<dhhead>Management Discussion and Analysis Report </dhhead>
Your directors have pleasure in presenting the management discussion and analysis report for the year ended on March 31, 2026.
ECONOMIC OVERVIEW
GLOBAL ECONOMIC SCENARIO
The global economy entered FY 2025-26 on a firmer footing than expected, but the final quarter of the year was reshaped by the outbreak of war in the Middle East. In its July 2026 World Economic Outlook Update, the IMF projects world output growth at 3.0% in 2026 and 3.4% in 2027, down from an average of 3.5% recorded over 2024-25. The moderation reflects the negative supply shock from the conflict, partly offset by an accelerating global technology cycle driven by artificial intelligence. Global headline inflation, which had declined steadily since early 2024, is now expected to rise from 4.1% in 2025 to 4.7% in 2026 before easing to 3.9% in 2027 - indicating that the disinflation trend has stalled.
Divergent Economic Impact:
The impact of the geopolitical and economic shock remains highly uneven across economies. Energy exporters are partly cushioned by favourable terms-of-trade effects, while economies integrated into the technology-led upturn are experiencing stronger activity, including some economies that remain dependent on imported energy. In contrast, activity is weakening among energy-importing economies with limited participation in the global technology value chain, including many low-income countries.
Advanced economies are projected to grow by 1.7% in 2026 and 1.8% in 2027, while emerging market and developing economies are expected to grow by 3.8% in 2026, before recovering to Rs.4.5% in 2027.
World trade in goods and services is projected to grow by 3.5% in 2026 and 4.3% in 2027, compared with 5.0% growth in 2025. The outlook reflects the effects of earlier front-loading of trade, tariff-related drag, adjustments in trade linkages and production chains, trade diversion and rerouting, as well as continued strength in technology-related trade flows.
• Advanced economies: The United States is projected to grow 2.3% in 2026 and 2.2% in 2027, the euro area 0.9% and 1.2%, and Japan 0.6% and 0.7% respectively, as higher energy costs and elevated policy rates weigh on demand.
• Emerging and developing economies: China is expected to slow to 4.6% in 2026 as higher global oil prices and structural headwinds bite, while India remains among the fastest-growing major economies with growth projected at 6.4% for FY 2026-27 on the strength of private consumption and services activity.
Global financial conditions tightened sharply in April 2026 but subsequently eased and remained supportive by historical standards. Nevertheless, visible inflationary pressures and a relatively muted slowdown in economic activity are expected to make monetary policy less supportive, with long-term yields and financial conditions continuing to vary significantly across economies.
Global headline inflation is projected to rise from 4.1% in 2025 to 4.7% in 2026, before moderating to 3.9% in 2027. Inflation in advanced economies is projected at 3.0% in 2026 and 2.4% in 2027, while emerging market and developing economies are expected to record inflation of 5.8% and 4.8%, respectively. The IMF notes that the global disinflation trend, which had been underway since early 2024, has stalled, although core inflation forecasts remain broadly unchanged and there is limited evidence of significant second-round effects so far.
The renewed inflationary pressure is primarily associated with the energy shock arising from the conflict, with spillovers into fertilizer, food and transportation costs. The IMFs July 2026 baseline assumes an average petroleum spot price of approximately USD 89.27 per barrel in 2026, representing a 32% increase over 2025, while natural gas prices are projected to rise by 22%. Fertilizer prices are expected to increase by 26%, while global food prices are projected to rise by 8%, reflecting higher energy and fertilizer costs and more expensive transportation.
Global Headline Consumer Price Inflation (%) - IMF, July 2026
• United States and euro area: Policy rates are assumed to be held broadly steady in ex- ante real terms through 2026, as visible inflationary pressure is combined with only a muted slowdown in activity.
• Japan: The policy rate is expected to move gradually towards a neutral setting.
• Emerging markets: Central banks that had begun easing in 2025 have largely paused, prioritising currency stability and the anchoring of inflation expectations over further stimulus.
These shifts reflect a common judgement that the energy shock should be looked through only to the extent that second-round effects remain contained; central banks have signalled they will act if inflation expectations begin to drift.
The IMF continues to emphasise that central bank independence, clear communication and strong financial oversight are the pre-conditions for restoring price stability, and that fiscal tools should be used sparingly through temporary, targeted support that preserves price signals.
Energy-driven inflation, if sustained, may delay the return to target and force renewed tightening in economies with weaker inflation-fighting credibility.
