Shares of Rallis India Ltd gained over 1.5% in early trade on Wednesday, July 16, after the company reported robust Q1 FY26 earnings and HSBC raised its target price on the stock to ₹250, despite maintaining a cautious stance. The stock traded at ₹358.60 on the NSE at 9:31 AM, up ₹5.40 from the previous close of ₹353.20.
The stock hit an intraday high of ₹361.05 and a low of ₹354.00, within its 52-week range of ₹196.00–₹385.75. The company’s market capitalization stood at around ₹69.79 billion, with an average trading volume of about 1.63 million shares, a P/E ratio of 55.73, and a dividend yield of 0.70%.
For the quarter ended June 30, 2025, Rallis India’s net profit surged 98% YoY to ₹95 crore, compared to ₹48 crore in the same quarter last year. Revenue from operations rose 22% to ₹957 crore from ₹783 crore a year ago. At the operating level, EBITDA grew 56.3% to ₹150 crore, while EBITDA margin improved to 15.6%, up from 12.2% in the year-ago period.
HSBC, while acknowledging the earnings beat driven by volume growth, better operating leverage, and margin expansion, reiterated its ‘Reduce’ rating but raised the target price to ₹250. The brokerage remains cautious on the stock citing stretched valuations — trading at about three standard deviations above its 10-year average P/E — and ongoing uncertainties in global demand and pricing pressures in the crop protection industry.
In addition to the financial results, Rallis India announced a leadership change. The board approved the resignation of Subhra Gourisaria as Chief Financial Officer, effective July 24, 2025, as she moves to another Tata Group company. The board also appointed Bhaskar Swaminathan as the new CFO, effective August 7, 2025, following recommendations from the Audit and Nomination & Remuneration Committees.
Investors appear to have welcomed both the strong earnings and the smooth leadership transition, as the stock moved higher in today’s session despite valuation concerns flagged by analysts.
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