Rallis India · forward-looking guidance across the available source record.
Guidance tracker
Management projects the domestic crop protection industry to grow 6-8% in FY27, supported by price increases, with mid-high single-digit growth for seeds excluding cotton. Cotton will remain challenging due to acreage decline and illegal HTBT cotton spread.
Management aims to be a consistent company delivering 15%+ EBITDA margins even in a bad year, building on the 500bps margin expansion target articulated two years ago over a five-year horizon.
The Custom Synthesis & Manufacturing business is pursuing a slow burn strategy with 3-4 new products in advanced registration or pilot production stages, working on three core products in parallel with existing customers.
Seed business will concentrate on cotton, maize, millet, mustard, and rice as strategic crops, with a selective concentrated approach to drive operational scale and efficiency while reducing cotton seed production acreage proactively.
Management targets seed business margins in the range of 23-25%, which would be on par with industry-best levels. Currently close to this target with some dilution expected as revenue grows from lower-margin partnership products.
Export H1 grew 51% YoY to 312 crore. Management expects continued momentum from new customer additions in existing geographies and early-stage supplies to newer countries like France, Malaysia, and Spain.
Envisage capex spend of around 50 crore rupees, supporting capacity expansion initiatives including new efficient technologies for the export business.
Extended kharif season and residual moisture should lead to comparatively better rabi season. Rice planting in south and eastern regions progressing, though fertilizer shortage may delay farmer shift to crop protection products initially.