Rossari Biotech Ltd (NSE: ROSSARI) Q1 2026 Earnings Call dated Jul. 21, 2025
Corporate Participants:
Unidentified Speaker
Edward Menezes — Executive Chairman and Co-Founder
Sunil Chari — Managing Director and Co-Founder
Ketan Sablok — Group Chief Financial Officer
Analysts:
Unidentified Participant
Anoop Poojari — Analyst
Rohit Nagraj — Analyst
Sanjesh Jain — Analyst
Prachi Badade — Analyst
Pratik Oza — Analyst
Rajit Aggarwal — Analyst
Vijay Sarda — Analyst
Pranav Doshi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Rosari Biotech Limited’s earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anoop Pujari from CDR India. Thank you. And over to you, Mr. Pujari.
Anoop Poojari — Analyst
Thank you. Good evening everyone and thank you for joining us on Rosari Biotech’s Q1FY26 earnings conference call. We have with us Mr. Edward Menezes, promoter and executive chairman, Mr. Sunil Chari, promoter and managing director and Mr. Ketan. Sablo, group Chief Financial Officer of the company. We would like to begin the call with opening remarks from the management following which we’ll have the forum open for a question and answer session. Before we start, I would like to point out that some statements made in. Today’S call may be forward looking in. Nature and a disclaimer to this effect has been included in the earnings presentation shared with you earlier. I would now like to invite Mr. Edward Menezes to make his opening remarks.
Edward Menezes — Executive Chairman and Co-Founder
Thank you, Mr. Anu. Good evening everyone and thank you for joining us on our earnings conference call. It is a pleasure to have you with us today as we discuss our Q1 FY2026 operational and financial performance. We have delivered a steady performance this quarter with top line growth driven by healthy momentum in our HPPC and EHM segments. While the operating environment remained dynamic, our domestic business performed well, supported by demand across key categories. Our export business however, faced some headwinds due to prevailing global uncertainties which also impacted the agri and textile segments.
Despite these challenges, overall revenue growth was. Healthy and we believe that our focus. On optimizing product mix and driving operational efficiencies will support a gradual improvement in profitability. Our commitment to RND continues to drive our success and we have seen many synergies emerge through our past acquisitions. R and D continues to be a cornerstone of our growth and innovation strategy, strengthening Rosario’s position as a leading solutions provider in the specialty chemicals sector. Our R and D capabilities enable us to meet evolving market needs and offer bespoke solutions, driving growth, creating value and enhancing our reputation for intelligent and sustainable solutions. We continue to pioneer intelligent and sustainable solutions across industries, enhancing everyday life through our eco, friendly and technology driven offerings.
Our focus on innovation and customer centric solutions enables us to stay ahead of the industry, delivering value through products that are both high in quality and sustainability. Meanwhile, our capacity expansion projects across Rosary, Biotech, Meet of Chemicals and tristar Intermediates are progressing well with sales commissioning expected over the coming quarters. These investments will enhance manufacturing capabilities, improve supply chain agility and position us to serve high growth sectors. As these capacities ramp up, they will play a pivotal role in driving our next phase of growth. Looking ahead, our strategic priorities remain focused on execution, customer led innovation and sustainable value creation.
With a strong balance sheet, robust R and D capabilities and enhanced capacities, we are well positioned to navigate near term challenges and deliver consistent growth while creating long term value for all stakeholders. With this, I now invite Mr. Sunil Chari to share additional perspectives on our business performance and strategic priorities.
Sunil Chari — Managing Director and Co-Founder
Thank you Mr. Edward and a warm namaste to everyone. Over the past two years we have built a robust foundation for growth delivering healthy volume expansion despite a challenging external environment. In Q1FY26, this resilience was reflected in steady top end growth supported by traction in our HVPC and AHM segments. However, revenue growth over the past two years has been tempered by subdued realizations and market dynamics. With stabilizing conditions and our expanded capacities nearing commissioning, we are poised to unlock stronger operating leverage and deliver more meaningful revenue growth in the coming years. Our focus remains on strengthening the building blocks of the business, expanding our product portfolio, deepening customer relationships and aligning our solutions with high growth applications.