Structural reform priorities identified by the IMF for the current cycle are energy security, artificial-intelligence readiness, domestic rebalancing and the rebuilding of fiscal buffers.
Geopolitical and Trade Challenges
The dominant geopolitical event of the year was the escalation of conflict in the Middle East, which began with strikes on Iran in late February 2026 and led to a partial closure of the Strait of Hormuz - the channel through which roughly 20% of global oil supply and a substantial share of global LPG moves. Ceasefires and a memorandum of understanding between Iran and the United States subsequently cooled prices from their April 2026 peaks.
IMF staff projections assume that the reopening of the Strait of Hormuz began in mid-July 2026, with conditions returning broadly to the pre-war state of affairs by March 2027. A renewed escalation remains the single largest downside risk to the global outlook and could extend commodity price pressure well into 2027.
Severe physical shortages have so far been avoided through inventory drawdowns, but the IMF cautions that shortages may arise in emerging market and developing economies that hold limited stocks and face competition from wealthier buyers for available cargoes.
Risks to the global outlook are more balanced than in April 2026 but remain tilted to the downside: renewed conflict, accelerating trade fragmentation, and a correction in technology- driven market expectations are the principal concerns, amplified by eroded policy buffers.
Upside risks stem from a swifter-than-expected normalisation of energy markets, stronger technology investment, a revival of cooperation that lowers trade barriers, and structural reform that lifts medium-term growth.
Labour and Social Landscape Employment and Unemployment:
Global labour markets have remained relatively resilient despite a moderation in global economic growth. The ILO projects the global unemployment rate to remain at 4.9% in 2026, equivalent to approximately 186 million unemployed people. However, headline unemployment continues to mask significant deficits in job availability and quality across economies.
The broader global jobs gap is projected to reach 408 million people in 2026, highlighting the extent of unmet demand for paid employment beyond the conventional unemployment measure. Labour-market outcomes continue to diverge significantly across income groups, with low-income economies facing rapid labour-force growth but comparatively weak productivity gains and limited structural transformation into higher-productivity and formal employment.
Job quality also remains a significant concern. Approximately 2.1 billion workers globally remain in informal employment, while nearly 300 million workers continue to live in extreme working poverty. The ILO notes that improvements in job quality have stalled and that real wage and labour-income growth have yet to fully recover from recent inflationary pressures.
Energy-price-driven inflation has eroded real wages in energy-importing economies, tightening household budgets even where nominal employment has held up.
Low- and middle-income regions remain heavily reliant on informal and insecure forms of work, raising social stability concerns.
The rapid adoption of artificial intelligence and other emerging technologies is creating both opportunities and challenges for labour markets. While AI-driven investment may support productivity and economic growth, the transition will require greater investment in skills, digital infrastructure and workforce adaptability, together with effective labour reallocation across sectors.
Social Issues in Labour Markets
Unpaid care and domestic work continue to fall disproportionately on women. Globally, women perform at least two and a half times as much unpaid care and domestic work as men, while the ILO estimates that women account for approximately 76% of total unpaid care work. Care responsibilities remain a significant structural barrier to womens participation in paid employment and economic advancement.
The imbalance is particularly pronounced in Asia and the Pacific, where women perform around 80% of unpaid care work. The unequal distribution of unpaid work continues to constrain womens participation in formal employment and highlights the importance of accessible care infrastructure and supportive workplace policies.
Informality and platform work remain important labour-market challenges, particularly in developing economies. Informal workers, including a significant proportion of women and lower-income workers, often have limited access to social protection, employment security and predictable incomes. At the same time, the expansion of platform-based work is creating new challenges relating to employment status, worker protections and access to social security. Rising energy and living costs in 2026 have added further pressure on real household incomes.
The ITUC Global Rights Index 2026 records continued deterioration in workers rights globally, highlighting restrictions on freedom of association, collective bargaining and access to justice, alongside increasing pressure on trade union leaders and worker organisations.
At the same time, the rapid adoption of AI is changing occupational demand and increasing the need for reskilling, digital capabilities and workforce adaptability. While AI has the potential to generate significant productivity gains, unequal access to technology and skills could result in an uneven distribution of its benefits. Effective labour-market policies, skills development and social protection will therefore be important in ensuring that technological progress contributes to more inclusive growth.
India was the fastest-growing major economy for a fourth consecutive year in FY 2025-26. On the new national accounts series with base year 2022-23, released by MoSPI on 27 February 2026, real GDP grew 7.7% in FY 2025-26 against 7.1% in FY 2024-25, while nominal GDP grew 8.9%. Growth was broad-based, supported by resilient private consumption, sustained public capital expenditure, GST rate rationalisation and an exceptionally benign inflation environment for most of the year - before the late-February energy shock.
