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Informist, Saturday, Jul. 18, 2026

By Ayush Jaiswal

MUMBAI – Rallis India Ltd., a subsidiary of Tata Chemicals Ltd., is expected to report a sharp decline in its June quarter net profit and revenue on year because of the delay in the monsoon and a rise in input costs due to the war in West Asia, according to brokerages tracking the company.

Rallis India's standalone net profit for the June quarter is expected to decline 13% on year to INR 826 million, according to the average of estimates from four brokerages. This, however, will be a turnaround from the loss of INR 180 million reported for the trailing quarter.

The company's net sales are expected to decline 2% on year to INR 9.37 billion, according to the average of estimates. The company's net sales, however, are expected to more than double from INR 4.56 billion for the March quarter.

The highest estimate for the company's June quarter net profit is INR 976 million from Kotak Securities Ltd. and the lowest is INR 634 million from Nuvama Wealth Management Ltd. The highest estimate for net sales is INR 9.70 billion from 360 ONE Capital Market Pvt. Ltd. and the lowest is INR 9.23 billion from Anand Rathi Share and Stock Brokers Ltd.

Rallis India's domestic formulations business is expected to decline in line with the industry, Nuvama said. The company's international business is expected to report modest growth in the June quarter because of a high base. This growth is likely to be mostly led by pricing. Additionally, an improvement in demand in European, Latin American, and North American Free Trade Agreement markets, and favourable foreign exchange rates are likely to limit the decline in the company's overall revenue for the quarter.

The company's seeds business will decline 5% on year because of a likely shift in acreage away from corn, which contributes 20% of the company's seed revenue, Kotak said. The pressure on cotton acreages in North India and the delayed ramping up of kharif sowing because of the delay in onset of the monsoon will also put pressure on the company's seed revenue, the broking firm said.

Agrochemicals companies are expected to report subdued revenue growth because of the late and deficient monsoon which has delayed the sowing of crops. The price hikes implemented between March and May by the industry to mitigate the impact of inflation in raw material costs because of the war in West Asia are likely to be rolled back because of subdued demand.

"We believe lower carried-over inventories provide room for fresh channel stocking, while favourable MSPs (minimum support price) and healthy farm economics should support input demand. Rainfall distribution during Jul-Aug will be crucial for crop development and inventory liquidation," Kotak said.

The highest estimate for Rallis India's earnings before interest, tax, depreciation, and amortisation is INR 1.51 billion from Kotak. The lowest is INR 1.07 billion from Nuvama. The company's EBITDA margin is expected to contract by 390 basis points on year to 11.8% owing to higher input costs and poor absorption of price hikes, Nuvama said.

Rallis India is a leading player in the Indian agricultural sector, specialising in crop protection, crop nutrition, seeds, and organic plant growth nutrients. Friday, its shares closed at INR 233.94 on the National Stock Exchange, down 0.9% from Thursday. The shares are down over 12% since the company announced its March quarter earnings on Apr. 27.

Of the four research reports on the company available with Informist, three have a "buy" recommendation on the stock at an average target price of INR 321 per share. This is 37% higher than Friday's closing price. The fourth says "hold". The company will report its earnings for the June quarter Monday.

The following are the Apr-Jun earnings estimates for Rallis India from four brokerages in INR million, in descending order of the net profit estimate:

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Edited by Rajeev Pai

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