Thank you. Good evening, and welcome, everyone, to our Quarter 3, nine-month, Financial Year '26 earnings conference call.

We hope you have had a chance to review the presentation of our results, which is also available on our website. I would touch upon the operational and financial performance of the company, and then open the floor for the question-and-answer session.

Highlights: revenue from operations has registered a growth of 16.94% to ₹1,221.56 crore as compared to ₹1,044.61 crore in nine-month Financial Year '25. EBITDA was at ₹358.39 crore as compared to ₹324.78 crore, registered a growth of 10.35%.

Net profit was at ₹308.91 crore as compared to ₹294.46 crore, grown by 4.5%-- 4.9%. For the Quarter 3 Financial Year '26, revenue from operations was at ₹173.65 crore, registered a growth of 16.08% from ₹154.77 crore.

EBITDA was at ₹25.35 crore-- 38 crore as compared to ₹25.09 crore, registered a growth of 1.14%. Net profit was at ₹7.46 crore.

Cash on books stood at ₹309 crore as against ₹409 crore. We are happy to declare good set of quarterly numbers.

Maize and selection rice volumes, both have resulted good revenue growth. Had there been a good rate support in maize during the Quarter 3 Financial Year '26, we would have delivered better profitability during profitability growth during the nine months of our of of our operations.

Having said that, this is a good indication for next year performance as we are able to log better growth rates across our best performing segments like rice, maize, and vegetables. Our investments in expanding plant capacities and increased spend in R&D is going to contribute for increasing share of new products in both cotton and non-cotton segments.

The demand spike and increasing acreages of maize, hybrid hybrid rice and selection rice, and vegetables are going to be major drivers in the years to come. This year commercially maize prices were hovering around ₹1,200 to ₹1,600 per quintal against ₹1,200 in the previous year, which which affected rabi maize cultivation in early markets like Madhya Pradesh, Maharashtra, Gujarat, and Karnataka.

The increasing areas of mustard and our continuous focus on bringing new varieties in it is paying off, and this is going to be a stable sizable business in the next couple of years for us. We are able to convert volumes of non-cotton seeds into revenues growth due to good realizations and increasing market share and leadership in some of the leading segments, whereas the company has good dominance in the market.

During the quarter, volumes of non-cotton hybrids increased by 6.1% and revenues increased by 13%, and volumes as well as revenues of cotton seed has registered a growth. Research paddy has grown by 51% in volume, whereas vegetable seeds has grown by 5% in volume.

Sunflower has grown by 94% in volume, and mustard has grown by 64% in volume. Our efforts in entering into newer international markets in the last five years and increasing registration of our seeds in these countries are expanding at ground level and delivering good results on our exports front.

Exports have witnessed steep growth of 80% in revenue during the current quarter, and continue to grow, and every year would be better than the previous year, unless there is going to be any major unforeseen disruption in these markets. As for our nine-month results, we are witnessing continuous growth in increasing contribution of new products.

Cotton sales continue to impact by increased illegal cotton and high cost of production. All rice segments are doing well, both on volumes and revenues front.

We are able to maintain hybrid rice volumes in spite of restrictions in state of Punjab, which has been the largest market for us, which has been one of the largest market for us, whereas revenues of hybrid rice increased by 17.95%. Selection rice volumes increased by 7% and revenues increased by 14.2%.

Maize volumes increased by 21% and revenues increased by 42.6%. Vegetable seeds volumes increased by 1.5%, whereas revenue increased by 11.44%.

During the next quarter, we are expecting major growth in spring maize in Bihar, UP, and Punjab; similarly expecting growth in summer millet in Gujarat, Rajasthan, and Western UP. I would now open the floor for question-answer session.

Thank you.

Thank you for the opportunity. Sir, what percentage of annual revenue is currently reinvested into R&D and breeding, and how should this trend evolve?

As of now, our spend is in between 8% to 10% of our total revenue, both including revenue and capex. Going forward, they should stabilize typically lower than what we have spent in the last few years because most of the capex is already done there.

How many new hybrids are expected to be commercialized annually across cotton, maize, and rice?

That's a continuous activity. We don't track the number, but each and every segment, we have very good pipeline hybrids.

We have more than 200 hybrids in our portfolio. Each segment has got a different pipeline.

