Thank you. Good evening and welcome everyone to our quarter four financial year '26 earnings conference call.

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

Financial highlights: revenue from operations were at ₹82.21 crore as compared to ₹76.95 crore in quarter four '25, grown by 6.84%. Net loss was at ₹25.65 crore as compared to ₹29.25 crore in quarter four '25.

Revenue from operations was at ₹1,303.77 crore as compared to ₹1,121.57 crore in financial year '25, grown by 16.25%. EBITDA was at ₹349.75 crore as compared to ₹274.29 crore in financial year '25, grown by 8.34%.

Net profit was at ₹283.26 crore as compared to ₹265.21 crore in '25, grown by 6.81%. Major highlights: financial year '26 was a strong year for the company with revenue from operations growing by 16.25% to ₹1,303.77 crore, while PAT increased by 6.8% to ₹283.26 crore on account of delivering good growth rates across all non-cotton segments like rice, maize, and vegetables.

Contribution from new cotton hybrids improved significantly, increasing from 10.3% to 30.05%, demonstrating strong acceptance of newly launched hybrids and strengthening of our future cotton portfolio, expecting growth in cotton sales across north, central, and south India driven by new hybrid products. Maize remained the key growth driver during '26 with volume growth of 18.84% and revenue growth of 40.17% supported by improved acreage and stronger market demand.

Hybrid rice revenues increased by 18.3% despite restrictions in Punjab, while selection rice increased by 2.58% and revenues grew by 9.76%. Hybrid rice growth is expected from key markets including Punjab, Uttar Pradesh, Bihar, Chhattisgarh, and Jharkhand.

Export business delivered exceptional performance with approximately 90% growth during financial year '26, while quarter four export registered growth of nearly 76% reflecting increasing acceptance in major international markets. Export business performance is expected to remain strong.

Expecting growth in rainy millet across Rajasthan and Uttar Pradesh. The contribution of new products of volumes of cotton was up from 10.3% to 30.05%.

Hybrid rice revenues increased by 18.3%, selection rice volumes increased by 2.38% and revenue by 9.76%, maize volumes increased by 8.84% and revenues increased by 40.17%. I would now open the floor for Q&A sessions.

Hi. My first question is regarding the inventory levels.

Last year our inventory had a very abnormal jump of 38%, but sales grew by only 16%. This year also we've had a 17% inventory growth towards the last year level.

Is inventory expected to normalize to a certain level, or will we keep this extra buffer that we've started to create?

17% up. This year we have produced more because last year there were a lot of competition in terms of production areas.

We have produced more intentionally to keep some buffer stocks. That's the reason we are increasing a bit of higher inventory level, but it's not a issue for the company.

Just strategically we have produced much to some extent. This time to some extent even 5% to 7% yields were also higher.

That is also an impact what we see in inventory levels.

The higher yield. That's good to know.

Any update on BT3, BG-3 trials?

As of now nothing, but it's just moving in a very slow pace, but nothing concrete as such. Once we get any update, we will definitely let you know.

It's still moving in a very slow pace.

Okay. El Niño effect or something that we see on our sales anytime or it's not really a thing?

It's too early to say because there's a lot of mixed opinion about the monsoon altogether. In the last week or three or four days, we are seeing pre-monsoon showers across most of the parts.

That may not be a right thing to judge. As a seed business, we require initial two or three showers before the seed, we may not have much impact.

The delay in the monsoon may impact the cropping pattern. As we are there in most of the crops and we have a product mix company, we might mitigate that risk.

As of now, we don't see much of threat in that.

Are you expecting cotton to continue de-growing?

Cotton should grow this year. This year the sentiment is also good across India.

In initial trend we see the cotton acreages is also growing. With the El Niño effect, even the sentiment for cotton is also good because it's a hardy crop.

The sentiment is good and we see there will be an increase in the acreage, and definitely we'll have an advantage in that. We'll be definitely growing in cotton as a whole.

With it, can I expect new products to become like it went from 10% to 30%, can it become 50% plus of our business?

Most of the growth what we anticipate this year should come from the new products. That we already seen initial trend last year, so that will continue to grow.

Will it have a similar margin or lower or something because of price cap?

This year we may not able to increase the prices how we have increased last year, but at the other end the production cost was also slightly lower than last year. In that way we will be able to maintain the margin, slightly maybe in a better way than last year because the other cost will come down.

Overall production costs are down from last year or

Because the yields are higher, the production cost was slightly down.

Great. Thank you so much, sir.

Thank you.

Good afternoon, Mithun sir. Sir, just wanted to understand on the balance sheet, sir.

On the other current liabilities, we've seen a reduction from ₹600 crores of last year compared to ₹470 crores this year. Sir, what does this pertain to?

Is it due to lower customer advances that you've received?

