Rallis India Q2 FY27 Results (NSE: RALLIS)
Signal: Revenue declined
The read
Q2FY27 marks a margin reversal after Q1FY27's 19.4% EBITDA margin: revenue was nearly flat YoY at ₹858 Cr, but gross margin compressed 1,090bps to 40.6% and EBITDA margin fell 340bps to 15.6%, driving PAT down 16.7% to ₹85 Cr even after a ₹14 Cr land-sale gain. The filing does not disclose the cause of the input-cost or mix deterioration, so the prior 15%+ margin trajectory remains unconfirmed.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹858 Cr | -0.3% | -16.0% |
| EBIT | ₹102 Cr | -23.9% | |
| Net profit | ₹85 Cr | -16.7% | |
| EPS | ₹4.37 | -16.4% | |
| EBIT margin | 15.6% |
P&L walk
Revenue was ₹858 Cr, down 0.3% YoY and 16.0% QoQ, while gross margin compressed to 40.6% from 51.5% and EBITDA fell 18.3% YoY to ₹134 Cr; a ₹14 Cr land-sale gain softened the operating decline, but PAT still fell 16.7% to ₹85 Cr.
Segments
Agri Inputs remained the core driver but dragged the group result: revenue declined 3.0% YoY to ₹835 Cr and segment result fell 22.1% to ₹102 Cr, while Others contributed ₹23 Cr revenue and ₹9 Cr result.
Key positives
- Finance cost declined 33.3% YoY to ₹2 Cr, limiting below-EBITDA pressure.
- Employee benefits expense fell 6.8% YoY to ₹69 Cr despite broadly flat revenue.
- Agri Inputs remained profitable at ₹102 Cr segment result, while Others contributed ₹9 Cr on ₹23 Cr revenue.
Key concerns
- Gross margin compressed 1,090bps YoY to 40.6%, with the filing not disclosing the driver.
- EBITDA margin fell 340bps YoY to 15.6% from 19.0%, reversing Q1FY27's 19.4% margin.
- PAT fell 16.7% YoY to ₹85 Cr despite a ₹14 Cr exceptional land-sale gain, indicating weaker underlying operating earnings.
- Operating cash flow turned negative at ₹(264) Cr in H1FY27 versus ₹72 Cr positive in H1FY26, driven by ₹334 Cr of receivable absorption and ₹66 Cr of inventory absorption.
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