Rallis India Limited, the agro-solutions arm of the Tata Group, on January 20, 2026 released its financial results for the third-quarter of FY26, delivering a mixed performance that saw strong top line momentum offset by a sharp drop in profitability.
The company reported revenue from operations of ₹623 crores in Q3 FY26, a 19% year-on-year increase from ₹522 crore vs. Q3 FY25. The growth was primarily driven by strong volume performance across key business segments, particularly in crop care and seeds, where domestic demand remained resilient.
EBITDA expanded meaningfully, rising to ₹58 crore from ₹44 crore in Q3 FY25, reflecting better operational leverage and disciplined cost management. Despite the healthy revenue and EBITDA growth, net profit plunged by over 80%, with PAT sliding to just ₹2 crore during the quarter, compared with ₹11 crore in Q3 FY25.
The dramatic earnings contraction was attributed largely to exceptional charges, including additional gratuity provisions arising from the implementation of the new Wage Code, which weighed heavily on reported bottom-line figures.
The operating margin in Q3 stood at approximately 9.3%, supported by improved efficiency and pricing discipline. Sequentially, revenue was lower compared with the high base of Q2 FY26, reflecting the seasonal nature of the agricultural inputs business.
During the quarter, the company successfully launched a new herbicide, Fateh Nxt and continued to strengthen its innovation pipeline. A three-way herbicide combination for wheat received an Indian patent and the Mesotrione process patent was granted in the US, reinforcing company’s focus on innovation and intellectual property.
Business Segment Highlights
Crop Care: Continued volume growth supported by stronger field activity and focused customer engagement.
Seeds Business: Delivered robust growth, reflecting heightened market demand.
Innovation & Product Pipeline: Continued progress on new product launches, including novel herbicide formulations and patent achievements, supporting future growth prospects.
Market Reaction and Outlook
Investors reacted cautiously to the sharp drop in earnings despite the solid revenue growth. The profit erosion, mainly due to one-off accounting provisions, highlights ongoing challenges from changing regulatory landscapes that can distort reported profits in specific periods.
Looking ahead, improved seasonal demand, further penetration in Specialty segments, and new product launches are expected to support better volume growth in H2 FY26. However, margin recovery and consistent profitability will likely remain a key focus for analysts and investors tracking the company’s performance.