Rallis India Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Rallis India Ltd filed with BSE on 27 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Rallis India reported Q1 FY27 revenue of Rs 1022 crore, up from Rs 957 crore in Q1 FY26, with EBITDA rising 23% to Rs 184 crore and profit after tax at Rs 125 crore versus Rs 95 crore a year earlier. Management attributed domestic Crop Care growth to volume and pricing gains while exports declined due to lower demand for pendimethalin in Europe and competitive Chinese pricing. Management also described a weak monsoon start, delayed kharif sowing, elevated input costs linked to the Middle East conflict, and a reduced cotton acreage outlook for the seeds and crop protection businesses.
Numbers mentioned
Revenue: ₹ 1022 cr (Q1 FY27)
p. 5
“our revenue stood at ₹ 1022 cr versus ₹ 957 cr of Q1FY26”
Dr. Gyanendra Shukla, page 5 of the filed PDF · View the filing
EBITDA: ₹ 184 cr (Q1 FY27)
p. 5
“EBITDA improved by 23% to ₹ 184 cr from ₹ 150 cr in Q1FY26”
Dr. Gyanendra Shukla, page 5 of the filed PDF · View the filing
Profit after tax: ₹ 125 cr (Q1 FY27)
p. 5
“Profit after tax stood at ₹ 125 cr versus ₹ 95 cr of Q1FY26”
Dr. Gyanendra Shukla, page 5 of the filed PDF · View the filing
Crop Care Segment revenue: ₹ 697 cr (Q1 FY27)
p. 6
“Crop Care Segment grew by 7% to ₹ 697 cr in Q1FY27 from ₹ 652 cr in Q1FY26”
Bhaskar Swaminathan, page 6 of the filed PDF · View the filing
Domestic (B2C) revenue: ₹ 534 cr (Q1 FY27)
p. 6
“the Domestic (B2C) witnessed a 19% growth in Q1FY27 registering ₹ 534 cr revenue vis-a-vis ₹ 449 cr in Q1FY26”
Bhaskar Swaminathan, page 6 of the filed PDF · View the filing
Crop Protection category revenue: ₹ 455 cr (Q1 FY27)
p. 6
“Crop Protection category grew by 18% and registered Q1FY27 revenue of ₹ 455 cr vis-a-vis ₹ 386 cr in Q1FY26”
Bhaskar Swaminathan, page 6 of the filed PDF · View the filing
Soil & Plant Health revenue: ₹ 62 cr (Q1 FY27)
p. 6
“Soil & Plant Health category grew by 10% to ₹ 62 cr from ₹ 56 cr in Q1FY27 in comparison to Q1FY26”
Bhaskar Swaminathan, page 6 of the filed PDF · View the filing
Exports revenue: ₹ 110 cr (Q1 FY27)
p. 6
“Exports topline de-grew by 28% to ₹ 110 cr from ₹ 152 cr due to 35% de-growth in volumes”
Bhaskar Swaminathan, page 6 of the filed PDF · View the filing
CSM revenue: ₹ 24 cr (Q1 FY27)
p. 6
“CSM Q1FY27 revenue displayed promising growth by lodging 191% growth to ₹ 24 cr from ₹ 8 cr, driven by rebound in PEKK sales volumes”
Bhaskar Swaminathan, page 6 of the filed PDF · View the filing
Total B2B revenue: ₹ 163 cr (Q1 FY27)
p. 6
“Total B2B revenue stood at ₹ 163 cr vis-à-vis ₹ 203 cr, as decline of 19% was primarily due to volumes, which de-grew by 26%”
Bhaskar Swaminathan, page 6 of the filed PDF · View the filing
Seeds Revenue: ₹ 325 Cr (Q1 FY27)
p. 6
“Seeds Revenue grew by 6% to ₹ 325 Cr in Q1FY27 from ₹ 305 Cr in Q1FY26 due to 6% price growth”
Bhaskar Swaminathan, page 6 of the filed PDF · View the filing
Cash and liquid balance: ₹ 309 cr (as of 30th June 2026)
p. 7
“We have healthy cash and liquid balance of ₹ 309 cr as of 30th June ‘26”
Bhaskar Swaminathan, page 7 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Agrochemicals industry growth — 6-8% · FY27
stated conditionally by Dr. Gyanendra Shukla
p. 4
“For FY27, the cleaner consensus is that agrochemicals are expected to grow around 6–8% in India, while seeds likely grow in the mid-to-high single digits but it will depend on the crop.”
Dr. Gyanendra Shukla, page 4 of the filed PDF · View the filing
EBITDA margin improvement — 500 basis points · over 5 years
stated as an aspiration by Gyanendra Shukla
p. 12
“Two years ago, we said we want to deliver 500 basis points over a period of 5 years EBITDA margin, where I think we're on the track.”
