Kaveri Seed Co. FY26 Results (NSE: KSCL)
Signal: Loss widened
The read
FY26 consolidated revenue growth of 20.2% and PAT growth of 21% mark an acceleration from FY25 (sales CAGR 16%, profit CAGR 13.7% per fundamentals). Q4 standalone remains a small, loss-making quarter, but the YoY improvement in OPM (-15% vs -18%) is a modest positive. The auditor's going-concern emphasis on one subsidiary (negative net worth) is a moderate red flag for group health, though the parent is net cash and highly profitable on an annual basis.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1.07 Cr | 18.9% | -49.1% |
| EBIT | ₹-0.21 Cr | 51.0% | |
| Net profit | ₹-0.28 Cr | -10.3% | |
| EPS | ₹-5.41 | -21.3% | |
| EBIT margin | -15% |
P&L walk
Consolidated full-year revenue grew 20.2% YoY and PAT grew 21.0%, driven by strong Q1 and Q2 seed sales; Q4 standalone loss narrowed as OPM improved 300bps YoY but remained deeply negative.
Segments
The company reports a single operating segment (sale of seeds); no geographic or segment splits.
Key positives
- Full-year consolidated PAT ₹13,039 Lakh (+21% YoY) — strong growth driven by Q1/Q2 seasonal peak.
- Standalone Q4 OPM improved 300bps YoY to -15%, showing margin trajectory improving even in the off-season quarter.
- Company remains debt-free with net cash of ₹1,74,049 Lakh, enabling R&D and capex without leverage.
Key concerns
- Standalone Q4 net loss widened 10.3% YoY to ₹2,828 Lakh, despite 18.9% revenue growth — fixed opex remains a drag in off-peak quarters.
- Operating cash flow turned negative ₹2,554 Lakh in FY26 (vs positive ₹18,010 Lakh in FY25) — working capital absorbed cash, likely from inventory build.
- One subsidiary has negative net worth of ₹491 Lakh and auditor flags material uncertainty over its going concern.
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