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Rossari Biotech Ltd
(ROSSARI)
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Rating:60Neutral
Price Target:
₹478.00
▼(-18.14% Downside)
Action:Reiterated
Date:10/19/26
The score is held back primarily by weak and volatile cash generation (persistently negative free cash flow) alongside rising debt and some margin pressure, which increases execution risk. This is partly balanced by a constructive earnings call showing record results, improving working capital and debt reduction, plus a reasonable valuation; technical indicators remain mixed with the longer-term trend still weak.
Positive Factors
Broad-based revenue growth
Growth across all three divisions, supported by value-added products and higher customer wallet share, indicates broad demand rather than reliance on one narrow market. This diversification can support more resilient revenue expansion and improve operating leverage as volumes scale over the next several quarters.
Negative Factors
Weak cash conversion
Persistently weak free cash flow limits the company’s ability to fund expansion internally and increases reliance on borrowing or working-capital financing. The gap between reported earnings and cash generation could constrain investment flexibility and make execution more sensitive to changes in customer collections or inventory needs.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based revenue growth
Growth across all three divisions, supported by value-added products and higher customer wallet share, indicates broad demand rather than reliance on one narrow market. This diversification can support more resilient revenue expansion and improve operating leverage as volumes scale over the next several quarters.
Read all positive factors
Rossari Biotech Ltd (ROSSARI) vs. iShares MSCI India ETF (INDA)
Market Cap
₹22.12B
Dividend Yield0.13%
Average Volume (3M)3.80K
Price to Earnings (P/E)14.5
Beta (1Y)1.15
Revenue Growth19.76%
EPS Growth11.74%
CountryIN
Employees585
SectorGeneral
Sector StrengthN/A
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)27.58
Shares Outstanding55,394,115
10 Day Avg. Volume4,284
30 Day Avg. Volume3,798
Financial Highlights & Ratios
PEG Ratio1.51
Price to Book (P/B)1.57
Price to Sales (P/S)0.87
P/FCF Ratio-9.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)26.07
Revenue Forecast (FY)₹26.94B
Rossari Biotech Ltd Business Overview & Revenue Model
Company Description
Rossari Biotech Limited, an India-based company, is a global manufacturer and distributor of specialized chemical products. Its diverse offerings cater to numerous industries, including ingredients for soaps and detergents, formulations for inks, ...
How the Company Makes Money
Rossari Biotech makes money primarily by selling specialty chemical formulations and allied solutions to business customers (B2B). Its revenue model is driven by: (1) Product sales across application categories: The company supplies textile specia...
Rossari Biotech Ltd Earnings Call Summary
Earnings Call Date:Oct 17, 2026
(Q2-2027)
| Next Earnings Date:Jan 18, 2027
Earnings Call Sentiment Positive
The call was broadly positive, supported by record quarterly revenue and EBITDA, strong growth across all three divisions, accelerating exports, improved working capital, debt reduction, and progress in higher-value products and international expansion. However, management highlighted meaningful near-term challenges from raw material volatility, freight and geopolitical disruption, ethylene oxide availability, lower core B2B margins, modest B2C revenue growth, and uncertainty around second-half demand and the Saudi project timeline.Positive Updates
Record Quarterly Revenue and EBITDA
Q2 FY 2027 revenue from operations reached INR 697.6 crores, up 19% year-over-year from INR 586.1 crores, marking the company's highest-ever quarterly revenue. EBITDA grew 21% year-over-year to INR 87 crores, also the highest-ever quarterly EBITDA.
Negative Updates
Volatile Operating Environment
Raw material prices remained volatile, geopolitical conditions in the Middle East pressured freight and logistics, and customers across several end-user industries remained cautious in their buying behavior.
Read all updates
Q2-2027 Updates
Positive
Negative
Record Quarterly Revenue and EBITDA
Q2 FY 2027 revenue from operations reached INR 697.6 crores, up 19% year-over-year from INR 586.1 crores, marking the company's highest-ever quarterly revenue. EBITDA grew 21% year-over-year to INR 87 crores, also the highest-ever quarterly EBITDA.
