Kaveri Seed Company Limited (KSCL) Q2 2027 Earnings Call Transcript

“K Kaveri Seed S Coompany y Limitted Q2 FY '277 Earninngs Confe ference Call” October 29, 2026

MANA AGEMENT T: MR. MITHUN CHAND – EXECUT TIVE DIRE ECTOR, KAVE ERI SEED COMPAN NY LIMITE ED

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Kaveri Se eed Companyy Limited October 29, 2026

Moderatoor:

Ladies and gentlemen, go ood day and weelcome to the Kaveri K Seed Com mpany Q2 and H1 FY '27 C Calll. Earnings Conference As a remiinder, all particcipant lines willl be in listen-o only mode. Theere will be an opportunity o for you too ask questions at the end of tooday's presentattion. Please notte that this confference call will be reccorded. Joining uss today on thiss call is Mr. Mithun M Chand - Executive Direector. Before we w begin, I would likee to mention that some of the statements s madde in today's calll may be forwaard-looking in nature and maize inv volve risk and uncertainties. u F a list of su For uch consideratioons, please refer to thhe earnings pressentation. I would noow like to handd over the call too Mr. Mithun Chand. C Over to you, sir.

Mithun C Chand:

Thank yoou. Good evenning and welccome everyonee to our Q2 and a H1 FY '227 Earning Conferencce Call. We hop pe you had a chhance to review w the presentatiion of the results which is also availaable on our web bsite. I would toouch upon the operational finnancial perform mance of the com mpany and theen open the floor for a Q&A session. Revenue from f operations was at Rs. 1225.44 crores as compared to Rs. R 96.61 croress in Q2 FY '26, a growth of 29.84% %. EBITDA was at Rs. 5.42 crores c as compaared to a loss of o Rs. 6.47 crore. Nett loss narrowed to Rs. 3.21 croore as comparedd to a net loss off Rs. 15.05 crorre. On a segm mental basis, non-cotton revennue was at Rs. 116.82 crore as a compared too Rs. 90.53 crores, a growth g of 29% % while cotton rrevenue was at Rs. 8.61 croree as compared to t Rs. 6.00 crore, a grrowth of Rs. 41 1.7%. Revenue from operation ns was at Rs. 940.44 crores ass compared to Rs. 1,0441 crores. EBIT TDA was at Rs. 286.68 crores as compared to o Rs. 315.88 croores in first half 26. EBITDA E margiin of 30.48% as a compared too 13.32%. Net profit was at Rs. R 268.09 crores as compared c to Rss. 301.45 croress. Cash on bookks stood at Rs. 178 1 crores. On a segm mental basis, noon-cotton revenuue was at Rs. 718 7 crores as coompared to Rs. 817 crores, a decline of 12.12% whhile cotton reveenue was at Rss. 224 crores as a compared too Rs. 224.9 crore, a deecline of 1.3%. The majoor highlights: First halff of 2021 was shaped by El Nino N and delayyed onset of th he monsoon. The T rainfall mpacted sowingg across the major m growth seegments and reeflected in low wer interest deficit im towards premium p high-v value products which weigheed heavily on the t first quarterr. The 2nd

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Kaveri Se eed Companyy Limited October 29, 2026 Quarter saaw a recovery with w revenue grrowing at 29.844% and EBITD DA rising to Rs. 5.42 crore as compaared to Rs. 6..47 crore loss. Despite the lower revenuee, the companny broadly maintaineed an EBITDA margin at 30.448% of net reveenue as comparred to 30.32% of o first half 26. d on the halff, with volumees down by 36% % and revenuees down by Maize waas the largest drag 36.3% ow wing to a nearly 30% drop in soowing acreage in i Karnataka. New N products coontinued to gain chainn with new cottton products coontributing 37.7% as compareed to 21.4%. New N singlecross hybbrids contributeed a substantiall 21.8% of maiize portfolio. The T export business grew 2.63 times to Rs. 33.07 crores from Rss. 12.56 crores in first half. The T board has ddeclared an intermediaate dividend off Rs. 5 per sharee, i.e., 250% of the face value of o Rs. 2 per shaare. Operation nal Highlights: The contrribution of new w products of cootton was up from 21.4%-37.77%. Cotton vollumes were maintaineed vis-à-vis last year in spite off challenges likee illegal cotton and reduction in i acreages in first haalf of 27. Reveenues at Rs. 2222 crores as compared to Rs. 224 crores. Inn quarter 2, cotton revvenues grew byy 41.7%. In cotton, the company has establiished a strong foundation with new products in thhe northern marrkets of Haryan na, Punjab and d Rajasthan, as well as in central annd southern marrkets. Maize revvenues were att Rs. 188.47 crrores as compaared to Rs. 2995.84 crores, a decline of 36.3% whhile new singlle-cross hybridds contributed a substantial 21.8% growthh in maize portfolio. Hybrid rice revenues were att Rs. 264.4 croores as compareed to Rs. 282.556 crores, a p registereed significant growth g to Rs. 117.33 crore decline off 6.4%. In quarrter 2, hybrid paddy from Rs. 2.37 2 crore, prim marily due to thhe export busineess. Selection rice r revenues inncreased by 2% to Rs.. 169.45 crore as a compared to last year. In qu uarter 2 FY '277, research padddy grew by approximaately 22%. Veggetables revenuues were at Rss. 25.99 crores as compared to t Rs. 31.7 crores, a decline d of 18%. Revenues from m other crops were w at Rs. 70 crores c as compared to Rs. 40.8 crorees, a growth of 71.6%. 7 To build on o the export momentum, m the Board has apprroved the incorpporation of whoolly-owned subsidiaries in Tanzania,, Kenya, Vietnaam, Thailand, Philippines, P Ind donesia, Zambiaa and Peru, which willl focus on prodduct registrationn, research for seed and vegetaable crops, andd marketing and distribbution. The coompany holds thhe globally reccognized ISTA accreditation for f the QC Lab, besiddes its ISO-NA ABL accreditatiion. The overalll growth story y remains intactt. The first half has been b challenginng on account of o the weather, but the recoverry in the 2nd Quarter, Q the rising shaare of new prod ducts and growtth in exports gaave us confidennce in the direcction of the business. We will contin nue to work on new variants across maize, veegetables, rice and a cotton, and to buiild our presencee in the internattional market thhrough the new subsidiaries.

