Kaveri Seed Company has received a notice of hearing from the Income Tax Appellate Tribunal regarding a tax demand of Rs. 73,25,39,490 for Assessment Year 2020-21. The development was disclosed through a regulatory filing submitted on June 3, 2026.

The tribunal has scheduled the hearing for December 7, 2026. The matter pertains to a tax demand raised for the financial period corresponding to AY 2020-21. The company will present its case before the tribunal on the scheduled date.

Key Details of the Tax Demand

The following table outlines the specifics of the tax demand and the upcoming hearing:

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing was digitally signed by Sreelatha Vishnubhotla on June 3, 2026.

Kaveri Seed Company Limited reported a standalone net profit of ₹283.26 crore for the financial year ended March 31, 2026, representing a 6.81% increase from ₹265.21 crore in the previous year. Revenue from operations for the year grew 16.25% to ₹1,303.77 crore, compared to ₹1,121.57 crore in FY25. The board approved the audited standalone and consolidated financial results at its meeting held on May 26, 2026. The company has also provided an audio link for the management commentary on these audited results.

Financial Performance Overview

For the quarter ended March 31, 2026, the company reported a standalone net loss of ₹25.65 crore, narrowing from a net loss of ₹29.25 crore in the same quarter of the previous year. Revenue from operations for Q4FY26 stood at ₹82.21 crore, a 6.84% increase from ₹76.95 crore in Q4FY25. The standalone EBITDA for the quarter was a loss of ₹8.63 crore, compared to a loss of ₹1.95 crore in the prior year.

Key Financial Metrics

The following table summarizes the standalone financial performance for the quarter and year ended March 31, 2026:

Operational Highlights

The company reported a 90% growth in exports during FY26 and a 76% growth in the current quarter. Hybrid rice revenues increased by 18.3%, while maize volumes and revenues rose by 18.84% and 40.17%, respectively. Vegetable seed sales revenue increased by 8.4%. The contribution of new products to cotton volumes increased from 10.3% to 30.05%. However, cotton sales were impacted by increased illegal cotton, and a rise in the cost of production of cotton seed impacted profitability.

Future Outlook

Management expects the top line to grow by 15% to 20% in FY27, with cotton potentially growing more than 20%. They anticipate margins to improve due to lower production costs compared to the previous year, despite not increasing prices significantly. Inventory levels are up 17% strategically to buffer against competition and higher yields. The company also noted that illegal BT cotton issues persist only in Gujarat, while new hybrids are driving performance elsewhere.