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Rossari Biotech Ltd (ROSSARI) AI Stock Analysis

IN:ROSSARI

Rossari Biotech Ltd

(NSE:ROSSARI)

Select Model
Rating:65Neutral
Price Target:INR 489.00▲(22.48% Upside)
Action:reiterated
Date:10/19/26

The score is primarily supported by strong revenue growth, stable profitability, and a positive earnings outlook. Weak cash conversion is the largest fundamental risk, while mixed technical momentum and a minimal dividend yield limit the upside.

Positive Factors
Broad-based revenue growthGrowth 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 conversionPersistently 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.

Rossari Biotech Ltd (ROSSARI) vs. iShares MSCI India ETF (INDA)

-50%-40%-30%-20%-10%0%10%IN:ROSSARI-38.49%INDA-12.02%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
INR 22.12B
Dividend Yield
0.13%
Average Volume (3M)
4,479
Price to Earnings (P/E)
14.5
Beta (1Y)
1.15
Revenue Growth
19.76%
EPS Growth
11.74%
Country
India
Employees
585
Sector
General
Sector Strength
55
Industry
Chemicals - Specialty

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, pai...

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 specialty...

Rossari Biotech Ltd Earnings Call Summary

Earnings Call Date:Oct 16, 2026(Q2-2027)|Next Earnings Date:Jan 17, 2027
Earnings Call SentimentPositive

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.

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

Revenue growth and stable profitability support the score, while manageable leverage is offset by weak and erratic cash generation. Income Statement: 82, Balance Sheet: 75, Cash Flow: 45.

Income Statement

82Very Positive

Balance Sheet

75Positive

Cash Flow

45Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue26.61B23.96B20.80B18.31B16.56B14.83B
Gross Profit6.74B4.94B6.47B5.26B2.80B2.29B
EBITDA3.08B2.86B2.65B2.57B2.12B1.94B
Net Income1.53B1.49B1.36B1.31B1.07B976.74M
Balance Sheet
Total Assets23.59B22.89B18.96B15.72B13.68B12.57B
Cash, Cash Equivalents and Short-Term Investments1.14B1.27B1.14B667.85M1.52B644.26M
Total Debt3.88B4.36B2.18B1.19B739.28M84.27M
Total Liabilities9.52B9.55B7.11B5.24B4.52B4.52B
Stockholders Equity14.08B13.33B11.85B10.48B9.15B8.05B
Cash Flow
Free Cash Flow0-2.20B-210.69M-880.28M1.20B-88.67M
Operating Cash Flow0451.63M1.37B432.55M1.52B293.58M
Investing Cash Flow0-2.22B-1.84B-1.03B-1.81B-2.99B
Financing Cash Flow02.09B649.01M161.85M608.55M2.92B

Rossari Biotech Ltd Technical Analysis

Technical Analysis SentimentNegative
Last Price399.25

Price Trends

50DMA446.42Negative
100DMA481.49Negative
200DMA489.54Negative

Market Momentum

MACD-11.02Positive
RSI35.38Neutral
STOCH11.83Positive

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 399.25 is below the 20-day moving average (MA) of 421.62, below the 50-day MA of 446.42, and below 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

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

IN:ROSSARI against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
IN:KIRIINDUSIN:KIRIINDUS77OutperformINR 35.17B0.56――10.71%2756.39%
IN:FCLIN:FCL69NeutralINR 56.58B40.33―0.27%91.44%19.67%
IN:ROSSARIIN:ROSSARI65NeutralINR 22.12B14.48―0.13%19.76%11.74%
IN:GALAXYSURFIN:GALAXYSURF59NeutralINR 75.16B21.20―1.04%27.05%16.13%
IN:BALAMINESIN:BALAMINES58NeutralINR 57.16B27.90―0.63%11.08%34.10%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
IN:TATVAIN:TATVA55NeutralINR 38.49B61.11―0.12%49.69%254.75%

* General Sector Average

Performance Comparison

0%50%IN:ROSSARIIN:BALAMINESIN:FCLIN:GALAXYSURFIN:KIRIINDUSIN:TATVADec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
IN:ROSSARI and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
IN:ROSSARIRossari Biotech Ltd399.25-242.58-37.79%
IN:BALAMINESBalaji Amines Limited1764.15351.1024.85%
IN:FCLFineotex Chemical Limited48.5916.5551.67%
IN:GALAXYSURFGalaxy Surfactants Ltd.2119.80-117.93-5.27%
IN:KIRIINDUSKiri Industries Limited539.70-6.25-1.14%
IN:TATVATatva Chintan Pharma Chem Limited1645.45235.4016.69%

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 investor...

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 du...

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 Regul...

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.

Date of analysis: Oct 19, 2026