Rallis India Limited (NSE: RALLIS) Q4 2025 Earnings Call dated Apr. 24, 2025
Corporate Participants:
Suraj Digawalekar — Investor Relations, CDR India
Gyanendra Shukla — Managing Director & Chief Executive Officer
Subhra Gourisaria — Chief Financial Officer
Analysts:
Rohit Nagraj — Analyst
Abhijit Akella — Analyst
Ankur Periwal — Analyst
Somaiah V. — Analyst
Bhavya Gandhi — Analyst
Archit Joshi — Analyst
Darshil Jhaveri — Analyst
Arjun Khanna — Analyst
Siddharth Gadekar — Analyst
Riju Dalui — Analyst
Viraj Kacharia — Analyst
Presentation:
Operator
Please wait while you are joined to the conference. The conference is now being recorded ladies and gentlemen, good day and welcome to the Ralis India Limited’s Q4 and FY ’25 Earnings Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Suraj from CDR India. Thank you, and over to you, sir.
Suraj Digawalekar — Investor Relations, CDR India
Thank you. Good morning, everyone, and thank you for joining us on the India Limited Q4 and FY ’25 earnings call. We have with us today Dr Supila, Managing Director and CEO; and Ms Shubra, the Chief Financial Officer.
Before we begin, I would like to mention that some of the statements made in today’s discussion may be forward-looking in nature and may involve the risks and uncertainties. A detailed statement in this regard is available in the results presentation.
I now invite Dr to begin the proceedings of the call. Thank you, and over to you, sir.
Gyanendra Shukla — Managing Director & Chief Executive Officer
Thank you. Good morning, everyone, and thank you for joining us today on our Q4 and full-year fiscal year ’25 earnings calls. As mentioned, I have alongside with me Subra, our CFO. Let me start by outlining the current industry landscape before turning to specific developments. Domestically, Ravi sewings for 2024-’25 concluded at 661 lakh hectares, which is up by 1.4% over last year, led by higher acreages in wheat, plus 2% rice, about 5% and pulses about 2%, while acreages declined by 1.7% to 97.5 lakh hectares.
Summer crop sewing area as of April 4 reached 60 lakh hectares, a notable 13% increase over year-on-year driven by strong gains in paddy is paddies about 14.5% and pulses about plus 20.7%. Companies had continued aggressive trade schemes in-quarter four fiscal year ’25 to manage inventory, which in-turn created pricing pressures. Overall, the Indian agrochemical sector posted a 5% volume recovery in fiscal year ’25. These are all estimates primarily on the back of a favorable monsoon.
Nonetheless, the industry continues to plate with high carryforward inventories at lower-price, tight seed supplies ranking, cotton acres and ongoing weather irregularities, including erratic rainfall and localized droughts. Indian agrochemical exports remained largely flat, growing just 1% through April to January period. Those signs of pickup emerging in January ’25. Seed production meanwhile continued to face significant challenges for a second consecutive year with volumes remaining under pressure amidst rising input costs despite selective improvement in some pockets.
In summary, while expanded swing areas, a favorable monsoon and a steady reservoir level points to positive prospects, the remain — the sector remains challenged by pricing, inventory and supply dynamics along with persistent water-related uncertainties. Coming back to, during quarter-four, our revenue was INR430 crore, a 1% degrowth and PAT was minus INR32 crore minus — versus minus INR21 crore as compared to last year.
Moving to individual business-wise performance for the quarter-four fiscal year ’25, Crop Care B2C business revenue was INR22 crore against INR226 crore in-quarter four previous year with growth impacted due to price pressures. Volume growth was positive at 3% despite peak agrochemical consumption in crops like chili, cumin, patty and pulses in Q4. India’s agricultural export have recovered during the later half of the year.
Export business also has seen the recovery with 6% growth in Q4 in fiscal year ’24, both in volume and price. CSM business was impacted due to customer scheduling, however, however long-term prospects are positive with work on new relationships. We are confident of some of these turning into meaningful opportunities into future seed business revenue was INR25 crore as against INR26 crore in-quarter four of previous year.
Moving to individual business-wise performance for the full-year, Crop Care B2C business revenue is INR1,578 crore as against INR1,517 crore in previous year. Volume growth was robust at 9%. Soil and plant health and herbicide businesses clocked 23% and 4% growth respectively, in-line with our growth strategy. Overall, crop care revenue has grown by 1% due to challenges in export business as has spoken in the earlier communications. Our long-term efforts to expand the customer-base and improve cost competitiveness across value chain continues.
