Rallis India shares jump over 19% after HSBC upgrade, end 15% higher

Shares of Rallis India soared over 19% on Thursday following HSBC’s upgrade of the Tata Group company to ‘Buy’ and a raised price target of Rs 300, implying a 27% upside from the January 21 close of Rs 234.95. The stock later settled 15.39% higher at Rs 271.10, taking its market capitalization to Rs 5,272 crore.

HSBC noted that Rallis India’s Q3FY26 adjusted profits beat estimates despite challenging operating conditions. The brokerage highlighted that the company’s business transformation is starting to show results beyond the domestic crop protection segment, with early signs of recovery in seeds and exports.

Positive sentiment was also supported by the firm’s Q3 concall, where management maintained a favourable near-term outlook. Key factors include healthy reservoir levels, higher Rabi crop acreages (up ~3% for wheat, oilseeds, and pulses), and a stronger domestic and export order book, which are expected to drive Q4 sales and early replacement demand.

Long-term strategic priorities were also emphasized, including enhancing customer focus, optimizing the product portfolio, accelerating new launches, expanding strategic alliances, and increasing farmer reach. In the seeds segment, the company will focus on cotton, maize, millet, mustard, and rice.

Rallis India reported a five-fold drop in net profit to Rs 2 crore for Q3FY26 from Rs 11 crore a year ago, while revenue rose 19.3% to Rs 623 crore. EBITDA climbed 31.8% to Rs 58 crore, improving the margin to 9.3%. Profit before tax (PBT) before exceptional items increased to Rs 36 crore from Rs 19 crore in Q3FY25. Exceptional items included an additional gratuity provision due to the wage code implementation.