It's very difficult to track the number, but, yes, in terms of major crops like rice, maize, and cotton, we have at least 8 to 10 hybrids which are really doing well.

Sir, can you put some color on what is the typical gestation period from lab research to commercial launch?

Basically, it's a very time-taking process. As we are there in the industry for the last many years, we are able to give hybrids in a very continuous manner.

To begin with now, if some person starts now, if everything goes right and the first try, it takes at least 8 to 10 years to get an hybrid. We have a very long gestation time.

Thank you for answering the questions, sir. I'll join back the queue.

I have more questions. Thank you.

Thank you.

Hi, Mithun, sir. Congratulations on a good set of numbers.

Sir, just wanted to understand why are Q3 gross margins down almost 500 basis points year-on-year? They're nearly at multi-year low if I look at Q3 in the past as well.

Sir, two, three key reasons for this?

Q3 for yes--

Hello? Sorry.

Hello?

Hello. Yes, sir, can you hear me?

You're clear.

I'm asking about the gross margin, sir. Yeah.

Am I audible? Am I audible now?

Okay. Are you talking about the gross margins for the consolidated or the, yeah?

Both, we this time, we have explained that the cost of production was a bit high when compared to the previous years, and especially crops like cotton, and even. That has impacted to some extent as we were not able to pass on everything to the farmer.

That we already mentioned in the first quarter result where we have seen the impact. When you talk about this quarter, the gross margins fell by 4% compared to previous year, which is in line with the consolidated one.

Sir. The key reasons in this quarter, sir, given that cotton has a very low sales in this quarter, why would gross margins have fallen this quarter specifically?

Even in maize and rice, the cost of production is bit high when compared to the previous years. Usually, we use to sell higher in terms of higher rates in rabi, but we were not able to pass it on to the farmer this time.

That 2% to 3% has impacted this quarter, but this will not continue going forward because the production prices have already stabilized now. We don't see that going forward.

All right, all right. Sir, secondly, you spoke about cash at ₹310 crore versus ₹410 in the previous quarter.

Sir, has there been further investment in working capital, either due to inventory or debtors? Do you see this normalizing going ahead in Q4?

Yes, if you take the overall cash flow, majority of that, close to 1- ₹200 crore plus has been into the inventory. Even though inventories are higher, trade payables are also lower when compared to the previous year.

I think once the season goes on, it will normalize it. As they build the inventory, that's the reason we have seen some sort of a cash outflow towards building up the inventory.

Some to be towards the capex, but not much.

Sir, lastly, sir, I wanted to get your sense on the cost of production, sir, for the coming season across cotton and non-cotton crops. Now that you would have received a lot of the cotton stock for the next season, sir, how is the next season looking like, especially for all of these cotton, maize, and rice on both cost of production and general outlook on the season?

Basically, when you compare to year-on-year basis, compare to last year to this year, the cost of production has not gone up. In some cases, it has in fact gone down when compared to the previous years.

If the costs are stable, then any of we will increase the prices to some extent that can be absorbed. It will normalize to what it used to be earlier, it's between that 45% to 48%.

All right, sir. I'll get back in the queue.

Thank you.

Thank you.

Hi. Thank you for the opportunity.

My first question was for the cotton segment. The other crops category has shown a strong growth at 59%.

Could you please elaborate what are the key drivers behind this growth? Is this export-led?

It's a combination of all other crops. Other crops include wheat, mustard, bajra, sunflower.

Everything comes in the other crops. The mustard and wheat moves in these segments.

That's the reason we have seen a good growth in the other crop segment.

Okay. Could you provide a revenue breakup for this segment?

We don't have the revenue breakup as of now, but overall, it's a very small portion when compared to the overall revenues because more than 80% of the revenues are contributed by three crops: maize, cotton, and rice. They're a very small segment which comes in a very few quarters, especially like the third and fourth quarter.

I'll try to provide the number whenever we speak till next time. Yeah.

Okay. Thank you.

Wanted to understand, we mentioned in the investor presentation that research paddy volumes grew by 51%. What constitutes of research paddy?

Research paddy is nothing but these are varieties which are developed by our own company.

This is not included in paddy sales?

Sorry?

This was not--

There are two types of paddy. One is hybrid paddy what we report, and the research paddy.

Both are in the paddy segment. Research paddy are varieties, whereas hybrid paddy are hybrids.

