Kaveri Seed Company (KSCL) Q4 24/25 earnings summary

Executive summary

• FY25 revenue from operations grew 5.57% year-over-year to INR 1,121.57 crores, with strong growth in non-cotton segments, while Q4 revenue declined due to absence of one-time exports to Tanzania.

• EBITDA for FY25 increased 1.43% to INR 274.29 crores, but net profit declined to INR 265.21 crores from INR 293 crores due to one-time costs, higher employee expenses, and increased depreciation.

• Cash on books rose to INR 556 crores, reflecting strong liquidity.

• Audited standalone and consolidated financial results for FY25 were approved, showing continued profitability and strong operational performance.

• Acquisition of the remaining 30% equity in Aditya Agritech Private Limited for INR 23.60 crores, making it a wholly owned subsidiary to enhance synergies and market reach.

Financial highlights

• FY25 total revenue grew 5.57% year-over-year to INR 1,121.57 crores; Q4 FY25 revenue was INR 76.95 crores, down from INR 80.54 crores in Q4 FY24.

• Non-cotton segment revenue rose 22.11% to INR 860.75 crores, while cotton segment revenue fell 27.05% to INR 260.81 crores.

• Q4 EBITDA was negative at INR -15.31 crores versus INR 10.72 crores last year.

• Export sales dropped to INR 22 crores from INR 66 crores due to political unrest in Bangladesh and no repeat of the Tanzania order.

• Standalone net profit after tax for FY25 was INR 265.21 crores, compared to INR 293 crores in FY24.

Outlook and guidance

• Management anticipates a robust upcoming season, supported by favorable monsoon forecasts and stable acreages.

• Cotton volumes expected to grow from a low base, with new hybrids being launched.

• Non-cotton segment projected to grow 12%-15% even on a high base.

• Consolidated revenue growth guidance of at least 10%-12% annually over the next 3-5 years, with potential upside.

• Anticipates continued expansion in sunflower acreage and strong product pipeline in bajra.