Kaveri Seed's Q1 Profit After Tax climbs by 12%, bringing in revenue of ₹316 crore
August 15, 2025
Photo Credit: Nagara Gopal
Kaveri Seeds Company Ltd, a leading seed company in India, reported a notable profit growth in the first quarter (Q1) of the financial year 2025-26 (FY26). The company's impressive performance was primarily driven by strong growth in the non-cotton segments, such as rice and maize.
The revenue from non-cotton seeds increased by a substantial 31.3%, with hybrid rice, selection rice, and maize showing revenue increases of 32.29%, 11.58%, and 54.12% respectively. This growth was largely attributed to increased acreage and high realisations in these segments by G.V. Bhaskar Rao, Chairman and Managing Director of Kaveri Seeds.
Key factors contributing to this growth in non-cotton segments include high revenue growth in maize (54.12%) and hybrid rice (32.29%), reflecting strong demand and possibly effective market expansion or new product launches in these categories. The non-cotton segment's revenue of Rs 726.43 crore compared to Rs 553.28 crore in the previous year indicates focused growth away from cotton, which saw a decline of 14.12% in Q1 2025.
The robust growth in the rice and maize segments likely benefited from favourable agricultural conditions, increased farmer adoption, and possibly enhanced seed quality or innovations. The vegetables segment also grew by 41.49%, contributing to diversification beyond traditional cotton crops.
Overall, this shift towards non-cotton crops like rice and maize has been a major driver behind Kaveri Seeds' 16.98% revenue growth and 11.88% net profit increase in Q1 FY26. The company’s performance highlights improved operational efficiency and favourable market conditions in these segments.
In addition to the positive financial results, Kaveri Seeds also expects the increase in contribution of new products to volumes of cotton to have a major impact on its overall cotton revenue growth in future quarters.
Meanwhile, Patanjali Foods' Q1 profit decreased by 31% to ₹180 crore. The statement was issued by Kaveri Seeds on Friday, June 30, 2025.
[1] Source: Kaveri Seeds' Q1 2025 Financial Results Statement. [5] Source: Business Standard, "Kaveri Seeds reports 11.88% net profit increase in Q1 2025".
- Kaveri Seeds expects an increase in contribution from new products to volumize their cotton revenue in future business quarters.
- The company's shift towards non-cotton crops like rice and maize has been a significant factor in its 16.98% revenue growth and 11.88% net profit increase in Q1 FY26.
- Finance experts are closely watching Kaveri Seeds' success in the non-cotton segments as a potential model for other seed companies planning to invest in diversifying their product offerings.
- The growth in the company's hybrid rice and maize segments suggests a strong economy for investors interested in the agricultural and business sectors.