That's the only difference. We just give split of it.

Okay. Just the last question: what are the your views on the Draft Seed Bill for 2025, and has there been any recent developments or updates, and what could be the potential impact of it on the industry or on the company?

Now, in the new Seed Bill, a lot of the things are trying to be addressed: one nation, one license, as most of the licenses are decentralized now, a proper registration of the hybrids, proper research, proper documentation. Everything is coming in the new seed act.

It will be very organized market and it will be very helpful for the farmers. Most of the things, we are still debating on some facts, but overall, it looks good when compared to the previous one.

Any recent updates that has happened?

No, the draft is circulated within the industry, and we all have submitted the comments. More or less, it should be passed anytime in one round of discussion or so.

Okay. Thank you.

Thank you for the follow-up, sir. Sir, with over ₹300 crore cash, what is the capital allocation priority, any inorganic M&A opportunities or dividend buyback, sir?

What is the company's plan?

In the previous years, we have done all. Dividend, anyway, we are giving it.

We used to do on the buybacks in the last years. This year, because we were building up the inventory, as we have seen some sort of a liquidity, I mean to say the cash got stuck in these activities.

We have not taken any decision on it. In terms of the organic growth, we are open for it.

Because as it is a very temporary situation what we are facing as of now, but maybe next 3 to 6 months, the cash will be the free cash what we generate. That we are open for inorganic growth even as of now.

In terms of the buybacks, that have a meeting in the first quarter the follow-up quarter, then we'll decide about the buyback thing. We'll take a decision for the buyback.

The last question, sir: how is the company standardizing farmer loyalty and repeat usage, in a highly competitive seed market? Are there any plans to digitize the farmer engagement, demand forecasting, or dealer analytics?

That's already we've done it. Most of that is digitalized now.

We have the huge database of the early farmers, follow-ups that are already there. We have digital marketing network.

We have huge social media networks for that. We track everything from demand generation to the crop harvest.

Thank you, sir. Appreciate you answering my questions, and all the best for the future.

Thank you. That's it from my side.

Thank you.

Good afternoon, sir. My question is with respect to that demand received from income tax authorities.

In two consecutive years, we have received the demand. In one year, we received the demand for ₹56 crore, and second year, we received the demand for ₹70 crore.

I would like to get an update how the management is pursuing this cases and whether in future we are getting this exemption from the tax authorities for the agriculture income or not, whether any provisions have been made in this regard or not. Hello?

Hi. Sorry, the line got disconnected.

I was just answering the income tax one. Cases are pending with the Commissioner Appeals.

Once we get the outcome of the appeal, we'll update the status.

Sir, whether any provisions we have made for this demand, ₹56 crore and ₹70 crore?

Provision is we have made the appeals payment for that. Other one is we are showing it in contingent liability.

As such, no provisions have been made till now?

No, because we have cash, we have not made any provisions for that.

Okay. When we are likely to get update?

Because one case was in 2024 and this case also around 9 months back. When we are likely to get an update on these two cases?

Basically, there are three cases pending at the appeals stage. It's been almost 2 and 1/2 years there.

Most probably, it should come out in the next 6 months or so because the hearings are going on, the proceedings are going on. That should come out.

Sir. Okay.

Thank you. Thank you.

Good afternoon, sir. Am I audible?

Yeah. Please.

Sir, one question is a follow-up on the previous one regarding the cash. There is a dip in cash.

How has the receivables moved during the last one year? Because maize seed is the one which has grown significantly compared to other seed varieties, is there some significant sales to government agencies, government corporations for maize seeds?

Is that leading to a build-up in receivables?

Not much. If you see actual receivables as of now at the end of 31st December, last year, it was close to ₹175 odd crore.

This year, it's close to ₹250 odd crore. Just ₹75 crore have gone up because the sale is also higher in this quarter.

We are just waiting for that. We don't see any government portion in it, which a insignificant portion of government in it.

We are not worried about that. As a company policy, we provide anything more than two years as bad debts.

We don't carry it.

Okay. For exports, how do the receivables work?

Are the receivables outstanding for longer?

No, usually we work on LCs. We don't give any credit there, very few cases.

Okay. The receivables would be pertaining to our domestic sales only, not for the exports?

Majority of that is domestic, and we don't see any difficulty in getting it. At the year-end, it will get normalized.

