Rallis India Q2 FY27 results: net profit down 16.7% to ₹85 crore, revenue down 0.3%

How did Rallis India perform in Q2 FY27?

Rallis India reported standalone revenue of ₹858 crore for Q2 FY27, the July–September 2026 quarter, against ₹861 crore in Q2 FY26 and ₹1,022 crore in Q1 FY27. Other income was ₹8 crore, taking total income to ₹866 crore against ₹871 crore a year earlier. The figures are standalone; no consolidated numbers were given for the quarter.

EBITDA for the quarter was ₹126 crore, down 18.2% from ₹154 crore in Q2 FY26 and down 31.9% from ₹185 crore in Q1 FY27. The EBITDA margin narrowed 3.2 percentage points year on year to 14.7% from 17.9%, and fell 3.4 percentage points from 18.1% in the previous quarter. Profit before tax was ₹114 crore, down 16.8% from ₹137 crore a year earlier and 32.1% below the ₹168 crore reported in Q1 FY27.

After tax of ₹29 crore, net profit for the quarter was ₹85 crore, against ₹102 crore in Q2 FY26 and ₹125 crore in Q1 FY27. Basic EPS was ₹4.37, down from ₹5.23 a year earlier and ₹6.43 in the previous quarter. The net profit margin was 9.9%, against 11.8% in Q2 FY26 and 12.2% in Q1 FY27.

What changed in Rallis India's costs and profit?

Total expenses for Q2 FY27 were ₹766 crore, up 3.5% from ₹740 crore in Q2 FY26. Cost of materials consumed fell 24.0% to ₹335 crore from ₹441 crore, employee benefits expense fell 6.8% to ₹69 crore from ₹74 crore, and finance costs fell 33.3% to ₹2 crore from ₹3 crore. Depreciation and amortisation rose 6.7% to ₹32 crore from ₹30 crore, and other expenses rose 11.8% to ₹152 crore from ₹136 crore.

Other income was ₹8 crore in the quarter, down 20.0% from ₹10 crore in Q2 FY26. The company reported a gain of ₹14 crore on exceptional items, against a gain of ₹6 crore a year earlier. Tax expense was ₹29 crore, down 17.1% from ₹35 crore in Q2 FY26 and 32.6% below ₹43 crore in Q1 FY27.

The company said EBITDA fell 18% primarily on input cost pressure in Crop Care and higher sales returns in Seeds. It also reported that the domestic formulation business delivered flat revenue, herbicides showed promising growth, and four new products were launched during the quarter. The presentation noted that overall demand was patchy, linked with uneven rainfall distribution, crop acreage and sowing progress, and that slow liquidation and high carryover inventory resulted in cautious buying from the channel.

How did the first half of FY27 go?

For the first half of FY27, revenue was ₹1,880 crore, up 3.4% from ₹1,818 crore in H1 FY26. Other income for the half year was ₹21 crore, taking total income to ₹1,901 crore against ₹1,840 crore a year earlier, a rise of 3.3%.

Profit before tax for H1 FY27 was ₹282 crore, up 6.0% from ₹266 crore in H1 FY26. After tax of ₹74 crore, profit after tax was ₹210 crore, up 6.6% from ₹197 crore. Basic EPS for the half year was ₹10.80 against ₹10.12 in H1 FY26, a rise of 6.7%.

What do the balance sheet and cash flow show?

Total assets stood at ₹3,430 crore as at 30 September 2026, against ₹3,345 crore as at 31 March 2026. Total equity was ₹2,192 crore compared with ₹2,043 crore at the previous balance sheet date. Borrowings were ₹7 crore as at 31 March 2026 and there were no borrowings as at 30 September 2026.

Cash and cash equivalents were ₹22 crore as at 30 September 2026, against ₹39 crore as at 31 March 2026. Inventories rose to ₹1,025 crore from ₹959 crore, and trade receivables rose to ₹947 crore from ₹616 crore. Trade payables were ₹702 crore against ₹728 crore at the previous balance sheet date.

For H1 FY27, net cash used in operating activities was ₹264 crore, against net cash generated of ₹72 crore in H1 FY26. Net cash from investing activities was ₹326 crore, compared with ₹17 crore used in investing activities a year earlier. Net cash used in financing activities was ₹79 crore against ₹63 crore a year earlier, and capital expenditure was ₹15 crore compared with ₹19 crore.

How has Rallis India done over the last 8 quarters?