Yes, if you see the advances as such, from last year to this year, we have received ₹75 to ₹80 crores of lower advances.

Sir. What would be the reason

That's the main impact of that.

Okay. What would be the reason

Trade payables are also lower compared to last year.

Yeah. What would be the reason behind this lower advances, sir?

Is it because of a expectation of a poor season, for example?

Not really, but the sentiment of the farmer, the cash flow is a bit tight across the channels. Even we have not insisted more on advances because the margins are getting shrunk.

Okay. Margins would be at the farmer's end, is what you're trying to say?

No, margins at the company level. If we take an advance, we need to give more incentives to them.

We are not encouraged taking more advances and not floated attractive schemes.

Sir. Sir, in terms of the key crops for us, cotton, maize, and rice, how do you see the channel inventory into the system for all three of them?

If you can touch upon the illegal penetration especially in cotton for this year?

As of now, nothing is there in the channel. If you see in the company levels, because as a seed, nothing will be left in the channels.

Most of the inventory will lie with the company or in the season with the channel. The season is yet to begin.

The placements are slightly happening now in some areas. The inventory levels are pretty high in the system, especially with the companies.

That's a challenge. As the inventories are higher, that's the reason I said that we may not be able to increase the prices like what we did last year.

The branded products move more now.

Okay. Would it be the same, as you said, for all three crops, or do you see any difference in, let's say, cotton versus the others?

Generally high in all three crops. In all three crop, the inventories are high.

Sir. Sir, what

I said that most of the yields are also good. Most of the channel got the inventory.

Coming back to your second question regarding the illegal BT, except in Gujarat, we don't see any rise in illegal BT. In Gujarat, it's still continuing as of now.

It's still continuing as of now. Sir.

All right. Sir, your expectation in terms of how FY '27 could pan out in terms of volume growth or revenue growth and margins?

Sir, last time we have increased prices, that's the reason we have seen a lot of revenue growth. This time the majority of the contribution will be from the volume growth.

We see that's 15% plus percent of growth at the top line. We might grow much higher than what we have projected, like 15% plus at a company level, whereas in cotton, it should be more than 20 odd percent.

Volume growth in the good case can be 20 odd percent, is what you're saying?

In overall the revenue should be between that 15% to 20% growth, and cotton should beat the overall company in terms of the growth. We may not increase the prices, the revenue growth will be in line with the volume growth.

Sure, sir. Understood.

Thank you, sir. I'll get back in the queue.

Thank you, sir. Sir, regarding inventories, obviously you said all the mix of all the three crops would be there, but for the cotton, especially since now the hybrid is contributing more, would we have more inventory of the old cotton seeds which ultimately would call for a write-off considering two to three years of shelf life?

If you see the inventory compared to last year, the inventories are only up by 15% to 18%. As we are anticipating more than 15% growth in this year, we are in line with the inventory levels.

In terms of the write-offs, most of the inventory is the new production. We may not worry about the write-offs.

Especially in cotton, the seed will last for three years. The inventory what we have is hardly maybe maximum of 1.3 to one and a half years, not more than that.

If anything is left out, we will use next year.

Okay. You mentioned that this illegal cotton seed is still continuing in the state of Gujarat.

Despite that our confidence is extremely high on the cotton sales. Is it because of the price parity that we would have vis-a-vis illegal cotton or anything else apart from that?

No, we are not competing with illegal cotton at all. We are competing with normal legal BT cotton across.

As if you can see, our new hybrids have contributed more even in last year. Those hybrids have performed well last year.

We are anticipating a growth in those hybrids. That will contribute the majority of revenue in cotton.

Okay. Now, do you believe the overall reduction in last four years have come down of cotton from 45 to 120?

Now, of course, last year was an aberration. What would be next year likelyhood

Definitely, when

30% or

Definitely if you compare to last year, the contribution of cotton will be definitely higher this year when compared to last year because we see a very good growth in cotton this year. That doesn't mean that we will not grow in other crops.

We'll also grow in other crops, but cotton will be growing much better than other crops.

Okay. Sir, we saw some announcement regarding the tax rulings which in favor of the company at the appellate level.

Would you want to throw some sort of a management highlight in terms of what is the likelihood of past as well as future such tax liabilities or the obligation vis-a-vis the call of income tax department?

Whenever we had any litigation with the tax authorities, we have already intimated to the exchanges and to the investors. Because as we claimed it as agriculture income, it's not our company, it's across the industry where most of the companies claim it as agriculture income.

We are not the first or the only company who claim it. There's a dispute, and across if you see not only to Kaveri, but across industry you see, all the seed companies have won against the tax department.

It's just a recognition of the income, and we have won at the commissioner appeals level, and in most of the cases most of the companies have got many orders at ITAT and High Court. Even though there might be a litigation, we are not worried about it.