Usually, at the year-end, the outstanding are in between ₹80 to ₹90 crore or something like that. It should come back to those levels.

Sir, two years ago, there was some outstanding receivable with government corporation which was unpaid, and so the company had made a provision for it, but the company was still pursuing it with a government corporation for payment. What was the outcome of that?

Still we have pending payments there. We received some ₹3 or ₹4 crore.

We are trying to get it. We are doing that, but it is all provided in the provisions.

Yes, sir. That part I understand that it was provided for.

Sir, another question is, there has been a sharp dip in maize prices. For the farmers output, not for the seed, but for the maize prices.

In light of that, do you expect there would be some correction in the volumes for maize next year because of the sharp dip in prices, or do you expect the maize volumes to remain stable next year?

We think maize volumes should remain good and healthy, and because acreages are going up and the usage is also going up. I do agree that the maize prices are down.

In fact, it went down to as low as ₹1,200 to ₹1,250, ₹1,300 crore. Right now, it's close to ₹1,800 to ₹1,900 rupees.

Anything above ₹2,000, ₹2,000, near to ₹2,000 is good price for maize.

Okay. What would be the price at which the farmer would break even, at what price the farmer would break even?

Farmer will definitely break even, but in terms of what returns he makes it, if anything close to ₹2,000 is a good return for it.

All right, sir. Thank you.

Mithun, sir, the last two years have been good for maize acreages, and a lot of companies have spoken in the past about there being a shortage of inventory. Do you see that going next season now that everyone knows that maize is the hot crop and acreages are going up, is there a chance that the market could see increased supply and hence there could be pricing pressure for the industry and for yourself as well for next season and beyond?

That's what happened this quarter itself, because last year by seeing the demand for the maize, everyone has produced more inventory including us. All the industry players have produced more inventory.

That's the reason the prices are also up in terms of the production cost, and there was a huge availability of inventory in the second half now. That's one of the reason why we couldn't pass it on to the farmer, and that also made some dent in our revenues.

It will normalize now because everyone has the inventory and everyone knows that.

Okay. Do you not see the risk of extra inventory flooding for kharif '26 as well?

I don't see that, because already it's there in the inventory. Everyone, as a industry, we all know that the inventory will be available.

Not a lot--

Everyone is working on that parameters.

Not a lot of companies have taken aggressive production for next season, you're saying?

No, in fact for this year itself, the current running year, '25-'26 financial year, most of the companies have taken aggressive production. That has resulted in extra cost of production for all the companies.

When you see the rabi, for the third quarter results what we are talking about, when we see the maize market, most of the companies have got huge inventory, and it was heavily flooded in the market.

Okay. Understood.

Already the prices at what we used to sell, that have been stabilized. That's the reason we were not able to pass it on to the farmer, and that's one of the factor why the cost of production has gone up for us when compared to the normal years.

Understood, sir. Sir, the cotton crop for the last year must have been harvested, sir.

Have you really got any feedback in terms of your performance of new products? You've seen products like the new two, three products you've launched.

How has the market feedback been for that?

Our products have really performed well, and we'll see that a good set of growth numbers coming in the next couple of years starting from '26-'27, June '26. We'll get to see good revenue increase in that.

Finally on cotton itself, sir, do you see any increase in illegal seeds this year, or do you see the volume going up again for the industry compared to--

I don't see that. It will be in the same level as what increase in that.

It should be very sideways-ish.

Then the industry is--

Basically because we will be taking some of that market share, basically because of the performance of the hybrids.

Sure. Thank you, sir.

Good day.

Sir, congratulations on great numbers, first of all. Since we were just on the subject of inventory, I would like to specifically ask about the cotton inventory.

Although I feel this must be an industry-wide problem because everyone has seen a decline in cotton sales because of the illegal HT seeds. What is our position of cotton inventory?

Do we see any risk?

No, as of now, available for the next season will be in between 8 to 9 million packets for us, which is in line with our anticipation. As a cotton seed, in our case, most of the hybrids what we have produced, the new hybrid, they will have a life at least for the next 3 to 5 years.

Definitely we will be liquidating them, we don't see any threat in that. In fact, we'll be taking new production for this year also, which starts in the month of May, June of '26.

Great. Thank you so much.

Thank you.

Thank you. Thank you.