revenue scale-up — more than double · next four years
stated as an aspiration by Sunil Chari
p. 17
“we are looking at scaling up Rossari to more than double from here over the next four years.”
Sunil Chari, page 17 of the filed PDF · View the filing
EO availability — by December
stated conditionally by Sunil Chari
p. 13
“I think we are expecting more EO by the end of this year, hopefully will come before December.”
Sunil Chari, page 13 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management pointed to improving capacity utilization, product mix optimization, and exit from low margin businesses as margin drivers, while cautioning near-term pricing and raw material pressure.
Answered by Ketan Sablok
Asked by Divyansh Jaju: What will drive EBITDA margin improvement given several quarters of stagnant margins?
p. 7
“Lot of the low margin businesses we are trying to slowly exit. And also the new areas that we are looking at, which include segments like pharma and aroma and such other areas, will go a long way in improving these EBITDA margins.”
Ketan Sablok, page 7 of the filed PDF · View the filing
Management said it is difficult to predict amid geopolitical and freight volatility but expressed confidence in good growth for the year.
Answered by Sunil Chari
Asked by Disha Bhordia: Given Q1 revenue growth of 28% versus prior 15% guidance, how should FY27 growth be viewed?
p. 8
“But I think on a whole we are looking you know at a good growth this year. It is very difficult to hazard a guess on how much we can do, but we are very confident and very bullish on our prospects.”
Sunil Chari, page 8 of the filed PDF · View the filing
Management said pass-through is generally not a concern but freight and insurance cost volatility is causing some margin loss.
Answered by Sunil Chari
Asked by Disha Bhordia: Is the company able to pass on raw material price hikes?
p. 8
“We have been able to pass on, but what happens is up and down, creates lot of uncertainty in the mind of buyers and also the freight become one major component because of the insurance cost and of the vessels and all and the unavailability of vessels.”
Sunil Chari, page 8 of the filed PDF · View the filing
Management confirmed this level should be treated as the base going forward.
Answered by Ketan Sablok
Asked by Disha Bhordia: Is 11.6% the new base level for EBITDA margin?
p. 9
“Yes, so I think these level of margins you can expect to be the base level.”
Ketan Sablok, page 9 of the filed PDF · View the filing
Management said exiting B2C would release 2-3% EBITDA margin while the institutional cleaning business would remain part of the portfolio.
Answered by Ketan Sablok
Asked by Vinith Jain: What happens to EBITDA margin and debt if the B2C business is exited?
p. 11
“In terms of EBITDA margins if you see it will release at least 2%-3% EBITDA. Shorn of this business we are close to about 14%, in some years we are even 15% of the EBITDA margins.”
Ketan Sablok, page 11 of the filed PDF · View the filing
Management explained that unlike single-molecule commodity producers, its diversified specialty chemicals raw material basket took a hit, citing a specific phenol supply delay issue.
Answered by Sunil Chari
Asked by Sanjesh Jain: Why did Rossari not show the inventory gains and spread benefits seen at other domestic-focused chemical companies this quarter?
p. 14
“We took a hit of around Rs. 5 crore in the last quarter on phenol alone because shipments from China were promised, and we had contracted them at a certain price.”
Sunil Chari, page 14 of the filed PDF · View the filing
Management detailed net debt reduction and explained higher interest cost due to capitalized term loans now flowing through the P&L.
Answered by Ketan Sablok
Asked by Rohit Nagraj: What is the current debt and interest cost profile?
p. 16
“On the debt profile, this quarter our net debt is about Rs. 248 crore. In March, this was about Rs. 280 crore.”
Ketan Sablok, page 16 of the filed PDF · View the filing
Management said EO capacity is nearly fully utilized and expects margin improvement from ramp-up of the continuous ethoxylation MDEA plant over the next year.
Answered by Sunil Chari
Asked by Rohan Picha: Will EO supply visibility improve gross margins given non-EO use of EO plants?
p. 17
“If you see our EO capacity now is practically 100% utilized except for a small addition in the batch reactors.”
Sunil Chari, page 17 of the filed PDF · View the filing
Risks flagged
Freight cost volatility due to geopolitical tensions and war affecting shipping
p. 8
“And now everything looked okay and then again the war started and the freight prices have again shot up now.”
Sunil Chari, page 8 of the filed PDF · View the filing
Raw material price volatility, particularly a mistimed purchase of one key raw material
p. 13
“In anticipation that the prices would go up further, we did a slightly larger block of purchase, but then the market moved the other way.”
Ketan Sablok, page 13 of the filed PDF · View the filing
Delayed shipments from China causing supply disruption and margin hit on phenol
p. 14
“However, the shipments got delayed somewhere and arrived nearly one month later. In the meanwhile, we had to buy from the market to supply to our customers, and those purchases were at very high prices.”
Sunil Chari, page 14 of the filed PDF · View the filing
Sole EO supplier in India limits ability to negotiate pricing
p. 17
“And in India we have a sole supplier, so we do not have the opportunity to negotiate on our EO price which we get.”
Sunil Chari, page 17 of the filed PDF · View the filing
Subdued domestic institutional and consumer business weighing on profitability
p. 5
“On the domestic front, the institutional and consumer business continued to operate in a relatively subdued environment and weighed on overall profitability during the quarter.”
Sunil Chari, page 5 of the filed PDF · View the filing
Geopolitical uncertainty affecting the Saudi Arabia project and broader business predictability
p. 5
“Despite the prevailing geographical uncertainty, our conviction in the long term potential of this initiative remains intact.”
Sunil Chari, page 5 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.