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Kaveri Se eed Companyy Limited October 29, 2026 w open the floorr for Q&A sessiion. Thank you. I will now Moderatoor:

Thank youu, sir. We will now begin the question-and-aanswer session. The first questiion is from the line off Rushabh Shahh from Buglerocck PMS. Pleasee go ahead.

Rushabh Shah:

Hi, thankss for the opportunity. Sir, my question is, wee are expanding g into 8 countrries and we had also sent s some sampples to Philippinnes in the last quarter. q But thee results we weere awaited yet. And as a you say thatt foreign countrry farmers are tougher t to convvince to use ouur products. So just waanted to know what w is the thouught process gooing behind, lik ke expanding intto so many countries, because earlieer also we had tried Bangladeesh, but we weeren't as successsful as we w would be? thought we

Mithun C Chand:

Basically,, if you see our export businesss, compared to 5 years back to o now, we havee increased our exporrt business harddly from Rs. 10-Rs. 12 crores to t almost like Rs. R 65-Rs. 70 crores c now. Going forrward right now w, if you see our o model, we are exporting our seed and billing b it to some disttributor there and a they are seelling our seedd there. But gooing forward, we w want to establish our o own brand d. To establish our o own brand, we went to teest there, whichh takes 3-4 years to test t it. So for that, we requiire registrationss of the compaany, incorporattion of the company, and trialing annd registration of the hybrids under the comppany. So now we w want to I will take som me time, may bee 4-5 years. So it will take som me time for open up ggoing forward. It us to test, trial, and then introduce hybriids and create our o own brand there. t So that iss the reason w have not we are tryying to incorporate the compaany. For exampple, in terms of Bangladesh, we failed therre. We are successful. We aree doing businesss in Bangladesh. The only thhing is that still we arre trying to deveelop the brand. Once we devellop the brand, we w will sell it inn our name. Whereas in i countries likee Africa, we neeed to register our o hybrids, wh hich takes 3-4 yeears for us. So alreadyy, if you see ouur exports, we have h done a go ood business in Tanzania. We have done business iin Indonesia, Philippines, andd Vietnam. So we w are trying to develop our own brand there, whiich takes time. At the same tiime, we will trry to export ou ur business to distributors. d And then we will try to build b our own hybrids h and nam me.

Rushabh Shah:

Sir basicaally, I think thhe difference thhis time wouldd be that in Baangladesh versus African countries, the registration ns take more tim me, as compareed to Bangladesh, what we havve seen?

Mithun C Chand:

a the end of thhe day, if you want w to sell our own hybrid and d our own brannd, we need Yes. But at to registerr there. For thatt, you require a local incorporration. Right noow, we are justt exporting. They are selling s on their own brand.

Rushabh Shah:

My next qquestion is thatt we are a seed company. And d in a previous call, you have mentioned that this period p is very chhallenging for us u due to this end-to-end e modde of less rainfall and such sort of thiings. I just wan nted to know thhat we have faaced such timess, such tough tiimes in the

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Kaveri Se eed Companyy Limited October 29, 2026 history off the company.. So I wanted to know what is different thhis time, and hoow are we tackling thhis situation diffferently? Mithun C Chand:

So if you see our sale rigght now, first haalf is already done, where we have seen the majority m of m impact theere. Definitely, there will be so ome impact in the second the impacct. I don't see much half as weell. But we have already seen the impact. Wee are down by 10% 1 in the overall sale. If you see inn the region-wisse, if you take maize m as a crop, where we are down by more than 35%40%. Andd the majority of that decline is in Karnatak ka, where we have h seen moree than 30% deficit raiinfall and especcially in Northeern Karnataka. So that has im mpacted our maaize sales a lot. Even then, we were able to cope uup in some areeas. And overalll, the situationn where we p of Maharrashtra, the were stronng in terms off sales like Teelangana combiined Andhra, parts rainfall annd the acreagees are pretty ddown. So thatt has impactedd us. Even in the tough conditionss, we were ablee to maintain thhat. Except for in maize, we were w able to maintain m our market shhare and revenuues close to whhat we had donne last year. Soo this is one off the tough years wheere we have seeen, and I thinnk you are all seeing the rep ports, how diffficult, how challenginng is the seasonn this year. Andd yes, we are inn this business,, but it is one of o the years with nothhing to worry about a the futurre. And if you see the compeetence and by seeing the situation, I think we had really done well when comparred to many plaayers in the induustry.

Rushabh Shah:

o more thingg on this markeet share. My quuestion is on thhe illegal cottonn front. We And just one have alwaays mentioned that t the governnment is taking steps to stop thhis illegal cottoon sale. But still sir, company c like Kaveri K is askinng seeds, who are leaders in cotton seeds, have h faced challengess in gaining orr rather maintaiining the market share in the cotton seed buusiness. So every time there is an in ncrease of illeggal sale of cotto on and smaller players are com ming up in h are you taackling this sittuation of marrket share? this cottoon seed business. So since how Because every e time, we see s some steps have been takeen, but nothing to t go with smalller players to come annd take our marrket share in the illegal cotton sale?

