Kaveri Seed Company LimitedAgriculture & AlliedKSCL
Q1 FY27 concall · earnings callKaveri Seed Company Limited
A challenging quarter due to a weak monsoon and one of the shortest sowing windows in recent seasons impacted sales, but the underlying growth story remains intact with strong adoption of new hybrids and a focus on research.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue from operations | ₹815 Cr | — | |
| EBITDA | ₹285 Cr | — | |
| Operating Margin | about 35% | slightly above | |
| Net Profit | ₹271.3 Cr | — | |
| Cash on books | ₹267 Cr | — | |
| Non-cotton revenue | ₹601.57 Cr | — | |
| Cotton revenue | ₹213.43 Cr | — | |
| New cotton product share | 37% | up from 22% |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹174.05 Cr+22% YoY+26.6% QoQ | ₹14.85 Cr+34.1% YoYTurned profitable QoQ | ₹2.97+17.9% YoYTurned positive QoQ |
| Q2 FY25 | ₹137.44 Cr-19.8% YoY-82.9% QoQ | ₹-0.90 CrTurned loss-making YoYTurned loss-making QoQ | ₹-0.33Turned negative YoYTurned negative QoQ |
| Q1 FY25 | ₹803.23 Cr+9.1% YoY+716.7% QoQ | ₹291.19 Cr+5.8% YoYTurned profitable QoQ | ₹56.99+16.1% YoY+18283.9% QoQ |
| Q4 FY24 | ₹98.35 Cr+33.5% YoY-31% QoQ | ₹-0.40 CrLoss narrowed YoYTurned loss-making QoQ | ₹0.31Turned positive YoY-87.7% QoQ |
| Q3 FY24 | ₹142.63 Cr-1% YoY-16.7% QoQ | ₹11.07 Cr-71% YoY-20.8% QoQ | ₹2.52-66% YoY-4.9% QoQ |
TL;DR
- Revenue fell to Rs 815 crores from Rs 945 crores, with profit down to Rs 271.3 crores from Rs 316 crores due to weak monsoon conditions.
- New cotton hybrids now constitute 37% of cotton sales, up from 22%, showing strong farmer acceptance.
- Maize sales were slow as the main market (Karnataka) had deficient rain, but demand is expected to pick up in Q2.
- Exports grew close to 4x to Rs 5.79 crores, and the company aims for Rs 100 crores in vegetable exports in 3 years.
- Operating margin held steady at about 35%, supported by a lower cost of production.
- Inventory increased by roughly Rs 200 crores compared to last year due to anticipated good season that didn't materialize.
Said on the call
“This is one of the years where we should not take into consideration.”
From the Q&A
| Topic | What management said |
|---|---|
| Historical Profit Stagnation | Management attributed flat profits over a decade to a shift from high-margin cotton (90% of mix earlier) to a lower-margin non-cotton portfolio (now 80%), and called the current challenging monsoon year an outlier not to be benchmarked. |
| Export Business Targets | Confirmed trialling completed in Philippines, Vietnam, and Indonesia, with good sales. The company is confident of reaching Rs 100 crores in vegetable exports in the next 3 years, with margins expected to be 25% to 30%. |
| Cotton Strategy and Market Share | Admitted losing market share in cotton over the last 7-8 years, impacted by illegal seeds and scattered rains. Stated they have developed new hybrids and grown in Northern India, and remain confident in regaining share despite lower margins because the market is big. |
| Inventory Increase | Confirmed inventory is up roughly Rs 200 crores year-on-year due to anticipating a good season that didn't happen. Stated they will reduce production next year and are monitoring inventory levels. |
| Maize Sales Discrepancy vs. Peers | Attributed the 40% decline in maize sales vs. peers' 20%+ growth to the company's stronghold in southern states (Karnataka, Andhra, Telangana) which received lesser rainfall, and lack of suitable hybrids for high-growth areas like Madhya Pradesh. |
| Subsidiary Strategy Rationale | Explained that subsidiaries operate as independent competitors, allowing the company to market 'me-too' or niche hybrids that perform differently in various climatic segments, which would otherwise be discarded if sold only under the Kaveri brand. |
Guidance
- Expect maize demand to pick up in Q2 FY27.
- Expect some spillover demand in Q2 if rainfall improves.
- Export business expected to grow at least 25% compared to last year overall.
- Target to reach Rs 100 crores in vegetable exports in the next 3 years.
- Longer-term revenue growth expectation of 15% to 18% maintained.
- Margin will be lower than what was shown in the first quarter, but the gap with last year should narrow down.
Source
Summary written from the transcript filed by Kaveri Seed Company Limited for the call held on 14 Aug 2026; published 19 Aug 2026, 20:11 IST.
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