KAVERI SEED CO LTD (NSE: KSCL) Q3 2026 Earnings Call dated Feb. 10, 2026
Corporate Participants:
Unidentified Speaker
C. Mithun Chand — Whole Time Director
Analysts:
Unidentified Participant
Amit Agicha — Analyst
Dhruv Saraf — Analyst
Saania Jain — Analyst
Sahil Malhotra — Analyst
Anurag Jain — Analyst
Jasmine Sodhi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Cauvery Seats Company’s Q3 and 9 month FY26 earning conference call. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation. Conclude. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note joining us today on this call, Mr. Nithun Chan, executive Director. Before we begin, I would like to mention that the sum of the statement made in today’s call may be forward looking in nature and may involve risk and uncertainties.
For a list of such consideration please refer to the earning presentation. I would like to hand the CONFERENCE over to Mr. Chand. Thank you. And over to you sir.
C. Mithun Chand — Whole Time Director
Thank you. Good evening and welcome everyone to our quarter three, nine month financial year 26 earnings conference call. We hope you have had a chance to review the presentation of our results which is also available on our website. I would touch upon the operational and financial performance of the company and then open the floor for the question answer session. Highlights. Revenue from operations has registered a growth of 16.94% to 221.56 crore as compared to 10.44.61 crore in nine months. Financially a 25 EBITDA was at 358.39 crore as compared to 324.78 crore. Raised a growth of 10.35%.
Net profit was at 308.91 crore as compared to 94.46 crores. Grown by 4.5% 4.9% for the quarter three financial 26. Revenue from operations was at 173.65 crore. The yesterday growth of 16.08% from rupees 154.77 crore. EBITDA was at 25.35 crore. 38 crore as compared to 25.09 crore. Very steady growth of 1.14%. Net profit was at 7.46 crore. Cash and books stood at 309 crores as against 409 crores. We are happy to declare a good set of quarterly numbers. Maize and selection wise volumes both had Resulted good revenue growth. Had there been a good rate support in maize during the quarter 3 financial 26, we would have delivered better profitability during profitability growth during the nine months of our of our operations.
Having said that, this is a good indication for next year performance as we are able to log better growth rates across our best performing segments like rice, maize and vegetables. Our investments in expanding plans, capacities and increased spending R D is going to contribute for increasing share of new products in both cotton and non cotton segments. The demand spike and increasing acreages of maize, hybrid rice and selection price and vegetables are going to be major drivers in the years to come. This year commercially maize prices were hovering around 1200 to 600 percentile against 1200 in the previous year which affected Rabi maize cultivation in early markets like Madhya Pradesh, Maharashtra, Gujarat and Karnataka.
The increasing areas of mustard and our continuous focus on bringing new varieties in it is paying off and this is going to be a sellable business in the next couple of years for us. We are able to convert volumes of non cotton seeds into revenues growth due to good realizations and increasing market share and leadership in some of the leading segments where in the company has good dominance in the market. During the quarter, volumes of non cotton hybrids increased by 6.1% and revenues increased by 13% and volumes as well as revenues of cotton seed as a steady growth research, Paddy has grown by 51% in volume whereas vegetable seeds have grown by 5% in volume.
Sunflower has grown by 94% in volume and mustard has grown by 64% in volume. Our efforts in entering into newer international markets in the last five years and increasing registration of our seeds in these countries are expanding at ground level and delivering good results on our exports front. Exports have witnessed steep growth of 86% in revenue during the current quarter and continue to grow and every year would be better than the previous year unless there is going to be any major unfounded disruption in these markets. As for other nine months results, we are witnessing continuous growth in increasing contribution of new products.
Cotton sales continue to impact by increased illegal cotton and high cost of production. All rice segments are doing well both on volumes and revenue strength. We are able to maintain hybrid rice volumes in spite of restrictions in state of Punjab which has been the largest market for rice which has been one of the largest market for us. Whereas revenues of hybrid rice increased by 17.9% selection wise, volumes increased by 7% and revenues increased by 14.2%. Maize volumes increased by 21% and revenues increased by 42.6% vegetable seeds volumes increased by 1.5% whereas revenue increased by 11.4%.
During the next quarter we are expecting major growth in Swing maze in Bihar, UP and Punjab. Similarly expecting growth in summer. I would now open the floor for question answer session. Thank you.