As per the Provisional Estimates released by MoSPI on 5 June 2026, real GDP for FY2025-26 is estimated at Rs. 323.12 lakh crore, compared with Rs. 299.89 lakh crore in FY2024-25, representing growth of 7.7%. Nominal GDP is estimated at Rs. 346.36 lakh crore, compared with Rs. 318.07 lakh crore in the previous year, reflecting growth of 8.9%. Real GVA increased by 7.9% to Rs. 294.91 lakh crore, compared with 7.3% growth in FY2024-25, while nominal GVA grew by 9.1% to Rs. 314.87 lakh crore.
Factors Supporting Growth in FY2025-26
Private consumption strengthened during the year, supported by low inflation, improving real purchasing power and tax rationalisation. GST rate rationalisation effective from 22 September 2025 affected approximately 11.4% of the CPI basket, contributing to lower prices across several product categories.
Favourable agricultural conditions also supported rural demand. The Ministry of Agricultures Third Advance Estimates placed 2025-26 foodgrain production at a record 376.56 million tonnes, approximately 5.3% higher than the previous years output.
Exceptionally low inflation for the greater part of the year lifted real disposable incomes, with rural demand benefiting from a strong 2025 monsoon and record crop output.
The Reserve Banks cumulative 125 basis point reduction in the repo rate between February and December 2025 lowered financing costs, with the weighted average lending rate on fresh rupee loans declining by about 59 basis points.
Sustained government capital expenditure and healthy bank balance sheets - with gross NPA ratios at multi-decade lows - supported the investment cycle through the year.
Real GDP in Q4 FY 2025-26 is estimated at Rs. 87.77 lakh crore against Rs. 81.40 lakh crore a year earlier, a growth of 7.8%; nominal GDP grew 9.1% to Rs. 94.65 lakh crore.
Real GVA in Q4 grew 7.9% to Rs. 80.18 lakh crore, with nominal GVA up 9.9% - indicating that the energy price shock had begun to feed into the deflators by the close of the year.
Foodgrain production, a key Q4 indicator, rose 9.6% year on year in the quarter and 5.3% for the full year, providing a strong base for rural incomes entering FY 2026-27.
The closing quarter therefore held up well despite the external shock, but the starting point for FY 2026-27 is materially harder: crude prices are elevated, the rupee has depreciated sharply, the rate-easing cycle has been paused and the monsoon outlook is unfavourable. Growth for FY 2026-27 is presently projected in the 6.4% to 6.6% range - 6.4% by the IMF in its July 2026 update and around 6.6% by the Reserve Bank of India - assuming an orderly normalisation of energy markets.
Consumption & Investment Dynamics:
Private consumption remained the mainstay of demand through FY 2025-26, supported by GST rate rationalisation, lower personal tax incidence from 1 April 2026 and a nine-month stretch of near-zero food inflation that materially improved household purchasing power.
Investment activity was underpinned by front-loaded government capital expenditure, cheaper credit following the easing cycle, healthy corporate and bank balance sheets and rising capacity utilisation.
Agriculture and Allied Activities
• The primary sector recorded GVA growth of 3.2% in FY2025-26, supported mainly by agriculture and fisheries, while the agriculture, livestock, forestry and fishing segment recorded growth of approximately 3.1%.
• Indias agricultural output remained strong during the year. According to the Third Advance Estimates of the Ministry of Agriculture & Farmers Welfare, total foodgrain production for 2025-26 is estimated at a record 376.563 million tonnes, approximately 18.8 million tonnes or 5.3% higher than the previous years production of 357.732 million tonnes.
• Favourable overall monsoon conditions supported agricultural activity, with the 2025 southwest monsoon rainfall at 108% of the Long Period Average. However, rainfall distribution remained uneven across regions.
• Record output in maize, groundnut, rapeseed-mustard and sugarcane, together with comfortable buffer stocks and a 21.7% increase in fertilizer subsidy outgo, supported farm liquidity through both the kharif and rabi cycles.
Industry
• Manufacturing was the standout performer, expanding 10.7% in FY 2025-26 against 9.3% in FY 2024-25, aided by GST rationalisation, softer input costs for most of the year and improving export competitiveness.
• Construction and infrastructure activity remained robust, with the cement production index up 8.7% and finished steel consumption up 8.0% for the year.