Revenue over the reported quarters ranged from ₹430 crore in Q4 FY25 to ₹1,022 crore in Q1 FY27. Q2 FY27 revenue of ₹858 crore was below the ₹1,022 crore recorded in Q1 FY27 but above the ₹456 crore reported in Q4 FY26, the previous low.

Net profit bottomed at a loss of ₹32 crore in Q4 FY25 and reached ₹125 crore in Q1 FY27 before falling to ₹85 crore in Q2 FY27. The EBITDA margin peaked at 18.1% in Q1 FY27, with the lowest reading at -4.7% in Q4 FY25, and eased to 14.7% in Q2 FY27.

Which businesses drove the quarter?

Agri Inputs was the main reported business segment, with revenue of ₹835 crore and EBIT of ₹102 crore in Q2 FY27, giving an EBIT margin of 12.2%.

The Others segment reported revenue of ₹23 crore and EBIT of ₹9 crore in Q2 FY27, with an EBIT margin of 39.1%. Year-ago revenue and EBIT figures were not given for either segment, so segment growth could not be stated.

What else did the company announce?

The board of directors, at its meeting held on 22 October 2026, approved the unaudited financial results for the second quarter and half year ended 30 September 2026. The meeting commenced at 2:45 p.m. and concluded at 5:00 p.m., and the company filed the results along with the limited review report.

The company also submitted an analysts and investors presentation for the results for the call held on 23 October 2026, in compliance with Regulation 30(6) read with Schedule III Part A of the SEBI Listing Regulations. No dividend, fund raise or appointment was announced in the same-day filings.

What did Rallis India's management say?

Management said FY27 capital expenditure is expected a little above ₹50 crore, with H2 capex expected to be more than H1, and that the Navi Mumbai R&D centre is likely to be commissioned in April 2027. Capacity utilisation is expected to remain broadly stable, with growth driven by improved product mix, operating efficiencies and higher-value products.

Management said seed carry-forward inventory is targeted at around 150% of the next season's requirement in maize, rice and bajra, while overall production slows from the current level. It expects the Kharif 2027 season to be significantly better if the monsoon normalises and crop prices remain elevated. For Q3 FY27, management said herbicide demand is strong but price pressure persists, and fungicide demand is expected to become clearer only in December to February.

On channel inventory, the Managing Director and Chief Executive Officer said: "I think channel inventory is only there to the extent it is needed to either conclude kharif season or beginning of the rabi season. So there's no extra channel inventory." He added: "I would expect next season to be significantly better than what we just concluding."

Management identified risks including uneven rainfall, weak farm economics, cautious channel replenishment, elevated rabi irrigation risk in southern India, excess supply and China-origin pricing pressure, and export delays from Red Sea detours and container shortages. The Managing Director said: "I think overall, I would say there's a 2-3 weeks, sometimes 4 weeks cumulative delay in the supply chain." Management also said FY27 launches added about ₹100 crore of Kharif revenue despite a weak market, and that cotton acreage fell to 10–10.5m hectares with illegal seed at 25–30% of an estimated 5 crore packets. No formal revenue or earnings guidance was given.

How did Rallis India shares react?

The results were announced after market on 22 October 2026, from a prior close of ₹204. The stock was down 1.8% after 5 minutes, down 0.9% after 15 minutes and down 0.5% after 30 minutes. On the reaction day it fell 5.4% from its pre-results close, and by the next day's close it was down 5.1% from that close, while by the fifth session it was down 10.0%.

The industry median move was a 2.6% decline on the reaction day, a 3.4% decline by the next day's close and a 2.3% decline by the fifth session. Rallis India therefore underperformed the industry median by 2.8 percentage points on the reaction day, 1.7 percentage points by the next day's close and 7.7 percentage points by the fifth session.

Earlier results-day reactions were mixed. The stock fell 5.1% on 20 July 2026, was unchanged on 27 April 2026, rose 2.3% on 20 January 2026 and fell 1.6% on 16 October 2025.

How did other Pesticides & Agrochemicals companies do?

Fourteen other companies in the Pesticides & Agrochemicals industry had filed results for this quarter by 4 November 2026. Their median revenue growth was 0.8%, compared with Rallis India's revenue of ₹858 crore, down 0.3% from a year earlier.

Seven of those peers grew revenue faster than Rallis India and seven grew more slowly. Of the 14 peers compared on profit, five reported higher profit. Rallis India's own profit after tax for the quarter was ₹85 crore.