Rallis India (RALLIS) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue was INR 861 crore, down 7% year-over-year, with EBITDA at INR 154 crore and PAT at INR 102-103 crore, slightly up from last year.

• Export revenue grew 33% in Q2 and 51% in H1, driven by volume gains and new customer additions in existing geographies.

• Domestic business faced headwinds from excessive rainfall, leading to lower demand, sales returns, and subdued pricing.

• New product launches, including Dweed (herbicide) and Dorido (fungicide), with eight new products introduced year-to-date, supported growth.

• Continued R&D and product registration efforts in India and overseas, with a sharpened focus and INR 60-70 crore annual budget.

Financial highlights

• Q2 FY26 revenue: INR 861 crore vs INR 926-928 crore last year (7% decline); H1 FY26 revenue: INR 1,818 crore vs INR 1,711 crore last year.

• Q2 EBITDA: INR 154 crore vs INR 166 crore last year; Q2 PAT: INR 102-103 crore vs INR 98 crore last year.

• Q2 PAT margin improved to 11.8%, up 120 bps YoY.

• Export revenue for Q2: INR 161 crore; H1 export revenue: INR 312 crore (51% YoY growth).

• Domestic B2C revenue grew 8% with 3% volume growth.

Outlook and guidance

• Near-term outlook positive, supported by improved export engagement and product launches.

• Expectation of CSM revenue resumption from Q3/Q4 as customer phasing normalizes.

• Rabi season expected to benefit from residual moisture, though fertilizer shortages may temporarily impact input sales.

• Pricing pressure likely to persist in both domestic and export markets due to competition and soft commodity prices.

• Business is seasonal and performance can be impacted by weather and cropping patterns.