Seed business for fiscal year ’25 revenue was INR418 crore as against INR416 crore in previous year. The positive news is the business has delivered strong profit before-tax of INR18 crore. We will work on further improving the value dynamics of this business with cost kept under strong result. As of now, the team is working on placing the inventory dynamically in the market.
Looking ahead to the upcoming season, domestic sentiments remain positive as of, 27 March 2025, reservoir water levels stood at 16.5% higher than last year and 1% above the normal average, supporting a favorable outlook for sewing and crop growth. IMD forecast ever rainfall for the ’25 2025 season, while Skymet anticipates a normal monsoon, both of which bode well for the Karif crops. Monthly and rainfall is expected at minus 4% in June, plus 2% in July and plus 8% in August relative to historical average.
Overall, while favorable climate condition and improved reser wire level point to robust crop prospects and record production or nil launches across segments have good potential. The new non-selective herbicide, Lafa will address the portfolio gap in non-selective market. There are a few more promising launches in insecticide segment during the season. We have received good trade response for seed and remain optimistic of the domestic business. Geopolitical developments may cause some disruption in the short-term in export market. However, we believe India will remain an important manufacturing hub in the years to come.
To conclude my remarks, I will now hand it over to Subra, our CFO, for a detailed analysis of the financials.
Subhra Gourisaria — Chief Financial Officer
Thank you, Dr. Good morning. And good morning, everyone, and thank you for joining us today for our Q4 and FY ’25 earnings call. Let me walk you through our financial performance for the quarter, post which we can commence a Q&A session.
Starting with the top-line for the quarter, our revenue stood at INR430 crores as against INR436 crores for the previous year same quarter. Crop Care B2C business registered volume growth of 3% despite lower sprint and poor crop economics. PAT was impacted due to challenges in the export business impacting revenue and overall margins. We have gained volumes in B2C segment during Q4. Exports has also seen an uptick in both volume and price in Q4.
For the full financial year, performance was impacted due to lower exports with volumes under pressure, especially in acephate and pendimethylene. Our PAT was INR125 crore versus INR148 crore. Previous — in the same-period previously, it was impacted due to challenges in exports business. Our Crop Care B2C business has grown by 4% in revenue. Moving on to the seeds business. Over the past few years, our seeds business has seen a significant turnaround.
This success can be attributed to strong execution across all functions, effective use of digital tools, a targeted marketing approach and working on removing process inefficiencies. As a result, we have improved our forecast accuracy, reduced sales return, fixed costs were kept flat and we have exited some of the unproductive territories and products. We continue to strengthen our capabilities to build a high-performing, resilient organization.
Our focus remains on optimizing overhead costs through portfolio rationalization and refresh, territory realignment, eliminating overlaps and driving cost-efficiency and simplification across the value chain. Recently, we introduced a streamline organization structure to boost agility and cross-functional collaboration.
Looking ahead, we remain committed to enhancing our market position through superior product offerings, which address the evolving needs of farmers. Sustained investments in customer-centricity, marketing, manufacturing and digital transformation will be essential to building a sustainably different business. As of 31st March ’25, we are pleased to report a healthy cash and liquid funds balance of INR439 crores and we’ll further work to improve capital efficiency. We are confident that our recent initiatives will help us achieve consistent competitive and profitable growth.
That concludes the opening remarks. We can commence the Q&A session.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please limit their questions to two per participant and use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembled. The first question is from the line of Rohit Nagraj from B&K Securities. Please go-ahead.
Rohit Nagraj
Yeah. Thanks for the opportunity. Sir, first question is again regarding your commentary on the inventory. So you alluded that there is high carryfall inventories in the domestic market. If you could just give us a flavor about how that is likely to shape up for the upcoming season and a similar commentary if you have for the global markets as well? Thank you.
Gyanendra Shukla
Thank you. So on — let me start you all take questions first and one-by-one, we take. One month. Okay. So thanks, Rohit. See, carry-forward inventory, I would say at a global level has — for majority of the product has come to the normal level, right. Whereas for India, yes, inventory is there, but I would say it is not at a level where you can say it’s unmanageable, right? A lot of it might be in anticipation of the strong season people are expecting driven by the commodity prices and so generally normal forecast.