The strategic initiatives we have undertaken over the past few years, particularly in areas like institutional cleaning and international expansion, are diversifying our revenue base while enhancing our ability to deliver growth over the long term. Our institutional cleaning and consumer business continues to evolve as a significant opportunity. While the vertical reported of Softer performance in Q1, we expect it to demonstrate healthy growth on an annual basis as we focus on scaling platforms and strengthening marketing market presence for long term profitability. As part of our international strategy, we are in the process of setting up an overseas formulation facility that will serve as a strategic hub for the Southeast Asian markets.
The proposed facility will enable quicker turnaround times, improve delivery schedules and tailored solutions for customers in the region. While the investment is relatively modest, it represents an important milestone in strengthening our global footprint and demonstrates our commitment to being closer to key markets, enhancing customer engagement and and building a strong platform for future growth in international markets. On the competitive front, our ongoing expansion projects across Rose Valley biotech unit of 10,000 five star intermediates are progressing in A paved manner. These initiatives are aimed at eliminating capacity constraints, improving supply chain agility and strengthening our positioning across hydro sectors.
Once fully commissioned and operating at optimal utilization levels, these facilities are expected to deliver 3-4x asset turnover, driving operating leverage and margin expansion, particularly from financial year 2027 onwards. During Q1, as our capex work was in full steam and following all safety protocols, we had to shut certain production operations for 10 to 12 days intermittently due to hot work election activities. Hence production was lower to that extent. We expect Q2 to be a stronger quarter. To summarize, financial year 2026 is shaping up as a year of consolidation and capability building. With our capacity expansion advancing towards completion, emerging vertical strengthening and our international presence expanding, we are creating a strong foundation to capture the next phase of growth with enhanced scale agility and resilience.
Thank you once again for the continued support. I now invite Ketanji to share the financial highlights for the quarter.
Ketan Sablok — Group Chief Financial Officer
Thank you Chavez and good evening everyone.
operator
Excuse me sir, we have lost the audio from your side. Ladies and gentlemen, the line for the management seems to have disconnected. Please stay connected while we reconnect the line for the management. Back.
operator
Ladies and gentlemen, we have the line for the management reconnected. Yes, so please go ahead.
Ketan Sablok — Group Chief Financial Officer
Yeah, so apologies for that. I think the line got disconnected, so I’ll restart once again. So in Q1FY26, our revenue from operations grew by 11% YoY to 543.7 crore, driven by steady performance across our HPBC and AHN verticals despite the ongoing global headwinds. On a YOY basis, we grew both in domestic and exports and on a Q on Q basis. While domestic was steady, the export sales were soft. EBITDA for the quarter stood at 67.9 crores, up 4.6% YoY with an EBITDA margin of 12.5% compared to 13.3% in the same quarter last year. The Institutional and B2C business reported a loss of approximately rupees seven crores in Q1, which impacted the consolidated margin.
Excluding these verticals, our EBITDA stood at 75 crores, growing 12% YoY with an adjusted margin of about 16%, reflecting the efficiency and resilience in our core operations. As these newer verticals scale over a medium term, we expect them to turn margin accretive and contribute meaningfully to the overall expansion by FY27. On the CapEx front, our investments are progressing in a phased manner with commissioning expected in the coming quarters, funded through a mix of internal accruals and debt. These investments are expected to generate three to four times asset terms at optimal utilization, driving stronger operating leverage over the medium term.
Our balance sheet remains healthy with strong liquidity and conservative leverage, giving us the flexibility to pursue growth initiatives with discipline. As we move through FY26, our focus remains on executing our capacity expansion, maintaining margin stability and building a platform of scalable and profitable growth. From FY27 onwards. As we move through FY26, our priorities remain clear. Execute growth initiatives with discipline, maintain margin stability, and lay the groundwork for scalable and profitable growth. With this, I end my opening address. Thank you everybody and I request the moderator to open the floor for questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star then one on their touchstone phone. If you wish to remove yourself from the question queue, you may press Star then. Two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles again to register for a question, please press Star then one. Our first question comes from the line of Rohit Nagraj from BNK Securities. Please go ahead.
