Rossari Biotech's Q2FY25 results showed lower-than-expected revenue and profit due to weaker growth in the Home, Personal, and Performance Care (HPPC) segment and challenges in the Textile Specialty Chemicals (TSC) segment.
Despite these pressures, the company achieved year-on-year growth in revenue, gross profit, EBITDA, and PAT, driven by robust export performance in the HPPC segment. However, rising employee costs and increased expenses affected cost absorption amid softer revenue growth, resulting in lower EBITDA growth.
The firm has adjusted its EPS estimates downward following the Q2 results but maintains a positive long-term growth outlook supported by strong export opportunities, a recovery in the domestic market, and capacity expansions in the ethoxylation and specialty chemical sectors.