Kaveri Seed Company (KSCL) Q4 25/26 earnings summary

Executive summary

• FY26 revenue from operations grew 16.25% year-over-year to INR 1,303.77 crore, driven by strong non-cotton segment growth and new cotton hybrids, with PAT up 6.8% to INR 283.26 crore.

• Export business delivered approximately 90% growth for the year and 76% in Q4, reflecting strong international demand.

• Cotton sales declined due to increased illegal seed availability and higher production costs, but new cotton products' contribution rose from 10.3% to 30.05% of cotton sales.

• Audited standalone and consolidated financial results for the year ended 31 March 2026 were approved, with unmodified opinions from auditors.

• The company is engaged in the sale of seeds and micronutrients, with no other reportable segments.

Financial highlights

• Standalone revenue from operations for FY26 was ₹130,376.89 lakhs, up from ₹112,156.69 lakhs year-over-year; consolidated revenue was ₹139,476.26 lakhs, up from ₹120,497.04 lakhs.

• Standalone net profit after tax for FY26 was ₹28,326.17 lakhs, compared to ₹26,520.71 lakhs in FY25; consolidated net profit was ₹29,583.34 lakhs, up from ₹28,228.12 lakhs.

• Non-cotton revenue increased 23.17% year-over-year to ₹1,060.18 crore, while cotton revenue declined 6.6% to ₹243.59 crore.

• Maize revenue grew 40.17% with 18.84% volume growth; hybrid rice revenue up 18.3%, selection rice revenue up 9.76%.

• Basic and diluted EPS (standalone) for FY26 was ₹55.07, up from ₹51.56 in FY25; consolidated EPS was ₹56.94, up from ₹55.10.

Outlook and guidance

• Projected 15–20% overall revenue growth for FY27, with cotton expected to exceed 21% growth.

• Revenue growth to be volume-driven as price increases are unlikely; margins expected to improve due to lower production costs.

• Anticipates continued strong export performance, growth in new hybrid products, and positive outlook for hybrid rice and vegetable seeds.

• Hybrid rice growth projected in Punjab, Uttar Pradesh, Bihar, Chhattisgarh, and Jharkhand; rainy millet growth expected in Rajasthan and Uttar Pradesh.