Rohit Nagraj
Thanks for the opportunity. So, first question is on the institutional cleaning business. So what has been the issue in terms of. I understand that it’s a consumable business, so why on a sequential basis there is a degrowth in top line and such a sharp margin contraction. I mean we have reported loss. So if you could just give us reasons for the same. And second associated question. On the same last quarter when we had shared our presentation, we had talked about 179 crores of revenues for FY24 and 299 crores for FY25. But if I look at the current presentation, our revenues have been 159 and 276 respectively.
So is there some del statement which is up? Thank you.
Ketan Sablok
Hi Rohit, this is Ketan here. So yeah, so this revenue has been a little soft. I think this drop has been on especially on the the institution side. Some of the orders are expected to be fulfilled over the next couple of quarters. So my permission would be to look at this business not really on a sequential quarter on quarter basis. It would be ideal to look at it a little on a longer term perspective because some of the orders of the institutions are a little phased to supply over particular months.
So Q1 if you see generally our Q1 in this business is not as strong as the subsequent quarters, especially Q3 through 4 are the stronger quarters for this business. So having said that I think we are expecting some good traction in this business in, in the subsequent quarters. Q2 and Q3 specifically should be a stronger quarter for us. And on an annual basis we are still very optimistic that this will keep delivering a healthy growth. And the loss particularly in this quarter is primarily on account of the lower sales. So while some expenses have also gone up on a yoy basis.
But I think these will get evened out as subsequent quarters. We report a better revenue number.
Rohit Nagraj
So the distinction between the numbers the last quarter and this quarter,
Ketan Sablok
what was the question? Exactly right.
Rohit Nagraj
So for last quarter if I look at the presentation we had given the institution and deep to see performance, FY24 revenue is 179 crores and FY25 299. And when I look at the on slide number 20 the revenue number for Rosari Professional is 159 and 276. I don’t know why there is a discrepancy between.
Ketan Sablok
Sure, sure, sure. So these the numbers which come on page number 20 Rohit, are numbers of only the institutional and consumer business.
While when we report in the earlier slide which had 299, we also include our pet care business in that. So the slide number 20 is numbers from the subsidiaries. So Boozle Rosari numbers are the numbers in slide number 20. While when we report our consumer business we also add our pet care. So the pet care business last year was roughly about. About that 20, 20 odd crores.
Rohit Nagraj
Okay, fair enough. That experience. The second question again two parts. One, in terms of the institutional business has the investment now being complete in terms of manpower and related infrastructure.
And the second part of the question, last year we did again the entire division of pet care plus the institutional marginal loss. What are we looking at in FY26 in terms of whether we’ll be just breaking even or we are looking at some 2, 3% kind of EBITDA margin level profitability.
Ketan Sablok
Thank you. Yeah. So Rohit, in terms of the investments, I think we’ve done most of the investment in terms of the infrastructure, manpower, we may have a certain increase in this quarter but in this year. But I think we are very being very cautious in terms of the number of people that’s going up.
But it will definitely be much lower than what we’ve done in the last year. Last year if you remember we added almost 100 people in this business. This year will be substantially lower than that on an annualized basis. We hope to Break even at least on the EBITDA levels in this business. But we’ll have to see how the next few quarters go. But our intention is that at least in this year the losses should be absolutely minimal with healthy top line growth by the end of the year.
Rohit Nagraj
That is helpful sir. Thanks a lot and all the best.
operator
Thank you. Our next question comes from the line of Sanjay Jain from ICICI Securities. Please go ahead.
Sanjesh Jain
Yes, good evening sir. Thanks. Thanks for taking my questions. I got three of them. First on the UO availability. Now that.
Ketan Sablok
This would be a little louder please.
Sanjesh Jain
Is it now audible, sir?
Ketan Sablok
Yes, yes. Okay.
Sanjesh Jain
First question on the. Now that we are very close to commissioning the facility, we are talking of commissioning the facility next quarter. How is the eu are we, are. We procure the yield for the expanded capacity now?
Sunil Chari
Namaste Sanjay Ji, this is Sunil Shari. The RELAX expansion is delayed and it may take a few more quarters for them to start delivering higher yield. But considering the softness in the all India consumption of eo, we are able to get more EO than we were getting normally. And I think as we ramp up our capacity utilization for the new capacities, by the time we are at a good capacity utilization, Reliance announcement should be ready. So we don’t foresee a big issue in that in the next four quarters.
