Rossari Biotech Ltd (NSE: ROSSARI) Q4 2026 Earnings Call dated Apr. 28, 2026
Corporate Participants:
Mitesh Jain — Investor Relation Manager
Edward Menezes — Executive Chairman & Co-Founder
Sunil Chari — Managing Director & Co-Founder
Ketan Sablok — Group Chief Finance Officer
Analysts:
Madhur Rathi — Analyst
Rohit Nagraj — Analyst
Maitri Shah — Analyst
Tanvi Varekar — Analyst
Harsh Muthuk — Analyst
Mihir Damania — 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 Bin CDO on your Touchstone phone. Please note that this conference is being recorded. I now hand the CONFERENCE over to Mr. Mitesh Jain from CDR India.
Thank you. And over to you, Mr. Jain.
Mitesh Jain — Investor Relation Manager
Thank you. Rutila Good evening everyone and thank you for joining us on Rosari Biotech Limited’s Q4 and FY26 earnings conference hall. We have with us Mr. Edward Menezes, promoter and executive chairman, Mr. Sunil Chari, promoter and managing director and Mr. Ketan Samlop, group Chief Financial Officer of the Company. We will begin the call with opening remarks from the management following which we will 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 our disclaimer to this effect has been included in the earnings presentation shared with you all earlier.
I would now like to invite Mr. Edward Menezes to make his opening remarks. Thank you. And over to you sir.
Edward Menezes — Executive Chairman & Co-Founder
Thank you Mitesh. Good evening everyone and thank you for joining us on our earnings conference call. It is a pleasure to have you with us as we discuss our operational and financial performance for the quarter and the full year ended March 31, 2026. We concluded the year 26 on a very strong note with Q4 marking our highest ever quarterly revenue and EBITDA performance. For the full year we delivered revenue growth of 15% which was primarily volume driven. Performance during the year was supported by healthy traction across businesses and steady progress in the international markets. While the year saw its share of external challenges including volatility in certain raw materials markets and disruptions arising from geopolitical developments in the Middle east, the business remained resilient with all our key segments delivering healthy growth during the quarter.
A key area of focus for us continues to be R and D and innovation. We are gradually evolving from a formulation led approach towards developing broader platform technologies with multi vertical applicability enabling more scalable and differentiated solutions across end user segments during the year. This translated into meaningful progress in product development and application led innovation with newer products contributing increasingly to the business and sustainable chemistry including biosurfactants gaining traction.
To further strengthen this capability, we set up a new R and D facility in Navi Mumbai which brings together our existing R and D operations including the IIT Mumbai center under one roof. We expect this facility to provide a stronger platform for innovation, product development and application led research while also improving collaboration and supporting faster scale up of new technologies in line with our long term growth priorities. On the manufacturing front, unitoc commissioned additional ethoxylation capacity at the age, taking the total installed ethoxylation capacity to 66,000 metric tons per annum.
This expansion enhances supplier reliability and improves our ability to serve customer requirements more effectively. At the same time, we are reviewing Our broader investment plans across businesses in line with evolving business requirements and market conditions. We are also working to strengthen the operational backbone of the organization in our SAP S4 HANA implementation is helping create a stronger Digital foundation across the business, improving visibility, coordination and decision making across functions. In parallel, we continue to advance our responsible manufacturing agenda through structured waste management and Sustainability led operational practices. Overall, FY26 has been a year of strong execution, capability building and strategic progress. With a diversified portfolio, strengthened R and D capabilities and expanding capacities, we believe we are well placed to drive the next phase of growth in a more integrated, innovation led and scalable manner. With this, I now invite Mr. Sunil Chari to share additional perspectives On our business performance and strategic priorities.
Sunil Chari — Managing Director & Co-Founder
Thank you Edward sir and a warm namaste to everyone. FY26 was a year of steady progress for the company and we are pleased to report a strong finish to the year. Our performance during the quarter was broad based with all three business segments delivering healthy double digit growth. A diversified portfolio and balanced exposure across end markets supported performance during the period despite a dynamic operating environment. From a segment perspective, HVPC delivered growth of 20% during the quarter.
Textiles grew by 10% and AHM recorded a growth of 11%. This performance was supported by continued customers, customer engagement, product development efforts and steady execution. Our focus remains on strengthening customer relationships, expanding the product basket, improving market penetration and building scale in relevant chemistries and applications. On the export front, we witnessed continued momentum during the year with Exports growing by 11% year on year in FY26 supported by deeper engagement with existing customers and expansion into geographies across Latin America, Europe, Southeast Asia and Africa.
