Kaveri Seeds Plans Portfolio Diversification to Reduce Cotton Dependency

Kaveri Seeds is implementing a strategic shift to strengthen its non-cotton seed portfolio by focusing on maize, rice, and vegetable seeds. The company is expanding its research and development efforts to develop climate-resilient seed varieties and pursuing export market opportunities along with hybridization programs. This diversification strategy is designed to reduce the company's dependence on cotton seeds while targeting double-digit growth and margin recovery through its expanded product offerings.

Kaveri Seed Company Reports Q2 FY2025-26 Results with Double-Digit Revenue Growth

Kaveri Seed Company Limited announced its Q2 FY2025-26 results. The company achieved double-digit growth in revenues and EBITDA during H1 FY25. The board recommended a 250% dividend of Rs. 5 per equity share on a face value of Rs. 2 per equity share. Maize volumes increased by 29.7% with revenues growing 56.76%. Cotton sales were impacted by increased illegal cottonseed usage and higher production costs affected overall profit growth. Hybrid rice volumes grew 0.9% with revenues up 21.48%, though sales were affected by restrictions in Punjab. Selection rice volumes increased 2.60% with revenues up 11.07%. Vegetable seed revenues increased 31.06%. The contribution of new products to cotton volumes increased from 11% to 36%. Standalone revenue from operations reached Rs. 1041.91 crore in H1 FY26 compared to Rs. 889.85 crore in H1 FY25, representing 17.09% growth. Consolidated revenue from operations was Rs. 1077.43 crore in H1 FY26 versus Rs. 940.67 crore in H1 FY25, showing 14.54% growth.