Gyanendra Shukla, page 12 of the filed PDF · View the filing
EBITDA margin — 15% plus
stated as an aspiration by Gyanendra Shukla
p. 13
“we want to be a consistent company, which delivers 15% plus EBITDA margin even in a bad year”
Gyanendra Shukla, page 13 of the filed PDF · View the filing
Cotton business growth — flat · FY27
stated conditionally by Gyanendra Shukla
p. 8
“So cotton, I think we are looking at maybe as we year, the end, maybe flat year, but we are focusing quite a lot on rice and maize and millet”
Gyanendra Shukla, page 8 of the filed PDF · View the filing
Catalogue category product launches — 3 to 4 products · next 3 years
stated firmly by Gyanendra Shukla
p. 7
“On catalogue category, we are going to launch, I would say, 3 to 4 products in the next 3 years.”
Gyanendra Shukla, page 7 of the filed PDF · View the filing
Biologicals growth
stated as an aspiration by Gyanendra Shukla
p. 15
“I think overall, I would say biologicals should do better than -- significantly better than last year.”
Gyanendra Shukla, page 15 of the filed PDF · View the filing
Chilli category recovery — Q2/Q3
stated conditionally by Gyanendra Shukla
p. 14
“This year, chilli planting intentions are positive, even commodity prices are high. So I think this year, Chilli should see recovery.”
Gyanendra Shukla, page 14 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said CSM contracted business is manageable but catalogue products like acephate face significant Chinese pricing challenges, while other products remain competitive.
Answered by Gyanendra Shukla
Asked by Ankur Periwal: How is Rallis positioned on export product demand and pricing given Chinese competition?
p. 7
“one of the products where we face challenges is really acephate because raw material has to come from China and then we have to process back and sell it to countries like Brazil and U.S.”
Gyanendra Shukla, page 7 of the filed PDF · View the filing
Management said cotton is likely to be a flat year due to reduced acreage in the north and illegal HTBT cotton spread, with focus shifting to rice, maize and millet.
Answered by Gyanendra Shukla
Asked by Ankur Periwal: What is the outlook on domestic growth given lower cotton acreage?
p. 8
“cotton, I think we are looking at maybe as we year, the end, maybe flat year, but we are focusing quite a lot on rice and maize and millet where we had launched quite a few products in last few years”
Gyanendra Shukla, page 8 of the filed PDF · View the filing
Management said the country has seen a rainfall deficit but roughly half of the area is irrigated, with crop mix shifting rather than large-scale failure.
Answered by Gyanendra Shukla
Asked by Praneet: Has the El Nino effect materialized on the ground and what is the sentiment?
p. 8
“El Nino certainly is a reality. Country has seen deficit rainfall. But you have to understand roughly 50% plus of the area in the country is irrigated has some kind of source of water.”
Gyanendra Shukla, page 8 of the filed PDF · View the filing
Management said price pass-through has varied by product, with growth expected to come mainly from volume rather than further pricing.
Answered by Gyanendra Shukla
Asked by Praneet: Will Rallis take further price increases or has raw material cost increase been fully passed through?
p. 9
“whatever price increases have to happen have happened. And somewhere we have been able to pass on the full cost increase, somewhere partial, somewhere none.”
Gyanendra Shukla, page 9 of the filed PDF · View the filing
Management said channel inventory has normalized compared to being more worrisome a month earlier, with demand mix shifting between pre- and post-emergent herbicides.
Answered by Gyanendra Shukla
Asked by Praneet: What is the current state of channel inventory?
p. 10
“channel inventory, I would say, is normalized now. It was more worrisome a month ago.”
Gyanendra Shukla, page 10 of the filed PDF · View the filing
Management said the company would be more cautious and likely account for more returns this year given the uncertain situation.
Answered by Gyanendra Shukla
Asked by Praneet: Will sales returns be higher this year due to uncertainty?
p. 10
“This year, we would be more cautious in accounting for returns. Probably we'll be accounting more rather than less, right?”
Gyanendra Shukla, page 10 of the filed PDF · View the filing
Management said the impact is a double-edged sword due to import costs, but net-net it has been positive for the company as a net exporter.
Answered by Gyanendra Shukla
Asked by Rajakumar Vaidyanathan: How has rupee depreciation affected Rallis's export competitiveness?
p. 14
“I think it's a double-edged sword because when you buy raw material in dollar, you also end up paying more rupees. But I think because we are a net exporter, net-net, it is positive for us.”
Gyanendra Shukla, page 14 of the filed PDF · View the filing
Management attributed the improvement to product mix shifting away from lower-margin cotton toward higher-margin rice, maize and millet.
