Why Is Rossari Biotech Optimistic About Export Growth Despite US Slowdown?
Rossari Biotech management told CNBC-TV18 that its B2C business losses have narrowed significantly in Q2 FY26, marking an improvement in operational performance. This recovery was supported by better demand visibility, improved cost control, and stronger pricing discipline in personal and home care divisions.
The company, known for its specialty chemicals and textile auxiliaries, has maintained steady growth in its core B2B vertical. Rossari has been focusing on margin sustainability through process optimization and technology-driven productivity enhancement across manufacturing sites.
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Management said that 28% of its overall sales now come from the US market. However, growth from that region remained below expectations due to softer demand trends and delayed order inflows from some institutional clients. Despite this temporary slowdown, Rossari expects its overseas performance to pick up in the second half.
Export growth, on the other hand, stood at a robust 36% in Q2, and the company expects to sustain this momentum in H2FY26. Management credited this to higher product acceptance in Latin America, Europe, and Southeast Asia, along with newer applications in performance chemicals that are gaining steady traction.
Rossari continues to emphasize research-driven innovation, automation in manufacturing, and deeper client engagement as levers to drive export-led growth. Management reiterated that the company’s current capacity utilization allows further scaling without major incremental capex, ensuring operating leverage in the upcoming quarters.
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The management also noted that its raw material sourcing strategy and improved cost efficiencies have allowed margin stability. Although the US growth lagged, the strength in export orders and efficiency gains provide visibility for a stronger H2FY26 performance.
✅ Investor Takeaway: Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that Rossari Biotech’s resilience in exports, narrowing B2C losses, and steady cost optimization demonstrate a well-balanced growth model. The management’s confidence in sustaining export momentum highlights a promising turnaround phase for FY26.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
