1. Opening Hook
When the CEO starts an earnings call with“abnormal rainfall”, you know the quarter was more Noah’s Ark than agri boom. Rallis India — the agrochemicals arm of Tata Chemicals — just reported Q2FY26 results where floods soaked both farmers’ fields and investors’ hopes. Yet, in true Tata fashion, they spun disaster into “resilience.”
Revenue fell, seeds drowned, and herbicide demand washed away. But exports rose 33%, profits somehow ticked up, and the CFO managed to sound calm — like someone who’s seen worse monsoons. The quarter wasn’t great, but the story has new shoots: product launches, exports, and the hope that the rabi season won’t need an umbrella. 🌦️
Grab your raincoat — this concall gets muddy.
2. At a Glance
- Revenue ₹861 Cr (↓7% YoY):Rain hit sales harder than marketing ever could.
- EBITDA ₹154 Cr (↓7% YoY):Margins held — Tata discipline meets agro chaos.
- PAT ₹102 Cr (↑4% YoY):Profit rose because math is sometimes magic.
- Crop Care (↓3%):Domestic demand wilted; exports to the rescue.
- Seeds (↓29%):Illegal HT cotton and rain — double strike.
- Exports (↑33%):Brazil and U.S. saved the day, tariffs be damned.
- Cash Balance ₹454 Cr:Dry powder, unlike their fields.
- Capex ₹50 Cr (FY26E):Still cautious, still conservative.
3. Management’s Key Commentary
“Abnormal rainfall and floods impacted major agri states.”(Translation: The sky basically shorted our P&L.)☔
“Crop Care degrew 3%, exports up 33%, seeds down 29%.”(Translation: Two segments sank, one floated — like a farmyard Titanic.)
“We launched ‘Deeweed’ and ‘Dodrio’.”(Translation: Naming herbicides after Pokémon because science needs branding too.)😏
“We’re rationalizing the portfolio and sharpening focus.”(Translation: Killing the underperformers faster than weeds.)
“Exports performed well despite U.S. tariffs.”(Translation: We finally outsmarted Chinese dumping.)
“Seed margins improved due to more in-house hybrids.”*(Translation: Why buy from others when your own R&D is cheaper?) 💡
“We’re focusing on 5 key crops — cotton, maize, millet, mustard, rice.”(Translation: Diversifying just enough to sound strategic, not panicked.)
“We have ₹454 Cr in cash.”(Translation: Even our liquidity is weather-resistant.)
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Change | EduInvesting Take |
|---|---|---|---|
| Revenue | ₹861 Cr | ↓7% | Flooded fields = flooded topline. |
| EBITDA | ₹154 Cr | ↓7% | Margins intact — CFO deserves sugarcane juice. |
| PAT | ₹102 Cr | ↑4% | Somehow profit grew; divine intervention? |
| Crop Care Revenue | ₹760 Cr | ↓3% | Herbicides took a bath. |
| Seed Revenue | ₹101 Cr | ↓29% | Illegal cotton strikes again. |
| Exports | ₹161 Cr | ↑33% | Brazil-US duo carried the tractor. |
| H1 Exports | ₹312 Cr | ↑51% | Best performing segment, period. |
| Cash Balance | ₹454 Cr | Stable | No borrowing panic, Tata genes intact. |
| Capex Guidance | ₹50 Cr | — | Slow and steady, not splashy. |
5. Analyst Q&A (Best Bits + Brutal Truths)
Q (Eyesight Fintrade):Biggest challenge with volatile monsoon?A:“Volatility is the new normal.”(→ Translation: We’ve stopped fighting nature; we’re just budgeting for it.)
Q (Trinetra AM):CSM dip — temporary?A:“Yes, timing issue.”(→ Translation: Client delayed, we obeyed.)
Q (HSBC):Illegal HT cotton hurting you?A:“Yes, but mostly in South and Central India.”(→ Translation: Black market seeds growing faster than ours.)🌱
Q (Kotak):Export math looks confusing.A:“Take it offline.”(→ Translation: Even Excel gave up on that cell.)
Q (Avendus Spark):Pricing trend weak?A:“Yes, promotions up, prices down.”(→ Translation: Schemes everywhere; discounts are our new pesticide.)
Q (Antique):Industry growth flat?A:“Yes, mid-single digits at best.”(→ Translation: Nobody’s really growing, but we sound better saying ‘muted’.)
6. Guidance & Outlook
Rallis expectsrabi seasonto recover sales lost in kharif — moisture in the
