Rallis India share price spikes 15% to 10-week high on strong Q2 numbers

Shares of Rallis India, a subsidiary of Tata Chemicals, surged 15% in early morning trade on Wednesday, October 16 to a 10-week high of ₹370 per share after the company reported strong quarterly results for the quarter ended September 2024.

On Tuesday, Rallis India announced a 21% increase in its net profit to ₹98 crore in Q2FY25, compared to ₹82 crore in the same period last year. EBITDA grew by 24% year-on-year (YoY) to ₹166 crore, with positive volume growth in the domestic market boosting margins.

The company’s revenue from operations rose by 11.5% in the second quarter of the current fiscal year to ₹928 crore, up from ₹832 crore a year ago. Crop care revenue increased by 7%, totalling ₹787 crore, supported by a 17% growth in domestic crop care volumes during Q2 FY25.

Meanwhile, seeds revenue saw a substantial increase of 48%, reaching ₹141 crore compared to Q2 FY24, largely due to better Kharif liquidation and strong demand for North Cotton Hybrids.

During the quarter, the company successfully completed pilot-scale production of pre-commercial quantities of Flavocide®, a novel insecticide developed for Bio-Gene Technology Limited, an Australian company.

Additionally, the company launched 'Anubandh Edge,' a unified digital platform aimed at strengthening engagement with its retailers across both crop care and seed businesses, as per the company's earnings report. 

Rallis India's Managing Director and CEO, Dr Gyanendra Shukla, said, “We had a strong Q2FY25 performance helped by double-digit growth in the domestic market, both in the crop care and seeds business. Our efforts will continue to be directed towards improving market share in domestic business.”

"We remain positive for the upcoming Rabi season with higher reservoir water levels. Hybrid seed production acres and cost continue to be a concern. Customer and product base expansion will remain a focus for international business," Gyanendra added.

Stock price history

Since May 2023, the stock has demonstrated a strong upward trend, rising from ₹189.75 per share to its current trading value of ₹364—a 92% increase. Year-to-date, the stock has gained 47%, marking its largest annual increase since January 2020.

Rallis India is one of India’s leading agri sciences companies, with more than 75 years of experience servicing rural markets and the most comprehensive portfolio of products and solutions for Indian farmers.

Looking ahead, the seeds industry is expected to see sustained demand for hybrid seeds in cotton, maize, millet, mustard, and vegetables. With an increasing focus on coarse millets like Pearl Millet and Sorghum—valued for their climate resilience and nutritional benefits—the millet seed market is anticipated to grow.

Meanwhile, the crop nutrition market is becoming increasingly organised, and the company has strategically positioned itself to capitalise on these emerging opportunities.

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