Sanjesh Jain
So you don’t see an issue immediately or going forward when the.
Sunil Chari
Yeah, because we will not be able to be able to use 100% of our capacity in the first few quarters. So ramping up, you know, will take us some time for us, you know. And by the time, you know, we ramp up the capacity in the next year, we should have adequate EUs. That is what is is our judgment.
Sanjesh Jain
Got it, Got it. But there’s no firm commitment as of now from the Reliance head.
Sunil Chari
No, no, there is. No, no. They told us in the next year in the second third quarter they should give us the, you know, the capacity will come on stream enhanced capacities.
Sanjesh Jain
Got it, got it. My second question is on the unit of. I was just going through the annual report and for last year it appears that there is a significant deterioration in the margin for the unit of while revenue growth was very healthy at 18%. But if I look at the gross profit margin, it has fallen from 22% to 18% and EBITDA margin from double digit to high single digit. Now what has happened last year in the unitop and what are the measures are we taking to fix them?
Sunil Chari
To give you a small background unitop we acquired it was around 300 crores and this is a company which was existing for more than 36 years. So in 36 years they had reached 300 crores. Now when we reached from 300 to now we are at an exit of nearly 70 crores. And we did 773 crores last year. This year we may practically be three times in three to four years. This is something where we put all unit of products into the Rosari markets, the Rosari customers. So whatever business we got from Huzare customers would always go through Rosari.
And when we do business between unitop and Rosari it is on a transfer pricing basis. So we should not look at unit of Tristar, you know, as subsidiaries on a standalone basis. We have to look at consolidated profits of Rosari. We should not look at individual balance sheet is my request.
Sanjesh Jain
No, I appreciate that. But even if I look at on a consolidated basis earlier we were talking of margin at around 14%. We are at 12.5% and this is on a lower raw material prices which means that per kg basis it has only fallen further. What explains the margin contraction on a console basis then?
Ketan Sablok
So Sanjay, if you see the margin on a basis shore of the consumer business, if you see our margin again come back to that 14, 15, 16% kind of level this quarter in fact we were at almost 16% if we remove the consumer business loss that has come in last year also we were at on an annualized basis we were at about 15 odd percent for the full year. So if you see our margins have consistently improved year on year in spite of the fact that the institutional consumer business earlier was hardly major factor. But now with a 300 crore annual run rate of last year, it’s becoming a significant portion of our overall sales.
Sanjesh Jain
No, no, I appreciate that. But again revenue growth is also driven by the that segment itself, right? Otherwise revenue been growing at that place overall EBITDA if I look at it, we have managed to grow only 5% this year y O Y basis. So that still remains muted. I understand the challenge on the export market but the growth appears to be have significantly subdued versus what we were anticipating earlier.
Sunil Chari
I think we should. Anjitji, this is Charlie and I think we should be happy with the fantastic performance of our B2B business. And we also have mentioned, you know, in our comments that we had some days of stoppage intermittently for nearly 10 to 12 days at our site for expansion. So when we do welding or when you do anything which is, you know, related to heat, we of course have to stop our production. So we lost some production that way and that is why also you would see. But the EBITDA percentage Now for the B2B business is amazingly good.
I think we should be happy about this.
Sanjesh Jain
No, no, I’m happy about it. I’m just trying to understand that what has led to the slower growth. Nothing takes away from the good performance what we have delivered. Just trying to drive the growth from here.
Ketan Sablok
If you see Sanjay, our core business quarter on quarter has been down by about 25, 30 crores compared to the Q4 of last year. I think as Mr. Chari said, we had about 10 days of intermittent closures in our facility because of these new reactors being put in. So we lost three, about seven to ten days of production. And that impacted the overall exports where some of the planned orders we could not dispatch. And we are planning to make up for that in the second quarter. We are expecting the second quarter revenue to be much better.
Sunil Chari
And Sandeep Ji, to add to what Kiran sir said, we should compare first year of last quarter and first quarter of last year and first quarter of this year. This would be an apple to apple comparison where we have grown 11% even in volumes. The volume growth has been 11%. Top line growth has been 11% compared to last year. And even our ebitda on the B2B side, our core business is better than first quarter of FY25. So for us the focus is the institutional B2C and semi B2C. Yes, sir.
