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
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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.
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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.
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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.
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Earnings Per Share (EPS): -₹3.02, compared to +₹63.76 in Q1 FY26 and -₹0.33 in Q2 FY25.
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EBITDA: -₹6.33 crore excluding other income, reflecting margin contraction amid low sales season and fixed costs.
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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.
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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
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The company reported seasonally weaker Q2 with profitability impacted by fixed cost absorption and lower sales volumes.
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Management remains confident in growth outlook based on strong H1 performance driven by maize, rice, and vegetable seed sales.
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Focus is on managing cost of goods sold, optimizing working capital, and leveraging market leadership in hybrid seed categories.
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Dividend payout set at 250% reflecting strong capital management despite quarter volatility.
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Operational efficiency and expanded product offerings expected to drive sustained growth in coming quarters.
Q1 FY26 Earnings Results
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Consolidated Revenue: ₹868.40 crore, a significant QoQ jump of 604%, and 6.9% YoY growth from ₹812.35 crore in Q1 FY25.
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Profit Before Tax (PBT): ₹334.32 crore, substantially higher than the previous quarter and YoY.
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Profit After Tax (PAT): ₹327.17 crore, up 12.4% YoY, reflecting a strong start to the fiscal year.
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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.