Ladies and gentlemen, good day and welcome to Rossari 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anoop Poojari from CDR India. Thank you, and over to you, Mr. Poojari.
Thank you. Good evening, everyone, and thank you for joining us on Rossari Biotech's Q1 FY26 earnings conference call. We have with us Mr. Edward Menezes, Promoter and Executive Chairman, Mr. Sunil Chari, Promoter and Managing Director, and Mr. Ketan Sablok, 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.
Thank you, Mr. Anoop. 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 AHN 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 R&D continues to drive our success, and we have seen many synergies emerge through our past acquisitions.
R&D continues to be a cornerstone of our growth and innovation strategy, strengthening Rossari's position as a leading solutions provider in the specialty chemicals sector. Our R&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 Rossari Biotech, Unitop Chemicals and Tristar Intermediates are progressing well, with phased 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&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.
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 the challenging external environment. In Q1 FY26, this resilience was reflected in steady top-line growth, supported by traction in our HPPC and AHN 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 verticals report superior performance in Q1, we expect to demonstrate healthy growth on an annual basis as we focus on scaling platforms and strengthening 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, improved 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 building a strong platform for future growth in international markets. On the capacity front, our ongoing expansion projects across Rossari Biotech, Unitop Chemicals and Tristar Intermediates are progressing in a phased manner. These initiatives are aimed at eliminating capacity constraints, improving supply chain agility, and strengthening our positioning across high-growth sectors. Once fully commissioned and operating at optimal utilization levels, these facilities are expected to deliver 3x-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 10-12 days intermittently due to hot work, election, activities, etc.
Hence, production was lowered 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 wave of growth with enhanced scale, agility, and resilience. Thank you once again for the continued support. I now invite Ketan Ji to share the financial highlights for the quarter.
Thank you, Chari, and good evening, everyone.
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. Ladies and gentlemen, we have the line for the management reconnected. Yes, sir, please go ahead.
Yeah. So apologies for that. I think the line got disconnected, so I'll restart once again. So in Q1 FY26, our revenue from operations grew by 11% YoY to INR 543.7 crore, driven by steady performance across our HPPC and AHN verticals, despite the ongoing global headwinds. On a YoY basis, we grew both in domestic and exports, and on a QoQ basis, while domestic was steady, the export sales were soft. EBITDA for the quarter stood at INR 67.9 crore, 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 INR 7 crore in Q1, which impacted the consolidated margins. Excluding these verticals, our EBITDA stood at INR 75 crore, 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 turns 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 expansions, maintaining margin stability, and building a platform for 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.
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 the touch-tone 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 B&K Securities. Please go ahead.
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 INR 179 crores of revenues for FY24 and INR 299 crores for FY25. But if I look at the current presentation, the revenues have been INR 159 crore and INR 276 crore respectively. So is there some restatement which has happened? Thank you.
So hi, Rohit. This is Ketan here. So yeah, so this quarter, revenues have been a little soft. I think this drop has been especially on the institutional side. Some of these orders are expected to be fulfilled over the next couple of quarters. So my submission 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, Q1 in this business is not as strong as the subsequent quarters, especially Q3, Q4 are the stronger quarters for this business. So having said that, I think we are expecting some good traction in this business in the subsequent quarters.
Q2 and Q3 specifically should be a more stronger quarter for us, and on an annualized 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.
All right. Thanks.
Yeah, Rohit.
Yeah, so the distinction between the numbers last quarter and this quarter on the institutional.
What was the question exactly, Rohit?
So, last quarter, if I look at the presentation, we had given the Institutional and B2C performance, FY24 revenues INR 179 crore and FY25, INR 299 crore. And when I look at the slide number 20, the revenue number for Rossari Professional is INR 159 crore and INR 276 crore. I don't know why there is a discrepancy between the two.
Just give me a moment. Just give me a moment, Rohit.
Sure, sure, sure.
So 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 INR 299 crore, we also include our pet care business in that. So the slide number 20 is numbers from the subsidiaries. So the Buzil Rossari 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 that INR 20-odd crores.
Okay. Fair enough. That explains. The second question, again, two parts. One, in terms of the Institutional business, has the investment now been 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? Thank you.