Chand: Mithun C

There are two things in this. t One is thaat the illegal cottton is going upp year-on-year. It went up m Butt if you see significanntly high in the previous time.. Right now, it is just going marginally. the governnment is also taaking steps to coontrol it. And as a when we see in terms of the actual real practical problem, p if you u see in the last 10-12, in fact in i the last 15-16 years, we havve not seen any new technology t which got introducced in GM techhnology. And thhe illegal BT whhich is like what theyy say BG2 RRF is already theree in the market.. That is taking over. That is thhe reason it is taking time. But wheen you see the market share of o the new hyb brid that is goiing up, the u we are able to maintain andd will grow market shhare of the olderr hybrid is comiing down. For us, further beecause we have new hybrids which we hav ve introduced in northern segment and central annd southern seggments which are a really doing g well. That is the reason wee think that even thouugh the illegal BT B is there at thhis percentage, it will definitely grow next yeear in terms of the hybbrids.

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Kaveri Se eed Companyy Limited October 29, 2026 Rushabh Shah:

panies like Bayyer have grownn in certain Sir my laast question is, I just wanted to know comp things likee maize, but wee couldn't do soo. You had menntioned that thee problem is thaat we don't have the product p for that particular statee like MP. So arre we planning to?

Mithun C Chand:

I am not sure that how much the Bayyer has grown because I donn't have the exxact figures comparedd to what we haave grown. But yes, if you seee the overall accreage in India, except for Madhya Pradesh, P no otheer state has grow wn. If you see the t overall maizze yields, the laatest yields, if you seee the comparisonn compared to previous years,, the yield will be lower by at least 20%25% comppared to last yeear in terms of the t maize outpuut. That is the initial i figures w what we get in terms of o the productiv vity. But in term ms of the Madhyya Pradesh, it has h really pickeed up in the last 4-5 yeears. We are noot that very stroong in Madhya Pradesh. But iff you see southeern parts of India, especially Karnataaka, combined Andhra, A so we are a pretty muchh stronger than Bayer. B

Rushabh Shah:

w don't have products for My questiion was on thatt front itself thaat there are certaain states that we that particcular state like Maharashtra M or MP, and that we w are stronger in the southern part?

Chand: Mithun C

We have products for Maharashtra, M wee have productss for MP, but itt is taking somee time. We are late inn entering the MP M market.

Rushabh Shah:

Thank youu.

Chand: Mithun C

But goingg forward, definnitely we will bee increasing ourr market share in i MP also.

Rushabh Shah:

Thank youu so much.

Moderatoor:

Thank youu. The next queestion is from thhe line of Viraj Kacharia from SIMPL. Pleasee go ahead.

Viraj Kaccharia:

Thanks foor the opportunnity. Just a couuple of questions. First is on the cotton pieece, just an extension to what the earrlier participantt was asking. See, I understand there has beeen a sizable penetratioon of illegal cootton in the marketplace, andd there is a material m contracttion in the acreage, what w it used to be for cotton 3 or 4 years bacck. But if I lookk at your own last l say, 10 years salees growth, we have grown arouund 6%-7% annnualized growthh. So while the non-cotton has been growing at a veery healthy douuble-digit, the cotton c pieces were w shrunk. Soo if there is i just fighting into the value pproposition no materiaal change in neew technology, and everyone is on the seecond level tecchnology, eitheer in terms of better yield or o tolerance levvel of pest infestationn, how should we w understand our cotton porttfolio growing from here? Can it double over the nnext 3-4 years, or o do you think it will be able to t only sustain the current leveel based on the new laaunches we madde? How are yoou looking at it??

Mithun C Chand:

So basicaally, if you see our portfolio, w when you com mpare our portfoolio for 6-7 yeaars back to now, evenn though it lookks like 5%-6% m mere growth orr a flattish sale in i the last 5-6 years, y but if you see our o product miix, as you righhtly pointed ouut, we have grrown more in non-cotton

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Kaveri Se eed Companyy Limited October 29, 2026 s In facct, we are de-gro own in cotton, where w we had at a the peak, segment thhan the cotton segment. we had close to 85% of our revenue was from cotto on, right now it is less than 20% from m has changed, the product portfolio has changed in terms of the cotton. Soo the product mix contribution of the reven nue. Yes, if youu see our currennt sale when coompared to prevvious year, oing, majority oof the sale is frrom the new hyybrids, not from m the older whatever sale we are do G forward, as it takes a lott of time, you are a very much aware a that it takkes a lot of hybrids. Going time for us u to introduce new n hybrids. Soo we have donee in the last 2, 3, 3 4 years, may be 1, 1-1/2 year delayy we had becaause of the moonsoon effect and a everything,, so we were not n able to advance as a what we thou ught. But if youu see the presennt performancee for this year, the t hybrids are really doing well whhen compared to t other compettitors. And goin ng forward, definitely we can doublle our sale in thhe next 3-4 yearrs in terms of thhe cotton portffolio, and basicaally we are pretty connfident because of our productt performance inn the market. So definitely froom here on, we don't see cotton goin ng down. Evenn in this stage,, if you see ovverall cotton accreages are king up, and theere are new techhnologies, new segment whichh is coming down, illeegal cotton pick up, even in i this tough sccenario, we are able to maintaain our volumess. So that itselff shows the strength of o our product portfolio. p And going g forward, definitely we will w see a positiive trend in cotton as well. w Viraj Kaccharia:

What willl be the age proofile of the portfolio in cotton?? Both when it comes to the neew product and the olld?

