Rallis India FY25 Results: Rs 2,582 Cr Revenue, Rs 158 Cr PAT, and Strategic Growth

NEW DELHI (India CSR): In the heart of India’s vast agricultural expanse, where millions of livelihoods blossom from the soil, Rallis India Limited stands as a steadfast partner to farmers, tirelessly nurturing the land and nourishing lives through science. As the fiscal year 2025 draws to a close, the company’s Integrated Annual Report offers a compelling narrative of resilience, strategic evolution, and an unwavering commitment to sustainable growth within a dynamic global and domestic agricultural market. This report is not merely a collection of financial figures; it reflects Rallis’s profound dedication to empowering the hands that feed the world, reinforcing its position as a trusted brand among all its stakeholders. It outlines how Rallis, a listed subsidiary of Tata Chemicals Limited and a proud member of the over USD 165 billion Tata Group, continues to drive long-term value creation and uphold its legacy of “Leadership with Trust” amidst evolving challenges and opportunities.

Overview Table – Rallis India Limited FY 2025

Overall Financial Snapshot: A Picture of Stability and Measured Growth

For the fiscal year ended March 31, 2025, Rallis India Limited reported a total revenue from operations of Rs 2,663 crore, marking a modest 1% increase compared to Rs 2,648 crore in the previous fiscal year, FY 2024. While this growth might appear incremental, it underscores the company’s ability to maintain stability and progress in an operating environment shaped by various factors, including increasing protectionism, global oversupply, and price competition. The company’s focus on prudent financial management, optimising overhead costs, streamlining its portfolio, and enhancing operational efficiencies across the value chain played a crucial role in achieving this revenue figure.

However, the period also saw a decline in net profit after tax (PAT), which stood at Rs 125 crore in FY 2025, representing a 15% decrease from Rs 148 crore in FY 2024. This reduction in profitability was primarily attributed to a de-growth in the exports business, influenced by low agrochemical prices and an oversupply situation in the global market. Despite this, Rallis achieved an EBITDA margin of 10.8% in FY 2025. The slight reduction in gross margin and an increase in other expenses, such as freight cost and selling and insurance expenses, also contributed to the decrease in the EBITDA margin from 11.7% in FY 2024.

Strategic Pillars of Growth: Performance Across Key Business Segments

Rallis India’s business model is strategically segmented to deliver solutions that resonate with the specific needs of its diverse customer base, integrating every aspect of the value chain from development to distribution. The company’s revenue generation is primarily driven by its two core business verticals: Crop Care and Seeds.

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Crop Care Dominance: The Crop Care business remained the dominant revenue contributor, accounting for a significant 84% of the company’s total revenue share in FY 2025. This segment encompasses a comprehensive suite of Crop Protection and Soil & Plant Health (SPH) solutions, designed to empower farmers and nurture crops throughout their entire lifecycle.

Category-wise Crop Care Breakdown

• Domestic Crop Care: This segment demonstrated robust performance, recording a revenue of Rs 1,700 crore in FY 2025, an impressive 7% growth over Rs 1,594 crore in FY 2024. This volumetric growth was buoyed by favorable monsoon conditions following an El Niño year, although it was somewhat moderated by high trade inventory, erratic rainfall, and prevailing low prices. Under its brand business, Rallis successfully launched six new products in the Crop Protection portfolio and three in the SPH portfolio during the year.
  • Herbicides: This category was a standout performer, with revenue reaching Rs 308 crore, reflecting a substantial 24% growth over FY 2024. Rallis launched one new product, Mark Plus (Diclosulam 0.9% + Pendimethalin 35% SE), targeting groundnut and soybean crops, along with three additional herbicides, aligning with its strategy to strengthen its portfolio and meet rising demand.
  • Fungicides: Revenue from fungicides increased by 9%, reaching Rs 422 crore compared to the previous year. However, fungicide sprays were relatively low in paddy and other relevant crops due to erratic weather and low disease incidence. A new fungicide for the seed treatment segment was also launched.
  • Soil & Plant Health (SPH): This expanding segment registered a revenue of Rs 218 crore, marking a 23% growth over the previous year. Rallis is actively expanding its SPH offerings to support regenerative agriculture, including bio-fertilisers, bio-stimulants, specialty micro-nutrients, organic fertilisers, water-soluble fertilisers, and bio-pesticides. The company commissioned a fully automated 8,000 MT Water-Soluble Fertiliser (WSF) plant in Akola, Maharashtra, highlighting its strategic investments in this area.
  • Insecticides: This segment faced challenges, with revenue depressed at Rs 584 crore. It was significantly impacted by low pest incidents and a reduction in sprays due to erratic weather conditions. A new insecticide for the Paddy Leaf folder segment was launched during the year.
• Exports Crop Protection: The exports business faced headwinds, recording Rs 545 crore in FY 2025, a 15% de-growth from Rs 639 crore in FY 2024. This decline was primarily due to reduced global demand and price deflation exacerbated by oversupply from China. Despite these challenges, Rallis successfully conducted pilot-scale production of Flavocide® under its Custom Synthesis & Manufacturing (CSM) business and commercialised a new active ingredient, “Metalaxyl-M,” for both domestic and international markets. The company also secured four new registrations in overseas markets and added three new products to its CSM business. Rallis leverages its extensive expertise and global access to over 70 countries to propel the growth of its B2B export segment.