Rohit Nagraj
Correct. So second question is in terms of the quarter gone by. So we have seen that we — the domestic market, there has been volume recovery. However, pricing has been subdued. And on the contrary, exports, there is volume recovery as well as pricing has been favorable. So could you just tell us why there is a dichotomy in terms of pricing for domestic market and the international markets?
Gyanendra Shukla
Okay. Yeah. So I think they are completely unrelated. When we say domestic market, if you see our volumes for the quarter-four are more or less for crop protection flat. Now there are two things happening. We have one-product in the Chili crop, which goes in-quarter three and quarter-four. There’s another product which is in — which is very good product, which goes to control rice topper. And so in-spite of planting, I think there is a lesser pressure of chili trips and the product which we have though it’s a future generation product, but there are not many farmers who like the way it works.
It’s a slow-acting insect growth regulator gives a longer duration control, but I think our farmers are used to ice spray and pests would fall down immediately from the leaf and fruits. So I think we’re working on it. We are trying to see whether we can educate farmers better and can do some strong recovery in that category of product. But these two, if you take-out a plus on the top of that, if you see quarter three and quarter-four, I have been telling in the past also, look, we are working on fixing the herbicide category in-quarter three and quarter-four because that will bring more sustainability and I would say, resilience to our second-half of the business.
Operator
Thank you. The next question is from the line of Abhijit Akela from Kotak Securities. Please go-ahead.
Abhijit Akella
Yeah. Good morning and thank you so much. First of all, would it be possible to just share the breakdown of the crop care revenues between domestic and exports, please? In case you mentioned it earlier, I think I’ve missed it. Thank you.
Gyanendra Shukla
Yeah. So I think there’s also confusion on what we call international business as well as CSM business. So I think CSM business was soft and there was some deferment of the order, which were due as scheduled beyond March. So that’s why our CSM business suffered. And Subra, do we have a split.
Subhra Gourisaria
So Abhijit, I think the confusion that exports has grown at 6%, the number of 6% was the B2B number. CSM, as Dr Sukla mentioned, there was of some of the customer consignments, which is where there is a degrowth. In terms of the absolute numbers, the overall B2B business, B2B exports — total exports business is around INR150 crores for this quarter.
Abhijit Akella
Yeah, sorry, if it’s possible to just also share the comparative number for last year’s 4Q, please.
Subhra Gourisaria
Okay. So last year was around INR165 crores.
Abhijit Akella
Okay. And the balance should be the domestic business, right, just to clarify.
Subhra Gourisaria
Yeah, domestic.
Abhijit Akella
Okay. Got it, got it. And the other one I just had was on the discussion on the pricing pressure. Was this in specific products in the domestic market or slightly more broad-based? And also just trying to reconcile the fact that the domestic pricing is reported to be down 5% this quarter year-on-year. But even in 3Q, it was reported that it was down 4.5%. So it does not seem like there’s been a major deviation quarter-on-quarter. So just wanted to understand that a bit better.
Subhra Gourisaria
Sure. So I think Vijit, you will see that the margins have moved up. So there is indeed in some pockets the prices — the final realization is down. And what we’re talking about 5% is versus previous year, within which as well our soil and plant health has seen good price traction. I think domestic in some market because of competitive and because of the cost price, cost-reduction, we had to pass-on the price — cost drop to the consumer.
Operator
Thank you. The next question is from the line of Ankur Periwal from Axis Capital. Please go-ahead.
Ankur Periwal
Yeah, hi. Thanks for the opportunity. Two questions, one on Crop Care and second on seeds. First, Crop Care. H2 was reasonably good in terms of volumes, but H1 saw deterioration there. And you just highlighted that probably there is some bit of competitive pricing pressure still continuing even in Q4. Any thoughts on how we should look at growth in Crop care, both on volume as well as on revenue side?
Gyanendra Shukla
So two things. I think have been highlighting Herby side also in the rubby crop segments. So generally, if you see we have econ on Herby side, which is the largest category now. So we are weak on cotton herbicide, we are weak on soybean herbicide, we are weak on major herbicide. So all across categories, we are weak. So that portfolio, I mean that is about 30%, 35% of the crop protection market holding on that. And we were literally ups and on non-selective herbicide market. That’s where we have introduced our Lafa. New product that got introduced late in the quarter-four, but response so-far is very, very positive. So one growth strategy is really herbicide-led and plugging the portfolio gap. That should give some upside.