Yeah. So, Rohit, in terms of the investment, 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 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've 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.
Sure. That is helpful, sir. Thanks a lot and all the best.
Thank you.
Thank you. Our next question comes from the line of Sanjesh Jain from ICICI Securities. Please go ahead.
Yeah. Good evening, sir. Thanks. Thanks for taking my questions. I got a few of them. First, on the EO availability, now that we are.
Sanjesh, could you be a little louder, please?
Is it now audible, sir?
Yes, yes, yes.
Okay. First question on the EO availability. Now that we are very close to commissioning the facility, we are talking of commissioning the facility next quarter. How is the EO? Are we procured the EO for the expanded capacity now?
No, no. No, no. No, no.
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No, no. No, no.
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No, no.
No, no. No, no. No, no. No, no. No, no. All-India consumption of EO. We may take a few more quarters for them to start delivering higher EO. 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 EO announcement should be ready. So we don't foresee a big issue in that in the next four quarters.
So you don't see an issue immediately or going forward when the plan?
Yeah, yeah. Because we will not be able to, Sanjesh, we will not be able to use 100% of our capacity in the first few quarters. So ramping up will take us some time for us. And by the time we ramp up the capacity in the next year, we should have adequate EO. That is what is our judgment.
Got it. Got it. But there is no firm commitment as of now from the Reliance side?
No, no. There is no. They have told us in the next year, in the second, third quarter, they should give us. Their capacity will come on stream, enhanced capacity.
Got it. Got it. My second question is on the Unitop . 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 op, 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 Unit op, and what are the measures are we taking to fix them?
To give you a small background, Unitop we acquired, it was around INR 300 crores. And this is a company which was existing for more than 36 years. So in 36 years, they have reached INR 300 crores. Now, when we reached from INR 300 crores to now, we are at an EBIT of nearly INR 70 crores, and we did INR 773 crores last year. This year, we may practically be three times in three to four years. This is something where we put all Unitop products into the Rossari markets for Rossari customers. So whatever business we got from Rossari customers would always go through Rossari. And when we do business between Unitop and Rossari, it is on a transfer pricing basis. So we should not look at Unitop, Tristar as subsidiaries on a standalone basis. We have to look at consolidated profits of Rossari.
We should not look at individual benefits. It is my request.
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 consolidated basis then?
No, so Sanjesh, if you see the margin on a basis shown off the consumer business, if you see our margins have again come back to that 14%-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 a year in spite of the fact that the Institutional Consumer Business earlier was hardly a major factor. But now, with a INR 300 crore annual run rate of last year, it's becoming a significant portion of our overall sales.
No, no. I appreciate that. But again, revenue growth is also driven by that segment itself, right? Otherwise, revenue hasn't been growing at that clip. Now, overall, EBITDA, if I look at it, we have managed to grow only 5% this year by YoY basis. So that still remains muted. I understand the challenge on the export market, but the growth appears to have significantly subdued versus what we were anticipating earlier.
I think we should. Sanjesh, this is Chari. I think we should be happy with the fantastic performance of our B2B business. We also have mentioned in our comments that we had some days of stoppage intermittently for nearly 10-12 days at our sites for expansion, so when we do welding or when we do anything which is related to heat, we, of course, have to stop our production. 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.
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 a good performance what we have delivered. Just trying to decipher to see and drive the growth from here.
If you see, Sanjesh, our core business quarter- on- quarter has been down by about INR 25 crores, INR 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 the new reactors being put in. So we lost about 7- 10 days of production. And that impacted the overall exports where some of the plant orders we could not dispatch. And we are planning to make up for that in the second quarter. So we are expecting the second quarter run rate to be much better.
Sanjesh Jain, to add to what Ketan sir said, we should compare 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 volume, sir. The volume growth has been 11%. Top-line growth has been 11% compared to last year. Even our EBITDA on the B2B side, our core business, is better than first quarter of FY25. For us, the focus is the Institutional B2C and semi-B2C. Yes, sir.
Got it. Got it.
Yes, Sanjesh 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 segment. But if I look at the competition, after we reported subsidiary numbers for last year, they have grown quite healthy. And that's been the case for the last two years. Are we losing the market share in the textile chemicals in Indian business?
