Tierra Agrotech Ltd Management Discussions

Overview of the Indian Seed Industry Market Size and Growth

The global seed industry has grown from USD 52 Bn in 2014 to USD 77 Bn in 2025 -26 at a CAGR of 4.5%. In-dia ranks fifth after US, China, France and Brazil. The India Seed Market size is estimated at 34.03 billion USD in 2026, and is expected to reach 5.26 billion USD by 2031, growing at a CAGR of 5.48% during the forecast period (2025-2031). The Indian seed industry is undergoing a significant transformation driven by technologi-cal advancements and changing agricultural practices. The seed industry in India has witnessed a remarkable shift towards hybrid varieties, with hybrid seeds dominating 69.62% of the total cultivation area in 2025. This transition reflects the growing awareness among farmers about the benefits of improved seed varieties, including enhanced pest resistance and higher yield potential. Row crops dominate revenue because cereals, oilseeds, and fiber crops align with food-security and import-substitution priorities, while hybrids retain farmer loyalty thanks to consistent yield premiums under erratic rainfall. Meanwhile, protected cultivation and digital traceability pilots are opening lucrative niches for specialized vegetable and high-value seed segments.

(Source:https://www.mordorintelligence.com/industry-reports/indian-seed-sector-analysis)

Crop Segmentation

The seed market in India is segmented into several crop types, with a particular focus on grains & cereals, vegetables, cotton, maize, groundnut, and soybean:

1. India seed market size for hybrids reflects the segment s 69.62% revenue share and sets the stage for a 5.60% CAGR through 2031. Yield differentials of 15-35% over open-pollinated lines, combined with built-in pest and drought tolerances, sustain farmer willingness to pay.

2. Innovation momentum remains strong. Marker-assisted back-crossing inserts triple-stack resistance against wilt, thrips, and sterility mosaic in pigeon pea hybrids, while doubled-haploid platforms trim generation cycles in maize. Direct-seeded rice hybrids under the RiceTec-Mahyco venture deliver shorter maturity and mechanization compatibility, dovetailing with water-conservation drives. Robust pipeline visibility keeps the India seed market aligned with mechanization and export-oriented agriculture trends.

3. By crop type, row crops accounted for an 79.95% share of the India seed market size in 2025 and are projected to grow at a 5.45% CAGR through 2031. Cotton holds the largest single-crop revenue block, buoyed by Bt hybrids and integrated pest-management packages compliant with export lint standards. Corn receives policy tailwinds via ethanol-blending mandates that anticipate a good biofuel share by 2030, intensifying demand for high-starch hybrids.

4. Grains & Cereals: This segment is the largest due to India s substantial production and consumption of grains. Rice (paddy) and wheat are particularly dominant, as rice is a staple in South India and wheat in the North (Gll Research).

5. Vegetables: The vegetable seed market includes various sub-segments such as brassicas (e.g., cabbage, cauliflower), cucurbits (e.g., cucumber, pumpkin), roots & bulbs (e.g., garlic, onion), and solanaceae (e.g., tomato, hot pepper, eggplant) (Gll Research).

6. Cotton and Maize: These crops are significant in India s seed market, with maize and cotton seeds often being hybrid varieties due to their high productivity and resistance to pests and diseases (Research & Markets).

7. Pulses, Oil Seeds, Millets & fodder: Predominant Seed business crops are Mustard, Groundnut, Sesame, Bajra, Jowar, cumin, Red gram, Black gram, etc., these crops contribute minor scale of business

Regional Distribution

Uttar Pradesh leads the Indian seed market, largely due to its extensive arable land and dense population, which boosts demand for various seeds. Other key regions include Maharashtra, Madhya Pradesh, Rajasthan, Bihar, Telangana, Karnataka, Punjab, Andhra Pradesh, Chhattisgarh. These states have diverse agricultural practices and crop preferences, contributing to the overall growth of the seed industry.

Breeding Technologies

The Indian seed market is witnessing a shift towards hybrid seeds, which offer higher yields and better resis-tance to environmental stresses compared to open-pollinated varieties. Hybrid seeds, especially in crops like cotton, maize, and vegetables, are increasingly adopted by farmers due to their superior performance and adaptability. Telanganas agri-biotech parks support gene-editing spin-offs that feed elite lines into local seed firms.

These developments broaden geographic resilience and mitigate over-reliance on Western states for seed supply.

