Rallis India Limited — Q4 FY26 earnings call

Call held 28 Apr 2026

Management summary

Rallis India reported a 6% revenue growth in Q4 FY26, reaching ₹456 crores, with significant improvements in EBITDA and PAT despite a challenging market. Full-year revenue grew 9% to ₹2897 crores, driven by volume expansion in Crop Care and Seeds. The company is navigating rising raw material costs and below-normal monsoon forecasts by focusing on strategic crops, new product launches, and passing on cost increases, though inventory liquidation impacted Q4 margins.

Highlights

  • Q4 FY26 Revenue grew 6.04% YoY to ₹456 crores, driven by 5% volume growth and 1% pricing growth.

  • Q4 FY26 EBITDA improved significantly by 94.7% YoY to -₹1 crore, and PAT improved 53.13% YoY to -₹15 crores.

  • Full Year FY26 Topline Revenue grew 9% YoY to ₹2897 crores, with Crop Care growing 8% and Seeds growing 15%.

  • The Domestic (B2C) business grew 15% in Q4 FY26, primarily due to 14% volume growth in insecticides.

  • CSM revenue showed strong growth of 59% in Q4 FY26, driven by both volume and price growth.

Concerns

  • Liquidation of 'Clasto' and 'Benzilla' inventory in Q4 compressed margins in the standalone B2C crop protection segment.

  • Exports topline de-grew 33% in Q4 FY26, primarily due to de-growth in volumes and revenue from Metribuzin and Pendimethalin.

  • IMD's 2026 monsoon forecast signals below-normal rains (92% of LPA), dampening agri-economy sentiment and risking 5-10% demand cuts for herbicides/insecticides.

  • Raw material costs have increased by 15-25%, posing a challenge for margin protection despite efforts to pass on costs.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹456 Cr
    YoY +6%
  • EBITDA
    ₹-1 Cr
    YoY +94.7%
  • PAT
    ₹-15 Cr
    YoY +53.1%

FY26

  • Revenue
    ₹2,897 Cr
    YoY +9%

What they filed

Q1 FY27: revenue up 6.8%, net profit up 31.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue928 522 430 957 861 −7%623 +19%456 +6%1,022 +7%
EBITDA166 44 -20 150 154 −7%58 +32%-1 +95%185 +23%
Net profit98 11 -32 95 102 +4%2 −82%-15 +53%125 +32%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
Crop Care Revenue (FY26) ₹2,416 Cr 37.8%
B2C Business Revenue (FY26) ₹1,657 Cr 26.0%
B2B Business Revenue (FY26) ₹759 Cr 11.9%
Seeds Revenue (FY26) ₹481 Cr 7.5%
Crop Care Segment (Q4 FY26) ₹425 Cr 6.7%
Domestic (B2C) (Q4 FY26) ₹255 Cr 4.0%
Total B2B revenue (Q4 FY26) ₹170 Cr 2.7%
Exports topline (Q4 FY26) ₹77 Cr 1.2%
CSM (Q4 FY26) ₹66 Cr 1.0%
Soil & Plant Health (Q4 FY26) ₹47 Cr 0.7%
Seeds Business (Q4 FY26) ₹31 Cr 0.5%

Capital allocation

medium confidence
  • Liquidity Cash ₹541 Cr
    We have healthy cash and liquid balance of 541 cr as of 31st Mar 26.

Guidance & targets

Industry Growth

  • Agrochemical Sector Growth Industry Growth · FY27 · High confidence 3-4%
    The sector may see 3-4% growth in FY27 to ~USD 9.6–10.0 bn.

    — Dr. Gyanendra Shukla

  • Agrochemical Sector Market Size Industry Growth · FY27 · High confidence USD 9.6–10.0 bn

    — Dr. Gyanendra Shukla

  • Seeds Category CAGR Industry Growth · Structural · High confidence 5-10%
    Seeds category remains a structural 5-10% CAGR story.

