Concall Notes: Rossari Biotech Ltd (ROSSARI) Q2FY26
To get a fresh perspective on the company after a long gap I have been going through the last quarter concalls of some of the companies that I follow. Given the upcoming Q3FY26 concall, right now going through the Q2FY26 concall ROSSARI.
Disclaimer: These are my notes from the concall—I may have misunderstood some points or gotten numbers wrong. Happy to correct any errors.
Notes:
- 27% exports and plan to increase this share.
- New capex coming live.
- What is the institutional business they are involved this?
- Ethylene oxide (EO) products and non EO products. Look into where exactly EO products are used?
- Who are the major customers? Are these regular or keep on changing a lot?
- Because of US tariffs (~ 50%) home textiles and terry towel companies are under pressure, so this can / will affect textile chemical business.
- Look out for next quarter: In Q3 is US tariff still affecting textile chemical business(Looks like a short term one). What % of revenue will be affected? Is this a field where co. has more technical capability?
- non-EO capacity coming up.
- Pipeline of new products, bio surfactants, CAPB, CDEA, silicon block polymers.
- Why are they facing EO capacity constraint? Ans: A dependency on Reliance to supply EO raw material. The reliance side capex is slow to come up.
- Track the new products trajectory.
- [Side Note]: Sanjesh Jain of ICICI securities asking good questions. See which other companies he follows.
- HPPC, Animal nutrition, textile -> some of the business categories.
- Textile -> domestic demand is slow, export increasing from Egypt, Turkey, South East Asia, North Africa, etc.
- [Side Note]: Major imports from Iran -> Methanol. Due to US sanctions, price of methanol increased. Co not affected.
- [Side Note]: Acetic acid: GNFC a domestic producer and imports from Singapore, China and Saudi.