Rallis India profit falls 17% to 85 crore rupees as revenue holds steady
Key Facts
Rallis India's net profit fell to 85 crore rupees in the second quarter of fiscal 2026–2027, ended September, from 102 crore in the corresponding period, according to the company's earnings statement. The year-on-year decline was 17%, according to its investor presentation, as its operations faced pressure from input costs and sales returns. The profit decline came as quarterly revenue remained almost unchanged at 858 crore rupees, compared with 861 crore in the second quarter of fiscal 2025–2026. Earnings before interest, taxes, depreciation and amortisation stood at 126 crore rupees, against 154 crore in the corresponding period, according to the earnings statement. In its investor presentation, Rallis identified the reasons for pressure on this measure as "input cost pressures in crop care and higher sales returns in seeds". The seeds business posted a quarterly net loss of 4 crore rupees, according to the same presentation. The company linked the decline in its seeds business to reduced rice acreage and higher returns during the kharif growing season.
The September-quarter results included an exceptional gain from the sale of apartments and freehold land, amounting to 14 crore rupees after costs, according to the company's financial statements. Net profit for the first half of fiscal 2026–2027 totalled 210 crore rupees, according to the investor presentation. In the first quarter, ended June 2026, net profit had risen to 125 crore rupees from 95 crore in the corresponding period, according to Investing's coverage of the July earnings call. The September-quarter profit decline thus followed year-on-year growth in the preceding quarter, with the direction of the comparison differing between the two reporting periods. On liquidity, the financial statements showed that operating activities used 264 crore rupees in cash during the first half of the current fiscal year. That compares with positive operating cash flow of 72 crore rupees in the first half of fiscal 2025–2026, as operating cash flow turned negative despite the company reporting a half-year profit.
The year-on-year comparison dates back to the September 2025 quarter, when Rallis recorded export growth of 33%, according to the company's second-quarter earnings statement for fiscal 2025–2026. The company attributed export growth at the time to higher sales volumes of key chemicals in a business serving overseas markets. In the same statement, Chief Executive Gyanendra Shukla said "extended rainfall affected field activities and product launches". His comments on the weather's impact were part of the previous year's earnings announcement, which forms the comparison period for the current September results. On ownership, Tata Chemicals holds a 55.08% stake in Rallis India, according to a report published by credit rating agency Crisil on 22 September 2026. The agency reaffirmed the company's credit ratings in that report and maintained a stable outlook on the long-term rating. The ratings affirmation preceded the current quarterly earnings announcement, while Tata Chemicals' stake links the company to the Tata group.
During the July earnings call, Rallis management had forecast growth of between 6% and 8% in India's agrochemicals market in fiscal 2026–2027, according to Investing's coverage of the call. These estimates concern the Indian agrochemicals market and were presented by management following the results for the quarter ended June. The forecasts preceded the September quarter, during which the company's profit came under pressure from input costs and seed returns. In a separate notice, Rallis scheduled its earnings discussion with analysts and investors for Friday, 23 October 2026, at 11:00 a.m. India time. According to the notice, the call covering the second-quarter results for fiscal 2026–2027 includes a question-and-answer session with management.