Kaveri Seeds Q2 FY26 Earnings Results

Incorporated in 1976, Kaveri Seed Company Ltd is in the business of research, production, processing and marketing of various high quality hybrid seeds.

 

Q2 FY26 Earnings Results

• Consolidated Revenue: ₹219 crore, up 59.8% YoY from ₹150.56 crore in Q2 FY25 but down sharply by 74.1% QoQ from ₹868.40 crore in Q1 FY26 due to seasonal revenue recognition fluctuations.​

• Profit Before Tax (PBT): -₹15.10 crore loss, a stark fall from ₹334.32 crore profit in Q1 FY26 and ₹3.42 crore profit in Q2 FY25, indicating sharper seasonal impact and cost absorption challenges.​

• Profit After Tax (PAT): -₹16.20 crore loss, worsening from a profit of ₹327.17 crore in Q1 FY26 and a small loss of ₹0.91 crore in Q2 FY25.​

• Earnings Per Share (EPS): -₹3.02, compared to +₹63.76 in Q1 FY26 and -₹0.33 in Q2 FY25.​

• EBITDA: -₹6.33 crore excluding other income, reflecting margin contraction amid low sales season and fixed costs.​

• Strong half-year revenue growth with H1 FY26 revenue totaling ₹1,041.91 crore, up 17% YoY, and net profit for H1 rising 7.9% to ₹301.45 crore.​

• Robust capital position with zero long-term debt and net cash status, though working capital management showed pressures with increased current liabilities due to seasonality.​

 

Management Commentary & Strategic Insights

• The company reported seasonally weaker Q2 with profitability impacted by fixed cost absorption and lower sales volumes.

• Management remains confident in growth outlook based on strong H1 performance driven by maize, rice, and vegetable seed sales.

• Focus is on managing cost of goods sold, optimizing working capital, and leveraging market leadership in hybrid seed categories.

• Dividend payout set at 250% reflecting strong capital management despite quarter volatility.​

• Operational efficiency and expanded product offerings expected to drive sustained growth in coming quarters.​

 

 

Q1 FY26 Earnings Results

• Consolidated Revenue: ₹868.40 crore, a significant QoQ jump of 604%, and 6.9% YoY growth from ₹812.35 crore in Q1 FY25.​

• Profit Before Tax (PBT): ₹334.32 crore, substantially higher than the previous quarter and YoY.​

• Profit After Tax (PAT): ₹327.17 crore, up 12.4% YoY, reflecting a strong start to the fiscal year.​

• EPS: ₹63.76, significantly above year-ago levels

 

To view the company’s previous earnings and latest concall transcripts, click here  to visit the Alphastreet India news channel.