Rossari Biotech Ltd (ROSSARI) AI Stock Analysis

• Market Cap: ₹26.45B
• Dividend Yield: 0.09%
• Average Volume (3M): 2.66K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.87
• 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: ₹525.00 ▼(-10.10% 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

Sustained Revenue Growth

Consistent double-digit revenue growth demonstrates durable demand for Rossari’s speciality formulations and expanding market penetration. Over a 2-6 month horizon this momentum reflects structural product adoption and strengthens prospects for repeat B2B contracts and scale benefits.

Low Leverage and Solid Equity Base

Low debt and a high equity ratio provide financial flexibility to fund growth, absorb demand shocks, and support ongoing capex without excessive refinancing risk. Improved ROE indicates efficient equity use, enhancing long-term balance-sheet resilience.

Diversified B2B Speciality Chemicals Model

A multi-end-market B2B model and ability to offer customized formulations create stickier customer relationships, higher-value product mix and repeat orders. This structural diversification reduces single-market dependency and supports steadier revenue streams over time.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow indicates capex is outpacing operating cash generation. Over months this can constrain liquidity, limit ability to reduce leverage or return cash to shareholders, and force reliance on external funding for growth investments.

Pressure on Operational Cash Generation

A decline in EBITDA margin signals emerging pressure on underlying operational efficiency or product mix. Lower operational cash conversion can weaken internal funding for R&D and capex, making long-term margin sustainability and reinvestment cadence more challenging.

End-market Cyclicality Exposure

Significant exposure to cyclical end markets like textiles means revenue and utilization can swing with industrial activity. Over a 2-6 month horizon such cyclicality increases revenue volatility and complicates planning for capacity and fixed-cost absorption.

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	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: Neutral
• 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 511.49, above the 50-day MA of 538.38, and below the 200-day MA of 622.86, indicating a bearish trend. The MACD of -16.83 indicates Positive momentum. The RSI at 30.19 is Neutral, neither overbought nor oversold. The STOCH value of 4.32 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	₹25.63B	23.71	―	0.65%	-10.12%	-22.38%
ROSSARI	70 Outperform	₹26.45B	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	₹23.33B	23.16	―	0.02%	6.39%	-15.53%
KIRIINDUS	60 Neutral	₹25.19B	0.22	―	―	-22.04%	-58.81%
ORISSAMINE	45 Neutral	₹23.11B	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.