Our focus on increasing wallet share with key partners and expanding into newer markets continues to strengthen our international bandwidth business and diversify our growth profile. On the domestic side, demand conditions remain relatively soft during the certain periods of the year. Performance in the institutional and B2C businesses also remains subdued. As discussed earlier, we are actively undertaking cost optimization and portfolio rationalization initiatives in this segment. On the international expansion front, we are making progress on our progress initiative in the Kingdom of Saudi Arabia.
As shared earlier, this remains an important strategic step towards strengthening the our long term manufacturing footprint and enhancing supply side competitiveness. In spite of the recent geopolitical developments, we remain confident of our Kingdom of Saudi Arabia expansion plans. At the same time, we remain watchful of the external environment. The ongoing conflict in the Middle east has created uncertainty across normal markets, supply chains and logistics and this may have an impact over the coming quarters.
While our Saudi initiative reflects a long term strategic direction, our immediate focus remains on navigating the current environment through closer customer engagement, calibrated pricing actions and disciplined execution. Overall, we remain committed to building the business with a clear focus on growth and long term value creation. The strategic step we have taken across capability expansion, portfolio development, customer relationships, exports and international initiatives are steadily strengthening the foundation of the business.
We believe these efforts are putting the right building blocks in place to significantly accelerate growth over the next two to three years. As we move forward, our focus will remain on disciplined execution, strengthening our market position and building a more scalable and resilient platform for future growth. Thank you once again for your continued support and I now invite Kevinji to take you through the financial highlights.
Ketan Sablok — Group Chief Finance Officer
Thank you Mr. Chari and good evening everyone. Let me take you through the financial highlights for the quarter and the year ended March 31, 2026. In Q4FY26 we delivered a strong performance with revenue from operations at rupees 684.9 crores registering a growth of 18% YoY. EBITDA for the quarter stood at rupees 77.3 crores up 11% YoY with an EBITDA margin of 11.3% compared to 12% in the corresponding period last year. Notably, this quarter marked the company’s highest ever quarterly revenue and and absolute EBITDA performance for the full year.
FY26 revenue from operations stood at Rupees 2,396.4 crores reflecting a growth of 15% YoY. EBITDA for the year was at 286 crores up 88% YoY while EBITDA margin stood at 11.9% compared to 12.7% in FY25. The year’s performance was supported by healthy growth across business segments even as margins remained influenced by the prevailing cost environment. Gross margins during the period were relatively lower with the quarter sales mix having an impact on the overall margin profile. Also, March saw some raw material price increases.
Some of them were to the tune of 25 to 30% which impacted the costs. Some of our older orders for the quarter were also honored in the month of March. Some of these cost increases have since been passed on to the customers and some of them are in the process of happening over the month of April and May. That said, higher revenues along with disciplined cost management and operating efficiencies helped contain the impact at the EBITDA level. Our institutional and B2C businesses continued to operate in a challenging environment during the year.
We had an impact on overall profitability. We are taking calibrated steps to optimize costs and improve operational efficiencies in this segment. While growth in these verticals remained muted, losses have continued to moderate through the second half of the year. This is driven by our focus on improving product mix, enhancing operational efficiency and maintaining cost stability. Excluding the institutional and the B2C businesses, our core B2B operations delivered an EBITDA margin of 14% for the year, reflecting the underlying strength and stability of our core business.
On the cost front, expenses remained elevated during the year primarily on account of ongoing investment in capacity expansion, new business development and capability building. As these investments scale up and utilization improves, we expect the operating leverage to support margin improvement over the coming years. The Other income during the quarter includes sales of our office space in Mumbai. The net income from these sales is rupees 19 crores. This is our first step towards liquidating some of our non core assets. More of these we plan to do during this current year. Our balance sheet remains strong with healthy liquidity and comfortable leverage levels providing us flexibility to pursue our growth initiatives. We continue to focus on efficient working capital management and improving operational efficiencies across businesses.
In this step we internally have decided to rephrase our earlier CAPEX spend which was announced In April of rupees 192 crores across Rosari, UNITOP and Tristar. The re evaluation of this said investment plan is being done in light of the evolving business requirements and the market conditions. As we move into FY27, our focus will remain on improving capacity utilization, driving operating efficiencies and scaling our growth initiatives in a calibrated manner. We also remain focused on enhancing margin profile through better product mix, operating leverage and continued cost control while maintaining a prudent approach to capital allocation and balance sheet strength.
That’s all from my side. Thank you everyone. I would now request MITESH to open up for question and answer.
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 and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Madhuradi from Countercyclical Investments. Please go ahead.
