Rallis India Focuses On Domestic Market After Weak Q4 Results

Rallis India Ltd. reported a mixed performance in the fourth quarter of the last financial year due to the seasonal fluctuations in exports, according to Chief Executive Officer Gyanendra Shukla.

The agri-inputs provider has identified gaps in its portfolio for the third and fourth quarters, mostly in the herbicide category for the rabi season, Shukla told NDTV Profit. "So, we're filling all those portfolio gaps."

There is a proper plan in place for 75% of the business. Export is about 25% of Rallis' total business, according to the CEO. "The majority of the business is domestic and that's where our focus is, largely. Doesn't mean export is less important."

The managing director pointed to strong performances in three key segments in the domestic sector: seeds, soil and plant nutrition, and crop care.

The seed business, nurtured for 15 years, has become a positive contributor, while the soil and plant nutrition segment is gaining traction. The domestic crop care business is also performing well, according to the top executive.

The Tata Chemicals Ltd. subsidiary's net loss widened to Rs 32 crore in the March quarter in comparison to a loss of Rs 21 crore in the year-ago period as volume and margin pressure in the export market affected its performance.

Revenue from operations fell 1.38% to Rs 430 crore in the fourth quarter. The company reported an Ebitda loss of Rs 20 crore, primarily due to a pricing pressure in the domestic crop care segment, the company said in an exchange filing on Wednesday.

The crop care segment saw a 77% drop in earnings before interest, taxes, depreciation and amortisation in the March quarter. Shukla attributed this to low pest pressure in key crops like chili, which reduced demand for a flagship product. He also pointed out that a rice-segment product in southern India did not meet the "expectation of the customer".

"In the Rabi season, herbicide is the largest segment and we are launching a new product as we speak. With our portfolio diversification for Q3 and Q4, the pricing pressure should ease off," Shukla said.

For fiscal 2026, Shukla expressed confidence in Rallis' domestic growth, driven by a combination of digital initiatives, enhanced customer experiences and new product introductions.