Mithun C Chand:

If you seee in that, the grrowth which we w are seeing, liike 50% is all about new porttfolio now. And goingg forward, majo ority, 85%-90% %, if you see in the next 3-4 yeears, 85%-90%,, more than 90% will be b new portfoliio.

Viraj Kaccharia:

So increm mentally for cottton, will the grrowth be largelyy product driveen? Or do you think there are pockeets in the markeet, in terms of geography, g or applications a wee are not there, and that is where it will w help us gro ow? Because we w have that Rss. 25 - Rs. 50 crores c of cottonn portfolio, you wouldd have the old products, whicch after a certaiin age, will be gone off the shhelf. While the new products p are scaaling up, there is a negating effect e as well. So S just kind off looking at doubling, say from Rs. 250 2 odd crores to Rs. 500 crores in 3-4 years, how are youu looking at the constrruct of that?

Mithun C Chand:

That is whhat I was sayingg, even in the earlier statementt, I have given that. Whatever will be the sale after 3-4 years downn the line, majoority of close too 80%-90% of the sale will bee from new b only from thhe new hybridss, not from hybrids onnly. Whatever the incrementaal growth will be the older ones. o And even n that older oness will be faded out, and the enttire market sharre from the older one will also be takken by the new w one. By takingg that scenario and a situation, anticipating a that, I sayy that 80%-90% % will be a new hybrid h portfolio o.

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Kaveri Se eed Companyy Limited October 29, 2026 Viraj Kaccharia:

m questions.. On the non-cootton, especiallyy, we are also looking l at scaliing up with Just two more segments like vegetabless and fruits. Buut I think last few fe years, we had h minimal success. And t this earlier as well, but the t segment com mpetitive inten nsity is very higgh and you we have tried have MNC Cs who are quite dominant in the space. So when w we are loooking kind of breaking b in, any color you can give where are we in terms of lauunches? How are a we going about? a Any color you can give on thaat?

Mithun C Chand:

a growing in vegetables v also. If you see ourr portfolio befoore 10 years, it was w almost Yes, we are zero. Now w, last year wee had done arouund Rs. 65-Rs. 70 crores in vegetables v itsellf. Yes, the growth, what w we though ht, we thought will be around d Rs. 100 crorres in the next 1-2 years, which is very much poossible as of noow. But in thee last 2-3 yearrs, we have seeen seasons ompetition, MN NCs are not changing pretty fast. Thaat has impactedd much. But in terms of the co i most of the product p portfoliio, we are comppeting with new for us. If you see ouur competition in both dom mestic and MNC Cs. We are the only player in India who com mpete with bothh domestic and MNC Cs. And if youu see, except foor cotton, in alll our segmentt, we are comppeting with MNCs. The competitionn is not new annd we competee with them. And A we have reeplaced our hybrids onn par or much better than theem. Then only the farmer willl accept it. So we are not worried about a the comppetition. Competition is alwaays there. And definitely, bassed on our product peerformance, wee say that we wiill grow in those segments.

Viraj Kaccharia:

And in terrms of the expoort piece, the laast question, seee, as you said, if i you want to go g our own brand, theen we need too have entities and apply forr registration. So S typically, what w is the timeline for f one to get reegistration? Andd for us to scale up in each off those markets,, would we need to haave investmentss in P&L in term ms of feet on sttreet? Or how arre we looking into i the goto market??

Mithun C Chand:

There aree two things to t notice in thhis. One is thaat these are th he entities which we are incorporatting right now, only to registerr our hybrid is there, which reequires a minim mum cost in terms of the investmentt. That doesn't mean that wee are stopping our exports. We W will be ut directly, we will w not be continuingg with our pressent model, whhere we will bee exporting. Bu under our brand. We willl be exporting tthrough distribuutors. They willl sell on our braand or their a we are establlishing and own brandd, based on thee country requirrements. But gooing forward, as growing in i export, we want w to establishh our own brannd in those cou untries. That is the reason we are tryying to incorporrate those comppanies. And it will w take a long time, at least nothing n less than 4-5 years y to start a business b there. But somewheree we need to staart, we are startting it right now. In teerms of the inveestment, it is a very v minimum investment.

Viraj Kaccharia:

What cropp segments do you y think have maximum poteential for exportts?

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Kaveri Se eed Companyy Limited October 29, 2026 Mithun C Chand:

a rice. And inn some areas, GM G cotton is alsso there. So Basically,, we are competting on maize and again, thaat depends on th he local provideer there. But thhese are the threee main crops that t we are targeting plus p vegetabless.

Viraj Kaccharia:

Thank youu.

Moderatoor:

Thank yoou. The next quuestion is from m the line of Dhruv D Saraf froom Bowhead Inndia Fund. Please go ahead.

Dhruv Saaraf:

Good afteernoon, sir. Sir, just wanted to know about the inventory, sirr. We have seenn inventory at Rs. 1,2000 crores and itt is kind of not decreased from m March levels.. Whereas histoorically, we have seenn inventory kin nd of in seasoonally weak in H1, it kind of o comes downn. So what explains this t buildup of inventory? Andd does it pose a risk of any biig write-off? Beecause it is now at veery high level compared c to youur past, even iff I look at the last l 2 years or tthe last 4-5 years?

