Rallis India Q4 FY26: Revenue ₹456 Cr, PAT -₹15 Cr, FY26 EBITDA Hits Record ₹362 Cr — Tata’s Agrochemical Bet Still Has Mud on Its Boots
1. At a Glance
Rallis India has delivered a strange result: FY26 looks stronger, Q4 still looks weak, and the market is being asked to admire the full-year picture while politely ignoring the quarterly bruise.
FY26 revenue rose to ₹2,897 crore, EBITDA rose to a record ₹362 crore, and PAT improved to ₹184 crore. But Q4 FY26 itself reported revenue of ₹456 crore, EBITDA of negative ₹1 crore, and PAT loss of ₹15 crore. This is not a clean victory lap. It is more like a farmer returning from the field with a decent harvest but one shoe missing.
The stock trades around ₹264, while FY26 EPS is ₹9.46. Recalculated P/E = ₹264 / ₹9.46 = 27.9x. That is not cheap for a company with 5-year sales growth of only 4%, ROE of 10.2%, and working capital days jumping to 131 days.
Still, the story is not dead. Rallis remains part of the Tata group, has 8.5 million-plus farmer connects, 7,200-plus dealers, 95,000 retailers, 50-plus export customers, 50-plus B2B customers, and 5 owned manufacturing facilities. It also launched 11 crop protection products and 19 seed products in FY26. Management is clearly trying to rebuild growth through volume, launches, soil & plant health, seeds, and B2B exports.
But the detective question is simple: is Rallis India finally turning the soil, or just rearranging the fertilizer bags?
2. Introduction
Rallis India is one of India’s oldest agrochemical companies, with a history of over 150 years. It operates across crop protection, seeds, soil & plant health, exports, and custom synthesis manufacturing.
The company’s FY26 presentation calls the year a “resilient performance in tough environment with record EBITDA.” That is fair. Revenue increased 9% YoY, EBITDA increased 26%, and PAT increased 47%. Crop Care revenue reached ₹2,416 crore and Seeds revenue reached ₹481 crore.
But Q4 FY26 was still loss-making. That matters because agrochemical businesses are seasonal, inventory-heavy, and exposed to monsoon, pest pressure, crop prices, Chinese dumping, and channel behaviour.
Management had earlier said demand was weak, crop prices were under pressure, exports were improving mainly on volume rather than price, and China remained the price-setting villain in the room. The Q4 result suggests management did improve operating delivery, but pricing pressure and seasonality are still not gone.
Question for readers: is this a genuine operating turnaround, or just one good full-year print after years of dull growth?
3. Business Model – WTF Do They Even Do?
Rallis sells agriculture inputs. In simple terms, it helps farmers protect crops, improve yields, and grow seeds.
The business has five main engines:
Source table
Segment
What it means
Domestic Crop Protection
Insecticides, herbicides, fungicides sold in India
The company says it covers 80% of India’s districts. That is not a small distribution network. It has 7,200-plus dealers and 95,000 retailers. In agrochemicals, distribution is not a side activity. It is the battlefield.
The problem is that this battlefield is messy. Farmers buy based on crop economics, pest attack, weather, credit availability, and trust. If pest pressure is low, products do not move. If crop prices are weak, farmers reduce spending. If China dumps cheaper technicals, margins get squeezed.
So Rallis is not selling shampoo. It is selling science to a farmer who may be dealing with bad weather, low prices, and a dealer pushing three competing brands.
That is why this business is powerful on paper and painful in execution.
4. Financials Overview
Quarterly Comparison
Source table
Metric
Latest Quarter Q4 FY26
Same Quarter Last Year Q4 FY25
Previous Quarter Q3 FY26
Revenue
₹456 Cr
₹430 Cr
₹623 Cr
EBITDA / Operating Profit
-₹1 Cr
-₹20 Cr
₹58 Cr
PAT
-₹15 Cr
-₹32 Cr
₹2 Cr
EPS
-₹0.77
-₹1.65
₹0.10
Q4 improved YoY, but sequentially fell sharply because Q3 had ₹623 crore revenue and ₹58 crore operating profit. The good news: losses reduced. The bad news: it is still a loss.
FY26 was stronger:
Source table
Metric
FY24
FY25
FY26
Revenue
₹2,648 Cr
₹2,663 Cr
₹2,897 Cr
EBITDA / Operating Profit
₹313 Cr
₹288 Cr
₹361 Cr
PAT
₹148 Cr
₹125 Cr
₹184 Cr
EPS
₹7.60
₹6.43
₹9.46
Management had earlier spoken about volume-led growth, new launches, operating leverage, and margin improvement. FY26 EBITDA at ₹362 crore supports that claim. On this point, management partially walked the talk. But Q4 loss says the walk was not exactly a parade.
5. Valuation Discussion – Fair Value Range Only
Method 1: P/E Method
FY26 EPS = ₹9.46 Current price = ₹264
Recalculated P/E:
₹264 ÷ ₹9.46 = 27.9x
Peer table shows Rallis at around 25.47x, while peers include PI Industries at 34.71x, Sumitomo Chemical at 40.21x, Bayer CropScience at 31.39x, Sharda Cropchem at 18.59x, and Dhanuka at 18.17x.
Using a reasonable educational P/E band of 22x–28x:
Source table
P/E Multiple
Fair Value
22x
₹208
25x
₹237
28x
₹265
Method 2: EV/EBITDA Method
FY26 EBITDA = ₹362 crore Enterprise Value = ₹5,157 crore