Growth Drivers

Several factors are driving the growth of the Indian seed industry:

1. Commercialization of Agriculture: Increased commercialization has led to higher demand for quality seeds that ensure better yields and resistance to pests and diseases.

2. Public-Private Collaborations: Collaborative efforts between government bodies and private companies have spurred advancements in seed technology and availability.

3. Investment by Multinational & National Seed Companies: Huge investment in R&D in tailoring to fit in the various agro-climate and specific needs of customers.

4. Rising Consumer Income Levels: Higher disposable incomes allow farmers to invest in better-quality seeds, thereby increasing productivity.

5. Introduction of Hybrid and Transgenic Seeds: These seeds offer improved traits such as pest resistance, herbicide resistance, stress tolerance and higher yields, making them attractive to farmers. Value added quality traits like high oil content, ethanol recovery, milling percentage, low glycemic index, high shelf life, etc. are also encouraging farmers to change their product preferences.

6. Government Support: Initiatives such as the Rastriya Krishi Vikas Yojana and ISOPOM (Integrated Scheme of Oilseeds, Pulses, Oil Palm, and Maize) provide essential support to farmers and the seed industry, fostering growth and innovation (IMARC) (Research & Markets). Subsidies and Bonus on MSP announced in certain states to diversify crop cultivation and stabilize the cropping patterns to balance the dietary requirements.

Trends and Future Outlook

Adoption of Advanced Technologies: The use of Al, data analytics, Seed treatments with new generation chemicals, and biotechnology in seed development is expected to enhance seed quality and adaptability. GMO crops introduction is going become a game changer in near future.

Sustainability: There is a growing focus on sustainable agricultural practices, which includes the development of seeds that require fewer inputs and are environmentally friendly such as dry seeds Rice etc.

Customization: Seeds tailored to specific regional and crop requirements will see increased demand as farmers seek to optimize their yields and adapt to changing climatic conditions (Gll Research).

Seed Production Trends: Hybrid Paddy, Corn & Cotton Seed production affected at the time of harvest, that created a good demand for available seeds and sold out well. Limited expertise growers for various crops with limited production locations triggering huge demand and increasing the production cost, its need of the hour to balance the profitabilities with efficiency throughout value chain of seeds business.

Commodity prices & Crop Shifts: For Mustard, the area has come down and farmers preferred to grow their own seed rather than packed seed, similarly, because of low market prices, the hot pepper area has come down drastically, In North India, Cotton acreage is replaced with paddy preferably Basmati, In Central India farmers switched from Cotton to Corn & Soybean, In South India, farmers switched from Cotton to Corn because of better market prices for Corn, Overall, the Corn acreages increased both in Kharif, Rabi & Spring because of attractive commodity prices. Pulses - Red gram, Black gram & Green gram acreages are also increased marginally because of better market prices

Penetration of HT Cotton Seeds which is not approved and increasing beyond expectation year on year, posing threat to Cotton players. In summary, the Indian seed industry is poised for continued growth driven by technological advancements, government support, increasing demand for high-quality seeds with efficient execution of seeds business. The industry s future looks promising, with significant opportunities for innovation and expansion.

Impact of Monsoon in 2025

The southwest monsoon season rainfall over the country as a whole during 2025 was 108% of Long Period Average (LPA). Rainfall distribution was generally well-distributed over major parts of the country with normal and above normal, except three meteorological sub divisions namely Arunachal Pradesh, Assam & Meghalaya and Bihar. In the country as a whole, rainfall during the month of June (109 % of LPA), July (105 % of LPA), August (105 % of LPA) & September (115 % of LPA) were normal (within ± 19% of LPA). For the country as a whole, seasonal rainfall at the end of the southwest monsoon season (June to September) was 936.8 mm, which is 108% of 868.6 mm LPA (1971-2020) value. While it boosted reservoir levels and winter crop prospects in general, but spatial imbalances, temporal imbalances and extreme events year by year underscore the need for regional adaptation crop frameworks and sowing patterns to safeguard agriculture and livelihoods in a warming world. The seeds business hugely impacting due to imbalances monsoon occurrences in both spatial and temporal spreads.

OUTLOOK Our Business

Tierra has made a humble beginning in the Year 2013 as a technology centric agriculture company. The objective is set to develop superior quality hybrid seeds stacked with crop specific important traits that provides significant yield benefit and overall cost advantages to farmers and other stake holders. Tierra is headquartered at Hyderabad, the seed capital of India, founded by professionals with more than eight decades of combined seed and agribusiness industry experience and proven excellence in developing breakthrough products.