The second analysis, we have done that though we have a good presence in fungicide and insecticide, but there also there are some specific segments, either we have a product which may not be meeting customers’ expectation or we have a specific gap. So we are also trying to address some of those gaps. So just portfolio gap itself and getting team focused on key markets with a very focused what we call distribution retailer and village linkage. I think combination and a lot of our effort we are putting on sending our people back to talk to villages and talk to the farmers, I think should lead to significant changes in the way I look at domestic business.
Ankur Periwal
Sure. So sir, just following-up on that. So from a full-year growth perspective for, let’s say, ’26 or even ’27, how should we look at the volume or the revenue growth?
Gyanendra Shukla
Sorry, I couldn’t hear.
Ankur Periwal
I’ll repeat. I hope I’m audible now.
Gyanendra Shukla
Yeah.
Ankur Periwal
Yeah. So I was saying just as a follow-up, so how should one look at your volume metric or revenue growth for FY ’26 for the Crop Care business?
Gyanendra Shukla
Okay. So I mean, really speaking, I would like to grow both, right, and that’s how we have planned. So all our actions are targeted towards growing both volume and price. And price sometimes combination is also combination of product mix.
Ankur Periwal
Fair enough. Just secondly on the seeds business, we had earlier highlighted inventory-led issues there. So any thoughts how one should look at the growth in this business?
Gyanendra Shukla
So inventory story is very unique. I mean, unfortunately, what happens, seed gets produced on-farm and every year there’s a new, new chapter gets added new experiences. So as far as cotton for North is concerned, I think we are decently placed. Even for South also the decently placed. So for cotton, which actually will become our largest category of seed. I do not have any, I would say, significant inventory challenges.
We are okay on the right-side, I mean right, but there is some delay in supplies because last year, almost all the big companies suffered inventory shortages. So these are everybody has gone in trying to produce. So as a result, drying capacity. So while fuel production is happening, this is commensurating dying — drying capacity constant is there. So we’re trying to work around that. So rice, I would say by and large, okay, the challenge actually is in the maize business corn where a lot of — so I would say industry cumulatively has produced 150% of what is required.
Now all inventory has come out at the same time in the month of March and April as we speak. And there’s not enough capacity to process in the road pack and send it to the market. So I think here every company is trying to play catch-up game. Companies, those who have a carry-forward inventory, they have some advantage. We didn’t have much carryforward inventory, but I still believe we are going to be better than last year.
Operator
Thank you. The next question is from the line of Suma V from Avendus Spark Institutional Equities. Please go-ahead.
Somaiah V.
Hello. Thanks for the opportunity, sir. Hope I’m audible.
Gyanendra Shukla
Yeah, we can hear. Thanks.
Somaiah V.
So my first question is on the export business. So here, the pricing improvements that we are seeing could give some color on three aspects. One, between the products that we have or. So which of the ones that is helping us started seeing a bit of an improvement? That’s one. Second, the recent tariff impact, how do we see this? Is this an opportunity set for us and globally do we see a bit of a help in terms of Chinese technical prices going up and that should kind of help us going-forward in the export business?
Gyanendra Shukla
So I think situation as all of you must be thinking, I mean, actually it’s a bit fluid at this point of time, but I would say whatever is happening, it is good for the long-term because I guess this only will intensify our supply-chain diversification effort by the markets, those who are consuming product originating either out of China or India. So probably long-term, it is positive. Short-term, there is a dynamics. I think the way we see today, it is slightly positive for. It is neutral for and the we make. These are three majority contributor. Actually I would say is neutral to at this point of time. So except acephate, I would say is neutral.
Somaiah V.
Got it, sir. Sir, second question is on the domestic pricing. So I think last couple of quarters far, it was a kind of a Y-o-Y price impact that you’ve explained. So do we see given where inventory is and what the season outlook is in terms of rainfall do we see, let’s say, next six months a similar kind of a Y-o-Y price drop or basically we have to continue at this current level of pricing or do we see further challenges that we have to take price down because of competition and lower raw-material cost? So what is your outlook on pricing? So the decline is more or less done we have to just continue at current levels or do we see further decline in the.
Gyanendra Shukla
So very, very difficult to say because I think right now, if you see there’s a bit of calmness, right, a lot will depend on how China would react because two views one can take. One is that China, if they are producing, they already have factory and they’re already running the factory, they would like ship the goods to the markets where they can say they can’t sell more Americas, which is the largest market and Latin-America is — I mean, season is still far away.
