Rallis India Limited

Rallis India Limited reported a Q3 FY26 revenue of ₹623 crores, marking a 19% year-on-year growth. This was accompanied by a 28% volume growth, though offset by an 8% pricing de-growth. EBITDA for the quarter increased by 29% to ₹58 crores. However, profit after tax (PAT) saw a significant decline of 81% to ₹2 crores, primarily due to an exceptional gratuity provision of ₹40 crores related to wage code implementation. For the nine-month period, topline revenue grew 9% to ₹2441 crores.

The domestic agrochemical market continues to face headwinds, with demand remaining weak due to stressed drivers such as adverse weather conditions and low crop prices, leading to an industry-wide volume decline. Farmer interest in high-value products has dropped. While South & West India experienced sharp demand declines, East & North remained stable. Rabi acreage is higher year-on-year, up by approximately 3% in wheat, oilseeds, and pulses as of January 2026, which is expected to support Q4 sell-out and early Kharif placement.

The Crop Care segment grew by 18% to ₹580 crores in Q3 FY26, driven by volume expansion, new product promotion, and increased digital engagement. The Seeds business showed robust growth of 46% to ₹43 crores, benefiting from strong placements in paddy, mustard, and wheat. The Soil & Plant Health category also grew by 16% to ₹73 crores, with both price and volume growth, aided by successful in-house migration of biostimulant production. Domestic B2C revenue grew 13% to ₹391 crores, primarily from a 25% volume growth in fungicides for potato and cumin crops, though negative price impact was noted from liquidating near-expiry materials.

Exports (B2B) topline surged by 73% to ₹129 crores, demonstrating promising growth due to volume expansion, customer base, and capacity utilization. The CSM segment also grew 26% to ₹46 crores. However, the global agrochemical market, valued at $75 billion in 2025 and projected to grow at a 5.5% CAGR, presents challenges. Pricing power remains limited due to intense global competition, with China's significant role as a primary supplier capping realizations and exposing costs to tariff and policy shifts, such as the upcoming VAT rebate discontinuation from April 2026.

Rallis India is focused on long-term value drivers including deepening customer-centricity, portfolio choices, and accelerating product launches. The company launched new products like 'Fateh Nxt' (herbicide) and 'NuCode' (biologicals platform) in 9M FY26. Digital initiatives like the 'Sampark Plus' app and the 'Idea2impact' open-innovation platform are aimed at enhancing demand creation and farmer engagement. Aspirationally, the company targets double-digit revenue growth and a 500 basis points expansion in overall blended margin over the next five years, primarily driven by operating leverage.