Questions and Answers:
operator
Thank you so much sir. Ladies and gentlemen, we’ll begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are request to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Our first question comes from the line of Amit Agicha from Edgy Hawaiian company. Please go ahead.
Amit Agicha
Yeah, thank you for the opportunity. So what percentage of annual revenue is currently reinvested into R D and reading? And how should this trend evolve?
C. Mithun Chand
As of now the spend is in between 5 to 10% of our total revenue, both including revenue and capex going forward they should stabilize at this end. Actually lower than what we have spent in the last year because most of the capex is already done there.
Amit Agicha
And how many new hybrids are expected to be commercialized annually across cotton, maize and rice?
C. Mithun Chand
That’s a continuous activity. We don’t track by number but each and every segment we have very good pipeline hybrids. Like we have more than 200 hybrids in our portfolio. Each segment has got a different pipeline so it’s very difficult to track the number. But yes, in terms of major crops like rice, maize and cotton, we have at least 8 to 10 hybrids which are really doing well.
Amit Agicha
So can I put some color on? Say what is the typical gestation period like from lab research to commercial launch?
C. Mithun Chand
Basically it’s a very time taking process. As we are there in the industry for the last many years we are able to give hybrids in a very continuous manner. But to start, to begin with now, if something, if some person starts now, if everything goes right at the first quit exactly straight to get in handy. So we have a very long session time.
Amit Agicha
Thank you for answering the questions and I’ll join back because I have more questions. Thank you.
C. Mithun Chand
Thank you,
operator
Thank you. Our next question comes from the line of Dhruv Sarah from Bowhead India Fund. Please go ahead.
Dhruv Saraf
Hi Mitun sir. Congratulations on the good set of numbers. So I just wanted to understand why Q3 gross margin is like down almost 500 basis points year on year and you know they’re nearly at multi year lows. If I look at Q3 in the past as well. So sir, two, three key reasons for this.
Unidentified Speaker
Yes, hello? Sorry.
Dhruv Saraf
Hello? Yes sir, can you hear me?
operator
I’m sorry sir, but your line is breaking.
C. Mithun Chand
Am I audible now?
Dhruv Saraf
Yes, yes.
operator
you are.
C. Mithun Chand
Okay. Are you talking about the gross margins for the consolidated or the. Yeah, both we this time we have explained that the cost of production was a bit high when compared to the previous years and especially like crops like cotton and even that has impacted the sun extent that we were not able to pass on everything to the farmer that we already mentioned in the first quarter result where we are seeing the impact when you talk about this quarter, the gross margins fell by 4% compared to previous year which is in line with the consolidated one.
Dhruv Saraf
Yes. So the key reasons in this quarter given that you know cotton has a very low savings this quarter, why would gross margins have fallen this quarter? Specifically.
C. Mithun Chand
Even in maize and rice the cost of production is bit high when compared to the previous years and usually we used to sell higher in terms of high rates in Rabiv but we were not able to pass it on to the farmer this time. So that 2 to 3% impacted this quarter but it will not continue going forward because the production prices have already stabilized. Now we don’t see that going forward.
Dhruv Saraf
All right, all right. And so secondly you know you spoke about cash at 310 crores versus 410 in the previous quarter. So sir, has there been further investment in working capital, you know, either due to inventory or debtors and do you see this normalizing going ahead? Q4.
C. Mithun Chand
Yes, if you see the overall inventory levels, if you take the overall cash flow like majority of that close to 1,200crores less has been into the inventory and even the trade, even the inventories are higher. Trade trade payables are also lower when compared to the previous year. So I think once the season goes on it will normalize it as they have built the inventory. That’s the reason we have seen some sort of a cash output towards building up the inventory and some to be towards the capex but not much.
Dhruv Saraf
Lastly sir, you know I wanted to get your sense on the cost of production so you know for the coming season across cotton and non cotton crops. So now that you know you would have received a lot of the cotton stock for the next season. So how is the next season looking like especially for all of these cotton, maize and rice on both cost of production and the general outlook on the season?
C. Mithun Chand
Basically when you compare to year on year basis compared to last year to this year, the cost of production has not gone up in some cases it has in fact gone down when compared to the previous years. But as even though if the costs are stable then any of we will increase the prices to some extent that can be absorbed. So it will normalize to what it used to be earlier than between that 45 to 48%.