Read all positive updates
Company Guidance
Management expects exports to reach “at least 30% plus” of revenue by the end of this year, B2C and institutional EBITDA to be positive in “H2 second half” and to “at least break even” on a full-year basis, FY 2027 EBITDA to be “around 12% plus minus,” and full-year revenue growth to be “between mid-teen to a little high teen numbers.” Peak utilization of the approximately 50,000 ton ethoxylation capacity is expected “about two years” after commissioning, with peak sales revenue of “3X of the CapEx value” by the end of FY 2028; Reliance’s EO expansion is expected in the “first quarter of next financial year,” although “there is no confirmation” on incremental quantities. The company expects working-capital debt to become debt-free “by mid of next year,” working capital to remain within “87 to 90 days,” and some Saudi Arabia developments to occur over the next “8 to 12 months,” while significant EBITDA percentage and ROCE improvements are expected “next year.”Rossari Biotech Ltd Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
72
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.61B | 23.96B | 20.80B | 18.31B | 16.56B | 14.83B |
| Gross Profit | 6.74B | 4.94B | 6.47B | 5.26B | 2.80B | 2.29B |
| EBITDA | 3.08B | 2.86B | 2.65B | 2.57B | 2.12B | 1.94B |
| Net Income | 1.53B | 1.49B | 1.36B | 1.31B | 1.07B | 976.74M |
Balance Sheet | ||||||
| Total Assets | 23.59B | 22.89B | 18.96B | 15.72B | 13.68B | 12.57B |
| Cash, Cash Equivalents and Short-Term Investments | 1.14B | 1.27B | 1.14B | 667.85M | 1.52B | 644.26M |
| Total Debt | 3.88B | 4.36B | 2.18B | 1.19B | 739.28M | 84.27M |
| Total Liabilities | 9.52B | 9.55B | 7.11B | 5.24B | 4.52B | 4.52B |
| Stockholders Equity | 14.08B | 13.33B | 11.85B | 10.48B | 9.15B | 8.05B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -2.20B | -210.69M | -880.28M | 1.20B | -88.67M |
| Operating Cash Flow | 0.00 | 451.63M | 1.37B | 432.55M | 1.52B | 293.58M |
| Investing Cash Flow | 0.00 | -2.22B | -1.84B | -1.03B | -1.81B | -2.99B |
| Financing Cash Flow | 0.00 | 2.09B | 649.01M | 161.85M | 608.55M | 2.92B |
Rossari Biotech Ltd Technical Analysis
Negative
583.95
Price Trends
446.42
Negative
481.49
Negative
489.54
Negative
Market Momentum
-11.02
Positive
35.38
Neutral
11.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ROSSARI, the sentiment is Negative. The current price of 583.95 is above the 20-day moving average (MA) of 421.62, above the 50-day MA of 446.42, and above the 200-day MA of 489.54, indicating a bearish trend. The MACD of -11.02 indicates Positive momentum. The RSI at 35.38 is Neutral, neither overbought nor oversold. The STOCH value of 11.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ROSSARI.
Rossari Biotech Ltd Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ₹56.58B | 40.33 | ― | 0.27% | 91.44% | 19.67% | |
68 Neutral | ₹75.16B | 21.20 | ― | 1.04% | 27.05% | 16.13% | |
62 Neutral | ₹35.17B | 0.56 | ― | 0.10% | 10.71% | 2756.39% | |
60 Neutral | ₹22.12B | 14.48 | ― | 0.13% | 19.76% | 11.74% | |
56 Neutral | ₹57.16B | 27.90 | ― | 0.63% | 11.08% | 34.10% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
48 Neutral | ₹38.49B | 61.11 | ― | 0.12% | 49.69% | 254.75% |
* General Sector Average
IN:ROSSARI
Rossari Biotech Ltd
399.25
-240.88
-37.63%
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Rossari Biotech Ltd Corporate Events
Rossari Biotech Releases Q2 and H1 FY27 Earnings Presentation
Oct 18, 2026
Rossari Biotech Limited operates in the specialty chemicals sector, providing diversified chemical solutions for various industrial applications. The company is listed on both BSE and the National Stock Exchange of India, indicating a broad invest...
Rossari Biotech Delivers Record Q2 Results and Plans Saudi Expansion
Oct 18, 2026
Rossari Biotech reported its highest-ever quarterly revenue of Rs. 697.6 crore and EBITDA of Rs. 87 crore in Q2 FY27, driven by strong export sales and improved working capital efficiency, though profit after tax remained subdued at Rs. 38.9 crore...
Rossari Biotech Publishes Unaudited September 2026 Consolidated Results in Newspapers
Oct 18, 2026
Rossari Biotech Ltd has published in Financial Express and Loksatta an extract of its consolidated unaudited financial results for the quarter and half year ended 30 September 2026, in line with disclosure obligations under SEBI’s Listing Re...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.