Kaveri Seed Company Q2 FY27 results: net loss narrows to ₹8.78 crore, revenue up 11.5%

How did Kaveri Seed Company perform in Q2 FY27?

On a consolidated basis, Kaveri Seed Company reported Q2 FY27 revenue of ₹244.14 crore, against ₹218.90 crore in Q2 FY26, an increase of ₹25.24 crore or 11.5%. Total income was ₹249.06 crore, up 10.8%. EBITDA moved to a profit of ₹0.62 crore from a loss of ₹6.33 crore, while the margin improved by 3.2 percentage points to 0.3%.

The company reported a net loss of ₹8.78 crore in Q2 FY27, compared with a net loss of ₹16.20 crore in Q2 FY26. Profit before tax was a loss of ₹8.43 crore against ₹15.10 crore, and basic EPS was -₹1.72 against -₹3.02. On a standalone basis, revenue was ₹125.44 crore and the net loss was ₹3.21 crore.

Sequentially, consolidated revenue fell 67.1% from ₹742.50 crore in Q1 FY27, EBITDA fell 99.8% from ₹293.85 crore, and the margin declined 39.3 percentage points to 0.3%. The company moved from a profit of ₹279.84 crore to a net loss of ₹8.78 crore, while basic EPS moved from ₹54.83 to -₹1.72.

What changed in Kaveri Seed Company's costs and profit?

Total expenses were ₹257.49 crore in Q2 FY27, up 7.3% from ₹239.92 crore in Q2 FY26. Cost of materials fell 49.2% to ₹89.81 crore, employee cost rose 9.8% to ₹37.97 crore, finance costs rose to ₹0.11 crore from ₹0.01 crore, and depreciation fell 5.6% to ₹13.86 crore. Other expenses fell 13.3% to ₹32.26 crore. Other income declined 16.9% to ₹4.92 crore, and tax fell 68.2% to ₹0.35 crore.

There was no exceptional item in Q2 FY27. Despite lower cost of materials and other expenses, total expenses increased, while other income declined. The reported figures therefore show EBITDA turning positive and the net loss narrowing, but they do not provide a stated reason for the changes in the cost lines.

How did the first half of FY27 go?

For H1 FY27, Kaveri Seed Company reported consolidated revenue of ₹986.64 crore, down ₹90.79 crore or 8.4% from ₹1,077.43 crore in H1 FY26. Total income was ₹995.29 crore, down 9.0% from ₹1,093.22 crore, while profit before tax fell 13.7% to ₹275.58 crore. The net profit was ₹271.06 crore, down ₹39.90 crore or 12.8%, and basic EPS was ₹53.11 against ₹60.74.

What do the balance sheet and cash flow show?

At 30 September 2026, consolidated total assets were ₹2,650.02 crore, down from ₹2,758.89 crore at 31 March 2026, while total equity rose to ₹2,024.33 crore from ₹1,754.40 crore. The company reported no borrowings at either date. Cash fell to ₹7.44 crore from ₹41.52 crore, inventories rose to ₹1,221.83 crore from ₹1,209.70 crore, trade receivables rose to ₹333.99 crore from ₹112.38 crore, and trade payables fell to ₹213.00 crore from ₹479.49 crore.

H1 FY27 operating cash flow was -₹153.00 crore, compared with -₹149.96 crore in H1 FY26. Investing cash flow was ₹119.13 crore against ₹157.60 crore, financing cash flow was -₹0.21 crore against -₹15.14 crore, and capital expenditure was ₹82.07 crore compared with ₹51.62 crore.

How has Kaveri Seed Company done over the last 8 quarters?

Revenue reached its highest point in Q1 FY26 at ₹858.53 crore and its lowest in Q4 FY25 at ₹90.25 crore. It then moved from ₹218.90 crore in Q2 FY26 to ₹210.21 crore in Q3 FY26, ₹107.11 crore in Q4 FY26, ₹742.50 crore in Q1 FY27 and ₹244.14 crore in Q2 FY27.

