Rallis India Q3 FY26 PAT at ₹2 crore after wage code

Key takeaway

Rallis India’s Q3 performance has drawn attention for two parallel reasons in the provided material: a very sharp profit drop discussed in a results video, and a separate set of unaudited numbers for the quarter ended December 31, 2025 (Q3FY25) filed with exchanges.

In the video analysis of Q3 FY26, the company’s profit after tax (PAT) is described as falling to ₹2 crore, down 81% from ₹11 crore a year earlier. The explanation given is an exceptional item of ₹40 crore linked to the Government of India’s new wage code, which created a one-time accounting provision.

Separately, the Q3FY25 unaudited results cited in the text show a year-on-year drop in net profit to ₹11 crore from ₹24 crore, with revenue and EBITDA also declining due to export headwinds and pricing pressure.

Upcoming earnings dates mentioned

Two different upcoming earnings dates are stated in the provided content:

• Upcoming earnings date: 20 January 2026
• Upcoming earnings date: 16 October 2025

The text does not clarify which schedule is final or whether one refers to a different reporting event.

Q3 FY26: Net profit detail from the video transcript

The video commentary states that net profit is “down 81%” and that PAT “dropped from ₹11 crore last year to just ₹2 crore this quarter.” It attributes the decline to an exceptional item of ₹40 crore.

The explanation provided is that this ₹40 crore is tied entirely to the Government of India’s new wage code, specifically changes in how wages are defined for future payments such as gratuity. As described, the revised definition includes additional allowances in the wage base, increasing the computed liability.

Crucially, the transcript frames the impact as a provision for a future liability rather than cash “going out the door today.” Even so, the provision hits the profit and loss statement immediately, and the commentary suggests it “completely wipes out the quarter’s profit on paper.”

Why the wage code provision mattered in Q3 (as described)

The transcript’s chain of events is straightforward. Because the wage code applies retrospectively to years employees have already worked, the company had to reassess what it would owe its workforce in the future under the new calculation methodology.

That reassessment created a one-time “true up” of the books, recorded as an exceptional item. The video’s framing is that the core business drivers such as sales volumes did not cause this profit drop, and that the impact was regulatory.

The same discussion notes management’s emphasis on “9-month figures” in its presentation, implying that a broader period view was highlighted to explain underlying performance beyond a single quarter affected by an exceptional charge.

Q3FY25 unaudited results: revenue, margin, and profitability

For the quarter ended December 31, 2025 (Q3FY25), the text reports:

• Net profit fell 54.2% year-on-year to ₹11 crore, from ₹24 crore.
• Revenue from operations fell 12.7% year-on-year to ₹522 crore, from ₹589 crore (another instance in the text cites ₹598 crore for the year-ago period).
• EBITDA fell to ₹44 crore, from ₹62 crore (another instance cites ₹58 crore in the year-ago period).
• EBITDA margin contracted to 8.4%, from around 10.4% (also cited as 10.2% and 10.37% in different passages).

The narrative links the pressure to weak operating conditions across domestic and export businesses, with exports facing volume drops and pricing pressure.

Segment and export indicators cited for Q3FY25

The Q3FY25 description includes several operating indicators:

• Crop care revenue declined 13% year-on-year.
• Seeds revenue declined 7% year-on-year.
• Export segment volumes dipped 34%, and prices fell a further 4%.
• The export businesses were described as showing a 38% bottom-line drop stemming from export revenue.
• Domestic crop care volumes grew 2.5%, but a 4.5% price decline offset the volume benefit.

The text also notes that margins in the domestic business improved due to “agile pricing and cost management.”

Biologicals, specialty solutions, and herbicides

Within the Q3FY25 narrative, growth pockets were highlighted despite the broader pressure. The segments of biologicals and specialty solutions under BSS grew 24%, and herbicides grew 18%.

Even with these positives, the company commentary cited in the text says nine-month revenue was flat due to weak export demand, with nine-month EBITDA down 22%.

Stock price reaction and analyst positioning

The provided text describes volatile trading around the results:

• One passage says the stock “rose by 7.08%” to ₹269.25 on the BSE at 11:02 AM.
• Another passage says shares fell as much as 8.84% to ₹264, the lowest level since June 5, 2024, and later traded 6.87% lower at ₹269.70 as of 10:46 AM.
• Another line states the stock closed at ₹289.75, up 0.52% on BSE.

On analyst coverage, the text cites Bloomberg data: out of 15 analysts, 3 rate ‘buy’, 4 rate ‘hold’, and 8 rate ‘sell’.

Summary table of key figures cited

Market impact: what the numbers imply, without guessing

The Q3 FY26 commentary, as provided, points to a profit impact driven by accounting recognition of a regulatory-linked liability. If the exceptional item is indeed non-cash in the quarter, the immediate effect is primarily on reported earnings, not on near-term operating cash flows, based on the transcript’s description.

The Q3FY25 numbers provide a separate lens: revenue contraction, weaker EBITDA, and margin compression, with exports identified as a key source of pressure through lower volumes and weaker pricing. Together, these two strands explain why investors may separate “reported PAT” from “operating performance,” especially when a one-time exceptional provision is highlighted.

What to watch next

The material flags management focus on the nine-month view in presentations, and it lists upcoming earnings dates (20 January 2026 and 16 October 2025) without reconciling them. Investors tracking Rallis India will likely look for clarity on the earnings calendar and for disclosures that separate exceptional provisions from recurring operating drivers such as export volumes, domestic pricing, and segment mix.