Rossari Biotech Q4 FY26: record quarter caps a steady FY26

Rossari Biotech closed FY26 with its strongest quarter yet. In Q4 FY26, consolidated revenue from operations rose to Rs 684.9 crore, up 18.2% YoY. EBITDA came in at Rs 77.3 crore, up 11.2%, and PAT increased 33.7% YoY to Rs 46.0 crore. Management highlighted that Q4 FY26 was the company’s highest-ever quarterly revenue, EBITDA, and PAT.

The full year also marked new highs. FY26 revenue from operations grew 15.2% YoY to Rs 2,396.4 crore. EBITDA increased 7.9% to Rs 286.0 crore, while PAT rose 9.4% to Rs 149.2 crore. The earnings improvement, however, came with margin compression as raw material volatility and timing gaps in price pass-through continued to influence profitability.

Segment performance stayed broad-based

Rossari’s core businesses delivered healthy growth in Q4 FY26. HPPC (Home, Personal Care and Performance Chemicals) remained the dominant segment, reporting Q4 revenue of Rs 530 crore versus Rs 449 crore in Q4 FY25. Textile Specialty Chemicals (TSC) grew to Rs 113 crore (from Rs 94 crore), while Animal Health and Nutrition (AHN) rose to Rs 42 crore (from Rs 37 crore).

For FY26, HPPC revenue rose to Rs 1,857 crore (from Rs 1,620 crore), TSC increased to Rs 400 crore (from Rs 344 crore), and AHN grew to Rs 139 crore (from Rs 116 crore). The mix stayed largely steady at 77% HPPC, 17% TSC and 6% AHN for both Q4 and the full year.

A key drag continued to be the Institutional and B2C vertical within the health and hygiene platform. In FY26, this business delivered Rs 283 crore revenue but posted an EBITDA loss of Rs 15 crore, implying a -5% margin. Management said performance remained subdued, although losses narrowed in the second half due to optimisation and portfolio rationalisation.

Margin drivers: cost inflation, mix, and pass-through timing

Despite record operating profit in absolute terms, Q4 EBITDA margin softened to 11.3% from 12.0% a year ago. On the call, management pointed to sharp raw material inflation in March, with some inputs up 25% to 30%. This spike, combined with the lag in repricing certain orders, led to lower gross margins for the quarter. The company said some price increases had already been passed on and the remaining were expected to be implemented during April and May.

On a full-year basis, EBITDA margin declined to 11.9% from 12.7%. Management also noted that the quarter’s sales mix affected the overall margin profile. While they did not provide segment EBITDA margins, they said the three segments generally track the company-level EBITDA margin with limited variance.

A separate indicator of pressure was operating cash generation. FY26 net cash from operations was Rs 65.0 crore, down from Rs 137.4 crore in FY25, reflecting higher working capital absorption. Trade receivables and inventories increased, and the company’s net debt to equity rose to 0.21x in FY26 (from 0.06x).

Capacity and capability building continues, but capex has been rephased

The most important operating update was the commissioning of Unitop’s remaining 15,000 MTPA ethoxylation capacity at Dahej on 31 March 2026, taking total installed ethoxylation capacity to 66,000 MTPA. In the concall, management said utilization was running at about 90% to 100% with operations running through the year, and demand conditions were described as robust.

At the same time, Rossari rephased its earlier capex plan (announced in April 2025) over the next two years, to align with business requirements and market conditions. Management guided that FY27 capex would be about Rs 50 crore to Rs 75 crore. The company also highlighted a new R&D facility at Koparkhairane, Navi Mumbai, which consolidated the earlier IIT Bombay R&D setup under one roof to improve innovation cycles and collaboration.

On digital execution, management said the SAP S/4HANA rollout is strengthening visibility and coordination across functions.

What management said about FY27

Management described the operating environment as dynamic, referencing geopolitical volatility and its impact on raw materials, supply chains, and logistics. Still, they indicated a baseline expectation of delivering at least similar growth to FY26, implying around 15% revenue growth. On profitability, management guided EBITDA margins of 12% to 13% for FY27.

The company also spoke about moving toward higher-margin end markets such as pharma, along with growth focus areas like agro and oil and gas within its HPPC platform. It discussed plans to monetize additional non-core assets after recording about Rs 19 crore net gain from sale of Mumbai office space in Q4.

For investors, the FY26 message is a mix of execution strength and margin work-in-progress: strong top-line momentum, expanding capacities, and a diversified customer base, while raw material volatility, working capital intensity, and losses in Institutional and B2C remain key variables to watch.