Dhruv Saraf
All right, I’ll get back in with you. Thank you.
operator
Okay, thank you. Our next question come from the line of Sania Jain from CARE pms. Please go ahead.
Saania Jain
Hi. Thank you for the opportunity. My first question was for the non cotton segment. The other crops category has shown a strong growth at 59%. Could you please elaborate? What are the key drivers behind this growth? Is this export sled?
C. Mithun Chand
It’s a combination of all other crops. Other crops include like wheat, mustard, bajra, sunflower, everything comes in the other crops. So the mustard and wheat moves in this segment. That’s the reason we have seen a good growth in the other crop segment.
Saania Jain
Okay, could you provide the revenue breakup for this segment?
C. Mithun Chand
We don’t have the revenue breakup as of now. But overall it’s a very small portion when compared to the overall revenue. Because more than 80% of the revenues are contributed by three crops. Amaze quarter at rice. So the very small segment which comes in a very few quarters especially like third and fourth quarter.
Saania Jain
Okay.
C. Mithun Chand
I try to provide the number whenever we speak. Till next time.
Saania Jain
Okay, thank you. And wanted to understand we mentioned in the investor presentation that research paddy volumes grew by 51%. What constitutes of research paddy?
C. Mithun Chand
Research paddy, Nothing but a paddy which with other varieties which are developed by our own company.
Saania Jain
And this is not included in paddy sales.
C. Mithun Chand
Sorry, one is hybrid. There are two types of paddy. One in hybrid paddy. What we report at the research study. Both are in the paddy segment. Researches are research studies are varieties. Whereas hybrid parties are hybrids. That’s the only difference.
Saania Jain
Okay. Okay. And just a last question. What are the your views on the draft seat bill for 2025 and has there any been any recent developments or updates and what could be the potential impact of it on the industry or on the company?
C. Mithun Chand
The seed new series. A lot of the things are trying to be addressed. One nation, one nation, one license. Most of the license are decentralized now. Proper registration of the hybrids, proper research, proper documentation. Everything is coming in a new sea like so it will be very organized market and I mean to it will be very helpful for the farmers in most of the things. Some are still debating on some facts but overall it looks good when compared to the previous ones.
Saania Jain
Any recent updates that has happened
C. Mithun Chand
No more. The draft is circulated within the industry and we all submitted the comments. And most more or less it should be passed anytime. One round of discussion also.
Saania Jain
Okay. Okay. Thank you.
operator
Thank you. Our next question come from the line of Amit Agija from HG Hawaiian company. As a follow up question, please proceed.
Amit Agicha
Thank you for the follow up, sir. So with over 300 crore cash. Like what is the capital allocation priority? Like any inorganic opportunities or dividend buybacks or what is the company’s plan?
C. Mithun Chand
In the previous year we had done all dividend. Anyway we are giving it. We used to do all the buybacks in the last years. This year because we were the building of the inventory we have seen some sort of a liquidity. I meant to say the cash bought stuck in these activities. So. We have not taken any decision on it. But in terms of the organic growth we are open for it. Because as it is a very temporary situation what we are facing as of now.
But maybe next three to six months the cash will be the free cash what we generate. So that we are open for inorganic growth even as of now. But in terms of the buybacks that have a meeting in the first quarter the follow up portal then we’ll decide about the buyback thing. We’ll take a decision to buyback.
Amit Agicha
The last question, sir. How is the company standing? Farmer loyalty and repeat usage. Like in a highly competitive seed market. Like are there any plans to digitize the farmer? Engagement, demand forecasting or data analytics.
C. Mithun Chand
That’s already. We have. We have done it. Most of that is digitalized. Now we have the huge database of the only farmers. Follow ups are already there. We have digital marketing network. We have huge social media networks for that we track everything from. From demand generation to the crop harvest.
Amit Agicha
Thank you sir. I appreciate you answering my questions. And all the best for the future. Thank you. That’s it from us.
operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question may press star and one. The next question comes from the line of Sahil Malhotra, an individual investor. Please go ahead.
Sahil Malhotra
Good afternoon sir. My question is with. With respect to the demand received from income tax authorities. In two consecutive years we have received a demand and one year we received the demand for 56 crores. And one second year we received a demand for 70 crores. So I would like to get an update. What is the how the management is pursuing this cases and whether in future we are getting this exemption from the tax authorities for the agriculture income or not. Whether any provisions have been made in this regard or Not.