Net profit was highest at ₹327.16 crore in Q1 FY26 and lowest at -₹27.81 crore in Q4 FY26. It moved from a loss of ₹16.20 crore in Q2 FY26 to a profit of ₹12.68 crore in Q3 FY26, then returned to a loss of ₹27.81 crore in Q4 FY26. Q1 FY27 reported ₹279.84 crore, followed by a loss of ₹8.78 crore in Q2 FY27. EBITDA margin peaked at 39.6% in Q1 FY27 and bottomed at -18.3% in Q4 FY25, before recovering to 0.3% in Q2 FY27.

What else did the company announce?

The board approved an interim dividend of 250%, equivalent to ₹5 per equity share of face value of ₹2, for FY27. The record date was fixed at 6 November 2026, and the dividend was to be paid on or before 26 November 2026, subject to applicable statutory requirements.

The board appointed M. Bhanu Prakash as Chief Financial Officer and Key Managerial Personnel with effect from 28 October 2026. It also approved the proposal to incorporate wholly owned subsidiaries in eight countries for product registrations, research and marketing and distribution operations, subject to applicable approvals and regulatory compliance.

What did the auditors point out?

The auditors’ report identified a going-concern material uncertainty for one subsidiary. It stated that the subsidiary had an accumulated loss of Rs.533.05 Lakhs as on 30 September 2026, negative net worth of Rs.49l.l2 Lakhs, and current liabilities exceeding current assets by Rs.525.20 Lakhs. The report said that these conditions indicated that a material uncertainty existed which might cast significant doubt on the subsidiary’s ability to continue as a going concern.

The auditors stated that their conclusion on the statement was not modified in respect of this matter. The review report also said that they did not review the interim financial results and other financial information of four subsidiaries and one unincorporated entity included in the consolidated unaudited results.

What did Kaveri Seed Company's management say?

Management said maize Q2 revenue rose 36.3%, while cotton remained the main drag with H1 sales down about 30%. It said exports reached ₹12.56 crore, 250% of the prior year, across eight target markets. Management expected 80%-90% of incremental cotton growth over 3-4 years to come from new hybrids and said exports were expected to reach ₹33.07 crore in H1, but the filing provided conflicting context on export figures.

Management gave no hard FY27 revenue target. It described the H2 contribution as positive, framed maize sales around “10% plus or 10% minus” versus the prior year, and indicated that H2 EBITDA margins should remain broadly maintained or improve. Management also said capital work in progress of about ₹120-130 crore was expected to be capitalised within 6-8 months.

Management identified risks from illegal BT cotton seed sales, the multi-year ramp needed for new cotton hybrids, elevated inventory, export registrations and distribution, and monsoon-driven changes in acreage, yield and water availability. It said seasonal rice, cotton and maize inventory was expected to be used in Rabi or the following selling season without a major write-off if quality remained intact.

How did Kaveri Seed Company shares react?

The stock fell 1.0% within 5 minutes and 1.8% within 15 minutes after the filing appeared, before rising 1.6% after 30 minutes. On the reaction day, it rose 3.2% from the previous close of ₹685.00, exceeding the Other Agricultural Products industry median by 3.3 percentage points. By the next day’s close, the stock was down 0.1% from its pre-results close, and by the fifth day it was up 0.2%. Earlier reaction-day moves were -2.6% on 13 August 2026, -2.8% on 26 May 2026, -1.9% on 9 February 2026, 1.9% on 6 November 2025, 3.3% on 13 August 2025 and 3.6% on 19 May 2025.

How did other Other Agricultural Products companies do?

Among 16 Other Agricultural Products companies that had filed for the quarter, the median revenue growth was 15.2%. Seven peers grew slower than Kaveri Seed Company and nine peers grew faster than it. Eight peers reported higher profit.