Sanjesh Jain
Got it. Yes, Anjal sir. Yeah, yeah, that’s clear. Sir, one question. On the textile side it’s been two, three years that we have been struggling on that side. But if I look at the competition, ATUL reported subsidiary number for last year, they have grown quite healthy and that’s been the case for last two years. Are we losing the market share in the textile, chemical and Indian business?
Edward Menezes
Yeah, Sanjeev, this is Edward here. Hi sir. So from our point of view the textile chemicals business is quite steady. The textile business also increased in volumes year on year this year also. Whereas we had some value wise, we have some export shipments which got delayed this year because of the delay in the logistics. So that got reversed because the deals were not received. So that’s the only negative the 5, 7% that got negative there. Otherwise textile is on track. Overall textile production in the industry was flat for the first quarter. But we are also on par with year on year growth.
Sanjesh Jain
Got it Satyr, just one last question. How do we see revenue growth and EBITDA growth for next two years?
Ketan Sablok
So I think as we said on an annual basis we expect to do a mid double digit, 14, 15% kind of growth on the top line as well as on the FXR front. Q2, as I said earlier, should be a much stronger quarter for us because we have the agri also going out in full flow and some of the export orders which we missed out in this quarter, I think we should be, we would be fulfilling all those sales in Q2.
Sanjesh Jain
So we will be holding on to the margin this year. I thought we will drive some operating leverage. Right. Employee cost is largely done and we are institutional. Sorry, I thought ebitda we can grow faster because we are now done with the investment in the employee cost. Our losses in the institutional business is reducing. EBITDA ideally should grow faster than the revenue, right?
Ketan Sablok
Yes, it should grow but we are still being a little cautious because pricing is still a challenge for us. Some of the raw material prices have come down and we expect that some of that we have to give up in the coming quarters. So we’ll just see how it plays out.
Sanjesh Jain
Yes, thanks. Thanks. Thanks all the three for answering my questions so patiently and best of luck for the coming quarters.
Ketan Sablok
Thank you. Thank you Sandhiji.
operator
Thank you. Our next question comes from the line of Prachi from Philip Capital. Please go ahead.
Prachi Badade
Hello.
operator
Yes ma’. Am. Please go ahead.
Prachi Badade
Yes, thank you for the opportunity. Sir. Under the non YO based category, what product categories are we focusing on and what is the market size and what growth rate we expect going forward? All are the competitors under this and in next two, three years what kind of revenue contribution do we expect from this?
Sunil Chari
Namaste. This is Sunil Chari. Can you hear me clearly?
Prachi Badade
Yes.
Sunil Chari
Yeah, good. So on the non LEO side we have mostly surfactants and these are surfactants which include esters, which include acrylic polymers, which includes other polymers based on different monomers which we do. This also include methyl esters of vegetable oils. So these are basically grown in a good way even after our EO being nearly normally same as the last year. The competitors in this segment are basically all the similar competitors which exist for our normal and these are global majors which are there and these are good companies who focus and normally the products we are focusing are on all green chemistries.
Most of these are products where there is practically zero effluent and are considered green and futuristic in nature. We expect these non EO products which are there to go into agro, to go into home and personal care, but also this could go into oil and gas to Pharma and to paints and coatings. This would be the primary focus.
Prachi Badade
Thank you. Sir. I have one more question on the export business. So you have said the Southeast Asia opening up one smaller facility. So what kind of capex are we expecting in this?
Ketan Sablok
So the Capex which is coming up in outside the formulation it’s a very small investment, about 15. Between 15 to 20 crores. And to start with it will be a very small outdoor. We’ll start doing some formulation activities in the. And then as it the business grows and we see the market acceptance then we’ll keep adding some more capex to that. But to start with is going to be a smaller one.
Prachi Badade
Okay, thank you Shankar.
operator
Thank you. Our next question comes from the line of Pratik Oza from Systematics. Please go ahead.
Pratik Oza
Thank you for the opportunity. Sir, can you share the EBITDA margins of our subsidiaries in this quarter?
Ketan Sablok
So Prati, I don’t think we should see the margin specifically company wise as Mr. Chari just spoke about it in an earlier question. It would be good to see on a consolidated level because each of the companies the Rosari unit of Tristar, the product, there’s a lot of movement of products within the companies at a transfer prices. So ideally it will not be really making sense for us to look at the individual company margin level. But having said that I think both unit of Tribestar have a double digit kind of habitat.
