Kaveri Seed Company Limited (NSE: KSCL) announced its Q3 and nine-month FY26 results on February 9, 2026, reflecting resilience in non-cotton segments despite headwinds in cotton seeds. New product launches boosted volumes across several categories, though profitability faced pressure from rising production costs and market disruptions.
9M FY26 Performance Highlights
The company’s nine-month FY26 results showed varied performance across crops. New products significantly lifted cotton volumes, with their contribution rising from 11% to 35% of total volumes. However, cotton sales suffered from increased illegal seeds in the market, alongside higher production costs that squeezed margins.
Hybrid rice volumes dipped slightly by 0.9%, but revenues climbed 17.9%, driven by premium pricing or mix improvements. Restrictions on hybrid rice in Punjab curbed sales in that key state. Selection rice volumes grew 7%, with revenues up 14.2%, indicating steady demand.
Maize emerged as a bright spot, with volumes surging 21.7% and revenues jumping 42.6%, reflecting robust farmer adoption. Vegetable seeds posted modest volume growth of 1.5%, but revenues rose 11.4%, likely from higher-value varieties.
Q3 FY26 Segment Breakdown
In the third quarter, non-cotton hybrids demonstrated strength, with volumes up 6.1% and revenues increasing 13%. Cotton seeds bucked broader trends by registering growth in both volumes and revenues, countering nine-month pressures.
Research paddy volumes expanded sharply by 51%, underscoring R&D success. Vegetable seeds grew 5% in volume, maintaining momentum. Sunflower volumes soared 94%, and mustard climbed 64%, highlighting seasonal opportunities in oilseeds.
Rabi maize cultivation weakened due to low commercial prices—ranging from ₹1,200 to ₹1,600 per quintal this year versus ₹2,200 last year—affecting early markets like Madhya Pradesh, Maharashtra, Gujarat, and Karnataka. Exports shone brightly, with revenues rocketing 86%, signaling international demand.
Q4 FY26 Outlook
Looking ahead, Kaveri anticipates growth in spring maize across Bihar, Uttar Pradesh, and Punjab. Summer millet sales are expected to rise in Gujarat, Rajasthan, and western Uttar Pradesh.
Mustard products performed well this year, positioning the company for sustained growth. Export momentum is projected to persist into Q4 and beyond, supporting overall revenue expansion.
Strategic Context
These results underscore Kaveri Seed’s diversification beyond cotton, where new launches and non-cotton hybrids mitigated risks from illegal competition and cost inflation. Strong maize, export, and oilseed gains offset hybrid rice setbacks from regional bans. The outlook points to balanced growth, leveraging R&D-driven innovations and favorable crop cycles.