    — Dr. Gyanendra Shukla

New Products

  • New Molecules Introduction New Products · next 2-3 years · Medium confidence 2-3 molecules
    There are 2, 3 new molecules. So we have narrowed down the list which used to work. Now we have got about 3 molecules, which should get introduced in the next 2 to 3 years.

    — Gyanendra Shukla

Seeds Business Growth

  • Seeds Business Growth Rate Seeds Business Growth · this year (FY27) · Medium confidence high double-digit
    So I expect a combination of price and volume growth and expecting to deliver high double-digit growth again this year.

    — Gyanendra Shukla

  • Seeds Business Growth Rate Seeds Business Growth · this year (FY27) · Medium confidence mid-teen
    Yes, I mean, mid-teen easily.

    — Abhijit Akella

B2C Crop Protection Growth

  • B2C CP Business Growth (excluding SPH) B2C Crop Protection Growth · Q1 FY27 · Medium confidence low single digit / marginally positive
    I mean, marginal growth. I mean you can say marginal growth, low single digit. It will not be flat; it is still marginally positive.

    — Gyanendra Shukla

Market context

  • Global Crop Protection Market Size Industry Growth · 2026 · High confidence USD 70-75 billion
    The global crop protection market, estimated at approximately USD 70-75 billion in 2026, and is projected to grow at a CAGR of around 5.0-5.5%, supported by rising food demand, limited arable land availability, and the need to improve farm productivity.

    — Dr. Gyanendra Shukla

  • Global Crop Protection Market CAGR Industry Growth · 2026 · High confidence 5.0-5.5%
    The global crop protection market, estimated at approximately USD 70-75 billion in 2026, and is projected to grow at a CAGR of around 5.0-5.5%, supported by rising food demand, limited arable land availability, and the need to improve farm productivity.

    — Dr. Gyanendra Shukla

  • Overall Revenue Growth Revenue Growth · this year (FY27) · Low confidence double digit
    So I mean, percentage revenue growth will be higher this year because price increase you know? So revenue growth probably will be maybe double digit.

    — Gyanendra Shukla

What to watch in Q1 FY27

Realization of Raw Material Cost Pass-Through

Next quarter (Q1 FY27)
Current Raw material costs increased 15-25%; company announced price increases.
Target Successful pass-through of cost increases reflected in higher realizations and stable margins.

Why it matters

Determines the company's ability to protect margins against inflationary pressures.

So we have seen 15% to 25% is generally the range. ... So as I said in the beginning, right now, it's all placement. We have tried to pass on all. We have announced the price increase.

Risks & concerns

  • Below-Normal Monsoon Forecast

    high

    IMD's 2026 monsoon forecast at 92% of LPA signals below-normal rains, dampening agri-economy sentiment and risking 5-10% demand cuts for herbicides/insecticides.

    Management acknowledged

  • Rising Raw Material Costs

    high

    Raw material costs have increased by 15-25% due to inflation and China supply disruptions, leading to a near-term cost inflation wave likely to compress downstream margins.

    Management acknowledged

  • Geopolitical Tensions & Supply Chain Disruptions

    medium

    Post Iran war, the industry shifted to a seller's market with signs of panic buying and hoarding, and China-linked supply concentration remains a key issue affecting availability and cost.

    Management acknowledged

  • Inventory Liquidation Impact on Margins

    medium

    Liquidation of 'Clasto' and 'Benzilla' inventory in Q4 compressed margins in the standalone B2C crop protection segment, though it was a necessary step to avoid write-offs.

    Management acknowledged

Q&A highlights

7 direct
Q4 Gross Margin Improvement vs. Market Commentary Direct
So look, I think the margin expansion, if you see from what I know, our CSM business delivered higher margin because we had a contract, though it is a smaller business, but there is a clause where we can actually get some benefit if volumes drop below certain thresholds. So that helped. SPH business was slightly better. Overall, B2B business, exports were better, seed was better. So that's what is reflected in overall number. On crop protection, stand-alone basis it was marginally down because, you know B2C business because of Benzilla and Clasto.

