Kaveri Seed Company Limited conducted its Q1 FY27 earnings conference call on Friday, 14th August, 2026. The transcript was submitted to the Bombay Stock Exchange and National Stock Exchange of India Ltd. pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

  • Revenue from operations stood at ₹815 crores compared to ₹945 crores in the same quarter previous year, representing a 14% decline
  • EBITDA was ₹285 crores versus ₹332 crores YoY
  • Operating margin remained stable at approximately 35%, slightly above previous year levels
  • Net profit was ₹271.3 crores compared to ₹316 crores YoY
  • Cash on books stood at ₹267 crores as of June 30, 2026

Segment-wise Revenue Breakdown

  • Non-cotton revenue: ₹601.57 crores
  • Cotton revenue: ₹213.43 crores (remained at previous year's level)

Operational Highlights

Monsoon Impact: El Nino brought weak monsoon conditions with one of the shortest sowing windows in recent seasons. Farmers purchased fewer premium and high-value products due to rainfall deficiency.

Product Performance:

  • New cotton products now constitute 37% of cotton sales versus 22% last year
  • New single-cross maize hybrids comprise more than 20% of maize sales
  • Launched two new hybrid paddy products (KRH7344 and KRH7227) which contributed 62% of new product sales
  • New Bajra hybrids now make up 65% of Bajra volumes, up from 61%

Segment Details:

  • Hybrid rice remained the largest non-cotton segment at ₹247.07 crores despite lower rice sowing area
  • Selection rice revenue grew marginally to ₹159.07 crores
  • Vegetable seed revenue was ₹15.08 crores with new varieties planned for coming season

Export Business: Exports grew nearly 4x from ₹1.1 crores to ₹5.79 crores, indicating building demand from overseas markets.

Regional Performance & Challenges

  • Northern markets (Haryana, Punjab, Rajasthan) showed strength in cotton
  • Karnataka, the main maize market, had only 1/5 of land sown by mid-June due to rain deficiency
  • Maharashtra and Madhya Pradesh underperformed due to product portfolio gaps
  • Illegal Bt cotton and scattered rainfall impacted performance in Gujarat and Maharashtra

Inventory Management

Inventory increased by approximately ₹200 crores compared to last year due to anticipation of good season. Management plans to reduce production next year to manage inventory levels.

Recovery Expectations

  • Rainfall returned in July, expected to boost maize demand in Q2 FY27
  • Potential recovery of ₹40-60 crores sales in Karnataka maize segment
  • Rabi season expected to be encouraging due to full water tanks and higher maize prices (₹27-28 vs ₹16-17 at season start)

Export Outlook

Management targets reaching ₹100 crores in export revenue within 3 years, focusing on vegetables and expansion in Philippines, Vietnam, and Indonesia where trialing has been completed.

Product Pipeline & Strategy

Management expressed confidence in having one of the best product pipelines in the last 10 years, with new variants across all seed segments. The company maintains its long-term growth guidance of 15-18% despite current seasonal challenges.

Subsidiary Strategy

Subsidiaries operate as independent companies with different teams, allowing marketing of "me-too" hybrids and niche market products that might otherwise be discarded. Subsidiaries sold 10-12 lakh packets of cotton hybrid this year.

Cost Structure

Cost of production decreased by 4-5% compared to last year, while realizations were down 2-3%, contributing to maintained margins despite challenging conditions.

Capital Allocation

Cash position of ₹265-270 crores as of June 30, 2026, with potential for buyback subject to Board decision.