Rossari Biotech reported a strong Q2 FY27 with revenue at Rs 697.6 crore, up 19% YoY, and EBITDA at Rs 87 crore. The company successfully reduced net debt to Rs 221 crore and turned its B2C segment EBITDA positive. Key highlights include the board's approval for a greenfield manufacturing facility in Saudi Arabia to boost regional access. While operational growth remains robust, management noted potential headwinds from high freight costs and raw material price volatility, projecting stable EBITDA margins around 12%.
Rossari Biotech Reports Record Q2 Revenue at Rs 697.6 Crore
Revenue grew 19% YoY to Rs 697.6 crore; Net Debt reduced to Rs 221 crore.
Reader Takeaway: Revenue growth is strong across all segments, but freight and raw material costs pressure margins.
What just happened
Rossari Biotech posted its highest-ever quarterly revenue and EBITDA for Q2 FY27. Revenue reached Rs 697.6 crore, reflecting 19% year-on-year growth, while EBITDA rose 21% to Rs 87 crore. The company's bottom line saw a profit after tax of Rs 38.9 crore, up 5.5% compared to the same period last year. Notably, the institutional/B2C segment turned EBITDA positive at Rs 0.2 crore, marking a turnaround from a loss of Rs 3.7 crore in Q2 FY26.
Why this matters
The company’s ability to improve its balance sheet while expanding capacity is a key indicator of operational efficiency. Net debt has dropped significantly from Rs 281 crore at the end of FY26 to Rs 221 crore in Q2 FY27, with the net debt-to-equity ratio currently at 0.16. Additionally, the move to lease land for a greenfield project in Saudi Arabia signals a strategic push to capitalize on regional demand and secure raw material supply chains.
Risks to watch
Management cautioned that the current global business environment is volatile. Higher freight costs, particularly due to ongoing geopolitical tensions in the Middle East, alongside fluctuating raw material prices, are limiting EBITDA margin expansion. The company expects margins to hold at approximately 12% for the year, as not all customers have fully absorbed these increased cost pressures.
What to track next
Investors should look for updates on the Saudi Arabia manufacturing project and the company’s progress toward its long-term objective of divesting from the institutional/B2C business. Further monitoring of the working capital cycle—which improved to 86 days this quarter—will be essential to gauge ongoing operational efficiency.