So would they try to dump in other markets at a lower-price? We have heard some news, but we haven’t — we don’t have any evidence to say it hasn’t started happening. So that is one worst-case scenario can play-out. Now if that happens, again, it will depend. So if the products and raw-material we were importing, they will become cheaper, but they will become cheaper for everybody. So that might lead to overall what you call a reduction in prices because then there’ll be competition and excess supply. But if that doesn’t happen, I would say prices would only remain where they are and slightly start firming up.
Operator
Thank you. The next question is from the line of from; project. Please go-ahead.
Bhavya Gandhi
Yeah. Hi, thanks for the opportunity. Is it possible to share the revenue contribution for and plant health and herbicide for the quarter and the full-year.
Gyanendra Shukla
We would be able to do it. I think soil and plant health is about
Subhra Gourisaria
INR220 crores
Gyanendra Shukla
INR220 crore, which was about INR190 crores.
Subhra Gourisaria
Yeah
Gyanendra Shukla
It was about INR19.
Subhra Gourisaria
INR180 crores. So INR180 crores, so we’ve had a good 23% growth on that.
Bhavya Gandhi
And soylent plant health.
Gyanendra Shukla
Yes, plant health only has grown from INR180 crores to INR220 crore.
Bhavya Gandhi
Okay, sorry and hubby side
Gyanendra Shukla
Just give me a little okay.
Subhra Gourisaria
So herbicide has moved from around INR250 crore to INR300 crores. And I’m only talk about the domestic business.
Bhavya Gandhi
Okay. And is it possible to provide some number on LAFA? How do you plan to scale it this gluphosphinate portfolio?
Gyanendra Shukla
I think this product has a high-potential slightly different from glyphosate and paraquit which are the products it complete. Our ambition would be that given our brand strength can we make a kind of a million liter kind of product?
Bhavya Gandhi
Any early understanding or numbers on Lafa, I mean, what sort of sales number has it reached?
Gyanendra Shukla
So-far response is encouraging.
Bhavya Gandhi
Okay, fair enough
Gyanendra Shukla
Selling in-quarter four. So-far as this first is encouraging, we’ll see how it plays out.
Bhavya Gandhi
Thank you. Sure, sure. Thank you so much. That’s it from my end.
Operator
Thank you. The next question is from the line of Arshit Joshi from Institutional Equities. Please go-ahead.
Archit Joshi
Hi, good morning, sir, and thanks for the opportunity. Sir, can you share your views on two, three of our top exported products, acephate, and with regards to its global supply-demand situation and how do we see volumes shaping up in the next year? Just a follow-up, incrementally, the new product that we have launched, which is also for the international markets, which is Metal M I believe this is a new product. If you can share your thoughts with regards to how we think of scaling this up in the exports market? Thank you.
Gyanendra Shukla
So I mean, our top three products, obviously so is looking positive, right? And, I would say are neutral. All of you should also know that is now banned for-sale in Europe, right? So it’s now primarily Americas market as well as it goes in domestic market and some of the markets. Is a product which has multiple applications. So it has applications domestically, it has applications abroad. It can be used also to make combination of fungicides. I think this product has — is not a new product, it’s a whole product, but the isomer we have launched is new. I think our position is decently competitive. We believe below this product should add a significant resilience to our vertical manufacturing business.
Archit Joshi
So if you could speak of the supply-demand scenario a bit on these four products globally.
Gyanendra Shukla
So supplier — I think all of them are available, right. It’s not that there is a shortage of any of these products. All of them are available a demand., obviously Europe market is out. Acephate basically primarily grows in some of the Latin-American countries and US so those are fixed market. Pendimethylene grows across the globe and also has potential, but again you have to understand is a new product a lot will also depend on our ability to secure registration in various other countries.
Darshil Jhaveri
All of us hello good afternoon, sir. Hope I’m audible.
Gyanendra Shukla
Hello, to hear you.
Darshil Jhaveri
Yeah. Hi, sir. So sir, just wanted to get kind of your idea in terms of guidance for FY ’26 in overall on a consolidated basis in terms of revenue and margins, because I think in the last two years the margins have kind of stabilized, but revenues also been in the same range. So just wanted to know-how do we see FY ’26 going as?
Gyanendra Shukla
I couldn’t actually hear well.
Darshil Jhaveri
Hello. Is my voice better right now, sir?
Gyanendra Shukla
Yes, it’s better now.
Darshil Jhaveri
Yeah, yeah. So sir, I just wanted to ask in terms of FY ’28, how do we see our revenue and margins because the last two years have been around a similar range that we’ve been doing. So just wanted to get your thoughts on how do we see FY ’26 going as well.