That's what we were saying in the last years also. We had a litigation, we are pretty confident that the nature of the income is agriculture income, and that is all clear in most of the courts.

It's a matter of time. As of now, we don't have any other litigations as of now.

If it comes in, definitely we will know. As of now, we don't have any litigation.

Okay. Sir, anything update on the Seeds Bill that was earlier last year proposed?

Anything on that?

That should come this year most probably. Anytime and it's moving very actively.

That should be out very very soon.

Oh, okay, sir. Sir, since last two years, obviously dividend has been maintained, but excepting last year, we had done buyback as well.

This year there is no announcement of additional dividend. Any thought process at how to plan?

Usually we give only one time dividend. That is usually in the second or third quarter we see.

We were regularly dividend paying. We have not changed our policy regarding dividend.

Even though we don't have a policy, we're giving on the same time. In terms of the buyback, last year we have not done because we were pretty much sure that we are producing more, we need to maintain for the inventory.

The money is stuck, and that's what you are seeing now. Once we realize this money in the next three to five months, then we'll come back with that.

Okay. Just last question, sir.

Since now last year, of course, the cost of production, etcetera, were higher. Now you're saying that the cost of production is likely to be lower.

On the other side, price is not going to happen. Like you said that 15% to 20% growth should be there on that revenue level.

On the margin front, over 24%, do you believe that we can cross owing to reduction in cost of production?

As as most of the other expenses are same or will be lower than last year and slightly lower production cost compared to last year, that's where we see that the margin should go up this year compared to least year, past year.

Okay. Thank you, sir, and wish you all the very best.

Thank you.

Good afternoon, sir. My question is on capital expenditure.

There is a capital work in progress of ₹99 crore at the standalone level and ₹129 crore at the consolidated level. What is the CAPEX being undertaken by the company and its subsidiaries?

What kind of facilities are being built?

Most of the facilities are office building or plant and machinery. Land, office building, and plant and machinery, these are the one the most of the CAPEX is there.

Out of which only ₹30 odd crores is with one building which is going on, and some with acquisition of land, and some with seed processing unit and the machinery.

Land purchase is basically for R&D land or for For R&D, for R&D. Oh.

Thank you, sir.

Mithun sir, if I just look at the gross margins over the last two, three years, we've fallen from those peaks of 49% to roughly 49.5% to 47% today. In FY '28, sir, do you expect any gross margin expansion, or will the margin expansion purely be led because of operating leverage?

Even we see something gross margin level because in last two, three years, rightly observed, the cost of production has gone up, and at the same ratio we were not able to pass it on to the farmers. Now the cost of production is slightly lower and the prices remain at the last year level at least, if not higher.

We might increase the gross margin this year. The addition in bottom line should be across all gross and the operational levels.

Okay. Sir, I just wanted to specifically touch on maize.

You had alluded to the fact in one of the earlier calls that maize channel inventory in the system is very high compared to previous years. Given, sir, this is an El Niño year, maize has competing crops like soya bean and pulses which are expected to do well, do you see very high pricing pressure in maize for the coming kharif season?

As of now, the sentiment is not that great for maize. Last year the yields are very much higher.

I'm talking just about the kharif part. Because the yields are good, the sentiment is good.

One is because of El Niño there is mixed opinion about El Niño, and the other thing is that it's some sort of a shortfall in terms of the fertilizers in the market. That's also impacting to some extent, but it's too early to talk about that.

That's the reason we just see as sideways in the kharif part, but second rabi we see a very positive thing for maize. As a company as such, even in kharif, we'll be growing because we are targeting some other pockets where we're not strong.

We have very good hybrids in those segments. We'll be growing even in this particular tough conditions.

Sir. You've had a lot of success with your new products in maize over the last two, three years.

Is there any major new product launches that you're doing this year, or have you done last year which could start contributing to revenues?

That's a continuous act what we do, but the last two, three years what we have done, those will be a major contributor for this year and for the next year.

Sure, sir. Thank you.

Thank you.

Good afternoon, sir. Sir, till now Kaveri Seed was using the Kaveri brand in the market.

Now you have started using one of the subsidiary Aditya brand also. When you're looking at the market, how are you dividing the market segment between the Kaveri brand and Aditya brand?

Are they targeting different segments, or they are competing with each other also?

In terms of the company level, it's a 100% subsidiary of Kaveri. The products what we sell in Kaveri and Aditya are altogether different.

We have another subsidiary by name Genomeics also. All three companies sell different products.

Because as we have good R&D and we having many new hybrids which are like V2 and in different segments, as a company, we may not be focusing on most of the hybrids. Those hybrids we give it to Aditya and Genomeics.

In most of the cases, they compete also among themselves. As a hybrids, they all operate independently.

They are nothing related to each other. The main product is in Kaveri, and same thing like V2 will go to those products.

All right, sir. Thank you.