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Rallis India Ltd

| Quarterly Financial Results Q3 FY 2025–26

NEUTRAL SENTIMENT

Report Source

⬤20th Jan 26

Summary : Rallis India reports mixed Q3 results due to one-time labour code impact, but strong 9-month growth in revenue and profit.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Cost of materials consumed: Q3 FY26: 323 Cr, 9M FY26: 1,237 Cr
  2. Employee benefits expense: Q3 FY26: 70 Cr, 9M FY26: 211 Cr
  3. Other expenses: Q3 FY26: 133 Cr, 9M FY26: 399 Cr
  4. Exceptional items (net): Q3 FY26: (35) Cr, 9M FY26: (29) Cr
  5. Revenue from operations (net of rebates and discounts): Q3 FY26: 623 Cr, 9M FY26: 2,441 Cr
  6. Other income: Q3 FY26: 9 Cr, 9M FY26: 31 Cr
  7. Paid up equity share capital: 19 Cr
  8. Other equity (Year ended 31 March 2025): 1,885 Cr
  9. Company has no Subsidiary, Associate or Joint Venture Company(ies), implying standalone results

Corporate Overview

  1. Incremental impact of 40 crore from new labour codes
  2. Seasonal business nature and weather dependency
  3. Business is seasonal in nature
  4. Performance impacted by weather conditions
  5. Performance impacted by cropping pattern
  6. Agri-Inputs
  7. Formal submission of unaudited financial results
  8. Acknowledges compliance with SEBI regulations
  9. Agri-Inputs

Risk Factors

  1. Business is seasonal and weather-dependent.
  2. New labour codes impact profitability.
  3. Significant Q3 net profit decline.
  4. Reliance on single "Agri-Inputs" segment.

Key Drivers

  1. Nine-month revenue and profit growth.
  2. Auditors gave unmodified review conclusion.
  3. Profit from sale of company assets.
  4. Part of the reputable TATA Group.

Auditor’s Report

  1. Unmodified review conclusion

Board Commentary

  1. Business is seasonal and impacted by weather conditions
  2. Performance is impacted by cropping pattern
  3. Incremental impact from new labour codes due to wage definition changes
  4. Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
  5. Impact of new Labour Codes on financial results

Corporate Governance

  1. Audit Committee reviewed financial results

Management Discussion & Analysis

Operational Focus Areas

  1. Monitoring finalisation of Central/State Rules for Labour Code
  2. Assessing financial impact of regulatory changes

Performance Drivers

  1. Revenue from operations increased to 623 Cr in Q3 FY26 from 522 Cr in Q3 FY25
  2. Nine-month revenue increased to 2,441 Cr in FY26 from 2,233 Cr in FY25
  3. Net profit for Q3 FY26 was 2 Cr, down from 11 Cr in Q3 FY25
  4. Nine-month net profit increased to 199 Cr in FY26 from 157 Cr in FY25
  5. Exceptional items include 5 Cr profit on sale of flats/leasehold land in Q3 FY26
  6. Exceptional items include 40 Cr incremental impact from new labour codes in Q3 FY26

Risk Control Measures

  1. Continuously monitoring government clarifications on Labour Code

Critical Risks

  1. Business seasonality and dependence on weather conditions
  2. Impact of cropping patterns on performance
  3. Uncertainty regarding finalisation of Labour Code rules and clarifications