Feb 26 (Reuters) - Australia's Lynas Rare Earths LYC.AX reported an 85% drop in its first-half profit on Wednesday, hurt by soft realised prices and subdued demand from China.

The world's largest producer of rare earths outside China reported a net profit after tax of A$5.9 million ($3.74 million) for the six months through December 31, compared with A$39.54 million a year ago.

This result misses the Visible Alpha consensus of A$36.2 million.

($1 = 1.5763 Australian dollars)

(Reporting by Nichiket Sunil and Kumar Tanishk in Bengaluru; Editing by Alan Barona)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishkNichiket.sunil@thomsonreuters.com))