This article first appeared on GuruFocus.
Release date: October 17, 2025
For a full transcript of the earnings call, see full earnings call transcript.
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Rally India Ltd. (Specification: 500355) reported a 33% rise in export earnings, driven by strong demand in markets such as the US and Brazil.
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The company's seed business posted strong revenue growth of 29%, demonstrating strong performance in this segment.
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Rally India Ltd. (Specification: 500355) has launched new products including Dweed (herbicide) and Dorito (fungicide), which are expected to expand their product portfolio.
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The company is focusing on expanding its customer base and product portfolio, which is expected to enhance the sustainability of the business.
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Rally India Ltd. (Specification: 500355) has improved its inventory levels and collections, indicating better capital efficiency and cash flow management.
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The company saw a 7% drop in overall revenue due to abnormal and uneven rainfall, which impacted yields and delayed harvesting.
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Domestic revenue growth was subdued, with the brand business down 10% due to excessive rains and lower demand.
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There was a slowdown in volume growth by 6% and a decline in prices by 1%, reflecting problems in the domestic market.
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The company's herbicide category continues to be underindexed, and herbicide eradication in cotton and soybeans was impacted by heavy rains.
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Rally India Ltd. (Specification: 500355) are facing challenges in the soil and plant health category due to poor crop prospects and regulatory issues.
question: Given the volatility of monsoon trends and farmer sentiment, what are the biggest challenges you foresee in scaling your crop protection and seed business over the next few quarters? How is Rallis adapting its go-to-market strategy and products to remain competitive and relevant in this changing agribusiness landscape? A: Dr. Ganendra Shukla, Managing Director and CEO, explained that instability in the agriculture sector is becoming the norm across the world. Rallis India focuses on three segments: soil and plant health, crop protection and seeds. The company actively cooperates with transnational companies and is exploring export opportunities. They are also focusing on identifying suitable villages, using digital tools and improving production efficiency to grow better than the industry in the long run.
question: Given raw material inflation and pricing pressures in key markets, how does Rallis plan to protect margins going forward, particularly in terms of balancing procurement efficiency, product mix and pricing discipline? A: Mr. Bhaskar Swaminathan, CFO, said that procurement efficiency is critical, especially timing of procurement. The company exercises strict control over purchasing decisions, taking into account both production costs and expected selling prices to protect profits.