Madhur Rathi
So firstly if you could tell us that what is the expectation shareholders should be having for FY27 considering the Iran war and increase in raw materials and so on. So what kind of growth are we looking at? Top line. And What should be the consolidated operating margins that we are expecting?
Ketan Sablok
Yes. So Madhu, currently as you know the situation is very dynamic. Things are changing every day. But for us I think internally what we see and what we have planned is that our growth for the next year we continue to do at least similar kind of growth that we’ve done in this year. Hopefully if things improve our growth trajectory will be much better. We will have the new capacities now on stream for the full year and we are expecting the new EO capacities it reliance to also come in the later part of this year, probably by quarter three.
That’s what we have. So currently the way we understand minimum we should be able to deliver this kind of a growth that we’ve done in this year and anything if the situation globally improves, it will only add on to our growth plan.
Madhur Rathi
Sure. And what about the EBITDA margins?
Ketan Sablok
So currently the EBITDA margins will remain at these current levels between 12 to 13%. There are certain initiatives which we have planned for this year in terms of getting into some of better margin segments like pharma etc. Some of those will come into play probably by the second half of this year. So that should help us improve the margin. But currently we would be what we would like to put forth is the current margin will be maintained in the next year also
Madhur Rathi
Understood. And so if you could give us some idea about segment wise margin broadly like HPCC and textiles, specialty chemical and animal nutrition business, each of these business what is the EBITDA margin profile?
Ketan Sablok
This is some data we don’t put forth and we don’t talk about it. But to give you a sense of the margins at the EBITDA level, most of these three businesses stay at the company level margin. Some of them could be slightly higher, a percent or two plus finer, but generally they are at the same level. On the gross margin side I Can give you a feeler that textiles has a decent gross margin, EHN has higher margin. And HPPC since it’s a mix of both agro, non agro and other products. The gross margins are a mixed bag.
But the cost profiles in each of these businesses, the fixed cost profiles are slightly varied. So at the EBITDA level they generally come out to be the company level ebitda.
Madhur Rathi
Okay. So at least If you could give us some sense that which of these three divisions enjoys the highest margins and which enjoys the lowest margin. So that will be enough for shareholders to at least get a sense that in future if the mix changes then what should be the impact on the margins From. That’s where I’m coming from.
Ketan Sablok
Yeah. So at the gross margin levels I think the smallest business segment of our enjoys the highest gross margins. But within HPPC if you ask me, the agro and the oil and gas have better gross margins. And pharma is a segment that we are going to start expanding from this year that once that business becomes a reasonable size, it’s going to fetch us the highest gross margin across all the segments.
Madhur Rathi
Okay, and what about textile is the lowest?
Ketan Sablok
Textile again has a split of specialty and little bit of the commodity chemicals. So within the specialty textile margins are very handy.
Madhur Rathi
And sir, in each of these divisions who would Be our closest competitors?
Sunil Chari
As we have given in the past in animals and nutrition there are global majors like Chemin, like Cargill, like Novus Rednecks, you know, which is Pfizer, which is now become what it is. And then there are companies from Indian markets like Natural renovies and Jubilant who are there in the nutrition market. In the textile majorly we have Chroma who also has a constant portfolio and the portfolio I believe that. But there are other multinational slaves like CHT and Pulchara in the home, personal care and performance chemicals in different segments we are different.
But the global suburban majors like BSF, Dow, Lubrigol, ScienceCo, Evonic, they are the players who rule the market globally. But there are other companies that you know, Saudi Arabia, Petronas who have integrated. But also Chinese companies are there the Indian market, you know there’s imports coming in from all the sources but also from the machine tires like India Glycol which is there.
Madhur Rathi
Understood. And Textile Chemicals is a listed company, Finotech Chemical, are they our competitors or it’s a different business. So is it like to like product portfolio or is it varied?
Sunil Chari
I cannot comment because I don’t know their portfolio.
Madhur Rathi
Okay. And sir, post this capex that is expected to get completed. What will be the peak revenue potential of the company? If you operate at full utilization across our manufacturing facilities across divisions, then what is the broad top line that we’ll be able to achieve?
Ketan Sablok
We should do an asset turn of at least 3 between 3 to 4 at peak utilization.
Madhur Rathi
Understood. Okay, so thanks a lot. And sir, one last thing. Sir, we are trading at like less than 10 times EBITDA which is a historical low. So any plans to do a share buyback?
Ketan Sablok
No, we have nothing like that.
Madhur Rathi
Okay sir, thank you very much and Basma.
Operator
Thank you. The next question is from the line of Rohit Nagraj from 361 Capital. Please go ahead.
