Weak monsoon and input costs weigh on Rallis India’s Q2 margin
Standalone operating margin was 14.69%, below the 18.62% median of nine reported Commodities peers, while management flagged cost and demand pressure.
Filed 22 Oct 2026, 18:19 IST · after market close · Rallis India Ltd (RALLIS)
Key takeaways
- Rallis India’s standalone operating margin was 14.69%, 3.93 percentage points below the 18.62% median for nine reported sector peers.
- Management said EBITDA declined 18% as Crop Care input costs rose and Seeds sales returns increased.
- Soil and Plant Health grew 22% and the company launched four products, despite the weakest monsoon since 2015 and patchy demand.
Price around the results
Weak monsoon kept the topline flat
Management said the quarter faced the weakest monsoon since 2015, challenging market conditions and patchy demand. It also said competitive pricing affected the industry, while Soil and Plant Health grew 22% after recovering from last year’s regulatory challenge. The company told investors that CSM growth came from a lower base and volume gains in select products.
Crop Care costs and Seeds returns hurt profitability
Management said EBITDA declined 18%, primarily because of input-cost pressure in Crop Care and higher sales returns in Seeds. The standalone operating margin was 14.69%, while other income contributed Rs 22 cr to profit before tax of Rs 114 cr. The tax rate was 25.44%, a factor to track when assessing the conversion of operating performance into net profit.
Margin trails peers as management focuses on costs and reach
Rallis India’s 14.69% operating margin was 3.93 percentage points below the 18.62% median of nine Commodities peers that had reported the quarter, placing it fourth from the bottom. Management said its long-term strategy is to widen reach and extend portfolio offerings, while also focusing on cost competitiveness. The company launched four products in Q2FY27: two fungicides, one herbicide and one insecticide.
Results were filed after market close
These standalone results were filed at 18:19 IST on 22 October 2026, after market close. No post-results market reaction is covered because the results were too fresh at the time of filing.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹858 cr |
| Other income | ₹22 cr |
| Expenses | ₹732 cr |
| Operating profit | ₹126 cr |
| Operating margin (%) | 14.69% |
| Interest | ₹2 cr |
| Depreciation | ₹32 cr |
| Profit before tax | ₹114 cr |
| Tax | ₹29 cr |
| Net profit | ₹85 cr |
| EPS (₹) | ₹4.37 |
Operating margin of 14.69% compares with a Commodities sector median of 18.62% across 9 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -5.21% | -4.82% |
Volume on the results session was 4.95× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Soil and Plant Health business grew 22% in the quarter after recovering from last year’s regulatory challenge.
- CSM business delivered strong growth on a lower base, with volume growth in select products.
Guidance & outlook
- The long-term strategy aims to widen reach and extend portfolio offerings.
- The company intends to focus on cost competitiveness.
New products
- The company launched four products in Q2 FY27: two fungicides, one herbicide and one insecticide.
Problems & risks
- The quarter faced the weakest monsoon since 2015 and challenging market conditions.
- EBITDA declined primarily because of Crop Care input cost pressure and higher Seeds sales returns.
- The industry experienced patchy demand and a competitive pricing environment.
What to watch
- Whether operating margin moves up from 14.69% after the Crop Care input-cost pressure.
- Whether Soil and Plant Health sustains growth above 22%.
- Whether other income remains at Rs 22 cr or becomes a larger or smaller part of profit before tax.