India · Delayed Price · Currency is INR Kaveri Seed Company Earnings Call Transcripts
Fiscal Year 2027
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Revenue and profit declined year-over-year due to weak monsoon and lower demand, but margins held steady at 35% as cost of production fell. New hybrids in cotton, maize, and rice gained share, and exports grew sharply. Management expects sales recovery in coming quarters, with strong long-term growth outlook.
Fiscal Year 2026
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Revenue grew 16.25% year-over-year, led by strong non-cotton and export growth, with new cotton hybrids contributing significantly. FY27 guidance targets 15–20% revenue growth, margin improvement from lower costs, and continued product innovation.
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Revenue and profit grew strongly year-over-year, led by maize, rice, and vegetable segments. Gross margin declined due to higher production costs, but normalization is expected. Cash decreased due to inventory buildup, with pending tax appeals and regulatory changes on the horizon.
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Revenue grew 17% year-over-year in H1 FY26, led by strong maize and vegetable seed performance, while cotton volumes declined over 20% due to illegal seed usage. Management remains optimistic for H2, with exports and new product launches expected to drive further growth.
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Q1 FY26 delivered strong revenue and profit growth, led by non-cotton segments like rice and maize, while cotton faced headwinds from illegal seed sales and higher costs. Management expects 15%-20% annual growth and margin expansion as cost pressures ease and new products scale.
Fiscal Year 2025
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FY25 revenue grew 5.6% year-over-year, but net profit declined due to one-time costs and higher employee expenses. Non-cotton segments saw strong growth, while cotton volumes fell but are expected to rebound. Management guides for at least 10%-12% annual revenue growth over the next 3-5 years.
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Q3 and nine-month FY25 saw strong revenue and profit growth, led by rice and maize, while cotton declined but is expected to recover with new hybrids. Margins were pressured by higher production costs, but price increases and scale are expected to support future growth.
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Revenue grew 3% YoY in H1 FY25, with flat EBITDA and net profit. Non-cotton segments drove growth, while exports were impacted by Bangladesh unrest but are expected to recover. Cotton and non-cotton segments are projected to grow 15%-20% next year.
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Q1 FY25 saw 5.3% revenue growth, strong gains in maize and rice, and a sharp cotton decline. Exports surged over 450% YoY, and new products drove higher contributions in key segments. Guidance remains for 10%-12% revenue CAGR and 15%-20% bottom line growth.