Kaveri Seed Company Limited has announced its financial results for the first quarter of Fiscal Year 2026-27 (Q1 FY27). The quarter was shaped by a deficient monsoon, impacting sowing in major growth segments. Despite challenges, the company maintained cotton volumes and saw revenues of selection rice hold steady. New variants are under development across various seed segments, with an aim to increase their market share.
Kaveri Seed Company Announces Q1 FY27 Results
Kaveri Seed Company Limited has released its investor update for the first quarter of the fiscal year 2026-27 (Q1 FY27). The results indicate a quarter influenced by a deficient monsoon, which affected sowing in key growth areas. Despite this, the company reported that cotton volumes remained flat compared to the previous year, and revenues from selection rice were maintained despite adverse weather conditions in rice-sowing states.
Key Highlights and Operational Performance
The company noted that the monsoon deficit translated into lower interest towards premium, high-value products. However, Kaveri Seed has established a strong foundation in the northern cotton markets of Haryana, Punjab, and Rajasthan. Cotton volumes were maintained constant despite challenges from illegal cotton and reduced sowing acreage.
Operational highlights include a significant increase in the share of new cotton products, rising from 22% to 37%. Maize volumes saw a decrease of 39%, attributed to a drop in sowing acreage in Karnataka. The contribution of new single-cross hybrids to the maize portfolio grew to over 20%. Hybrid paddy launch contributed 62% to the new product bucket, with new bajra hybrids rising from 61% to 65%. The export business also showed strong growth, with exports scaling sharply over the corresponding quarter.
Crop Market Performance and Revenue Breakup
All-India sowing acreage data for the quarter shows declines in Maize (3.84% YoY) and Rice (4.41% YoY), while Bajra acreage saw a slight decrease of 0.89% YoY. Jowar acreage increased by 1.67% YoY, and Sunflower acreage rose significantly by 71.19% YoY. Cotton acreage saw a minor decrease of 0.39% YoY.
Total revenue for Q1 FY27 stood at ₹815.00 crore, a decrease of 13.78% compared to Q1 FY26. Non-cotton revenue was ₹601.57 crore (down 17.19% YoY), while cotton revenue was ₹213.43 crore (down 2.47% YoY).
The Non-Cotton Revenue Breakdown shows Hybrid Rice contributing ₹247.1 crore (Q1 FY27) vs ₹280.2 crore (Q1 FY26), Selection Rice at ₹157.6 crore vs ₹159.1 crore, and Maize at ₹137.7 crore vs ₹241.0 crore. Vegetables contributed ₹18.5 crore vs ₹15.1 crore, and Others at ₹29.3 crore vs ₹42.7 crore.
Forward-Looking Statements
The company also included a standard disclaimer regarding forward-looking statements, noting that actual results could differ materially from those contemplated due to various risks and uncertainties.
Source: BSE