• Mining and electricity were mixed; natural gas consumption declined 3.0% for the year, reflecting both substitution and the late-year disruption to LNG supply.
Services
• Services remained the largest contributor to GVA. The contact-intensive trade, repair, hotels, transport and communication segment accelerated to 11.0% growth in FY 2025- f 26 from 6.6% in the previous year.
• Financial, real estate, IT and professional services continued to expand steadily, with services exports sustaining double-digit growth.
• Public administration and defence spending continued to support GVA, particularly in the second half of the year.
• CPI inflation averaged approximately 2.1% in FY2025-26, representing the lowest full- year average in the current CPI series. The exceptionally benign inflation environment was supported by favourable food-price dynamics, improved agricultural supplies and favourable base effects. The RBI progressively lowered its FY2025-26 inflation forecast during the year, from 3.1% to 2.6% in October 2025 and subsequently to 2.1% in December 2025.
• Headline inflation fell below 1% in October and November 2025, touching a series low of approximately 0.25% in October 2025. The sharp disinflation was driven predominantly by food prices, which recorded a cumulative decline of 10.5% over a nine-month period, the longest sustained period of food-price contraction in the CPI series. The decline was further reinforced by the impact of GST rate rationalisation effective from September 2025 and favourable base effects.
• The Monetary Policy Committee reduced the policy repo rate by a cumulative 125 basis points during 2025, from 6.50% to 5.25%, as inflation moderated and the policy stance became more supportive of economic activity. The easing was accompanied by liquidity-management measures, including CRR reductions, open market operations and foreign-exchange swaps. The repo rate has subsequently remained at 5.25% through August 2026, while the RBI has continued to monitor liquidity conditions, exchange-rate developments and external risks alongside inflation.
Fiscal Position and Government Initiatives
• The fiscal deficit for FY 2025-26 came in at 4.4% of GDP, in line with both the Budget Estimate and the Revised Estimate, at Rs. 15.19 lakh crore as per the provisional accounts released by the Controller General of Accounts on 1 June 2026, against 4.77% in FY 2024-25.
• Gross GST collections for FY 2025-26 crossed Rs. 22 lakh crore, an increase of about 8.3% over the previous year, and revenue receipts reached 98.8% of the Revised Estimates.
S&P upgraded Indias sovereign credit rating from BBB- to BBB during the year, the first upgrade in over two decades.
• In the Union Budget 2026-27 presented on 1 February 2026, the Ministry of Agriculture and Farmers Welfare was allocated Rs. 1,40,529 crore, 5.4% above the FY 2025-26 Revised Estimate, with PM-KISAN at Rs. 63,500 crore, Krishonnati Yojana at Rs. 11,200 crore and fertiliser subsidy at Rs. 1,70,944 crore.
External Economic and Trade Landscape
• Merchandise trade was reshaped in the closing months of the year by the energy shock. Exports of goods and services grew 9.3% for the full year while imports grew 11.1%, with imports of machinery and equipment up 19.3%.
• The current account deficit, a comfortable 0.8% of GDP in the first half of FY 2025-26, is expected to widen materially in FY 2026-27 under an elevated oil price scenario, given that India imports close to 88% of its crude requirement.
• The rupee depreciated sharply in the fourth quarter, touching Rs. 93.94 to the US dollar and breaching Rs. 95 intraday in March 2026 - the steepest full-year depreciation since FY 2011-12. The Reserve Bank intervened substantially in defence of the currency, with foreign exchange reserves moderating from about USD 700 billion to about USD 682 billion, still equivalent to roughly eleven months of import cover.
• Labour-market conditions remained broadly resilient during FY2025-26, with labour force participation remaining relatively stable through much of the year. Rural economic activity benefited from favourable agricultural conditions, including a strong kharif season.
• Government-backed rural employment programmes continued to provide income and employment support to rural households, alongside sustained investment in rural infrastructure. During the year, the rural employment framework transitioned from MGNREGA to the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramm) Act, 2025, which provides a statutory guarantee of up to 125 days of wage employment per rural household.
• Employment conditions in the non-farm economy also remained supportive, with formalisation and job creation gaining momentum across sectors such as construction, manufacturing and services. The introduction of the Pradhan Mantri Viksit Bharat Rojgar Yojana further strengthened policy support for formal employment generation.
Significant Risks and Challenges
• Energy and geopolitical risk: With close to 88% import dependence for crude oil, sustained elevated energy prices directly widen the current account deficit, pressure the rupee and raise the domestic cost of fertilizer, freight, packaging and seed processing.
