Rossari Biotech Ltd (ROSSARI) AI Stock Analysis

• Market Cap: ₹31.23B
• Dividend Yield: 0.09%
• Average Volume (3M): 2.66K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.93
• Revenue Growth: 15.47%
• EPS Growth: -1.72%
• Country: IN
• Employees: 450
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 5.90
• Shares Outstanding: 55,381,367
• 10 Day Avg. Volume: 1,386
• 30 Day Avg. Volume: 2,661
• PEG Ratio: 5.98
• Price to Book (P/B): 2.88
• Price to Sales (P/S): 1.64
• P/FCF Ratio: -161.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ₹620.00 ▲(6.17% Upside)

Rossari Biotech Ltd shows strong financial performance with robust revenue growth and low leverage, but faces challenges with free cash flow. Technical indicators suggest mild bullish momentum, while valuation metrics indicate moderate pricing. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Diversified B2B speciality-chemicals portfolio

Rossari's product mix spans textiles, home & personal care and other industrial applications, providing diversified end-market exposure. Its B2B focus and customized formulation capabilities support repeat orders, stronger customer stickiness, and more durable revenue streams over time.

Strong revenue growth and expanding core margins

Consistent top-line growth with materially higher gross and EBIT margins indicates structural improvement in product mix and cost management. Higher core profitability supports reinvestment in R&D and capacity, enhancing long-term competitive positioning and sustainable earnings power.

Low leverage and solid equity funding

A low debt burden and strong equity ratio give Rossari financial flexibility to fund growth, absorb shocks, and invest in capacity or acquisitions without excessive interest strain. Improved ROE shows effective capital use, underpinning durable balance-sheet resilience.

Negative Factors

Negative free cash flow from high capital spending

Despite accounting profits, persistent negative free cash flow driven by elevated capex reduces internal funding for expansion, dividends or debt paydown. Over months this can force external financing, constrain strategic flexibility and raise funding costs if sustained.

Pressure on operational cash generation (EBITDA margin decline)

A declining EBITDA margin signals emerging cost or pricing pressure that directly reduces operational cash conversion. If this trend persists it will limit the firm's ability to convert profits into free cash flow and weaken buffers versus raw-material swings.

Structural exposure to cyclical end-markets (textiles, FMCG cleaning)

A meaningful share of revenue is tied to textile processing and FMCG cleaning volumes, which are cyclically sensitive. Prolonged softness in these end-markets can materially depress volumes and pricing, reducing revenue predictability and stressing margins over several quarters.

Rossari Biotech Ltd Business Overview & Revenue Model

Company Description

Rossari Biotech Limited engages in manufacture and sale of specialty chemicals in India and internationally. It offers soap and detergents; inks, paints, and coatings; ceramics and tiles; pulp and papers; cement; and water treatment solutions. The company also provides textile specialty chemicals, such as cotton, polyester, acrylic, wool, silk, nylon, functional finishes, denim, and sustainable solutions; and pet grooming products, which include natural pet shampoos, powders, deodorants, sprays, creams, and floor washing liquids under the Lozalo, Hunger Fills, and Sniffy brand names. In addition, it provides poultry nutrition products comprising vitamin-mineral formulations, toxin binders, individual and cocktail enzymes, liquid nutraceuticals, and supplements or herbal preparations. The company was formerly known as Rossari Labtech and changed its name to Rossari Biotech Limited in December 2003. Rossari Biotech Limited was founded in 2003 and is based in Mumbai, India.

How the Company Makes Money

Rossari Biotech generates revenue through the sale of its specialized chemical products, which cater to multiple industries including textiles, apparel, and home care. The company’s primary revenue streams come from the direct sale of its products to manufacturers who use these chemicals in their production processes. Additionally, ROSSARI has established significant partnerships with various industries, enhancing its market presence and distribution capabilities. The company also invests in research and development to innovate new products, which can lead to increased sales and market penetration. Furthermore, the growing demand for sustainable and eco-friendly products contributes to its revenue growth, as consumers and businesses alike are increasingly seeking greener alternatives.

Rossari Biotech Ltd Financial Statement Overview

Summary

Rossari Biotech Ltd exhibits strong revenue growth and profitability, with efficient use of equity and low leverage. However, the company faces challenges in generating positive free cash flow due to high capital expenditures.

Income Statement

Rossari Biotech Ltd has demonstrated a strong revenue growth rate of 13.65% from 2024 to 2025, with a notable improvement in both gross profit margin (31.10%) and EBIT margin (24.74%) in 2025. Net profit margin increased slightly to 6.55%, reflecting efficient cost management and operational performance. However, EBITDA margin decreased slightly to 12.74%, indicating some pressure on operational cash generation.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.18, indicating low leverage and a strong equity position. The return on equity improved to 11.51%, demonstrating effective use of equity to generate profits. The equity ratio stands at 62.51%, indicating a solid financial structure with a significant portion of assets funded by equity.