Gyanendra Shukla
All right. So I think let’s address this segment-by-segment. I believe seed will continue to improve from where we are. Our soil and plant health business will also continue to improve. We are adding new portfolio in herbicide, that should improve. So overall, export is the only business, I would say in some of the CSM thing because things become very dynamic. 75% of the business which is domestic, I think, no, we are covering all the basis very well now.
Darshil Jhaveri
Okay, okay. So any like maybe can we like grow at around 10% or any times of a qualitative guidance you would like to give in terms of revenue growth that we are internally targeting? It cannot be some — it can be a range also, anything that we are looking at, sir.
Gyanendra Shukla
So I mean, one of the challenges are — so I mean, crop area remains same, right? Market grows with a combination of volume and price. And so the only way we grow is low-price and selling more and getting market-share. I think our effort is to grow faster than industry average of 5% to 7% depending on the product and category. But because we are adding some of the new segments, I think that’s where there should be a significant traction are coming to us.
Operator
Thank you. The next question is from the line of Arjun from Kotak Mahindra Asset Management. Please go-ahead.
Arjun Khanna
Thank you for taking my question. Sir, the first question is regarding the capex. So in terms of FY ’25, we had initially thought we’d spend between INR100 crores and INR160 crores. Effectively, if one looked at our cash-flow statement, we seem to have spent lower. So any key projects that have been spilled over to FY ’26 and what is our outlook for capital expenditure in FY ’26?
Gyanendra Shukla
Yeah. So one is what you call sustenance capex, which is lower regular maintenance, repair of parts and machinery. All of that continued. Besides that, there are two areas where we intend to invest monies. One is solar projects, solar, no, we were planning to do in our side in Dahej. And the other one is we’ll continue to actually increase our spending in R&D capability.
Arjun Khanna
So what would our outlook be for capex in FY ’26? Our outlook in ’26?
Gyanendra Shukla
I don’t think we are.
Subhra Gourisaria
So I don’t — we don’t have any major greenfield or brownfield investments planned Ajun. So large part of it will be what Dr Sukla just mentioned on solar, power and R&D and sustenance capex.
Arjun Khanna
So that would be in the region of, generally, INR25 crore INR50 crores?
Subhra Gourisaria
No, no, it would be around INR100 crores, IN 75 crores to IN 100 crores.
Arjun Khanna
Okay, sure. And the second question I had was regarding the MPP. So where are we in terms of getting a new business for the same scaling up new projects, molecules, et-cetera, could you comment on the pipeline and how do we look at potential profitability from this?
Gyanendra Shukla
So I think LPP project is a long-term investment. Frankly speaking, if you see at the same time, last year, we were having a conversation was in working, having a conversation now, market hasn’t changed significantly dramatically. In fact, it has become further complicated with the tariff conversation going on. Having said that, we have started multiple new conversation because we had to reset the mathematics and assumptions we had agreed when we made the initial investment. So a lot of new conversation and new relationships and new ideas are being explored. I’m not in the position at this point of time to give you specifics.
Operator
Thank you. The next question is from the line of Siddharth from Equirus. Please go-ahead.
Siddharth Gadekar
Hi, sir. Sir, our new metallic products that we have a metallics product that we have launched for the domestic and the international market. Can you share some color in terms of registrations where all have you received in the international market.
Gyanendra Shukla
So I think let me check.
Subhra Gourisaria
So we received in some markets. I think firstly, we’ll start with domestic business. We’ll then prioritize all the frontier markets and then we will go progressively to you and other markets.
Siddharth Gadekar
Okay. And secondly, in terms of our export business, can you give a mix between formulations and technicals?
Gyanendra Shukla
Primarily to technical.
Subhra Gourisaria
Yeah, so we would have done around 15% to 20% in formulation this year.
Siddharth Gadekar
Okay, thank you.
Operator
Thank you. The next question is from the line of Dallari from Antique Stock Broking. Please go-ahead.
Riju Dalui
Hello. Hi, thanks for the opportunity. So just wanted to understand the tariff thing. So I think our — like we are procuting 50% or 60% kind of RM from China and we do have export to US. So how that is going to impact like — like is it like can we shift our supply-chain to domestic market like the product that we are exploring to US and how it is going to happen.