Clarifies the drivers of Q4 margin improvement, attributing it to CSM, SPH, B2B, and seeds, while acknowledging margin compression in standalone B2C due to inventory liquidation of specific products.

Asked by Prashant Biyani

Initial Demand for Kharif Season Partial
So 2 things are happening. I think right now, everybody has gone into a wait-and-watch mode. First of all, the rainfall, El Nino impact, nobody knows. The other thing, which is people are looking at how government will be able to mop up sufficient fertilizer. These 2 factors might have some, and then third one is always the commodity prices, right? So rainfall pattern, commodity prices and fertilizer, these 3 factors will determine to what extent farmer will plant what.

Highlights key uncertainties (monsoon, fertilizer, commodity prices) impacting Kharif demand, indicating a cautious outlook from farmers and the company.

Asked by Prashant Biyani

Q4 B2C Insecticide Sales Growth in Herbicide Season Direct
I mean, so let me tell you. Placement, I think, first of all, we have not gone for any significant placement more than what is required in quarter 4 because some of this was low-cost inventory, and we would like to sell in quarter 1 because there's an opportunity to realize higher price. And you know so, but, I mean, I keep saying that look, don't look at our business on a quarterly basis. That's not the right way.

Explains that Q4 insecticide sales were partly due to liquidating low-cost inventory for better realization in Q1, and advises against quarterly analysis for B2C.

Asked by Prashant Biyani

Industry-wide Inventory Levels Direct
So I think inventory has come to a normal level. I mean 2 years ago, this whole industry was suffering from a lot of inventory hangover. I think that has reached to a normal level now. Now obviously, I don't have company-by-company detail. I don't have insight into other companies. But there are enough indicators in the system to say people have inventory what they need. They're not carrying forward a lot of excess inventory.

Provides a crucial industry-level insight that excess inventory, a past concern, has normalized, suggesting a healthier demand-supply balance.

Asked by Viraj Kacharia

Ability to Pass on Raw Material Cost Increases Direct
So we have seen 15% to 25% is generally the range. ... So as I said in the beginning, right now, it's all placement. We have tried to pass on all. We have announced the price increase. I think everybody is working. So there's always a carryover inventory, which comes from January, February, March that was supplied at the low price. I think that will get exhausted and then new prices will start getting established in the market. That's how market start. So all the new supplies, we have been supplying at a higher price.

Confirms significant raw material cost increases (15-25%) and management's intent to pass them on, indicating potential for higher realizations in the coming quarters as old inventory clears.

Asked by Rohit Nagraj

Risk of High-Cost Inventories if Geopolitical Tensions Ease Direct
So, I think 2 ways to look at it. One is that we do not have to become greedy in holding the inventory. So, we will go as per the business plan based on what can be sold. So, we are not going to hold the inventory. And even if war unwinds in 3 to 6 months, I am saying we are not building inventory beyond kharif. Kharif is something we want to protect.

Addresses a key investor concern about inventory risk, with management stating a disciplined approach to inventory holding, especially not building beyond Kharif, to mitigate potential price drops.

Asked by Abhijit Akella

New Molecules in Exports B2B Pipeline Direct
So current year, so last year, we did start making, there's a molecule called pencycuron. Besides that, when that happened in the last quarter, I think we'll still rely on old molecule. There are 2, 3 new molecules. So we have narrowed down the list which used to work. Now we have got about 3 molecules, which should get introduced in the next 2 to 3 years.

Reveals the company's R&D pipeline for export B2B, with 2-3 new molecules expected in the next 2-3 years, indicating future growth drivers.

Asked by Viraj Kacharia

Strategy for Gene Editing / GE Seeds Direct
So, we would rather license those technologies rather than trying to invest 10 years on researching those technologies because global multinationals, they have disproportionate R&D on those areas. I think by spending a small money and for the sake of conversation, I can say I will do it, but I would rather prefer accessing those technologies.

Outlines Rallis's strategic approach to advanced seed technologies (gene editing), preferring licensing over in-house R&D to leverage global expertise and avoid long development cycles.

