Why Rallis India Share Price is Rising

Ever since childhood, we have learned that India is an agrarian economy. A significant portion of the country's population depends on agriculture for their livelihood. So, it should come as no surprise that agriculture holds a central place in the economy.

In recent years, agricultural sciences, irrigation infrastructure, crop research, and agro-based industries have developed rapidly. Government initiatives and technological advancements are further driving the sector's progress.

One important name in this space is Rallis India, part of the Tata Group. It provides crop protection solutions, seeds, and plant nutrients.

The company also engages in contract manufacturing and caters to both domestic and international markets. With an extensive distribution network, Rallis India supports farmers by offering innovative agricultural inputs to boost productivity and crop yield.

Today, Rallis India caught investor attention with a sudden 15% rally in its share price.

Let's find out why the stock price is rising and what lies ahead...

Strong Quarterly Results

Rallis India share price surged 15% today. The sharp rally followed the announcement of strong Q2FY25 results, showcasing growth across multiple financial metrics.

The company's net profit rose by 21% to Rs 980 million (m) from Rs 820 m in Q2FY24. This increase was driven by strong domestic demand, supported by a favourable monsoon season and improved commodity prices.

Its earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 24% year-on-year (YoY) to Rs 1.7 billion (bn), boosted by positive volume growth in the domestic crop care segment, which led to better margins.

Revenue from operations increased by 11.5%, reaching Rs 9.3 bn from Rs 8.3 bn, driven by healthy growth in both crop care and seed businesses. Crop care revenue alone rose by 7% to Rs 7.9 bn, helped by a 17% jump in domestic crop care volumes.

The company's seeds segment performed exceptionally well, registering a 48% increase in revenue to Rs 1.4 bn. This growth was attributed to better Kharif season liquidation and high demand for North Cotton Hybrids.

In addition to its financial performance, Rallis India made progress on new projects. The company completed pilot-scale production of Flavocide, an innovative insecticide developed in collaboration with Australian firm Bio-Gene Technology.

It also launched 'Anubandh Edge,' a digital platform aimed at improving relationships with retailers across crop care and seeds businesses.

While international operations showed volume recovery, pricing challenges persisted in global markets. The strong quarterly results reflect Rallis India's efforts to expand both its crop care and seed businesses, driving positive investor sentiment.

What Next?

Rallis India is focused on long-term growth by strengthening both its crop care and seeds businesses. The company plans to extend its portfolio offerings in crop care while improving manufacturing capabilities and widening its market reach.

Digital tools will be a key multiplier, enhancing customer engagement and operational efficiency. The company is also working on multiple chemistry competencies to increase flexibility in production and support brand development.

In its two rapidly growing segments namely seeds and crop nutrition, Rallis aims to address portfolio gaps by introducing new high-growth products across crop categories. The company is focusing on non-subsidised fertilisers and nutrients, which represent a growing market segment with strong future potential.

For exports, Rallis India is committed to growing its contract manufacturing business by broadening its product offerings and customer base. Investments in R&D are being scaled up, with the Bengaluru centre increasing synthesis capacity and upgrading pilot plants to enhance process scale-up capabilities.

The Tata group firm is building a robust product pipeline to further strengthen its position in this niche.

Overall, Rallis is aligning its future strategy towards market-centric innovations, digital transformation, and operational excellence.

How Rallis India Share Price has Performed Recently

In the past five days, Rallis India share price has rallied 17.8%. In the last month, it is up 16%.

In 2024 so far, its share price has surged 48.9% and it has surged 71.1% in the last one year.

The stock touched its 52-week high of Rs 377.8 on 16 October 2024 and a 52-week low of Rs 205.4 on 25 October 2023.

About Rallis India

Rallis India is a subsidiary of Tata Chemicals and a part of the Tata Group.

It is one of India's leading agro sciences companies, with more than 160 years of experience servicing rural markets, with the most comprehensive portfolio of products/solutions for Indian farmers.

Rallis is known for its deep understanding of Indian agriculture, sustained contact with farmers, quality agrochemicals, branding & marketing expertise along with its strong product portfolio.

It is also present across the agricultural input value chain and manufactures seeds and organic plant growth nutrients.

The company has partnered with global corporations in the crop protection segment. It does contract manufacturing for them in its four state-of-the-art manufacturing facilities located across India.

For more details, see the Rallis India company fact sheet and quarterly results.

You can also compare Rallis India with its peers:

Rallis India vs Bayer Cropscience

Rallis India vs Sumitomo Chemical India

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