Rossari Biotech Ltd (ROSSARI) AI Stock Analysis

• Market Cap: ₹25.56B
• Dividend Yield: 0.09%
• Average Volume (3M): 2.66K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.91
• 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: 55,383,366
• 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): 25.14
• Revenue Forecast (FY): ₹23.11B

• Rating: 70 Outperform
• Price Target: ₹508.00 ▼(-13.01% Downside)
• Action: Reiterated Date: 10/22/25
• Date: Action: Reiterated 10/22/25

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

Consistent Revenue Growth

Sustained mid-teens revenue growth demonstrates durable demand for Rossari's speciality formulations across segments. Consistent top-line expansion supports scale benefits, repeat B2B contracts and reinvestment in product development, helping maintain long-term market penetration and customer relationships.

Healthy Margins at Gross and EBIT Levels

High gross and EBIT margins indicate valuable product mix and effective cost control in speciality chemicals. These structural margins create buffer against raw material swings and support reinvestment in R&D and application development, sustaining competitive advantage in formulation expertise.

Low Financial Leverage and Strong Equity Base

Low leverage and a high equity ratio provide financial flexibility to fund capex cycles and absorb downturns without stressing liquidity. A positive ROE alongside conservative debt supports prudent capital management, enabling strategic investments and reducing refinancing risk over the medium term.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow, driven by capital spending above operating cash generation, can limit internal funding for expansion or dividends. Over time this requires careful capex prioritization or external financing, which could constrain strategic flexibility if sustained.

Pressure on Operational Cash Generation

A declining EBITDA margin suggests tightening operational cash conversion, which combined with negative free cash flow raises concerns about cash available for working capital and capex. Sustained margin pressure could erode ability to self-fund growth initiatives.

End‑market Cyclicality Exposure

Concentration in textile processing and other industrial end markets exposes revenues to cyclical demand and textile industry capex cycles. Structural swings in key end markets can amplify revenue volatility and require diversification or countercyclical product development to stabilize growth.

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 makes money primarily by selling speciality chemical products and formulations to business customers (B2B) across several end markets. Its revenue model is driven by (1) product sales in its key segments—textile speciality chemicals (used across pretreatment, dyeing/printing, and finishing processes), home & personal care ingredients and additives (used by formulators/manufacturers of detergents, cleaners, and personal care products), and other performance/industrial chemicals supplied to various industries; (2) offering application-specific, customized solutions where it develops or tailors formulations to customer process needs, enabling repeat orders and longer-term customer relationships; and (3) volume-based supply to manufacturers and processors, where earnings are influenced by end-market demand (e.g., textile processing volumes and FMCG/cleaning demand), product mix (higher-value speciality formulations vs. more commoditized items), and pricing of key raw materials. Information on specific material partnerships, exclusive distribution arrangements, or customer-level contracts is null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Negative
• Last Price: 583.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 497.32, above the 50-day MA of 528.85, and below the 200-day MA of 618.73, indicating a bearish trend. The MACD of -20.29 indicates Positive momentum. The RSI at 27.74 is Positive, neither overbought nor oversold. The STOCH value of 16.31 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCL	75 Outperform	₹25.84B	23.71	―	0.65%	-10.12%	-22.38%
ROSSARI	70 Outperform	₹25.56B	24.59	―	0.09%	15.47%	-1.72%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BHARATRAS	61 Neutral	₹22.65B	23.16	―	0.02%	6.39%	-15.53%
KIRIINDUS	57 Neutral	₹23.79B	0.22	―	―	-22.04%	-58.81%
ORISSAMINE	45 Neutral	₹22.10B	172.94	―	―	-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.