Rohit Nagraj
Yeah, thanks for the opportunity and good to hear the volume growth coming back. So two questions on the business side, a couple of them on the financial side. First, in terms of sourcing of raw material, so how much of our RM basket is crude linked? And in terms of sourcing, how are we currently placed both from alkali acid and EO which are again crude linked. And lastly in terms of domestic and international sourcing, how does that also look like? Thank you.
Sunil Chari
So currently our Namaste oj, this is Sunil Charlie here. Currently our raw material position looks to be stable. Our supply chain teams have been able to maintain all the raw materials. We do not have stock shortages for any raw material. Ethylene oxide supply also is very stable. So we have no worries on that. Raw material prices have gone up and raw material prices we have been able to pass through in the current marketplace. Ethynoxide is made domestically so we have no imports. And other as we know we do not have too much imports of our raw materials.
So whatever raw materials are there. So phenol is available from various sources including Thailand, including Malaysia, including India and including China. We are not buying anything from the Middle east now. But there is also a lot of material coming from us which does not pass through the state of boromus. And then there are similar other raw materials like acetic acid which has plenty of other sources. We have silicones which come in from China. Acrylic acid is something which India manufactures and it comes from various sources.
So unlike other industries, our dependence on Middle east is not as much as the other countries. Of course prices globally have risen. And last quarter, last month especially we had to buy some homages at higher prices. But we had orders from the customers and that impacted our gross margins. But from this month onwards we have been able to pass through all our high purchase raw materials into adding margins and getting the final prices the customers are accepting because everybody can see the global geopolitical situation going forward.
Also I don’t foresee any issues on RM sourcing and availability for the range of raw materials which we buy now.
Rohit Nagraj
Sure, sure that is helpful. Second question in terms of just to understand the postponement of capex. So it was exactly one year back we had announced we were supposed to commission it now. So why such a late announcement? In terms of postponing it, what has been the main factor for Reconsidering debt? Thank you.
Ketan Sablok
So Rohit, on the CapEx front I think it seemed that our earlier CapEx also got, you know we had kind of delayed that heat oxidation capacity which were also supposed to come here before last but then Reliance again redid its plan for capacity expansion and hence we also slowed down in that CAPEX spend and that we have that capacity. We have capitalized now partly in Q3 and we balance now in Q4 in the month of March. So the other CapEx plan which we had announced in the April of last year which had a mix of products in the Amine range as well as some pilot plants, some R and D expansion at these sites, some of them because of these, the earlier CapEx getting a little delayed.
So even this CapEx we decided not to immediately go and start spending on this keeping in mind the current business environment and the overall global situation that’s prevailing. Also the spend which we had planned for the R and D at sites we went ahead and we’ve now set up this new RD facility at Navi Mumbai. So probably our R and D needs we plan to get it accomplished from here itself and some of the other smaller products and mines that we had planned. I think it’s not that we’ve decided not to go ahead with this.
We probably now rephrase this entire spend over this year and partly next year. So that is something which we are internally still planning out that how we should plan out the spend because that total spend was also to the tune of 190 crores if you add up at all the three sites. So a little bit of change in the our strategy and also the business environment. But this spend will happen. These are new products which we are working. Some of them we’ll definitely do this year because there is a part work on one of the pharma products also so that will surely come up sometime in this year.
But some of the other spends probably we will re look and rephrase it. So it’s just more optimization of Our spend in terms of cash flow management and the ratios that we are looking Roc you would like at least the current capacities to give back some of the returns that we have EMR and then probably go ahead and spend on these balance capex. So that’s what was the thought and since we thought it was prudent that we talk to the investors and everyone about this.
Rohit Nagraj
Just one allied question on that.
In terms of CapEx, what is the number that we are looking this year and current what is, what is the gross debt including the long term as well as working capital? And given that the capex plan is now mellowed down we will be looking at pairing of the debt In the next one year, one and a half years. Thank you.
Ketan Sablok
Yeah, so the CapEx plan for this year would be I think anything between 50 to 75 crores. That is the plan. We would not like to spend anything more than that and that also at very peak level we would reach that 70, 75 crore number. And in terms of the debt that we have now Almost we have 200 odd crores I think of long term debt and the balances in the short term working capital borrowing. Some of the other plans that we have in this years one of course to use the cash flows to bring down the overall debt levels and secondly also to shed off some of the non core assets that are there in the books.
So one we already did in the last quarter which was the office space at Mumbai. We have a couple of more office spaces here and some of the, some more assets across India which we are currently not utilizing. So we’ll try to get rid of all these long core assets and there are some further plans which we have in terms of trimming our product profile, business segments, some of them we plan to bring it on ground in this year. So all these we expect will help us prune down our improve our cash flows and prune down the overall debt probably by the end of this year.