Pratik Oza
Okay, got it. And so another question is on the exports. I think for this quarter exports were relatively lower sequentially. So what is the reason for that and are things improving?
Ketan Sablok
Yes. So this quarter I think we could not fulfill a couple of orders we had in hand because of material availability. In light of the fact that our plant had to be intermittently closed for a few days as the new equipments were getting set up. This being a NEO related facility, there are certain safety protocols which we need to follow. So we have to cut down on the production.
I think much of those lost volumes will get done in the second quarter. Got it sir.
Pratik Oza
Thank you. Thank you so much.
operator
Thank you. Our next question comes from the line of Rajit Agarwal from Meelgiri investment managers. Please go ahead.
Rajit Aggarwal
Good evening sir. I have two questions. One on the export side again. So going forward what should be the run rate? I mean should we consider 160 crores as a quarterly run rate for this year and the next year or will it be lower? And I’m sorry I missed the initial part of the conversation. So if you could share the exact exports number for Q1.
Ketan Sablok
So in Q1 the exports was about 139 crores. And we expect on an annualized basis exports to be around 27 to 28% of the overall turnover.
Rajit Aggarwal
Right sir, thank you. And on ethylene oxide you mentioned that. The availability has improved. So are you buying from somebody else also? Except Reliance, who are the other suppliers to you?
Edward Menezes
Reliance is the only supplier for ethylene.
Rajit Aggarwal
So they have increased their supply to you in this quarter and they will.
Edward Menezes
Increase going forward as well. Better than previously. Yes.
Rajit Aggarwal
Okay. Okay. Thank you sir.
operator
Thank you. Our next question comes from the line of Naresh Nikar from Systematics. Please go ahead.
Vijay Sarda
Yeah, hi sir, this is Vijay here. Hello. This is Vijay. Yeah so just wanted to understand two broader question one is on the overall like once your capex comes in. So we will start having the facility on stream from Q2 onward. So next year we would be in a position to use full of that or at least it will spill over to FY28 when we can see the full benefit of this capex going in the kind of gross and asset term that you’re talking about. Would we be able to see in FY27 or FY28.
Edward Menezes
The enhanced EO will be available mostly from September, October 2026. So I think it will be spillover and you can see, we can see you know a good capacity utilization in the year after 28 and maybe at least at three, four years. Normally we take to wrap up to 100% capacity.
Vijay Sarda
And sir, you talked about some capex on the basically overseas capex that you talked about. So that is only 15 crores that you talked about. What or that’s a bigger thing that we are looking contemplating at this point of time?
Ketan Sablok
No, no. At least to start with as we said that it’s going to be around that number.
Vijay Sarda
It will be done.
Ketan Sablok
Yes. That depending on how it shapes up how the market is then you know how logistics etc how it works from there and then we if it works up when we have plans to further expansion.
Vijay Sarda
Okay. And this will be majorly as you said you will be doing some formulation and all that. So not full flavor capex that you are looking but it’s a initial.
Ketan Sablok
Yes, it’s only to start with. It’s a formulation setup.
Vijay Sarda
Okay. And just last thing on this B2B business at what point of time where we start breaking even and is there any some target like at 100 crore kind of sales we will be able to break even or something of that sort or.
Ketan Sablok
Yeah. So I think as I said earlier, our target is that by the end of this year our losses should come down substantially.
We’ll have to just see how the next two quarters go. If they go well, then we could even break even in this quarter. But definitely by next year we should be in a position to break in and break even on the EBITDA levels.
Vijay Sarda
This last feature, B2B. What is our kind of a target to get to revenue mix B2C and B2B. What is our target kind of going forward for next year? Two to three years where we see these B2B business going up.
Ketan Sablok
So we don’t have a target like that. We want to grow both our businesses.
Definitely the investments are happening in the B2B business. So over the next two to three years the B2B business will definitely grow at a much faster pace. Once you know, comes in next year and then post that our capacity start reaching their optimal utilization. So there is no fixed ratio between how much should be B2C and how much should be B2B. Both will keep growing and both are different businesses. They’ll grow at their own pace.
