Kaveri Seed Company (KSCL) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw strong revenue and profit growth, driven by increased acreages and high realizations in non-cotton segments such as rice, maize, and vegetables.

• Non-cotton hybrids delivered substantial volume and revenue growth, offsetting a decline in cotton hybrid sales due to illegal seed competition and higher production costs.

• New product introductions in cotton increased their contribution to total cotton volumes from 12% to 34%, with further impact expected in future quarters.

• Unaudited standalone and consolidated financial results for Q1 FY26 were reviewed and approved by the Board on 13 August 2025.

• Key board appointments include Dr. Madhushree Gundavaram as Non-Executive Director, Dr. Govinda Rajulu Chintala as Independent Director, and re-appointment of Dr. Rayappa Ramappa Hanchinal as Independent Director.

Financial highlights

• Revenue from operations rose to INR 945.31 crore, up 16.98% year-over-year.

• EBITDA increased by 13.68% to INR 332.85 crore.

• Net profit grew by 11.88% to INR 316.50 crore.

• Standalone basic and diluted EPS for Q1 FY26 was ₹61.53 (not annualised); consolidated EPS was ₹63.76.

• Cash on books stood at ₹477 crore at the end of Q1 FY26.

Outlook and guidance

• Management expects 15%-20% annual growth over the next three to five years, with non-cotton segments projected to sustain around 20% growth.

• Margin expansion anticipated as cost pressures ease and product mix shifts toward higher-margin segments.

• Export business expected to grow 30%-40% year-over-year from a low base, with new markets contributing.

• The company continues to focus on innovation and growth in the agricultural sector, supported by new board appointments with expertise in medical research, agricultural finance, and plant breeding.