Tierra is engaged in research, development, production, processing and commercialization of superior products in major crops like Cotton, Rice, Corn, Mustard, Tomato and Okra. During year 2017-18, Tierra has attracted global attention after their acquisition of Monsanto s India cotton seed business and DuPont - Pioneer s Cotton company Xylem Seeds Private Limited . Tierra has established a state-of-the-art R&D unit in Hyderabad with 10,000 sq. ft. laboratory space with several green houses and breeding farms supported with drip irrigation and other essential facilities. Besides its Breeding and Biotechnology R&D centers in Hyderabad, Tierra has also R&D units in various parts of India.

In 2018, Tierra expanded its Cotton portfolio in the market by acquiring Indian Cotton seed business of Monsanto Holdings Private Limited and Xylem Seeds Private Limited (a DuPont Pioneer company). The rich and diverse germplasm collected and developed by the experienced breeders of Tierra and the two acquired programs has given the organization a very strong platform in Cotton breeding. Tierra s efforts are aimed at developing upmarket products with big boll size, easy picking, earliness, good fiber qualities with strong tolerance to pests and diseases. Our special efforts are to breed cotton for suitability to high density planting system (HDPS), sympodial type, easy pick ability, short stature with synchronous maturity to help harvest the crop in one or two pickings. Special emphasis is also on utilizing male sterility trait for efficient seed production and very high genetic purity. Our focus is to introduce value added - differentiated products and technologies in the market, while protecting them under suitable Intellectual Property (IP) and Plant Variety Protection (PVP) laws. Our business model follows strict compliance with all regulatory guidelines including Freedom to Operate (FTOs).

Tierra ventured into vegetable seeds sale from the financial year 2020-21, thereby spreading its portfolio from cotton, paddy, mustard, maize and vegetable seeds. The Company has an extensive marketing network with loyal and committed distributors and dealers in Andhra Pradesh, Telangana, Orissa, Karnataka, Tamil Nadu, Maharashtra, Bihar, Madhya Pradesh, Jharkhand, Chhattisgarh, Gujarat, Uttar Pradesh, Punjab, Haryana, West Bengal and Rajasthan. The Companys focus is to be a leading provider of crop solutions to the farmers by supplying high yielding hybrid seeds. For achieving this, the Company is engaging in R&D efforts in the areas of superior breeding program and biotechnology tools that will enable it to develop highly effective and differentiated hybrid seeds.

Research & Development

Tierra has strong Research and development infrastructure. Our research program is well recognized by DSIR, GOI which is supported by highly qualified and experienced professionals in industry. Tierra has technological collaboration with key institute like NBRI for unique product development. We also carry out our research through collaborations with academic institutions and other strategic partners. We have teams of plant breeders that have the ability to develop new lines and hybrids. We believe our continuing efforts in research and development provides us with a strong platform to build our market share in the seed industry.

The company has the following R&D Activities:

1. About 100 Breeding & Testing Locations across the country.

2. About 200 Product Evaluation Locations across the country.

3. About 100 Acres of Leased land for Research & Development.

Product Overview:

Crop	Commercial Products	Pipe line
Cotton	7	2
Maize	9	1
Paddy	13	2
Mustard	2	2
Tomato	5	2
Okra	4	2
Hot Pepper	3	1

Opportunities

Tierra, has an opportunity to grow its market share in the existing market as well as be part of growing seed market. The existing opportunities size in the key crops for Tierra is about 850 Lakh Hectare while the total cropped area of 1300 Lakh Hectares (Source: Agricoop) offers opportunity to expand our crop & product portfolio further.

Rising disposable incomes in emerging economies are leading to increased consumption of diverse and high-quality food products. This shift is encouraging farmers to invest in high-value seed varieties to meet the growing demand for premium crops.

Increasing seed replacement ratio - There has been consistent increase in purchased seeds in Paddy, Mustard, Maize and other crops

Favorable Govt. Policies for farmers - Better MSP and subsidized inputs and mechanization is helping the adoption of high-quality seeds in each crop.

Food demand is rising globally on account to growing population. Food security will continue to be one of the worlds most pressing issues in 2025 and the years to follow. As a result, the World Bank has listed food and nutrition security as one of the eight global challenges that need to be addressed at scale. With stable/ decrease in the total arable land, the need for feeding the growing population can be met with better traits and high yielding seeds in each crop.