Gyanendra Shukla
So I mean, at this point of time, we haven’t seen any significant surge in raw-material import prices. There are some minor adjustments, for example, no few products might have become $1.5 expensive. So we haven’t seen any significant surge in raw-material prices. There have been few products where availability has been a challenge, but they’re not part of our portfolio.
I think this is something very, very difficult to explain. If I look at global scenario, this all is happening where North-America season had already started. So my feeling is all the China supplies which are directed towards North-America, they were already done before all this conversation is starting. Now India also with the season starts in April, though people start tying up for the contract early enough to supply on-time for the Kharif season, I think is happening at a time where there’ll be a lag effect and hopefully till then some consensus will be reached.
Riju Dalui
Understood. So we can see some impact maybe in the Q2
Gyanendra Shukla
Or towards later part of the Q2, which is more directed towards supplies to rubby crops.
Riju Dalui
Understood. And in terms of the supply-chain, right? So if China is not importing to — exporting to US markets, then the technicals or the generic products will flow to the Indian market or maybe other Asian market. So how that is like — like how that can impact our international portfolio because we are into — we are mostly into the generic business and the international portfolio.
Gyanendra Shukla
Right. So I mean, not only us, majority of the Indian companies are in generic business, only none of them are discovery companies. I think the way we should see it is that if there’s going to be a pressure on China, would they start dumping in the markets where they can sell because if they decide not to slow-down their production and all, if they can’t export to US, my feeling is that US was largely covered before all of this has started, right?
So if that doesn’t happen, what would China do, how we would react. I think there’s a lot of guesswork going on at this point of time. It’s very, very difficult to say how things will pan-out. Worst-case scenario, China starts dumping at a cheaper price in India, but I guess — and is there a possibility? Answer is yes, but we haven’t seen significant signs of that at this point of time. I think we’re in a bit of a fluid situation. Everybody is waiting and watching, so are we. I think as far as Karif is concerned, our inventory till June, July, I think we are in a comfortable situation. We’ll see how it moves further.
Operator
Thank you. The next question is from the line of Abhijit Akela from Kotak Securities. Please go-ahead.
Abhijit Akella
Yeah. Thank you so much for taking the follow-up. Sir, just with regard to the comment you had made previously regarding some slightly positive impact on asphate because of the US tariffs and then neutral on the others. Just trying to understand whether the reason for that is that asphate might be subject to the tariffs whereas the other products are exempt from the US tariffs. Just sort of wanted to get your perspective on how the exemption situation stacks up for our key products.
Gyanendra Shukla
You’re right. I think metal excellent pendimethylene — sorry, pendimethylene and are in the exempt category and is not. I think that is one point, but we also have started selling a new formulation of, which is SG formulation and that has some traction in Brazil — Latin-American market.
Abhijit Akella
Okay, okay. So I mean in the event that China turns more aggressive in asphate outside of the US, that could be a bit of a risk factor.
Gyanendra Shukla
Yeah. I mean, at this point of time, we don’t see it, but see, you have to understand. I don’t think people are making money on. Everybody is just trying to liquidate their inventory. So — and that’s why I keep saying this export thing at this point of time, unless you have a B2B business in those markets is very, very difficult and a bit low.
Abhijit Akella
Thank you very much. Got it, sir. And if I may just also ask at a slightly broader industry perspective, agrochemical industry, moving — looking beyond just your product portfolio. Are most of the products flowing into the — into the US as imports, are most of those exempted under the new tariffs? That was my understanding at least, but just wanted to share your perspective.
Gyanendra Shukla
Actually, lots of them are exempted. Right. You US starts building their inventory right from October number onward, right? Their consumption of — I mean, herbicide is the biggest segment there, 40%. Herbicide consumption takes place in the month of April and May, that means inventories were already there in their warehouses.
Abhijit Akella
Right, right. And we are not seeing any stoppage in Chinese exports to the US, right, because of those same exemption, I mean, I guess since their exempt, they should be able to continue to sell.
Gyanendra Shukla
So I mean because of all these non-exempt — I mean exempt categories anyway, I think the things will continue.
Subhra Gourisaria
It’s too early to form a view on it.
Abhijit Akella
Okay, okay. And just one last thing if I may. Just with regard to new product launches for fiscal ’26 or any partnerships that you might have on the annual, if you could please share any color on that.