Unidentified Speaker
Hello.
operator
Ladies. Ladies and gentlemen. Sorry the management line has been disconnected. Please stay connected. We are connecting the management line again. Thank you. Ladies and gentlemen, the line for the management has been back. Thank you and over to you sir.
C. Mithun Chand
Hi. Sorry, the light got disconnected. I was just answering The Income Tax 1 cases are pending with the commissioner appeals. It’s the. Once we get the outcome of the appeal we’ll update the status.
Sahil Malhotra
Sir, were there any provisions we have made for this demand? 56 crore and 70 crores.
C. Mithun Chand
Provisions in the. We have made the appeals. Payment for that other one is like we are showing it in container liability.
Sahil Malhotra
As such. No provisions have been made till now.
C. Mithun Chand
No, because we have cash. We don’t. We have not made any provisions on that.
Sahil Malhotra
Okay. And when we are likely to get the Update because like one case was in 2024 and this case also on nine months back. So when we are likely to get an update on these two cases.
C. Mithun Chand
Basically there are three cases pending at the appeal stage. It was almost like two and a half years there. Most probably it should come back in the next six months or so because the hearings are going on, the proceedings are going on. So that should come back.
Sahil Malhotra
Okay sir. Thank you. Thank you.
operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question may press star and 1. Our next question comes from the line of Anurag Jain, an individual investor. Please go ahead.
Anurag Jain
Good afternoon sir. Am I audible?
C. Mithun Chand
Yeah. Yeah. Please.
Anurag Jain
Sir. 1. One question is a follow up on the previous one regarding the cash. There is a different cash. So. So how has the receivables moved during the last one year? And because maize seeds is the one which has grown significantly compared to other seed varieties. So is there some significant sales to government agencies? Government corporations for maize seeds. Is that leading to a build up in receivables?
C. Mithun Chand
Not much if you see actual receivables. As of now at the end of 31st December last year it was close to 175 odd crores. This year is close to 250 outputs. Just 75 crores have gone up because the sale is also higher in these quarters. So we are just waiting for that. But we don’t see any government portion in it. Where is an insignificant portion of government in it? We are not worried about that. As a company policy, we provide anything more than two years of bandits, we don’t carry it.
Anurag Jain
Okay. And for exports. How? What What? How do the receivables work? Is that.
C. Mithun Chand
No, usually we work on lcs. We don’t give any credit. There Very few cases.
Anurag Jain
Okay, so the receivables would be pertaining to our domestic sales only, not for the exports.
C. Mithun Chand
Majority of the domestics. And we don’t see any difficulty in getting it at the year end. It will get outlined usually. What at the year end the outstanding are in between 80 to 90 crores or something like that. It should come back to those levels.
Anurag Jain
And like two years ago, you know, there, there was some outstanding receivable with government corporation which was unpaid. And so the company had made a provision for it. But the company was still pursuing it with the government corporation for payment. So what, what was that?
C. Mithun Chand
Still we have pending payments there. We received some three or four. We are trying to get it. We are doing that. But it is all provided in the provisions.
Anurag Jain
Yes, that, that part I understand that it was provided. And another question is, you know, there has been a sharp bit in maize prices. So for the farmers out, not for the sweet but for the maize prices. So in light of that, do you expect there would be some correction in the volumes for maize next year because of the sharp decon prices or do you expect the maize volumes to remain stable next year?
C. Mithun Chand
We think maize volume should remain good and healthy. And because going up and the usage is also going up. I do agree that the maize prices are down. In fact it went down to as low as 1200 to 1250, 1300 crores. But right now it’s close to 1800 to 9, 1900 rupees. Anything about 2000. 2000. Near to 2000 is a good price for knives. Okay.
Anurag Jain
And what would be the price at which the farmer would break even? Like at what price the farmer would break even?
C. Mithun Chand
No farmer really definitely break even. But in terms of what returns he makes it, if anything close to 2000 is a good return for it. Okay.
Anurag Jain
All right, sir. Thank you.
operator
Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star N1. Reminder to all the participant. If anyone would like to ask a question, may press star n1. Our next question comes from the line of Dhruv Sara from Mohit India Fund as a follower. Please proceed.