So that’s what the plan is that over the next this year and probably by in another 18 months we should be able to bring down our debt significantly. The target is to actually get debt free by in the next 18 months but I think that the time is. But currently the plan is to keep bringing down our debt over the next 18 months.
Rohit Nagraj
Sure that is Helpful. One more last question. In terms of current intoxication after the 66,000 tons what is the utilization level that we are currently working on? And in terms of the ethoxylate product, how has been the response from the customers, given that the pricing and raw material prices have gone up and consequently the product prices have also gone up. So how comfortable are the customers to pay for it? Or is there any demand side challenge which may emanate if not now or maybe a month, couple of months later?
Thank you.
Sunil Chari
There is no demand side challenge. Orders remain robust. The agro season is dependent on El Nino. The El Nino effect can affect the agro season. It’s too early to comment but we had worries it will last year also from the material lines. Other than that, the global situation, we don’t see any fall in demand. We see a good pipeline of projects which our sales teams and business development teams have worked on in the last 12 months and we should be able to see results from those initiatives. And the utilization level for etoximization. Currently Utilization level for etoximization is practically 90 to 100%. Whatever maximum we can do. You know, we run 24 by 7 days, 365 days a year and apart from whatever gets, you know, stopped for expansion, we don’t have a single downtime in anything. And we have added it to new expansion capacities. So we are confident that reliance, you know, we had released more EO from December when the expansion is done for the partial expansion because more is coming up in the next financial next December. That is the plan.
So we should see availability of EU and we have the capacities and we think the market is also there.
Rohit Nagraj
Thanks for answering all the questions and all the best sir.
Operator
Thank you. The next question is from the line of Maitri Shah from Sapphire Capital. Please go ahead.
Maitri Shah
Yeah, hello, good afternoon. Am I audible?
Sunil Chari
Yes Maitreya, please continue.
Maitri Shah
Yeah, hello. A couple of questions. Firstly you mentioned that we are doing around 50 to 70 crore capex for 27 and part of it is going for the pharma facility. Any other capex regarding other than the pharma facility for this year?
Sunil Chari
Yeah, apart from the pharma facility we are going to do a couple of small capexes. One of them is probably going to be in the aroma chemical space. So that’s what these are. The two we have at least now concluded that we should do it in this year. Two are the big ones. Big ones in the sense in that number of.
Maitri Shah
Okay. Secondly on the pharma side you mentioned that our margins are. The gross margins are the highest among them all. So what exactly are we targeting in pharma? Do we currently are kind of. Do we have a client on clientele based on it and yeah. How are we going to expanding the pharma portfolio from now on.
Sunil Chari
Surfactant. You know, amongst all our chemistries, we have surfactant, we have acrylic, we have enzyme and we have silicones. All of these can go into the pharma. Presently our focus is on the surfactant chemistry. So our polyethylene glycols. But there are a host of other products. Polythene glycol comes in different molecular weight. So for example, we sell polyethylene glycol from 400, 600,000, 2,000, 3,350 4,000, 6,000, 10,000, 20,000 and above. So all these are areas which can go into the pharma, but there are also other esters which we manufacture which can go into pharma.
So the focus would also be, you know, on coating products, but also something like it can make gels, you know, for pharma and personal care. So these are productivity, focus on the pharma.
Maitri Shah
Okay, that’s great. Secondly, on the margin, so you’ve guided for a 12 to 13% margin on a control basis. But we’ve seen the margins kind of drop quarter on quarter this year for 26. And you did dilute for that. Kind of like a mixed change we had. We also had raw material price increase. So what sort of initiatives are we taking on, like kind of supporting the EBITDA margins right now? And are we, how confident are we on maintaining this 12, 13% guidance for FY27 and also for the next year? FY28?
Sunil Chari
This year we have one initiative is, you know, selling some, you know, assets and selling some businesses which are not core to all businesses or which requires a lot of investment to grow this business, especially the consumer businesses that are cooling down our gross margins and our EBITDA margins. Once these uses are not there in those areas, automatically our margins will improve. The second part is now we are focusing on value added products, products that have higher margins and consciously cutting down on low margin products.
So this should also help us increase the margins. The focus on food, personal care, pharma, cosmetics and also health and nutrition. These are all high margin areas. If you want to focus on CBI as the products get the approvals and we see a gradual increase in both gross margins and EBITDA margins.
Maitri Shah
Okay. I think a metric you can kind of provide us with what sort of value added sales we have for like FY26 maybe from next quarter onwards. So we could kind of track on how we are growing on that number. Is that possible?
