1. Opening Hook
Just when agri stocks thought weather was the villain, Rallis reminded everyone that payroll laws can also wreck a party. Q3 FY26 delivered strong volumes, shiny launches, and… a profit collapse that had nothing to do with farmers.
Management walked in confident, armed with growth slides, China risk commentary, and long-term margin dreams. Then the numbers hit: revenue jumped, EBITDA behaved, but PAT face-planted thanks to a ₹40 cr gratuity provision.
This was a quarter where operations did well, optics got messy, and Excel sheets needed emotional support. Add weak crop prices, Chinese pricing pressure, and regulators waving new rulebooks, and you get a concall that sounded optimistic—but cautiously so.
Read on. It starts sensible, gets strategic, and ends with “trust us, five years is a long time.”
2. At a Glance
- Revenue up 19% to ₹623 cr – Volumes showed up; pricing quietly left the chat.
- EBITDA up 29% to ₹58 cr – Operations did their job before HR entered the room.
- PAT down 81% to ₹2 cr – ₹40 cr gratuity provision: one line item, total chaos.
- Volumes up ~28% – Farmers bought more, just paid less.
- Exports up 73% – China risk talk aside, customers still needed molecules.
- Seeds revenue up 46% – Finally, a business behaving like management PowerPoints.
3. Management’s Key Commentary
“Agrochemical demand remains weak due to stressed demand drivers.”
(Translation: Farmers are broke, and weather didn’t help 😐)
“Volumes will
benefit from stronger acreage, but margins will remain stable-to-soft.”
(We’ll sell more, but don’t expect pricing miracles.)
“China continues to be the primary supplier, capping realizations.”
(China sneezes, global margins catch a cold.)
“We achieved higher volumes in Metribuzin and Pendimethalin.”
(Old molecules still paying the bills.)
“We launched NuCode, our biologicals platform.”
(Because ‘bio’ sounds better than ‘commodity’ 🌱)
“Exports grew 73% due to volume growth and customer expansion.”
(Low prices, high tonnage—factory stays busy.)
“Exceptional item includes ₹40 cr gratuity provision.”
(One accounting entry, whole quarter ruined 😏)
4. Numbers Decoded
| Metric | Q3 FY26 | YoY Trend | What It Really Means |
|---|---|---|---|
| Revenue | ₹623 cr | +19% | Volumes saved the quarter |
| EBITDA | ₹58 cr | +29% | Ops fine, margins holding |
| PAT | ₹2 cr | -81% | Gratuity said hello |
| Crop Care | ₹580 cr | +18% | Core business still grinding |
| Seeds | ₹43 cr | +46% | Rare bright spot |
| Exports (B2B) | ₹129 cr | +73% | Price pain, volume gain |
| Cash | ₹455 cr | Stable | Optionality, not urgency |
One-liner takeaway: Operational recovery is real; reported profitability is temporarily fictional.
5. Analyst Questions
- Inventory concerns?
Management says placements are “controlled,” returns are low, and receivables