Answered by Gyanendra Shukla
Asked by Gunjan Sharma: What drove the improvement in seeds EBITDA margin from 26% to 30%?
p. 17
“the key factor really is the mix change. So what happens? Cotton because of the government price control, margins are always lower, whereas margins on rice, maize and millet are higher.”
Gyanendra Shukla, page 17 of the filed PDF · View the filing
Management explained about Rs 11 crore relates to a recurring performance incentive settlement and Rs 24 crore is a one-time restructuring and retiral related item.
Answered by Bhaskar Swaminathan
Asked by Abhijit Akella: What explains the Rs 35 crore provision reversal in employee costs and the increase in other expenses?
p. 19
“the balance INR24 crores, what is there as a reversal, that's more to do with the certain restructuring and retiral stuff, which doesn't happen in every year actually.”
Bhaskar Swaminathan, page 19 of the filed PDF · View the filing
Management said working capital increased by 15-20 days due to farmers diverting cash to fertilizer purchases amid the shortage.
Answered by Bhaskar Swaminathan
Asked by Himani Badetia: What is the working capital position at Rallis versus last year?
p. 20
“working capital, net to net, it has kind of increased by around 15 to 20 days.”
Bhaskar Swaminathan, page 20 of the filed PDF · View the filing
Management said herbicide became the company's largest contributor this quarter, growing 12%, after being previously seen as a weakness.
Answered by Gyanendra Shukla
Asked by Riju: Has the herbicide segment grown and what is its contribution this quarter?
p. 21
“as we speak this year, if you say this quarter, just this quarter, actually, herbicide is our largest contributor followed by insecticide and fungicide. And our herbicide business has grown by 12%.”
Gyanendra Shukla, page 21 of the filed PDF · View the filing
Risks flagged
Weak demand environment and sustained pricing pressure in the agrochemical space
p. 3
“Q1FY27 was characterised by a weak demand environment and sustained pricing pressure in the Indian agrochemical space.”
Dr. Gyanendra Shukla, page 3 of the filed PDF · View the filing
Dependence on Chinese inputs affecting sourcing and creating margin pressure
p. 3
“Dependence on Chinese inputs continued to influence sourcing dynamics, while selective disruptions and inventory constraints created intermittent supply tightness.”
Dr. Gyanendra Shukla, page 3 of the filed PDF · View the filing
Higher feedstock, energy and freight costs from Middle East conflict compressing margins
p. 3
“The Middle East war likely affected the agrochemical sector in Q1FY27 mainly through higher feedstock, energy, and freight costs, which compressed margins even when selling prices were adjusted upward.”
Dr. Gyanendra Shukla, page 3 of the filed PDF · View the filing
Delayed monsoon and lagging kharif sowing impacting agrochemical offtake
p. 3
“The late arrival of this year's monsoons and the resultant delay in Kharif sowing impacted agrochemical offtake across the domestic markets.”
Dr. Gyanendra Shukla, page 3 of the filed PDF · View the filing
Lower cotton acreage due to rainfall shortage and spread of illegal HTBT cotton
p. 5
“reduction in cotton acreages coupled with extensive spread of illegal HTBT cotton”
Dr. Gyanendra Shukla, page 5 of the filed PDF · View the filing
Cash crunch in crop protection channel as trade prioritized fertilizer purchases
p. 5
“Trade channels rushed to secure fertilizer, which resulted in cash crunch for Crop Protection causing conservative inventory stocking and slower liquidation.”
Dr. Gyanendra Shukla, page 5 of the filed PDF · View the filing
Export decline due to lower European demand and competitive Chinese pricing
p. 6
“Reasons for degrowth are due to lower demand for pendimethalin in Europe coupled with competitive China market pricing.”
Bhaskar Swaminathan, page 6 of the filed PDF · View the filing
Port congestion and logistical challenges delaying shipping timelines
p. 6
“There were delays & uncertainty in shipping timelines due to port congestion/logistical challenges.”
Bhaskar Swaminathan, page 6 of the filed PDF · View the filing
Acephate export competitiveness challenged by Chinese raw material supply to same end markets
p. 7
“one of the products where we face challenges is really acephate because raw material has to come from China and then we have to process back and sell it to countries like Brazil and U.S. And there also China is also competing directly in those markets.”
Gyanendra Shukla, page 7 of the filed PDF · View the filing
Seed production delays from non-availability of driers and processing facilities
p. 6
“The overall seed supply in terms of volume was sufficient but delayed due to non-availability of driers, processing facilities and concentrated arrivals coupled with labour shortages on the supply chain side.”
Dr. Gyanendra Shukla, page 6 of the filed PDF · View the filing
Continued uncertainty from Middle East conflict affecting raw material prices
p. 11
“I think as fresh buying starts, we would see that.”
Gyanendra Shukla, page 11 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.