Rallis India (RALLIS) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue grew 19% year-over-year to ₹623 crore, with 28% volume growth and 8-9% price decline; nine-month revenue reached ₹2,441 crore, up 9% year-over-year.

• EBITDA for Q3 FY26 rose 29% to ₹58 crore, but PAT dropped 81% to ₹2 crore due to a one-time ₹40 crore gratuity provision; nine-month PAT was ₹68 crore.

• Strong product launches, digital initiatives, and new partnerships supported business momentum.

• Volume growth in Crop Care (27-28%) and Seeds (46-50%) offset by price declines.

• Unaudited financial results for the quarter and nine months ended 31 December 2025 were reviewed and approved by the Board on 20 January 2026.

Financial highlights

• Crop Care segment Q3 revenue grew 18% to ₹560 crore; Seeds revenue up 46% to ₹43 crore; Soil and Plant Health up 16% to ₹73 crore.

• B2B exports surged 56-73% to ₹129 crore; CSM business up 26% to ₹46 crore; domestic B2C up 13% to ₹391 crore.

• For nine months, Crop Care revenue was ₹1,991 crore (+8%), Seed revenue ₹450 crore (+15%), B2C ₹1,401 crore (+3%), B2B ₹590 crore (+22%).

• Net profit for Q3 FY26 was ₹1 crore, compared to ₹19 crore in Q3 FY25 and ₹137 crore in Q2 FY26.

• Inventory levels slightly elevated; cash and liquidity balance at ₹455 crore as of December 31.

Outlook and guidance

• Near-term outlook positive, supported by healthy reservoir levels, increased acreage, and strong customer engagement.

• Focus on double-digit revenue growth and 500 basis point EBITDA margin expansion over five years, driven by operating leverage and new product launches.

• No formal guidance provided, but management aspires to grow seed business to ₹1,000 crore and soil/plant health to ₹700-800 crore in five years.

• Margins remain under pressure from input cost inflation and Chinese import competition.

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