Mithun C Chand:

mpare to last yeear, in terms of the absolute terrms, in terms of the inventory, we are up If you com by Rs. 1550 crores when compared to comparable c on September to September basis, roughly Rs. 150 crores. c That is what is reflectting in the cashh on books as well. If you seee the cash results alsso, it has gonee because we have h more inveentory when co ompared to lastt year. The amount iss close to Rs. 150 1 crores. Andd in the last call also, we expplained that onee thing, the productionn was higher th han anticipated in some crops because the yieelds were higheer. And the other thinng is that especcially in the acttual sales for the t projected saales, anticipated sales are lower. That is the reasonn the inventory has h piled up. Bu ut in terms of thhe risk factor, whether w we he major inventoory is with ricee, cotton, and thhe other big croop is maize. are going to write-off, th a cotton, it iss not a difficultt thing. Again, we w are taking some s sort of prooduction in And rice and rice, in soome varieties annd in cotton as well, w where wee have some scaarcity. So these two crops, we are noot worried abouut. Whereas in maize, m we havee completely stoopped taking a production this year because we haave inventory. And A in terms of o the storing of o the inventoryy, we have i it is propperly stored theere. And we doon't see any enough innfrastructure whhile receiving itself, write-offss as of now andd it is properly maintained. Annd the results, what w you are seeing is an impact off post write-offs fs. So what we anticipate in teerms of the wriite-offs, it will be in line. ming forward beecause this inventory will all be used in We don't see any major write-offs com n stopped. Wee have not takeen any productiion plan for Khharif or for the Khariff as we have not Rabi, for maize m this year. So this inventtory will be usinng for the next year. y

Dhruv Saaraf:

And this inventory i will not n be used for Rabi this year,, let us say, beccause the maizee prices are strong?

Mithun C Chand:

a use for Rabbi as well. But if you see the maize m price, it iss already quite high h at like We will also Rs. 32 lasst night. It wass around close to t Rs. 32 at alm most like a lifee high. But if you y see the

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Kaveri Se eed Companyy Limited October 29, 2026 ost of the com mpanies have goot a lot of actual connditions here, Bihar is doingg well. But mo inventory there. There iss a lot of compeetition in Bihar. We will also grow g in Bihar and a eastern parts to some s extent. Buut the majorityy of the part liike combined Andhra, A Maharrashtra and Karnatakaa, still we havee not seen rainns. So definitelyy, there is som me impact in teerms of the second haalf sales in maiize. So we don''t anticipate muuch of a positivve response in the second half in terrms of the maizze. But yes, Khharif looks good d for us. The neext Kharif lookks good. By seeing thee maize price annd the inventorry levels and wiith the productiion anticipationn estimates, we see thaat maize is com ming up very weell in the first half h of next yearr. And we are not n worried about thatt. Dhruv Saaraf:

So do youu foresee any soort of like shortaage in terms off maize seed agaain next year? IIs that what you are tryying to imply?

Mithun C Chand:

No, most of the compaanies have maizze seed and esspecially like our o company, Kaveri K has m seed for next n year. Whatt we are trying to anticipate iss that by seeingg the maize enough maize price righht now, the maiize acreage willl definitely go up next year. Even E if sentimeent is good now, but the t water is verry low now. Soo that is the reaason we are sayying that it mighht or might not come up now.

Dhruv Saaraf:

o this year. Whhat are your esstimates for Right. So,, sir, you have seen 9%-10% decline in H1 of the wholee year now? Doo you expect to continue at thiss 9%-10%? Or do you expect to grow in the secondd half given whhat you have jusst spoken aboutt maize? And maize m is the larggest crop in the secondd half?

Mithun C Chand:

If you seee in the second half as a standaalone basis, beccause I am not taking a consollidated one because other o two subsiddies are there. But B as a standalo one basis, we have h done arounnd Rs. 270Rs. 280 crores c in the seecond half as coompared to lasst year. As of now, n we see 100% plus or minus, beecause we are anticipating a a strong s export inn the second half h again, whicch is doing well. Andd we slightly seee a decline in other o crops. Soo it should be compensated, c 100% plus or minus shoould be the inittial call. But rigght now, if youu are very mucch aware that one cyclone which is aaffecting Andhhra, that is slighhtly a positive impact where you can see a maize. To what extennt it will fill thee tanks that willl make some im mpact on the maaize and other crops. c Even they are saaying that that will w be extendeed for some parts of Telanganaa and parts of sllight extent of Karnataaka. So that will be a positive trigger for us. But we need too wait for anothher week or so, till thiss festival, Diwaali.

Dhruv Saaraf:

All right, sir. I will comee back in the quueue. Thank youu, sir.

Moderatoor:

m the line of So onaal Kohli froom Bowhead Inndia Fund. Thank yoou. The next quuestion is from Please go ahead.

Pag ge 10 of 17

Kaveri Se eed Companyy Limited October 29, 2026 Sonaal Kohli:

Hello, Mithunji. How aree you?

Chand: Mithun C

Fine, sir.

Sonaal Kohli:

o questions. Diid I hear you correctly? c You saying that in the second So, Mithuunji, a couple of half of thiis year, you exppect plus or minnus 10% Y-on-Y Y growth. Did I hear you correectly?

Chand: Mithun C

Yes. Becaause I was just checking it outt. Last year, on a standalone baasis, we had doone Rs. 260 crores in the t second half. f.

Sonaal Kohli:

So, on a console basis, you had done Rs. 317 crores, what is the difference andd confusion c you coould help us undderstand? about stanndalone versus console,

Chand: Mithun C

We have oother four subssidiaries where we do sale as well w in that. So that are all Rs. 40-Rs. 50 crores. Thhat also, as a consolidated c baasis also, it shouuld be less or minus 10% or more than that.

Sonaal Kohli:

y expect, in your y assessmentt, like in last few w weeks? Any recennt changes, becaause of which you

Chand: Mithun C

Sorry?

