Kaveri Seed Company has received a notice of hearing from the Income Tax Appellate Tribunal (ITAT), Hyderabad Benches, regarding a tax dispute involving a demand of ₹69,58,75,410 for Assessment Year 2023-24. The matter is scheduled for hearing on November 2, 2026, in Appeal No. ITA2423/Hyd/2026. This development follows a favorable order from the Commissioner of Income Tax (Appeals) dated April 8, 2026, which allowed the company’s claim and deleted the demand after classifying the disputed amount as agricultural income. The Income Tax Department has appealed this decision, seeking to reinstate the liability primarily on account of the disallowance of exemption claimed by the company on agricultural income.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company received the notice on August 6, 2026. This filing serves as a continuation of earlier intimations provided to the exchanges on March 27, 2025, regarding the receipt of the initial Demand Notice, and on April 8, 2026, regarding the receipt of the Appellate Order.

Case Details

The core of the dispute lies in the classification of income. The Income Tax Authorities initially raised the demand by disallowing the exemption claimed by Kaveri Seed Company on what it termed as agricultural income. However, the Commissioner of Income Tax (Appeals) reviewed the matter and held that the income in question qualified as Agricultural Income, thereby deleting the entire demand. The current appeal challenges this specific finding.

What the Numbers Show

The financial exposure at stake is significant relative to typical operational variances, though the legal trajectory currently favors the company. With the Commissioner having already deleted the ₹69,58,75,410 demand, the immediate balance sheet impact is neutralized pending the tribunal’s final verdict. The company’s management has stated that it believes it has a strong case on merits and does not expect any material adverse impact at this stage. The outcome will determine whether the earlier deletion stands or if the liability must be provisioned for again.

The company is evaluating the notice and intends to take all necessary steps to defend the matter before the Hon’ble Tribunal. Sreelatha Vishnubhotla, Company Secretary & Compliance Officer, signed the disclosure.

Kaveri Seed Company will host a conference call for investors and analysts on Friday, August 14, 2026, at 3:30 PM IST to discuss its financial performance for the first quarter of fiscal year 2027. The earnings discussion follows the scheduled declaration of Q1 FY27 results on Thursday, August 13, 2026. This event provides stakeholders with an opportunity to review operational metrics and strategic updates directly from company leadership.

The conference call is being organized in compliance with Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The session will begin with a brief management presentation regarding the quarterly results, followed by an interactive question-and-answer period. V. Sreelatha, Company Secretary, issued the notice to the Bombay Stock Exchange and National Stock Exchange of India on August 4, 2026.

Executive Director C Mithun Chand will lead the management team during the investor interaction. Participants can access the call through dedicated telephonic lines or via a secure web link provided by the company’s communication partner, Chorus Call. The event is open to all shareholders and market analysts seeking clarity on the company’s recent financial disclosures.

Access Details

Investors may join the conference call using the following access numbers or the online registration link:

For media inquiries and RSVPs, Intellect PR representatives CS Rama Naidu and Reetika Jain are available as points of contact. The company has not disclosed specific financial figures for Q1 FY27 in this filing; those details will be presented during the earnings announcement on August 13 and elaborated upon during the conference call.