Gyanendra Shukla
So I think there are some new products in seed category we are launching particularly in cotton in South and central, we will know by end of this season how significant they could become. I hope they also become bigger, right? Then we would be launching product in soil and plant health, some specific no product croppy specific product. We have already launched a non-selective herbicide, which actually goes around the year. Then we are launching an insecticide, which is — which as we speak, we are actually in the process of launching. So these are significant product and that product I think has cuts across crops and categories, the new insecticide we’re launching.
Abhijit Akella
Okay, will that come in or later in the year?
Gyanendra Shukla
No, as we speak, we are launching.
Abhijit Akella
Okay. Okay, great, sir. Thank you so much and wish you all the best.
Gyanendra Shukla
Thank you.
Operator
Thank you. The next question is from the line of Viraj from SIMPS. Please go-ahead.
Viraj Kacharia
If my question. Just three questions. First is for the export piece of the business plan? Yeah. Just going on. Yeah, is it better now? Yeah. Yeah, just three questions and apologies if it’s question. First is an export piece of the business. Can you just give some color what kind of a conversations you are having with your partners existing or potential given the kind of tariff situation which is playing Chinese exports to US? That is one.
Second is, you know, I think you did say that we have to see what kind of a strategy Chinese players are adopting in the company capacity in other markets, but wouldn’t a legislation be a barrier for those products to be say to LatAm, India or Europe. And if products are registered, then won’t B2C players like us be beneficial given the way you may probably get a better terms in terms of raw-material sourcing or payment terms. So any color you can give on the conversations or the signs you’re seeing in the market on these?
Gyanendra Shukla
So I think, look, as we are talking, I don’t have a lot of clarity. I don’t think there’s a lot of clarity around. So I think everybody is keeping crossed, but business is moving, right? I don’t think there has been a significant hue and cry in any market to say this product has become so expensive or not available because our spring season for Brazil is over and America herbicides was not an issue and will follow. Yeah. I think agriculture is such a basic fundamental need. I do not see any radical changes expected from any government.
As far as I mean, China strategy is concerned, I think China would continue to play an important role in my view in the kind of investment, the kind of factories they have put up. They are really World-class. I’m sure at some point of time, there’s going to be a negotiation amongst countries to sort that out. I do not see this as a long-term thing. What I do see from a long-term perspective is that every country which has been importing from China and it did start a little bit after COVID and there has been a kind of a price and volume war. I think would be looking at diversification of supply-chain beyond China, right?
And as far as the US guidelines are concerned, if you see, it says for US to consider value addition, a reaction must take place, right? That means, so if China you bring technical and formulate it and sell it, that is not considered as a value addition by US. US is saying if you bring — so if it is — if you’re making technical, you should bring in a form which is different from technical, that means one reaction has to take place. So it’s very, very conversational. I think something positive will only emerge that much I can tell.
Viraj Kacharia
And in terms of the Indian market for the B2C business, do you see an environment where the pricing pressure can continue or you think it’s more of a beneficial play for B2C brands plays like us?
Gyanendra Shukla
I think it depends on the product you have category you operate, but by and large, I think companies have suffered a lot, right? I think everybody would like to see normalcy. And I think given the forecast for the monsoon is normal, commodity prices by and large okay. There should be robust demand. I mean, unless something comes out, which is not known to us.
Viraj Kacharia
Thank you. Thank you very much.
Gyanendra Shukla
And I am very clear for till the time clarity emerges from all the. My focus is going to be really continue to drive domestic because our brands are more sustainable.
Viraj Kacharia
Got it. Wish you good luck.
Gyanendra Shukla
Thank you.
Operator
Thank you. Ladies and gentlemen, we’ll take this as the last question for today. I now hand the conference over to the management for closing comments. Go-ahead.
Gyanendra Shukla
So thank you everybody for joining. All I can say, agrochemical export demand has seen recovery. We are carefully calibrating our approach and amid ongoing US tariff and negotiations, we will try to improve both volume growth and margin in a tough environment. As I said, see, business prospect is positive, especially the demand for our new launch hybrids were not — hybrid, not cotton hybrid continues to see good momentum with more than 1 million packet already sold.
Domestic agrochemical demand is positive with the above-normal rainfall for the 2025 monsoon. And our endeavor would be to improve market-share across vertical and to operate efficiently while building on recently taken steps. I will try to maintain EBITDA margin on the short-term term or long-term excellence on improving business since in the right direction. And I remain very positive about driving competitive, profitable and sustainable growth to create value for all the stakeholders. Thank you very much. Thank you. On behalf of Ralis India Limited, that concludes this conference. Thank you for joining us and you may now disconnect your line.