Unidentified Participant
Mithun sir, you know, the last two years have been good for maize increases and you know, a lot of companies have spoken in the past about there being a shortage of inventory. Do you see that? You know, going next season, now that everyone knows that maize is the hot crop and acreages are going up, is there a chance that the market could see, you know, increased supply and hence there could be pricing pressure for the industry and for yourself as well? For next season and beyond.
C. Mithun Chand
If you see, if you take. That’s what happened this quarter itself. Because last year, by seeing the demand for the maze, everyone has produced more inventory, including us. All the industry players have provided produce more inventory. That the reason the prices are also up in terms of the production cost. And there was a huge availability of inventory in the second half. Now that one of the reason why we couldn’t pass it on to the farmer. And that also made some dent in our revenues. But it will normalize now. It will normalize now because everyone has the inventory and everyone knows that.
Unidentified Participant
Okay, so do you not you, do you not see the risk of, you know, extra inventory flooding for Hari 26 as well?
C. Mithun Chand
I don’t see that because already it’s there in the inventory. Everyone has an industry. We all know that the inventory will be available.
Unidentified Participant
Okay, okay.
C. Mithun Chand
And everyone is working on that parameters.
Unidentified Participant
Not a lot of companies have taken aggressive production for next season.
C. Mithun Chand
You’re saying no inside for this year itself, the current running year, 25, 26 financial year, most of the companies have taken aggressive production and that has resulted in extra cost of production. Production for all the companies. When you see the Ravi for the second third quarter results, what we are talking about, when we see the maize market, most of the companies have got huge inventory and it was heavily flooded in the market.
Unidentified Participant
Okay, okay.
C. Mithun Chand
Already the prices that we, what. What we used to sell it that we stabilized, that’s the reason we were not able to pass it on to the farmer. And that’s what one of the factor why the cost of production has gone off for us when compared to the normal years.
Unidentified Participant
Understood, sir. And sir, you know, the cotton season, I mean the cotton crop for the last year must have been harvested. So have you received any feedback in terms of, you know, your performance of new products? You’ve seen products like the new two, three products we’ve launched. How has the market feedback been for them?
C. Mithun Chand
Our products have really done well, perform well and we will see that good set of growth numbers coming in the next couple of years, starting from 26, 27. I mean to select June 26th. We’ll get to see good revenue increase in that.
Unidentified Participant
And finally on cotton itself, do you see any increase in illegal seed this year or do you see the volume going up again?
C. Mithun Chand
See that it will be in. In the same level as what increasing that it should be very sideways. Have a good. Basically because we’ll be taking some other. Basically because of the performance of the hybrids.
Unidentified Participant
Okay, sure. Thank you, sir.
operator
Thank you. Ladies and Gentlemen, anyone who wishes to ask a question we press star in one. Reminder. Ladies and gentlemen, anyone who wishes to ask a question may press star n1. Next question comes from the line of Jasmine Sodhi from Wealth Advisors.
Jasmine Sodhi
Congratulations on great numbers. First of all, since we were just on the subject of inventory, I would like to specifically ask about the cotton inventory. Although I feel this must be an industry wide problem because everyone is seeing a decline in cotton fields because of the illegal HD sales. So what is our position of cotton inventory? Do we see any risk?
C. Mithun Chand
No, as of now we have. We will be to the end of this season. I mean to say by available for the next season will win between 8 to 9 million packets for us which is in line with our anticipation. And as a cotton seed most of the hybrids are in our case most of the hybrids what we have produced a new hybrid so that they will have a life lives at least for the next three to five years. So definitely we’ll be liquidating them so we don’t see any threat in that. In fact, we’ll be taking new production for this year also which starts in the month of May, June of 26.
Jasmine Sodhi
Okay, great. Thank you so much.
C. Mithun Chand
Thank you.
operator
Thank you. Ladies and gentlemen, anyone who wishes to ask a question press star and one. Reminder, anyone who wishes to ask a question may press star and one foreign. Ladies and gentlemen, as there are no further question, we’ll conclude the call. Thank you so much for joining the call. For any other information please be in touch with Rama Mr. Ramanaidu from Intellect PR on 992-020-9623 I repeat, 992-020-9623 on behalf of Kaveri Seeds Co. Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.
C. Mithun Chand
Thank you.