Seeds Business Growth: The Seeds business contributed 16% of the company’s total revenue share in FY 2025. This segment continued its strong performance, generating Rs 418 crore in FY 2025, a slight increase from Rs 416 crore in the previous year. The notable cotton brand “Diggaz” performed well in North India, despite reduced crop acreages for cotton, bajra, and mustard. During the year, Rallis launched 17 new products across cotton, paddy, millet, and vegetable crops. The “Project Fit” initiatives, focused on optimizing operating costs, are contributing to improved performance. The Indian seed industry continues to navigate intense competition and challenges from unseasonal rains, which impact production costs and seed availability. Rallis’s primary focus in this segment is on developing and marketing high-value hybrid seed solutions that align with the evolving needs of farmers and offer greater value-capture opportunities.

Seeds Business Highlights

Navigating the Market: Key Drivers and Challenges

The performance of Rallis India in FY 2025 was shaped by both favorable market dynamics and persistent challenges. The Indian agriculture sector, a cornerstone of the nation’s economy, employs approximately 65% of the population and contributes about 18% to the country’s GDP. Government initiatives, including the National Mission on High Yielding Seeds and enhanced Kisan Credit Cards, have provided significant support, auguring well for the agricultural sector. India’s agricultural exports also saw a healthy growth of 6.5% year-over-year, reaching USD 37.5 billion by December 2024, driven by strong demand for various crops and government policies.

However, the global agrochemical market faced a complex environment characterized by pricing challenges, high inventories, unfavorable farm economics, and adverse weather conditions. India’s agrochemical consumption remains low (0.4 kg/ha compared to the global average of 2.6 kg/ha), indicating immense growth potential. The industry is witnessing a demand recovery driven by favorable monsoons and increasing farmer awareness about quality agricultural produce and advanced solutions. The introduction of combination product formulations is a trend, with new active ingredients continually prioritized.

Innovation and Farmer-Centricity: The Rallis Edge

Innovation is a core tenet of Rallis India’s strategy, guided by its vision of ‘Serving Farmers through Science’. The company’s R&D efforts are concentrated on developing customized crop protection solutions, Soil & Plant Health (SPH) products, and targeting non-subsidized fertilizers and seeds.

Rallis has successfully launched several innovative products that address specific farmer needs:

• “Zaafu”: A granular fungicide specifically designed for Indian paddy farmers, offering ease of application and effective control for soil-borne diseases like sheath blight and sheath rot. Its broadcast use with the first top dressing of fertilizer reduces labor costs and ensures optimal disease control, positioning it as “Zameen ka Fungicide” (fungicide for the land).
• “Diggaz”: A cotton hybrid developed after in-depth analysis of North Indian cotton farmers’ needs, boasting superior yield, early maturity, and enhanced pest tolerance. This innovation has significantly increased farmer adoption and market share.
• “Nayazinc”: A next-generation zinc micronutrient for soil application with a slow-release formulation that prevents soil fixation and ensures compatibility with phosphatic fertilizers. It offers enhanced use efficiency at a lower dose and has received overwhelmingly positive customer response post-commercial launch.

The company also integrates digital technology to enhance farmer engagement, with initiatives such as:

• Enterprise WhatsApp Solution: A new touchpoint for farmers, integrated with a chatbot available 24/7 in 10 Indian languages, providing product information, resources, advice, and a channel for logging concerns and queries.
• Rallis Krishi Samadhan mobile app: A digital platform enabling seamless interactions with farmers.
• Dr. Vishwas helpline: A toll-free farmer advisory helpline, accessible through the WhatsApp chatbot, supporting farmer queries in multiple languages.
• SeedSure: A digital platform providing real-time visibility into seed production, tracking progress, quality, and resource optimization within the seed supply chain.
• SeedSay: An analytics-driven demand forecasting tool for precise seed placement planning and data-backed decisions.

Rallis’s innovation centers, including the Rallis Innovation Chemistry Hub (RICH) and Agri-Biotech Centre in Bengaluru, are at the forefront of developing sustainable agricultural solutions and advanced traits like herbicide tolerance and insect resistance in crops such as maize and cotton. The company has also achieved 11 new patents filed for Crop Care and one patent filed for Seeds, with one patent granted in each category.

Operational Efficiencies and Financial Health

Beyond revenue and profit, Rallis India’s financial health is reflected in its operational efficiencies and strategic management of its capital. The EBITDA margin decreased to 10.8% in FY 2025 from 11.7% in FY 2024, primarily due to lower margins in both B2B and B2C Crop Care businesses and increased other expenses.

Working capital (net current assets) increased by 17.7%, from Rs 762 crore in FY 2024 to Rs 897 crore in FY 2025. The company maintained a comfortable current ratio of 1.93.

• Current investments saw a significant increase, standing at Rs 408 crore as of March 31, 2025, up from Rs 247 crore in FY 2024. This contributed to a 103% increase in other income, which rose from Rs 16 crore to Rs 32 crore.

