Rallis India posts strong profit and cash generation despite challenges

Rallis India Limited, a TATA Enterprise, reported a 4% year-over-year growth in profit after tax (PAT) to ₹102 crore for Q2 FY26, and a substantial 35% increase to ₹197 crore for the half year ended September 30, 2025. The company's revenue for the quarter was ₹861 crore, a 7% decline from Q2 FY25 due to erratic rains impacting field activities. However, PAT margin improved by 120 basis points to 11.8%, while EBITDA stood at ₹154 crore. For the half year, revenue reached ₹1,818 crore, a 6% increase, with EBITDA growing 16% to ₹303 crore and PAT margin expanding to 10.8%.

Despite challenging weather conditions and regulatory hurdles in the Biostimulants category, the company achieved steady profitability and strong cash generation, with free cash flow of ₹52 crore and a healthy closing cash and liquid balance of ₹454 crore. Crop Care B2B business grew by 14%, and exports increased by 33%. The Seeds business generated ₹101 crore, down from ₹141 crore in Q2 FY25, but was mitigated by higher gross margins. Rallis India also launched eight new products in H1 FY26, reinforcing its position in herbicides and fungicides.

The board of directors approved the unaudited financial results. The results reflect disciplined operations, cost optimization, and a richer product mix, underscoring the company's financial discipline and operational resilience with zero external debt.