Increasing Adoption of Hybrid and Genetically Modified (GM) Seeds along with Climate Change and Resource Constraints (limited land) are increasing demand for seeds with traits such as drought tolerance, salinity resistance, and heat tolerance.

The scenario post-adoption of hybrids and improved OPVs has resulted in many advantages, such as yield improvement, ensuring higher prices, and availability of seeds at an affordable price. These factors will drive the growth of the Indian seed market in the forecast period.

By 2050, the world s population is projected to reach 9.8 billion, with India accounting for 1.7 billion (Source: United Nations).

To meet the growing food demands of Indias population, there is a pressing need to significantly increase the yield per hectare, especially considering the diminishing arable land in the country. Furthermore, Indias agricultural yield lags behind global averages due to various factors, including extreme weather conditions, limited adoption of high-yielding hybrid seeds, a lack of awareness about modern agricultural technologies, and inefficient use of agrochemicals.

These challenges present a substantial opportunity for the Company s Seeds business, as well as opportunities for expanding crop advisory and digital offerings. Innovations in seed technology and digital farming solutions can play a pivotal role in addressing the productivity issues that plague Indian agriculture. These advancements can also empower farmers to secure better commodity prices, enabling them to invest in high-quality inputs to achieve higher yields.

Changing Seed Industry Dynamics

Fintech applications are used for Seed farmers/distributors/retailers/end customers-farmers production

Precision agriculture linked seed production for high value seeds growers

Use of Artificial intelligence (AI), machine learning (ML), Internet of Things (IoTs), Robotics, Drones in entire value chain of seed development & production

Leveraging technology for policy implementation including Harmonization of Regulatory framework along with traceability

Promotion of seed treatment & biologicals including microbes in line with microbiome approach

Regenerative & Sustainable Agriculture Technologies including Direct Seeded Rice (DSR), High Density Planting System (HDPS) and so on.

Increasing public & private partnerships along with strategic partnerships in private sector to leverage geographical reach as well as enhance the R&D capabilities.

Focus on speed breeding for development of climate resilient varieties.

Tierra, with its comprehensive product portfolio, extensive distribution network, and a robust team of over 175 qualified professionals is well-positioned to support Indian farmers in this endeavor.

Risks, Concerns, and Threats

Fast-Changing Customer Preferences

Customers today are more likely to experiment with and test new items in the market due to increasing disposable incomes, easy access to information, and rapid acceptance of technological products. Tierra must constantly monitor changes not only in the crops business but also in the consumer/non-cyclical sector.

Competitive Market

Despite Tierra s efforts toward innovation in the crops area, it faces severe competition from other big players in the seed industry.

Climate Change

Fast-emerging climate change and sustainability challenges are expected to make agriculture more vulnerable and may cause severe hardship to the fragmented farmer base of India and the rural economy. Product development can be a complicated issue given the diverse climate conditions for agriculture in India.

Government Policies

The imposition of taxes on agriculture can be a potential threat. Government policies regarding price control of cotton and other crops can hamper the company s profitability.

Production Constraints

Year by year increased demand for limited expertise grower base coupled with the labor shortage and triggering increased cost of production necessitated to have innovative in efficient business execution changes (i.e. change of 25% or more as compared to the immediately Details of significant previous financial year) in key financial ratios, along with detailed explanation.

Consolidated basis

Financial Ratios	Consolidated		Deviation (%)	Reason for Change
	2025-26	2024-25
Debt-Equity Ratio (in times)	0.20	0.01	3197%	The increase is primarily due to higher working capital and short-term borrowings during the year compared to negligible borrowings in the previous year.
Debt Service Coverage Ratio (in times)	0.11	0.07	45%	The increase is primarily attributable to improvement in operating performance and cash accruals during the year, resulting in improved coverage of debt servicing obligations.
Return on Equity Ratio (in %)	-0.05	-0.14	-64%	The improvement is primarily attributable to a reduction in the loss during the year com- pared with the previous year, resulting in a lower negative return on shareholders equity.
Trade Receivables turnover ratio	7.57	5.80	31%	Ratio increased primarily due to a relatively higher increase in revenue from operations compared to the average trade receivables during the year.
Net capital turnover ratio (in times)	15.05	3.76	301%	The ratio increased primarily due to higher revenue from operations and lower average working capital during the year.
Net profit ratio (in %)	-0.05	-0.18	-71%	The ratio improved primarily due to a reduction in net loss during the year.
Return on Capital employed (in %)	-0.08	-0.16	-47%	The improvement is primarily attributable to a reduction in the loss during the year and improvement in operating performance, resulting in a lower negative return on capital employed.

