Kaveri Seed Q1 FY27 Results: Revenue Declines 15% to ₹815 Cr Amidst Weak Monsoon
Kaveri Seed's Q1 FY27 revenue fell 15% to ₹815 crore due to a weak monsoon. EBITDA decreased to ₹285 crore and net profit to ₹271.3 crore. New cotton and maize hybrids showed strong performance, and the export business grew significantly. The company expects recovery in Q2 FY27 as monsoon conditions improve.
The decline in revenue and profit, attributed to adverse weather, has a moderate impact on the company's short-term financial performance. However, the strong performance of new products and the growth in exports suggest resilience and potential for future recovery.
The results show a year-on-year decline in revenue and profit due to unfavorable weather conditions. While new product performance and export growth are positive, the overall financial performance was impacted by external factors.
Kaveri Seed Company Limited reported its Q1 FY27 results, with revenue from operations at ₹815 crore, a decrease from ₹945 crore in the same quarter last year. EBITDA stood at ₹285 crore, down from ₹332 crore, while net profit was ₹271.3 crore compared to ₹316 crore. The company cited El Nino's impact, leading to a weak monsoon and a shorter sowing window, which affected farmer purchasing of premium products.
Despite the challenging season, new cotton products performed well, now constituting 37% of cotton sales, up from 22% last year. New single-cross maize hybrids also showed promise, making up over 20% of maize sales. The company launched two new paddy hybrids, KRH7344 and KRH7227, which contributed significantly to new product sales. The export business saw substantial growth, increasing nearly fourfold from ₹1.1 crore to ₹5.79 crore.
Operational highlights include steady EBITDA margins of around 35%. The company has a strong presence in northern cotton markets and rice remains its largest non-cotton segment. Vegetable seed revenue was ₹15.08 crore, with new varieties planned for the upcoming season. Management expressed confidence in future growth, driven by new variants across all seed segments and a strong product pipeline.
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