Vijay Sarda
Thank you. Thank you very much sir. Thank you.
operator
Thank you. Before we take the next question, a reminder to all the participants. If you wish to register for a question please press star then one. Our next question comes from the line of Pranav Doshi from Adeco Asset Management. Please go ahead.
Pranav Doshi
Yes, good afternoon sir. So thank you for the opportunity. And so my first question is on the non zero based chemistry. So like what percent of our total revenue currently or the total HPPC revenue comes from these chemistries?
Sunil Chari
We do not have Namaste. This is solitary here. We do not have any, you know, breakup on non EO and eo. We don’t do any breakup. There are so many products when we make formulations EO and non EO in it. So it’s practically impossible for us to do the breakup in this.
Pranav Doshi
Okay sir. And like who would be our major competitors in this business? Like so you mentioned that there are a lot of global good names. But can you give maximum competitors who are directly competing with us.
Sunil Chari
The competition is you know, all the global majors. Who are the basic global majors. Now you know, Emea, Norion, Cecil, Stipend, Zambati. So these are, these are the big ones who are global meters everywhere in the world. World. So. These are companies which come in. But there are some, there will be some Indian companies also. Clarient is another one which has a good non portfolio. Huntsman is another One indorama is there. So it’s a combination of many companies and even China is there. I think these are all non us with all global major companies.
Pranav Doshi
Okay. And sir, just. Yeah. Other expenses they are up by around 20%. So is that mainly because of the investments in our industrial business? Industrial.
Sunil Chari
Can you speak little loudly and repeat? Sorry we could not hear it properly.
Pranav Doshi
Yeah. Yes. As I was saying there’s like yoy our other expenses are up by around 20, 21%. So is it majorly because of our investments in the like in institutional cleaning business?
Ketan Sablok
Yeah. So if you see y o y our other expenses have gone up by roughly about 1212 crore. I think almost 50% of this is on account of the institutional.
Pranav Doshi
Okay, okay. And just one more question. So like we’ve done our investments in the business so I wasn’t able to understand why like did we grow IOI and even coq in the Cuba.
Ketan Sablok
So you’re talking about the.
Pranav Doshi
Yeah, the extra additional business.
Ketan Sablok
Yeah. So I think my oi we didn’t degrow. We actually degrew quarter on quarter in terms of revenue. And I think as I said earlier let’s not look at it on a quarter to quarter basis. There are certain orders especially in the institutional front which happen on specific sequences. So on an annualized basis we are still very optimistic this business will deliver healthy growth.
Compared to what we did last year. About 300 crores we’ve done last year. So we are still optimistic that on an annualized basis we see some good growth coming in a quarter. Could be a little bit exceptional. But let’s look at it on a longer term.
Pranav Doshi
What would be our gross margins in this business? Gross margins?
Ketan Sablok
Gross margins are closer to 30% so they would range between 28 to 30%.
Pranav Doshi
Yeah. Thank you sir. Thanks a lot.
operator
Thank you. Our next question comes from the line of Rajit Agarwal from Nilgiri investment managers. Please go ahead.
Rajit Aggarwal
So one question on exports again. Could you provide the geographical breakup between Americas and Europe and Asia?
Ketan Sablok
The offend I may not have but I think our large export markets are Latin America, Europe and Southeast Asia. And we are also now doing substantial export in the Middle Eastern block.
Rajit Aggarwal
Okay. And the decline in the exports would have been across the geographies or is. It was it specific to one geography? Buying clients or clients?
Ketan Sablok
No, the decline. Yeah, the decline in export it will.
Edward Menezes
Be across all geographies because the product availability works.
Pranav Doshi
Right Sir. Thank you. Thank you.
operator
Thank you. Participants, you may press star then one to ask a question. Ladies and gentlemen that was the last question. I now hand the conference over to the management for closing comments.
Ketan Sablok
So thank you everyone. I hope we have been able to answer all your questions satisfactorily. Should you need any further clarifications or would like to know more about the company, please feel free to contact our team or CBR India. Thank you once again for taking the time to join us on this call. And good evening.
operator
Thank you on behalf of Rosari Biotech Ltd. That concludes this conference. Thank you for joining us. You may now disconnect your lines.