Rossari Q2 FY27: Consolidated Revenue +19% YoY Tops Guide, PAT Growth Trails At 5.5%

Rossari Biotech's consolidated Q2 FY27 revenue rose 19.0% YoY to ₹697.6 Cr (flat QoQ vs Q1's ₹697.2 Cr), running well ahead of management's reiterated ~15% FY27 growth guidance — H1 FY27 revenue of ₹1,394.8 Cr is up 23.5% YoY. Consolidated PAT of ₹38.9 Cr grew just 5.5% YoY (though +10.9% QoQ), with EPS at ₹7.02 vs ₹6.66 a year ago. Against our pre-result preview (revenue ₹680–720 Cr, EBITDA margin 11–12%, PAT margin 5–5.5%), the print was inline on revenue and a modest beat on margins — NPM came in at 5.58%, above the preview's watch band, and OPM at roughly 12.5% cleared the top end of the expected range. The gap between strong topline growth and modest PAT growth is a margin story, but not the one the pre-result preview flagged. EBITDA margin (OPM) was essentially flat to slightly better YoY (~12.5% now vs ~12.3% a year ago, and up from 11.6% in Q1) — so operating performance actually held up and sits within management's current FY27 guided band of 12–13%. The real drag is below EBITDA: depreciation nearly doubled YoY to ₹30.1 Cr (from ₹18.2 Cr) as the new Thailand plant and Dahej capacity expansion were capitalised, pulling PBT margin down to 7.06% from 8.48% a year ago. That is a capex-cycle cost, not a cost-control problem, though it still caps near-term PAT growth and keeps margins short of the 14–15% medium-term target management flagged in the prior concall. Standalone PAT grew faster, +9.5% YoY to ₹34.2 Cr on standalone revenue of ₹495.3 Cr (+18.1% YoY) — a >4-point divergence from the consolidated PAT growth rate, pointing to subsidiaries (including the newer overseas units) diluting group profitability this quarter; no segment-level break-up is disclosed in this filing to isolate the exact driver. No management press release was available with this filing to cross-check framing, so this read rests on the reviewed financial statements alone. Separately, the Board approved land-leasing in Saudi Arabia for a greenfield facility via wholly-owned subsidiary Rossari International (detailed project cost still to be finalised and placed before the Board), alongside routine ESOP allotment of 2,500 shares. This follows an insider purchase of ₹2.98 Cr by Bhupesh Kumar Lodha at ₹491.50 between June and October, and the pre-results trading window closure on September 25 — both already known ahead of this print.