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Rallis FY26: Record EBITDA, but Q4 still shows the seasonality

Rallis India Limited, a Tata enterprise, closed FY26 with its highest ever EBITDA, even as the fourth quarter remained loss-making. For FY26, the company reported revenue of 2,897 crore versus 2,663 crore in FY25, a 9 percent increase. EBITDA rose 26 percent to 362 crore, and PAT after exceptional items grew 47 percent to 184 crore.

The quarter ending March 2026 was more nuanced. Q4 revenue increased 6 percent year-on-year to 456 crore. EBITDA improved sharply versus last year but was still negative at minus 1 crore (from minus 19 crore). PAT after exceptional items improved to minus 15 crore (from minus 32 crore). Management attributed the operating environment to mixed demand, pockets of low pest pressure, and margin pressure from carry-over inventory, currency fluctuations, and generic competition.

Segment performance: Domestic and seeds grew, exports were uneven

Rallis reports across Crop Care and Seeds, with Crop Care spanning domestic crop protection, exports, CSM, and Soil and Plant Health solutions. In FY26, Crop Care revenue grew 8 percent to 2,416 crore. Seeds revenue grew 15 percent to 481 crore.

In Q4FY26, Crop Care revenue rose 5 percent to 425 crore. Within Crop Care, domestic B2C revenue was stated at 255 crore, growing 15 percent year-on-year, driven primarily by volume growth. Soil and Plant Health (SPH) revenue increased 27 percent to 47 crore, supported by growth in micronutrients and biofertilizers. Seeds revenue grew 23 percent to 31 crore on 8 percent volume growth and 15 percent price growth, largely driven by cotton and millets.

B2B performance in Q4 was mixed. Exports revenue declined to 77 crore from 114 crore, with management citing lower volumes and revenue from metribuzin and pendimethalin. Custom Synthesis Manufacturing (CSM) grew to 66 crore from 41 crore. Total B2B revenue in Q4 was 170 crore versus 182 crore last year.

What changed operationally: launches, digital execution, and portfolio focus

Management highlighted FY26 as a year of product and execution actions despite a volatile demand backdrop. In domestic formulations, the company launched 11 new products during FY26, including herbicides, fungicides, and insecticides. In seeds, it launched 19 new products across crops, and reiterated that Dhaanya is among the faster growing seed brands in India.

The company also outlined multiple digital interventions designed to sharpen demand creation and improve sales conversion. Saksham, a GIS application, is intended to identify high potential villages and cluster them into market centers. sampark Plus is designed to capture farmer demand signals and generate insights from interactions. Rallis also discussed digital-led field campaigns, retailer schemes, and enrolment on the Anubandh Edge platform. Customer support is positioned through Dr. Vishwas via WhatsApp and a toll-free line.

On portfolio management, management acknowledged that domestic crop protection margins were impacted in Q4 by liquidation of inventory in specific products, and that it is actively unwinding this inventory to avoid future write-offs. It also described ongoing work to optimise the portfolio, rationalise territories, eliminate overlaps, and simplify costs across the value chain.

Outlook and key watchpoints: input inflation, monsoon risk, and disciplined inventory

A major theme in the call was near-term cost inflation driven by geopolitical disruptions and supply constraints. Management indicated raw material cost increases in the 15 to 25 percent range and stated that companies across the industry are seeking to pass on higher costs through price increases. It also cautioned that the timing of cost pass-through depends on consumption and channel inventory dynamics, especially as older low-cost inventory gets exhausted.

Weather remains a second key variable. Management referenced the IMD forecast of 92 percent of long period average rainfall, and highlighted the risk of erratic distribution and potential demand cuts in certain categories. At the same time, it noted that expanding irrigation coverage and diversification of rural income provides some structural buffer.

On financial discipline, management stated that inventory was slightly elevated versus last year, but collections were smooth. It also highlighted cash and liquid balance of 541 crore as of 31 March 2026.

Takeaways

Rallis ended FY26 with a clear profitability improvement and record EBITDA, supported by volume growth and cost optimisation. The Q4 numbers, however, show that profitability can still be pressured by mix, exports volatility, and inventory actions. The next year’s performance will likely hinge on the pace of cost pass-through, monsoon distribution, and whether domestic growth in SPH and seeds continues to offset swings in exports and seasonality in crop protection.