Asked by Nitin Awasthi

3 min read 8 chapters

Detailed narrative

Industry Landscape and Macro Factors

The Indian agrochemical sector is transitioning from a buyer's to a seller's market due to war-induced supply constraints and rising prices, with Glyphosate prices up approximately 25%. The Q4 period was slow for domestic agrochemicals, and the Rabi season was impacted by unfavorable climate, damaging crops across 2.49 lakh hectares. The IMD's 2026 monsoon forecast of 92% of Longest Period Average (LPA) signals below-normal rains, potentially risking 5-10% demand cuts for herbicides/insecticides. Integrated firms with balanced portfolios (seeds + crop protection) are expected to fare best amid this volatility.

Q4 and Full-Year Financial Performance

Rallis India reported a 6.04% YoY revenue growth in Q4 FY26, reaching ₹456 crores, compared to ₹430 crores in Q4 FY25. EBITDA improved significantly by 94.7% YoY to -₹1 crore (from -₹19 crores), and PAT improved 53.13% YoY to -₹15 crores (from -₹32 crores). For the full financial year FY26, topline revenue grew 9% YoY to ₹2897 crores. This growth was supported by an 8% increase in Crop Care revenue to ₹2416 crores and a 15% increase in Seeds revenue to ₹481 crores.

Segmental Performance Highlights

In Q4 FY26, the Domestic (B2C) business grew 15% to ₹255 crores, driven by a 14% volume increase, primarily in insecticides. The Soil & Plant Health category saw a 27% revenue growth to ₹47 crores, with a robust 29% volume growth, mainly from micronutrients and biofertilizers. The Seeds business grew 23% to ₹31 crores, benefiting from 8% volume and 15% price growth, particularly in cotton and millets. However, Exports topline de-grew 33% to ₹77 crores, while CSM revenue showed strong growth of 59% to ₹66 crores.

Raw Material Cost Inflation and Pass-Through Strategy

The company is facing a significant increase in raw material costs, ranging from 15% to 25%, driven by global supply chain disruptions and geopolitical tensions. Management stated that they have tried to pass on all cost increases and have announced price increases. They expect new prices to establish as carryover low-priced inventory from Q4 clears, indicating potential for higher realizations and margin protection in the coming quarters. This strategy is crucial to mitigate the impact of the cost inflation wave.

Inventory Management and Risk Mitigation

Management confirmed that industry-wide inventory levels have normalized, moving past the 'inventory hangover' experienced two years ago. Rallis is adopting a conservative approach to inventory, specifically stating they are not building inventory beyond Kharif. This disciplined strategy aims to mitigate risks associated with potential price drops if geopolitical tensions ease and to ensure calibrated buying and selling, avoiding excess stock.

Strategic Initiatives and New Product Launches

Rallis launched new products such as ALSTOR, a dual-action granular insecticide, and FIPLAM, a broad-spectrum formulation. They also secured registration for Spiro, a three-way patented herbicide for Paddy, and introduced two new seed products. The company is enhancing its digital capabilities with the Idea2Impact platform for open innovation and Saksham (GIS platform) for targeted market expansion, aiming for high-margin, sustainable, and farmer-centric offerings.

Aquafeed Business: Experimental Stage

The aquafeed business is currently in an experimental stage, with products being outsourced. Management views it as a potential long-term growth avenue, aligning with the broader Tata strategy in agriculture and the increasing demand for animal origin protein. The business has already scaled to over ₹50 crores, and the company plans to assess its strategy for another year before making significant investment decisions, indicating a cautious yet optimistic approach.

Gene Editing and Seed Technology Strategy

For advanced seed technologies like gene editing, Rallis's strategy is to license technologies rather than investing heavily in in-house R&D. This approach leverages the disproportionate R&D capabilities of global multinationals and avoids long development cycles. The company's cotton business is built on BT technology, and they are launching a Paryan technology-led rice seed business, which will feature a herbicide-tolerant gene and be sold as a bundled product.

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