Yeah, Sanjesh, this is Edward here.
Hi, sir.
So from our point of view, the textile chemical business is quite steady. The textile business also increased in volume year- on- year this year also. Whereas we had some value-wise, we had some export shipments which got delayed this year because of the delay in the logistics. So that got reversed because the BLs 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 the year-on-year growth.
Got it. That's clear. Just one last question. How do we see revenue growth and EBITDA growth for next two years?
So I think, as we had said, on an annual basis, we expect to do a mid-double-digit, 14%-15% kind of growth both on the top line as well as on the EBITDA front. Q2, as I said earlier, should be a much stronger quarter for us because we'll 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 would be fulfilling all those sales in Q2.
We will be holding onto the margin this year. I thought we will drive some operating leverage, right? Employee cost is largely done. And we are cutting losses in the 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?
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'll have to give up in the coming quarters. So we'll just see how it plays out.
Yes, sir. Thanks, thanks, thanks, all the three for answering my questions so patiently. And best of luck for the coming quarters.
Thank you. Thank you, Sanjesh Jain.
Thank you.
Thank you. Thank you. Our next question comes from the line of Prachi from PhillipCapital. Please go ahead.
Hello. Hello? Hello? Are you able to hear?
Yes, ma'am. Please go ahead.
Yes. Thank you for the opportunity. Sir, under the non-EO based category, what product categories are we focusing on? And what is the market size? And what growth rate do we expect going forward? Who are the competitors under this? And in the next two, three years, what kind of revenue contribution do we expect from this?
Namaste. This is Sunil Chari. Can you hear me clearly?
Yes.
Yeah. Good. So on the non-EO 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 includes methyl esters of vegetable oils. So these are basically grown in a good way even after our EO quota 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 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. These would be the primary focus.
Thank you, sir. I have one more question on the export business. So you have said that Southeast Asia, you are opening up one smaller facility. So what kind of CapEx are we expecting in this?
So the CapEx which is coming up outside the formulation, it's a very small investment, about between INR 15 crores-INR 20 crores. And to start with, it will be a very small outgo. We'll start doing some formulation activities over there. And then as the business grows and we see the market acceptance, then we'll keep adding some more CapEx to that. But to start with, it's going to be a smaller one.
Okay. Thank you, sir. All done.
Thank you. Our next question comes from the line of Pratik Oza from Systematix. Please go ahead.
Yeah. Thank you for the opportunity. So can you share the EBITDA margins of our subsidiaries in this quarter?
So Pratik, 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 Rossari, Unitop, Tristar, the products, there's a lot of movement of products within the companies at a transfer pricing. So ideally, it would not be really making sense for us to look at the individual company margin levels. But having said that, I think both Unitop and Tristar have a double-digit kind of EBITDA.
Okay. Got it, and so another question is on the exports. I think for this quarter, exports were relatively lower sequentially, so what was the reason for that? And are things improving there?
Yeah. 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 equipment was getting set up. And this being an EO-related facility, there are certainly safety protocols which we need to follow. So we had to cut down on the production. I think much of those lost volumes will get done in the second quarter.
Got it, sir. Thank you. Thank you so much.
Thank you. Our next question comes from the line of Rajit Aggarwal from Nilgiri Investment Managers. Please go ahead.
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 INR 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 export number for Q1?
So in Q1, the exports were about INR 139 crores. And we expect on an annualized basis, exports to be around 27%-28% of the overall turnover.
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? I mean, who are the other suppliers to you?
Reliance is the only supplier for ethylene oxide.
So they have increased their supply to you in this quarter, and they will increase going forward as well?
Yes. It's a little better than previously, yes.
Okay. Thank you, sir.
Thank you. Our next question comes from the line of Naresh Naiker from Systematix. Please go ahead.
Yeah. Hi, sir. This is Vijay here. Hello. This is Vijay Sarda here.
Yes.
Just wanted to understand two broader questions. One is on the overall once your CapEx comes in. So we will start having the facility on stream from Q2 onward. So next year, would we 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 turn asset turn that you're talking about, would we be able to see in FY27 or FY28?