Sonaal Kohli:

Any recennt changes in yoour expectations, based on weaather pattern in last few weekss, months?

Chand: Mithun C

Nothing much. m But whatt we have seen is that in termss of the cyclonees and everythinng, usually in the secoond half, from October to Novvember 10th orr November 15tth, you get manny cyclones in parts which w have rainnfall in Andhra and Telanganaa, one we are already seeing nnow. But if we are abble to cover som me parts, then sale s will be goo od. But other parts, p Maharashhtra, we are not seeingg any sale in Maaharashtra.

Sonaal Kohli:

Instead, your y EBITDA margins m are dow wn about 200 basis points for the t first 6 montths. Would you expecct the trend to reemain for the fuull year also?

Mithun C Chand:

EBITDA margins are, inn fact, as a stanndalone basis annd as a consolee basis, down byy only 1%. If you seee at a PAT levell, it might be.

Sonaal Kohli:

On a 6-moonthly basis?

Chand: Mithun C

On a 6-moonthly basis, the EBITDA marrgins, if you.

Sonaal Kohli:

Is down 200 2 basis points, 190 basis poinnts.

Pag ge 11 of 17

Kaveri Se eed Companyy Limited October 29, 2026 Mithun C Chand:

DA margins on a half-on-half basis, b on a stanndalone basis, itt is 30.48% No. If we see our EBITD 5% compared too 30.8%. It comparedd to 30.32%. Annd then as a connsolidated basiss, it is like 29.85 is only doown. But if you are seeing at thhe PAT levels, we w had more otther income lastt year.

Sonaal Kohli:

So now may m be there is a mix in my num mber. I will havve a look whateever I have?

Mithun C Chand:

In fact, onn a standalone basis, b the EBITD DA margins aree slightly up thaan last.

Sonaal Kohli:

We look at a consolidated because finallyy looking, buyin ng the consolidaated.

Chand: Mithun C

Console, we are down by b roughly aroound 1%. I am m talking aboutt EBITDA is nothing n but minus othher income. Wee are down becaause in subsidiaaries, majority of the subsidiarries, we do cotton, whhich we are not able to do thaat. And we havve incurred morre expenses theere. That is the reasonn at consolidated level, there iss a 1% down.

Sonaal Kohli:

And sir, what w is the averrage life of the seed inventory?? So, the inven ntory which is inncreased at what poinnt of time and ho ow old one's inventory becom mes, it is prone too being written-off?

Mithun C Chand:

It is a conntinuous processs. Every quarter, based on th his seed variety y, every quarterr we test it. And in teerms of the life fe of the inventtory and the health life of thhe inventory, most m of the inventory is a new inventtory. Usually foor seeds like cootton, it stays beetween 3-5 yearrs. For rice, S in terms of the health, it iss very good it is like 3 years. For maiize, it is like 1-1/2 to 3 years. So, as we havve maintained very v well from ppost-harvest to till date. So, we w don't see anyy write-offs in terms of o that. And mo ost of the inventtories have a goood germination n vigor as of noow. So, we are not woorried about thaat. It should stayy for next year.

Sonaal Kohli:

And sir, how h long do you u say is the norm mal life of the inventory? i

Chand: Mithun C

Based on the storage faccilities, it will stay s from 1-1/22 to 3 years. Again, A that depeends on the crop to croop. For cotton, it will be close to 5 years pluss.

Sonaal Kohli:

And for maize m and rice?

Mithun C Chand:

Maize is the only delicaate thing. Rice also stays therre. Maize is thee only delicate thing. For h taken enouugh care. And bby seeing the vigor and by seeiing the proper sstorage, we that, we have are not woorried about thaat. We don't seee any major write-offs in inven ntories.

Sonaal Kohli:

Maize is like l 1-1/2 years or how long iss maize?

Chand: Mithun C

Maize is like l 1-1/2 to 3.

Pag ge 12 of 17

Kaveri Se eed Companyy Limited October 29, 2026 Sonaal Kohli:

m have been negligible becaause it was 1-1/2 to 33. And I assumee last year, maiize inventory must in such a short supply. So, S what I am ttrying to undersstand is the maaize inventory of o last year w. It must be all new inventory,, right? must havee been very low

Mithun C Chand:

No. Whattever inventory we have right now, n on all the crops, it is all new n inventory. Nothing. N It is all prodduced in this fin nancial year.

Sonaal Kohli:

So, from that t perspectivee, that is why yoou think it is quuite safe to?

Chand: Mithun C

Yes.

Sonaal Kohli:

Because itt is not that old of an inventoryy?

Chand: Mithun C

Yes.

Sonaal Kohli:

m w what is the guiddance you gave for this year, sir, s in terms off decline or And sir, margin-wise, increase?

Mithun C Chand:

h revenues weree down, we So, if youu see the first haalf margins, we have maintaineed, even though were ablee to maintain inn terms of EBIT TDA margins. Going G forward also, we shoulld maintain the EBITD DA margin, butt by seeing the season, s that 5% %-10% that we need n to see in teerms of the sale, becaause anyway, seecond half is a lean l half for uss, but we are seeing good expoorts and we are seeingg good traction in i terms of the northern cotton n market, which h comes in the 4th 4 quarter. So, that ccovers up the margin m should remain r same orr should be possitive. Otherwise, slightly impact wiill be there. Buut it is true, aggain, as we are anticipating soome rains now,, it is a bit early, but that we can give a clear, prooper idea in thee third quarter results. But as of now, it looks 10% % plus or minuss of last year.