Sunil Chari
Would not be able to share so much of detail. But we’ll think about this how we can Give A little more info on the data currently provide in the presentation.
Maitri Shah
And our core B2B business has close to 14%. But now what sort of revenues are we, what sort of revenues are they contributing to? And how do you see that kind of scaling up? Because once that kind of business grows, we can see on a consolidated basis a quite higher margin going forward.
Sunil Chari
Yes, most of the growth that we discussed now are all going to happen in our core B2B business. On the consumer side of the business, we are in fact relooking at the entire business and the product profile in that business. So there also we are trying to ensure that we only work on products where the margins are stronger. So that’s what the plan is. But yes, most of the growth that we talked about is all going to happen on a B2B business.
Maitri Shah
And what percentage of revenue is Contributed from this B2B business? Currently RAFA96.
Ketan Sablok
From the total, you can subtract about 250 to 60 crores of B2C business balance. Everything is a B2B2C. Have a look.
Maitri Shah
Okay. And on the revenue side, how you mentioned that at least we’re going to target 15% growth for FY27 as well. But any new drivers that you expect kind of increasing or reaching up the growth to like the higher side of the double, like 20% growth moving forward, if you could mention those.
Ketan Sablok
Yes. So as I said, the capacities that we have put up in FY26, we will have this for the, at least for more than half the year next year, assuming the availability also comes through by the second half. And then of course the segments that we are looking at are the pharma, the agro, and these two are going to be the current segments which are going to drive the growth and the new segments of pharma that we are planning to get into. So that will also add, though not a, may not add a big number, but it will at least penetrate the market for the coming year.
And thirdly, we see oil and gas is another segment that’s going to drive growth in the current year. These three, four initiatives will help us drive the 15% plus growth that we talked about.
Maitri Shah
That is great. And the cost cutting kind of initiatives that we mentioned before that we are taking, like taking in effect from next year. Could you elaborate on that? Or how the quantitative benefit that will happen over the next two to three years, if that’s possible to quantify.
Ketan Sablok
Yeah. So cost cutting in the Sense. See we’ve already in this year spent a lot of cost in terms of employing talent. So if you see our employee cost has gone up significantly in the FY26 if you compare it with the earlier years. But that was a sort of an investment which we did willingly given plans for expansions in the next few years. So hopefully the employee cost expense will not grow at similar levels though we’ll be taking in some new talent also, but not at the same kind of numbers. And apart from that, as Mr.
Chari also said, we’ll be moving out of lot of our non core businesses. We are evaluating how we should restructure our business segments. Some of these consumer focused business which really we are not able to give the kind of time, energy, money that they require for their growth. So if we can cash out of these businesses then I think it will help us streamline our core business and it will also help these businesses to take their own path of growth with whoever comes in. So these are, this is something which we are.
We don’t have anything concrete as of now, but these are some of the things that we are looking at so that we can keep growing in our core business
Maitri Shah
And the consumer focused business. What sort of asset block does pertain to that kind of vertical right now? And are we going to like, is it fungible? Are we going to move it to the B2B side or are we actually going to be selling out a lot of the north core assets? And if you could quantify what amount of assets we have planted.
Ketan Sablok
Yeah. So they do not account for too much of our asset block. Most of our asset blocks are for the B2B businesses. These are only add on blocks that we had which we carved out of our B2B segment assets to do some of these consumer products. So they don’t account for too much of our asset blocks.
Maitri Shah
Any, any quantification of how much of the value we’re going to be selling.
Ketan Sablok
I do not have offline this number.
Maitri Shah
And the Thailand textile facility, how has that been going on? How could we record any revenues in the fourth quarter and what sort of guidance would you give on the revenues that we can realize? FY27 yeah.
Ketan Sablok
So Thailand plant has come on stream in the last quarter, towards the end of March. So this should. It’s a small blending unit that we’ve set up. It’s not a full scale textile chemical plant. The plan is to do some blending in Thailand to meet the customer requirements of Southeast Asia. And also the plan is that some of the raw Materials for our lending activities we can bring in directly there from China at more competitive rate. So yes, Thailand is going to now start contributing meaningfully from this year.
Probably from the quarter two onwards we should see meaningful ramp up in the silent facility. So we’ll start off with textiles. We’ll do a little bit of AHN also. That’s the plan. And then we’ll see how it ramps up, how the customers react to the products from there. And then probably we will think of adding some more products within our other basket of home and personal care also.
Maitri Shah
Okay, that’s great. And the peak, this lack of. Sorry, but the peak revenue that you can gauge from the Thailand plant currently is how much. Hello.