Cash Flow

Operating cash flow to net income ratio is 1.01, showing that operating cash flow adequately covers net income. However, free cash flow remains negative, reflecting high capital expenditures relative to operating cash flow. The free cash flow to net income ratio is negative, posing potential liquidity challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.34B	20.80B	18.31B	16.56B	14.83B	7.07B
Gross Profit	6.23B	6.47B	5.26B	2.80B	2.29B	2.29B
EBITDA	2.70B	2.65B	2.57B	2.12B	1.94B	1.31B
Net Income	1.35B	1.36B	1.31B	1.07B	976.74M	802.20M
Balance Sheet
Total Assets	0.00	18.96B	15.72B	13.68B	12.57B	5.61B
Cash, Cash Equivalents and Short-Term Investments	1.17B	1.14B	667.85M	1.52B	644.26M	883.57M
Total Debt	0.00	2.18B	1.19B	739.28M	84.27M	0.00
Total Liabilities	-11.85B	7.11B	5.24B	4.52B	4.52B	1.53B
Stockholders Equity	11.85B	11.85B	10.48B	9.15B	8.05B	4.09B
Cash Flow
Free Cash Flow	0.00	-210.69M	-880.28M	1.20B	-88.67M	-103.17M
Operating Cash Flow	0.00	1.37B	432.55M	1.52B	293.58M	477.67M
Investing Cash Flow	0.00	-1.84B	-1.03B	-1.81B	-2.99B	-371.79M
Financing Cash Flow	0.00	649.01M	161.85M	608.55M	2.92B	-245.92M

Rossari Biotech Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 583.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ROSSARI, the sentiment is Neutral. The current price of 583.95 is above the 20-day moving average (MA) of 549.05, above the 50-day MA of 572.76, and below the 200-day MA of 641.87, indicating a neutral trend. The MACD of -8.18 indicates Negative momentum. The RSI at 53.73 is Neutral, neither overbought nor oversold. The STOCH value of 71.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:ROSSARI.

Rossari Biotech Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCL	75 Outperform	₹25.62B	26.12	―	0.65%	-10.12%	-22.38%
ROSSARI	70 Outperform	₹31.23B	22.68	―	0.09%	15.47%	-1.72%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BHARATRAS	61 Neutral	₹31.02B	23.29	―	0.02%	6.39%	-15.53%
KIRIINDUS	60 Neutral	₹27.88B	21.24	―	―	-22.04%	-58.81%
ORISSAMINE	45 Neutral	₹26.89B	-69.69	―	―	-27.80%	-365.69%

Rossari Biotech Ltd Corporate Events

Rossari Biotech Publishes Extract of Q3 FY26 Consolidated Unaudited Results in Newspapers

Rossari Biotech Ltd has notified the stock exchanges that it has published in Financial Express and Loksatta an extract of its consolidated unaudited financial results for the quarter and nine months ended 31 December 2025, in compliance with disclosure requirements under SEBI’s Listing Regulations. The move is a routine regulatory step aimed at ensuring wider public dissemination of its latest financial performance to investors and other stakeholders, reinforcing transparency and adherence to listing norms, though the detailed financial figures themselves are available only in the full results published separately.

Rossari Biotech Releases Q3 and 9-Month FY26 Earnings Presentation

Rossari Biotech Limited has released its earnings presentation for the third quarter and nine months ended December 31, 2025, providing an update to shareholders and the market on its financial performance in the current fiscal year. The disclosure, shared with both BSE and NSE, underscores the company’s ongoing commitment to timely financial reporting and transparency, ensuring that investors and other stakeholders have access to the latest performance data for their analysis and decision-making.

Rossari Biotech Delivers Double-Digit Revenue Growth in Q3 FY26 Amid Margin Pressure

Rossari Biotech reported a solid set of numbers for the quarter ended 31 December 2025, with consolidated revenue from operations rising 13% year-on-year to Rs 581.7 crore, driven by broader demand across its specialty chemicals portfolio. Quarterly EBITDA grew 6% to Rs 68.9 crore and profit after tax increased 3% to Rs 32.8 crore, though EBITDA margins softened to 11.8% from 12.6%, indicating some pressure on profitability despite the topline growth. For the nine months of FY26, revenue climbed 14% to Rs 1,711.5 crore and EBITDA was up 7% to Rs 208.7 crore, while PAT edged up 1% to Rs 103.2 crore, suggesting that Rossari is sustaining growth momentum but facing margin compression, a key point for investors tracking its competitive positioning and operating efficiency in the specialty chemicals space.

Rossari Biotech’s Credit Rating Reaffirmed by ICRA

Rossari Biotech Ltd has announced that ICRA Limited has reaffirmed its credit ratings, maintaining a positive outlook for its long-term and short-term financial instruments. This reaffirmation of credit ratings reflects the company’s strong financial position and operational stability, which is likely to enhance its credibility and attractiveness to investors and stakeholders.

Rossari Biotech Subsidiary Secures Leasehold Land in Gujarat

Rossari Biotech Ltd announced that its subsidiary, Unitop Chemicals Private Limited, has received approval from the Gujarat Industrial Development Corporation (GIDC) to acquire rights in a leasehold land in Dahej, Gujarat. This acquisition, covering approximately 12,608 square meters, is expected to enhance Unitop’s operational capabilities and strengthen Rossari’s position in the specialty chemicals market, potentially benefiting stakeholders through increased production capacity and market reach.