The EO will be available mostly from September, October 2026. So I think it will be spillover. And you can see we can see a good capacity utilization in the year FY28. And maybe, as you said, three, four years normally will take to ramp up to 100% capacity.
Sir, you talked about some CapEx on the basically overseas CapEx that you talked about. So that is only INR 15 crores that you talked about. Or that's a bigger thing that we are looking, contemplating at this point of time?
No, no. At least to start with, as we said, that it's going to be around that number.
When will it be done?
Yes. Depending on how it shapes up, how the market is, then how logistics, etc., how it works from there. And then if it works out well, we have plans to further expand that.
Okay. And this will be majorly, as you said, you will be doing some formulation and all that. So not full-fledged CapEx that you are looking, but it's an initial CapEx?
Yes. It's only to start with, it's a formulation setup.
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 INR 100 crore kind of sales, we will be able to break even or something of that sort, or?
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 even on the EBITDA levels.
And this last thing, sir, this B2B, what is our kind of a target to get to in revenue mix B2C and B2B? What is our target kind of going forward for next year, like two to three years, where we see this B2B business going up?
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 the EO availability comes in next year. And then post that, our capacities start reaching their optimum 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.
Thank you. Thank you very much, sir. Thank you, sir.
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 Ardeko Asset Management. Please go ahead.
Yes. Good afternoon, sir. So thank you for the opportunity. And so my first question is on the non-EO-based chemistry. So what percent of our total revenue currently, or the total HPPC revenue, comes from these chemistries?
We do not have Namaste. This is Sunil Chari here. We do not have any breakup on non-EO and EO. We don't do any breakup. There are so many products when we make formulations with EO and non-EO in it. So it's practically impossible for us to do the breakup in this.
Okay, sir. And who would be our major competitors in this business? So you mentioned that there are a lot of global good names. But can you give two of our competitors who are directly competing with us?
The competition is all the global majors. Who are the big global majors? Dow, BASF, Lubrizol, INEOS , Nouryon, Sasol, Stepan, Lamberti. So these are the big ones who are global majors everywhere in the world. So these are companies which come in. But there are some Indian companies also. Clariant is another one which has a good non-EO 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-EOs with all global major companies.
Okay. And sir, just YoY, even like our other expenses, they are up by around 20%. So is that mainly because of the investments in our Institutional business, Institutional Cleaning?
Can you speak a little louder and repeat? Sorry, we could not hear it properly.
Yeah. Yes, sir. So I was saying that YoY and our other expenses are up by around 20%, 21%. So is it majorly because of our investments in the Institutional Cleaning business?
Yeah. So if you see, YoY, our other expenses have gone up by roughly about INR 12 crore. So I think almost 50% of this is on account of the Institutional business.
Okay. Okay, sir. And just one more question. So when our investments in the business, so I wasn't able to understand why did we grow YoY and even QoQ in the Q1, especially YoY?
You're talking about the Institutional consumer?
Yeah. The Institutional business. Yeah.
Yeah. So I think YoY, 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 periods. So on an annualized basis, we are still very optimistic this business will deliver healthy growth compared to what we did last year, about INR 300 crore we done last year. So we are still optimistic that on an annualized basis, we see some good growth coming in this business. A quarter could be a little exceptional, but let's look at it on a longer term.
Sir, what would be our gross margins in this business, the Institutional business?
What would be our?
Institutional.
Gross margins?
Gross margins are closer to the 30%. So they would range between 28%-30%.
Okay . Yeah. Thank you, sir. Thanks, sir.
Thank you. Our next question comes from the line of Rajit Aggarwal from Nilgiri Investment Managers. Please go ahead.
Sir, one question on exports again. Could you provide the geographical breakup between, let's say, America and Europe and Asia?
Offhand, I may not have. But I think our large export markets are Latin America, Europe, and Southeast Asia, and we also now are doing substantial exports in the Middle Eastern bloc.
Okay. And the decline in the exports would have been across the geographies, or was it specific to one geography by any chance?
Clients?
No, the decline.
No, the decline.
Yeah, yeah. The decline in exports.
It will be across all geographies because the product availability works from there.
Right, sir. Thank you.
Thank you.
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.
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.
Thank you. On behalf of Rossari Biotech Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.