Rossari Biotech Q2 Results (October 17): Revenue Up 19% to ₹698 Crore, Profit Rises 5.5%

Sales grew by almost a fifth. Profit barely kept up. That is the short version of the Rossari Biotech Q2 results, which the specialty chemicals maker’s board approved on Saturday, October 17, 2026. Consolidated revenue from operations came in at ₹697.56 crore for the July-September quarter, up 19.0% from ₹586.11 crore a year earlier, while net profit rose 5.5% to ₹38.91 crore from ₹36.88 crore.

So where did the extra revenue go? A big chunk went into higher depreciation and interest costs, and a lower tax charge did some of the heavy lifting for the bottom line.

Rossari Biotech Q2 results: the key numbers

All figures below are consolidated and taken from the board meeting outcome filed with NSE. The company reports in million; we have converted to crore, and the growth rates are our own arithmetic.

• Revenue from operations: ₹697.56 crore, up 19.0% year-on-year and almost unchanged from ₹697.20 crore in the June quarter.
• Profit before tax: ₹49.27 crore, about 0.8% lower than ₹49.67 crore a year ago.
• Net profit: ₹38.91 crore, up 5.5% year-on-year and about 10.9% from ₹35.10 crore in the June quarter.
• EPS: ₹7.02 basic for the quarter, against ₹6.66 a year earlier.
• First half (April-September): revenue of ₹1,394.76 crore, up about 23.4%, and net profit of ₹74.00 crore, up about 5.0% from ₹70.47 crore.

Operating profit grew, but the costs below it grew faster

The filing does not state an EBITDA number, so we worked one out: profit before tax and share of associates, plus finance costs and depreciation, minus other income. On that basis, operating profit was about ₹86.97 crore, up roughly 20.9% from ₹71.92 crore, and the margin edged up to about 12.5% from 12.3%. That is a decent quarter at the operating level.

The trouble sits lower down. Depreciation and amortisation jumped 65.1% to ₹30.10 crore from ₹18.23 crore, and finance costs rose 42.5% to ₹8.68 crore from ₹6.09 crore. Other income also shrank to about ₹0.60 crore from ₹1.60 crore. Put together, these wiped out the operating gain, which is why profit before tax ended slightly lower than last year. Our explainer on operating profit vs net profit walks through why that gap matters.

Net profit still rose because tax fell. Total tax expense dropped to ₹10.36 crore from ₹12.80 crore, which takes the effective rate to about 21.0% of pre-tax profit from about 25.8%. A lower tax rate can flatter one quarter; it is not the same as a stronger business. Here is our guide to the effective tax rate in results.

Cash flow and borrowings look better

The half-year cash flow statement is the more encouraging part. Operating activities generated ₹131.42 crore in April-September, against an outflow of ₹25.03 crore in the same half last year. Spending on property, plant and intangibles dropped to ₹57.38 crore from ₹141.79 crore. Total borrowings (current plus non-current) came down to ₹361.77 crore on September 30 from ₹407.99 crore on March 31.

A plant in Saudi Arabia, details pending

The board also approved leasing land in Saudi Arabia through its wholly owned subsidiary Rossari International for a greenfield manufacturing facility. The filing says the project plan and the overall investment will go to the board once they are finalised, so there is no capex number yet.

What we’d watch next: whether the new capacity that is driving up depreciation starts lifting margins, and how much the Saudi project will cost. For a checklist on reading filings like this, see how to analyse quarterly results.

Disclaimer: This article is for information only and is not investment advice or a recommendation to buy or sell any security. Figures are from the company’s exchange filing linked above. Consult a SEBI-registered investment adviser before making investment decisions.