Ketan Sablok
We should do about I think between 50 to 75 crores at its peak depending on, you know, since it’s blending. So it depends a lot on the product also and what kind of blends we do. But we can do at a peak of 50 to 75 crores
Maitri Shah
And this will be over and above the 15 growth that we’re targeting for 527.
Ketan Sablok
No, no, this is all inclusive of that. But we will not reach 50,000 this year.
Maitri Shah
Yeah, that is sure. But the Thailand revenues are inclusive in the 15%.
Ketan Sablok
They are all part of this 50%.
Maitri Shah
Okay, that is it for my take. Thank you.
Operator
Thank you. The next question is from the line of Tanvi Varekar from Anandrati Institutional Equities. Please go ahead.
Tanvi Varekar
Hi team. Thank you so much for the opportunity. So My first question is on the pass through that we were able to do in March, some of it and some of it will be in April and May. So can you outline is there any challenge in any particular segment in pass through or is it broad?
Ketan Sablok
No, there is no challenge. We have been able to pass through from the 1st of April. So pass through is easy for all the products. We have some resistance in the textile industry but we are controlling the supplies and ensuring that know we do a profitable margin side business.
Tanvi Varekar
All right. And just one on the capacity related. So the. The 15,000 tons in unit of which was commissioned in Q2FY26. So that capacity was roughly around 10 to 15% utilization in Q3. So what’s the current utilization that that was done on Q4?
Ketan Sablok
It is little more better than Q3. We do not have the exact figures. I do not have exactly now but it is ramping up. Everything is ramping up more.
Tanvi Varekar
So the growth that came in from the subsidiary in Q4 that’s largely on the higher utilization of that Capacity, Right.
Ketan Sablok
Okay. Okay. Yes.
Tanvi Varekar
And there was a premix plan that was supposed to come up in Q1 FY27. So are we still doing that in the same timeline or is that also.
Ketan Sablok
No, no, that’s, that’s. That’s as per its timeline, it will come up probably by end of this month. Okay. That’s already been commissioned. Yeah.
Tanvi Varekar
Okay. All right.
Ketan Sablok
Coming from the premix, starting this quarter.
Tanvi Varekar
Okay, that’s perfect. Thank you so much.
Operator
Thank you. The next question is from the line of Harsh Mutha from Neo Group. Please go ahead.
Harsh Muthuk
Hi, sir. Hello. Yeah. Yes, we can hear you. So, sir, I was asking, what is the percentage of revenue that we generate from our top 10 customers?
Ketan Sablok
So we will be doing between 12 to 13%. Not more than that. Our products are very well diversified. The concentration is very less. So our top 10 customers would not. I think between 12 twelveish is what I have offhand.
Sunil Chari
So we do not have any customer which is more than 2% of our sales. So, you know, we now Have very good diversification in terms of customers.
Harsh Muthuk
And so what percentage of our customers are like coming back to us? Repeated customers.
Sunil Chari
Sorry, what is your question?
Harsh Muthuk
What percentage of our customers are repeat customers? Basically
Sunil Chari
Repeat customers practically. You know, we’ve been growing. So for example, if you see in the last six years we have grown 25% CAGR in sales and we’ve grown 80% CAGR in profits. And that would majorly come from repeat sales, but also getting new customers, but also getting new products into existing customers. So getting a bigger wallet in every customer is something which we always target. Right.
Harsh Muthuk
Perfect. Thank You.
Operator
Thank you. Participants, to ask a question, please press star and 1. The next question is from the line of Mihir Damania from Fident amc. Please go ahead.
Mihir Damania
Hi. What Explains the difference between the standalone and consolidated Profits In this quarter? The standalone profit seems to be higher than the consolidated number.
Ketan Sablok
I do think you should see the numbers separately. It is better to see it at a consolidated level. Because now the business mix is such that we sell similar products from subsidiaries to certain customers, the same products to certain customers from Rosari. So most of the sales currently is happening out of the Rosari company because Rosari is a registered supplier for most of the customers in India as well as locally. So hence, while some of these products are manufactured at the subsidiaries, some part of their end lending could happen in Rosari and vice versa.
So that mix between standalone and revenue and consolidated could keep changing quarter and quarter. So the best way to look at the performance is at the Consolidated level.
Mihir Damania
Okay, got it. Would you like to probably give like a timeline or a. Or a rupee value amount of divestment of non core assets. Just a ballpark ranges is fine.
Ketan Sablok
No, we would not like to average any numbers. See this is something which we are still internally working on. So at an appropriate time when we have something on hand, we will come back and talk about it.