Debt management was a notable achievement, with the company’s total debt decreasing by 53% as of March 31, 2025. The Debt-Equity ratio stood at a healthy 0.03, down from 0.07 in FY 2024. This reduction in debt also contributed to a decrease in finance costs by 29%, from Rs 18 crore in FY 2024 to Rs 12 crore in FY 2025.

The company’s total R&D expenditure as a percentage of revenue from operations increased to 2.46% in FY 2025, up from 2.31% in FY 2024, signifying continued investment in innovation. Furthermore, power and fuel expenses decreased by 5.9% (from Rs 86 crore to Rs 81 crore) due to lower natural gas prices, while freight, handling, and packing expenses increased by 13% (from Rs 80 crore to Rs 90 crore) due to higher domestic volumes and sea freight costs. Employee benefit expenses also saw a 5.1% increase (from Rs 262 crore to Rs 275 crore) due to regular increments.

Commitment to Sustainability and Community

Rallis India firmly integrates Environmental, Social, and Governance (ESG) principles into its core business strategy. As a signatory to the Responsible Care initiative, the company is committed to continuous improvement in safe chemical management and excellence in environmental, health, safety, and security performance. A Board-level Safety, Health, Environment and Sustainability Committee guides the management in prioritizing safety and sustainability initiatives.

Sustainability & Innovation

Rallis’s sustainability goals are ambitious and align with the Tata Group’s “Aalingana” initiatives, which include aspirations for net zero carbon emissions by 2045. Key environmental initiatives include:

• Reduction in carbon footprint: Efforts are underway to further ramp up clean energy capacity by 8.8 MWp, projected to reduce carbon emissions by 8,401 MT CO2. The company aims for a 25% reduction in absolute carbon emissions (Scope 1 and 2) by 2030, over a 2020 baseline.
• Water management: 1,03,025 kilolitres of water were recycled in FY 2025, contributing to a 4.04% reduction in water consumption. The company’s Dahej SEZ facility recycles 85% of treated water, with a company-wide recycling rate of 60-65% in FY 2025.
• Waste management: Embracing circular economy principles, Rallis aims for zero waste to landfill by 2030 through efficient waste segregation and treatment processes. In FY 2025, 16,089 MT of waste was recovered through recycling and other recovery operations.
• Biodiversity conservation: Proactive measures include preserving green belts, restoring natural habitats, and planting native plant varieties around facilities, with 17,730 trees planted in FY 2025.

Beyond environmental stewardship, Rallis demonstrates a strong commitment to community well-being and inclusive growth through its Corporate Social Responsibility (CSR) programs, which are guided by the Tata Affirmative Action Programme (TAAP). The company invested Rs 5.21 crore in CSR activities during FY 2025, exceeding its statutory obligation of Rs 4.25 crore.

• “TaRa” Programme: In partnership with the Light of Life Trust (LOLT), this program empowers women and youth from tribal and socially disadvantaged communities through holistic skill development and self-employment opportunities. In FY 2025, 804 trainees enrolled, with 72% now engaged in income-generating activities.
• “Jal Dhan”: A water conservation initiative that harvested 4.76 million cubic meters of rainwater across 12 villages in Gujarat and Maharashtra in the current year.
• “RUBY” (Rallis Ujjwal Bhavishya Yojana): An educational intervention spread across 4 states, 87 schools, and impacting over 13,700 students (74% Affirmative Action beneficiaries), focusing on English, Science, and Mathematics.
• “Unnat Gram”: A program focused on the holistic development of tribal communities, impacting over 4,400 tribals in 10 villages in Gujarat and Maharashtra.
• “Saksham Gram”: This initiative works in 8 villages in Telangana, improving the quality of life through education, skill development, and livelihood enhancement, with 149 families earning an average of Rs 11,000 per month through livelihood projects.

Outlook and Future Aspirations

The outlook for the Indian agriculture sector in FY 2026 appears optimistic, with the government’s continued focus on agricultural growth and sustainability. Rallis India is well-positioned to capitalize on this growth, leveraging its comprehensive product portfolio, which spans crop protection, Soil & Plant Health, and high-quality seeds.

The company’s long-term strategy is centered on widening its footprint, expanding portfolio offerings, increasing investments in R&D, and focusing on cost competitiveness and sustainability. With a refreshed portfolio, a sharper go-to-market strategy, digital adoption, and sustainability embedded at its core, Rallis is confident in its ability to deliver value to all its stakeholders and drive consistent, competitive, profitable, and sustainable growth, aiming to grow ahead of the industry and continuously improve its market share across all verticals. The sustained investments in digital transformation and a data-driven organizational culture are expected to significantly strengthen its competitive advantage over the long term.

Rallis India’s journey in FY 2025, as detailed in its Integrated Annual Report, demonstrates its robust adaptation to market dynamics while staying true to its foundational commitment to serving farmers and building a sustainable agricultural ecosystem. The company’s blend of innovation, strategic market engagement, and deep-rooted social responsibility positions it strongly for continued success in the years to come.

(India CSR)