Sonaal Kohli:

Possible for f you to sharee the trend of grrowth in the firsst 6 months for maize, cotton aand the two types of riice you producee?

Mithun C Chand:

Sorry?

Sonaal Kohli:

Possible for f you to sharee to us the grow wth trend that in i maize, rice and a cotton Y-onn-Y for the first 6 monnths?

Mithun C Chand:

We have already sharedd that in the preesentation. Maiize, we are dow wn by 30% oddd. Varietal rice, we have h slightly groown. Cotton rem main there, and rice slightly doown by 2%-3%.

Sonaal Kohli:

I am sorryy, sir?

Pag ge 13 of 17

Kaveri Se eed Companyy Limited October 29, 2026 Mithun C Chand:

b if you see the first half, except for The numbbers are alreaddy there in the presentation, but maize, it is i almost, most of the crops wiill remain same or marginally up u or down by 1%-2%.

Sonaal Kohli:

Thank youu.

Moderatoor:

Thank yoou, sir. The nexxt question is from f the line of o Rushabh Shaah from Buglerrock PMS. Please go ahead.

Rushabh Shah:

h two subsidiaries, Adityaa Agritech andd Genomics Aggrigenetics, Hi, my quuestion is we have which do nearly like Rs. 100 crore plus revenue each and a PAT of arouund Rs. 80 crorres each?

Chand: Mithun C

Rs. 80 crrores? So I thinnk we have, inn fact, active thhree subsidiariees. One is Aditya, one is Kaveri Miicrotech and thee other one is Genomics. G

Rushabh Shah:

Yes, so Genomics, G yes. So S Aditya Agrittech and Genom mics, they do a revenue of Rs. 100 crores plus each and PAT of Rss. 80 crores?

Mithun C Chand:

ong. It may not be b Rs. 80 crorees, it should be Rs. R 8 or Rs. 10 crores. Rs. 80 croores, that is wro

Rushabh Shah:

So in whaat crops are theyy focusing on annd what leads to such high proofitability?

Chand: Mithun C

Sir, in faact, I don't kno ow where youu are seeing th hose numbers. They are just marketing companies, they don't haave that sort of a profit of Rs. 80 crores. If yoou see, one secoond, if you see the PAT of standaloone on this year is like Rs. 268 crores andd as a console level, one P is slightly up u by only 3%. In terms of thhe EBITDA second, it is only Rs. 271 crores. The PAT i only Rs. 6 crrores plus in teerms of the minus othher income, it is Rs. 286 versuus Rs. 294. It is EBITDA levels.

Rushabh Shah:

d deal it in like? l So like whhat, they are jusst marketing coompanies, they don't

Chand: Mithun C

Yes, the entire e research production p is doone by Kaveri in i terms of Gennomics and Adittya. That is Kaveri suupplied seeds to o them, they market m it and th hen that is the only thing whaat they do. Whereas Kaveri Microttech that dealss with micronuutrients and byyproducts that works on c to Rs. 355-Rs. 40 croress, which is independeent basis. The revenue of thaat company is close again, sligghtly profitable. That is all.

Rushabh Shah:

My next question is how w high would be our dependdency on hybrid d like 468 for paddy and similarly maize? m How woould our revenuue concentration n be?

Mithun C Chand:

In terms of o the rice 468,, we are very much m dependentt on 468. Theree are a couple of o varieties also, but majority m of the revenue in hybbrid rice come from 468. We have a large dependency d on that. There T are a coupple of hybrids which w we have introduced in the t last 3-4 yeaars, but still

Pag ge 14 of 17

Kaveri Se eed Companyy Limited October 29, 2026 mes of traction. But as of now w, if you see th he current yearr, we have that need to take volum dependentt 468. But wheereas if you seee like crops likke parietal rice or maize, theree are many hybrids. There T are tens of o hybrids whicch we market. So S we are not dependent d on thhat. Even in cotton, wee are at least 6-8 hybrids. So only o in rice, we depend on thosse 2 or 3 hybridds, 468, 90, 90. These are the two hyb brids that we reely on. Rushabh Shah:

m last questioon is we heardd from some channel c checks that few distributors are And sir, my common for f Kaveri and Genomics. Andd there are few who are cannibbalizing Kaveri''s business. So how doo you ensure th hat such things are a minimum? And what is ouur overall channnel strategy for our suubsidiaries? Andd how differentt are the distribution and retaill margins whenn compared to the Kavveri?

Mithun C Chand:

One thingg, first of all, what w Kaveri seells and what Genomics G or Aditya A sells are altogether different hhybrids. There are no two saame hybrids whhich we sell inn different plannts. All are different hybrids. h 90% of our dealers arre independent dealers. d In som me markets wherre we don't have any option, then thhey deal with tw wo varieties. That T is very min nimal. So in teerms of the cannibalizzation, we don'tt see, at least frrom our own hyybrids, own companies. And aas farmers, with the inntention of starrting these com mpanies are basically in crops like l cotton, the farmer has a tendencyy to go for 3 orr 4 crops of diffferent varieties. That is the reaason when we have h a good research, we get many products p which have different characteristics and different aabilities. So c Andd the main impportance will be b given to we markeet those hybrids in different companies. Kaveri annd then to the other o companiees. So in very few or rare cases that will haappen. But anyway, I need to check it out. It is a veery rare occasioon what we are hearing from itt. Anyway, I will checck it out. It willl not be.

Rushabh Shah:

How diffeerent are the disstribution of retail margins?