Mihir Damania
But surprised to see that the divestment will happen in FY27.
Ketan Sablok
No, that also we cannot give you any timeline. The plan is we would like it to happen in Triple M. But it could take more than a year, two years. My aim of talking about it was strategically we are looking at getting out of these non code businesses. It could take its own time. We should get a proper value for the business. We built this business over the last so many years. So we would like to exit it at a good value and exit it to a. A customer who would be able to grow the business. Because the business has a lot of inherent strength to you know, grow.
Mihir Damania
Okay. And just need one clarification from the promoter. So there were some rumors of promoter kind of selling some stake or exiting the entire company on the new share somewhere in the month of January. Any clarification on the same?
Sunil Chari
I think there is nothing of such at all. Here we are all sitting working, focusing on growth. Market rumors will come and go. There’s nothing in the plan at this moment.
Mihir Damania
Got it. Thank you Ravi.
Operator
Thank you. The next question is from the line of Madhurati from Counter cyclical Investments. Please go ahead.
Madhur Rathi
Thank you for the opportunity Once again. So it seems that our B2C business is lost making current lease. So what kind of working capital requirements have we invested in this business? On the 250, 260 crore revenue that we have currently
Ketan Sablok
It would have similar kind of working capital, the kind we have in these companies. So at a net level, net working capital would be close to 90 of this in this business.
Madhur Rathi
Okay, got it. And sir, how it seems like on a revenue potential basis we could do 3500 On our current asset basis. How should we see the ramp up maybe over the next three, four years. Will it be driven by customer addition or will it be driven by the solution that we are trying to move towards? Pharma, oil and gas. These solutions. So like all the scale up might take time due to this high margin segment. But whatever incremental revenue will come will be a better margin. So how should I look at that segment?
Sunil Chari
So you’re talking about growth at a company Level or growth in pharma segment.
Madhur Rathi
Sure, I’m talking about the growth at company level. But what I understood from this call was we are trying to move towards more value added products going forward. So incremental, lot of incremental growth will come from these pharma, oil and gas, these kind of segments. So yeah, I’m trying to understand on that front.
Sunil Chari
Yeah. But not only the pharma or oil and gas, there is aroma, there is personal care, you know and there is food processing and there is institutional chemicals, cleaning chemicals for hygiene, health and hygiene. So it will be spread across different segments. But also animal as a nutrition could be a good driver for our increased margins. So focus remains now on getting into a higher orbit for the ebitda. The teams are being attuned, trained, need to focus that eat businesses. We have to improve our return on capital employed and return on EBITDA markets.
Madhur Rathi
Right. So on the ramp up front sir will be. So it seems that these businesses will have a higher gestation period versus our current customer where we are already a qualified vendor. So I’m trying to understand how should I look from a Gestation period prospective for like ramp up to our optimum utilization of our capacities.
Ketan Sablok
So our capacities, the expectation is that that ramp up will happen over the next two to three years. So while we will be getting into some of these high value added segments, our current segments of core agro and textile and Asian will keep seeing their latent growth happening parallel. So even in personal care, the phenoxy business, where we are one of the largest globally and with the new capacities coming up, we are getting into newer markets across the globes. The North American market we are looking at both for the personal care and the agro business In Latin America we are already strong in agro, we are trying to build the business there again in textiles we are ramping up our exports business.
So Bangladesh, the Southeast Asia, Asian countries through Thailand and also Turkey, Brazil, these are some of the markets within textiles where we expect the domestic growth to actually outperform the export growth to to outperform our domestic growth in textiles. And similarly AHN with this new premix facility coming up, we should see this part of this ramp up happening this year and a full scale premix facility capacity enhancement in the next year. So all these I think plans that we have on the table, I think that’s what makes us pretty bullish on that.
At least a minimum 15% growth coming in FY20. Right.
Operator
Thank you. The next question is from the line of Rohit Nagraj from 361 Capital. Please go ahead.
Rohit Nagraj
Just one clarification on the institutional business. We’ve been seeding this business, but FY26 performance has been relatively muted with expanding losses. So how are we looking at it in terms of scaling up and when do we expect break even happening? Is it going to be FY27 28? Any timelines on that? Thank you.
Sunil Chari
FY27, we should look at breakeven or even profits and also divestment of some businesses in that business which are lower margins or, you know, which contributed to the EBITDA loss. So we feel 2017 should be a very good year for the institutional business.
Rohit Nagraj
That’s all from my point. Thank you so much.
Operator
Thank you, 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 CDR India. Thank you once again for taking the time to join us on this call. And good evening.
Operator
Thank you very much on behalf of Rosari Biotech Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.