Kaveri Seeds Company Limited released the transcript for its Q3 and nine months FY’26 Earnings Conference Call held on Tuesday, February 10, 2026. Management highlighted significant operational and financial growth, with nine-month revenue rising 16.94% to Rs. 1,221.56 crores and net profit increasing by 4.9%. Key drivers included strong performance in rice, maize, and vegetables, despite cost pressures.
Q3 and Nine Months FY’26 Financial Highlights
Kaveri Seeds reported solid results for the nine months ending December 31, 2025. Revenue from operations grew by 16.94%, reaching Rs. 1,221.56 crores, up from Rs. 1,044.61 crores in the previous corresponding period. EBITDA saw a growth of 10.35% to Rs. 358.39 crores, while Net Profit increased by 4.9% to Rs. 308.91 crores.
For the third quarter (Q3 FY’26), revenue from operations stood at Rs. 173.65 crores, marking a growth of 16.08%. EBITDA for the quarter was Rs. 25.38 crores, a 1.14% increase, with a Net Profit of Rs. 7.46 crores. Cash and bank balances were reported at Rs. 309 crores.
Operational Performance and Segment Drivers
Management confirmed that growth was driven by strong performance across key segments, particularly rice, maize, and vegetables. Investments in expanding plant capacities and increased R&D spending are expected to boost the share of new products.
- Maize: Volumes increased by 21% with revenues growing 42.6% over nine months.
- Hybrid Rice Revenues: Increased by 17.9% despite restrictions in Punjab.
- Selection Rice: Volumes grew 7%, and revenues increased 14.2%.
- Vegetable Seeds: Volumes rose 1.5%, with revenue up 11.4%.
- Exports: Steep growth of 86% in revenue during the current quarter.
- Other Crops: This segment (including mustard and wheat) showed strong growth of 59%.
The cost of production was noted as slightly higher compared to previous years, particularly impacting gross margins in Q3 due to factors like the low season for cotton. However, the company anticipates costs stabilizing, normalizing gross margins to the 45% to 48% range going forward.
R&D, Capital Allocation, and Future Outlook
Regarding R&D spend, the company currently reinvests between 5% to 10% of total revenue (including capex). Management stated they have a pipeline of over 200 hybrids, with at least 8 to 10 major hybrids in key crops performing well.
Concerning capital allocation with over Rs. 300 crores in cash, the priority is organic growth. While buybacks were conducted previously, the decision is pending until Q1 or Q2 following the building of inventory, which caused a temporary liquidity strain. Regarding tax matters, the company confirmed it is pursuing appeals related to demands of Rs. 56 crores and Rs. 70 crores from prior years, but no provisions have been made as the appeals process is underway.
Inventory and Market Conditions
On the cotton segment, management confirmed that the company holds sufficient stock for the current season, anticipating 8 million to 9 million packets for the next season. New cotton hybrids, which are newer to their portfolio, have new lives extending three to five years. The primary concern regarding maize pricing was addressed, with the management noting that current maize prices (near Rs. 1,800 to Rs. 1,900 per quintal) are significantly above the low point of Rs. 1,200 seen earlier, ensuring farmers achieve breakeven and good returns.
Source: BSE