Chand: Mithun C

It all depeends on the hyb brid to hybrid and a variety to variety v and com mpany to compaany. Kaveri has the highest h realizattions. And in some areas, these t companies have also got higher realizationns in Kaveri. Thhose are all diffferent varietiess. There are verry rich markets.. One thing we need to understand is that the hybbrid what we sell s in differentt companies arre different hybrids. Itt is not the sam me hybrids. Eachh has got differeent characteristiics.

Rushabh Shah:

Thank youu.

Moderatoor:

Thank yoou, sir. The nex xt question is ffrom the line of o Akshit Shettyy, an Individuaal Investor. Please go ahead.

Akshit Sh hetty:

m I audible? Hello, am

Moderatoor:

Yes, pleasse go ahead, sirr.

Pag ge 15 of 17

Kaveri Se eed Companyy Limited October 29, 2026 Akshit Sh hetty:

u for taking myy question. First of alll, congratulatioons on the 2Q FY '27 results. And thank you So my firrst question is related r to the consolidated c revenue. I can seee that in 2Q FY F '27, the consolidatted revenue waas Rs. 144 crorees against the standalone s of Rs. R 125 crores. And in 1Q FY '27, itt was reversed. Consolidated was w Rs. 742 aggainst standalon ne of Rs. 815 crores. c And on the 1Q Q FY '26 call, you said you would w come baack on this, butt it has not beeen covered since. Annd secondly, foor one first half of the FY '227, how much of the Kaveri standalone revenue was w sales to its own subsidiaaries? And how w much the su ubsidiary sells to outside customerss? And will youu add consolidatted figures to thhe presentation from 3Q FY '227?

Mithun C Chand:

So I just need to checkk it out in term ms of the presen ntation. But if you see the fiirst quarter h first quarteer, what we seee, we take the anticipated a resullts and that consolidatted to the first half, will not give g an effect inn the first quartter, because thaat is the reasonn you see standalone sales are more than t the consollidated. But if you y see, the best way to compaare is from the first f half to first half. We have alreaddy noticed this. We are trying to t publish the figures f from thee next year, b comparable.. We will knockk off the returnns and then givee the actual first quartter, which will be figures. Iff you see the firrst half to first hhalf, these are more m relevant beecause most of the returns are alreaddy accounted. That T is the reasoon you get this effect. e In the firrst quarter, the returns are anticipated returns. That is the reason yoou see the knocckoff effect.

Akshit Sh hetty:

or clarifying thiis doubt. Thank youu. Thank you fo

Mithun C Chand:

We are tryying to publish the results from m the next yearr, an actual figuure of that. Beccause as we show onlyy the liquidationn figure, the reeturns are not physically get back to the com mpany. That is the reasson we are facinng problems. But B first half, most m of the returrns are already accounted. That is thee reason you do on't see any diffference in the fiirst half to first half comparisoon.

Akshit Sh hetty:

Thank youu. Thank you for fo clarifying thhat doubt. My seecond questionn is related to caash. On the 1Q FY '277 call, you saidd the cash of Rss. 267 crores at the end of 1Q FY '27 would be close to Rs. 300 crrores in the endd of 2Q FY '27. And the 2Q FY F '27 press rellease show Rs. 178 crores of cash aggainst about Rss. 410 crores att the end of 2Q Q FY '26. And the t 2Q FY '27 standalone loss was only o like Rs. 3.21 crores. So where w did the ro oughly Rs. 90 crores c go into 2Q 2 FY '27? Did it goo to seed produuction, lower payable p dividen nd or subsidiarries? And whaat were the inventoriees and seed cropps in the field aat the end of 2Q Q FY '27 compaared with Rs. 1,,130 crores at the end of 2Q FY '26?

Mithun C Chand:

2 we have If you seee the payables at that particular time, the payable at quarteer 1 to quarter 2, paid mostt to the credito ors. So that is all the producttion growth. We W are clearingg the entire payment for f them. Whattever payment we are given in i the last 3 moonths is for theem. And in terms of the t inventory, as a I said that thhe cash is low when w compared d to last year because b the inventory levels are prettty high when coompared to lastt year. The inveentories are moore than Rs. han last year. Soo the cash got sucked s away orr is there in thee inventory. 150 plus ccrores higher th

Pag ge 16 of 17

Kaveri Se eed Companyy Limited October 29, 2026 Once we are able to reallize that in the next year, firstt half, then youu get the entiree cash back because we w have minimiized our producction compared to last year. Whatever W cash we w generate, that will be b all of the freee cash. Akshit Sh hetty:

Got it. Thhank you. Thankk you for the exxplanation.

Moderatoor:

Thank youu, sir. The nextt question is froom the line of Dhruv Saraf frrom Bowhead IIndia Fund. Please go ahead.

Dhruv Saaraf:

WIP capital work in progress in i the balance ssheet. That Mithun sir, just one quesstion on the CW g me some color as to figure hass been stuck arround Rs. 120--Rs. 130 croress. So can you give when willl this be capitaliized? What doees the CWIP perrtain to?

Mithun C Chand:

Basically,, one is that thee machinery andd second is from m, we are buyin ng some land, agricultural a land that is not registereed yet. Office and a agriculturall land, these are the two thinggs that will take otherr 6-8 months.

Dhruv Saaraf:

So that enntire amount is for f agricultural land?

Mithun C Chand:

More thann say, 50% is foor the agriculturral land, 50%-660%.

Dhruv Saaraf:

Sure.

Moderatoor:

on, please be in touch with Thank youu. Thank you foor joining the call. For any furrther informatio Rama Naaidu from Intelllect. Thank yoou, sir. On behhalf of Kaveri Seed, that concludes this conferencce. Thank you for fo joining us. You Y may now diisconnect your lines.

Pag ge 17 of 17