Standalone basis

	Standalone		Deviation (%)
Financial Ratios	2025-26	2024-25		Reason for Change
Debt-Equity Ratio (in times)	0.20	0.01	3227%	The increase is primarily due to higher working capital and short-term borrowings during the year compared to negligible borrowings in the previous year.
Debt Service Coverage Ratio (in times)	0.16	0.07	114%	The increase is primarily attributable to improvement in operating performance and cash accruals during the year, resulting in improved coverage of debt servicing obligations.
Return on Equity Ratio (in %)	-0.06	-0.13	-56%	The improvement is primarily attributable to a reduction in the loss during the year compared with the previous year, resulting in a lower negative return on shareholders\u2019 equity.
Trade payables turnover (in times)	1.59	2.41	-34%	The decrease is primarily attributable to an increase in average trade payables during the year, resulting in a relatively longer credit period availed from suppliers.
Net capital turnover ratio (in times)	13.05	3.76	247%	The ratio increased primarily due to higher revenue from operations and lower average working capital during the year.
Net profit ratio (in %)	-0.08	-0.18	-54%	The ratio improved primarily due to a reduction in net loss during the year.
Return on Capital employed (in %)	-0.09	-0.16	-43%	The improvement is primarily attributable to a reduction in the loss during the year and improvement in operating performance, resulting in a lower negative return on capital employed.

Internal control systems and their adequacy:

The Company has in place adequate and appropriate systems of internal controls commensurate with its size and the nature of its operations and these have broadly withstood the test of time. The systems have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorizations and ensuring compliance of corporate policies.

The Internal Audit team is reviewed by the Audit Committee of the Board which monitors its performance on a periodic basis through review of audit plans, audit findings and speed of issue resolution through follow- ups. Through at least four meetings every year, the audit committee reviews internal audit findings assurance and advisory function, which is responsible for evaluating and improving the overall effectiveness of risk management, control and government processes. This entire process helps enhance and protect organizational value by providing risk-based objective assurance, advice and insight.

Financial and Operational Performance

In FY 2025-26, the Company registered Revenue from Operations of Rs. 7273.04 Lakhs compared to Rs. 6563.32 Lakhs in the previous year. The Company has recorded a net loss of Rs. 591.54 Lakhs for the FY 2025-26 compared to Rs. 1158.24 Lakhs for the Previous Financial Year 2024-25.

Material developments in Human Resources

The workforce strength of the Company as on March 31, 2026, stood at it is 154 employees employees across different locations. The Company maintained harmonious industrial relations across all its units during FY 2025-26.

At the core of your Companys Human Resource Policy emphasis on attracting, mentoring and holding the best employees, and offering them with wide-ranging career opportunities.

The Company strives to a positive, supportive, open and high-performance work culture where innovation and risk taking is encouraged. The Company continues to emphasize to be an equal opportunity employer. Company has a Policy of Prevention of Sexual Harassment (POSH) to ensure a harassment-free workplace for employees. Harassment cases are dealt with as per the Companys zero-tolerance policy. During the year 2025-26, no case was reported on sexual harassment.

Further, your Company would like to sincerely appreciate the valuable contribution and support of employees towards the performance and growth of the Company.

Disclosure of Accounting Treatment:

The Company has prepared financial statements which comply with Ind-AS applicable for periods ending on March 31, 2026, together with the comparative period data as at and for the year ended March 31, 2025, as described in the summary of significant accounting policies. Primarily, a treatment different from that prescribed in an Accounting Standard has not been followed in the preparation of financial statements. However, as regards amendments to certain accounting standards, the applicability / effect on the financial statement has been evaluated and been treated accordingly as explained in Notes to the standalone Financial Statements.

Cautionary Statement:

Statements in this management discussion analysis describing the Companys objectives, projections, estimates, expectations may be forward looking within the meaning of applicable securities-laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could make difference to Company s operations include economic conditions affecting the domestic market and the overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and other incidental factors.

For and on behalf of Board of Directors of

Tierra Agrotech Limited

	Sd/-	Sd/-
	Vijay Kumar Deekonda	Suryanarayana Simhadri
Place: Hyderabad	Wholetime Director	Director
Date: September 01, 2026	DIN :06991267	DIN 01951750