• Monsoon and climate risk: The India Meteorological Departments second-stage forecast dated 29 May 2026 places the 2026 southwest monsoon at 90% of the long period average with a model error of plus or minus 4%, and assigns an 84% probability to below-normal or lower rainfall, with El Nino conditions expected to develop during the season. This is the single most significant near-term risk to rural demand and to the seed industry.
• Inflation and policy risk: With the rate-easing cycle paused and inflation projected to rise through FY 2026-27, the room for counter-cyclical monetary support is narrower than at any point in the last two years.
THE AGRICULTURE & SEED INDUSTRY OVERVIEW
Global cereal production reached an all-time high of approximately 3,043 million tonnes in 2025, representing an increase of 6.1% over the previous year. FAOs July 2026 outlook places global cereal production at approximately 2,983 million tonnes in 2026, around 2% below the 2025 record but still representing the second-highest level on record.
Global cereal inventories also remain relatively comfortable. FAO estimates 2025/26 ending cereal stocks at approximately 952 million tonnes, while the stock-to-use ratio for 2026/27 is projected at around 31.7%, indicating a broadly adequate global supply position despite geopolitical, weather and trade-related uncertainties.
Against this backdrop, the global seed industry continues to offer attractive long-term growth opportunities, supported by increasing investment in seed breeding, biotechnology, improved traits, hybridisation and climate-resilient varieties. Industry estimates indicate continued expansion of the global seed market, although market-size estimates vary depending on the definition and segments included.
Global agriculture: supply, demand & outlook
Production & stocks
FAOs July 2026 assessment places global cereal production for 2026-27 at approximately 2,983 million tonnes, 1.9% below the record 3,043 million tonnes estimated for 2025-26, but still the second-highest level on record. Global wheat production is forecast at 806.5 million tonnes, down 4.3% year-on-year, with the decline driven in part by a below-average Australian crop, where a higher probability of below-average rainfall associated with El Nino and elevated input costs is expected to weigh on planted area and yields.
Coarse-grain production is forecast at approximately 1,624 million tonnes, with improved maize prospects partly offsetting declines in wheat and other cereals, while global milled-rice production is forecast at approximately 552.5 million tonnes. World cereal utilization for 202627 is projected at around 2,961 million tonnes, with ending stocks of approximately 958 million tonnes, indicating a relatively well-supplied global market, although weather, geopolitical and trade-related risks remain significant.
Demand drivers
Population growth, rising incomes and dietary diversification in emerging markets continue to provide structural support to global food and feed demand, including demand for maize and other coarse grains. At the same time, elevated energy and fertilizer costs may constrain input application in price-sensitive markets and increase production costs.
Implications for seeds
Demand for improved genetics is intensifying, particularly for higher-yielding cereals and stress-tolerant varieties, with El Nino conditions in 2026 sharpening farmer preference for drought-tolerant and short-duration hybrids. Global seed R&D remains concentrated in a small number of multinational firms, but regional private and public breeders continue to expand capacity.
Global seed industry: market structure & tech trends
The global seed industry continues to record steady growth, underpinned by rising food demand, the need for climate adaptation, advances in breeding technology and supportive policy across most major producing regions. Seed remains the single most important determinant of agricultural productivity, and the market therefore reflects both the strategic importance of national seed systems and the shifting dynamics of biotechnology, sustainability requirements and farmer preference. The energy and fertilizer cost inflation of 2026 has, if anything, sharpened the case for genetics that deliver more output per unit of applied input.
The seed treatment market, comprising chemical and biological coatings that enhance germination and early-stage protection, continues to grow faster than the underlying seed market as farmers seek to protect a rising per-acre seed investment against pests, disease and abiotic stress.
Global area under genetically modified crops has remained broadly stable at approximately 210 million hectares, with the United States, Brazil, Argentina, India and Canada accounting for the bulk of the area.
GM crops continue to play a strategic role in global feed and food supply chains, particularly in soybean and maize. India remains restricted in GM approvals other than Bt cotton, though public and private research in rice, mustard, maize and pulses continues.
Cereals: Maize remains the largest commercial seed segment globally, accounting for approximately 35.9% of global commercial-seed revenue in 2024. India is also witnessing strong growth in hybrid maize adoption, supported by rising productivity requirements and increasing demand for quality hybrid seed.
Oilseeds: Soybean and canola remain the principal genetically modified oilseed crops worldwide, while sunflower and mustard hybrids continue to gain share. In India, record rapeseed-mustard output of 13.768 million tonnes in 2025-26 reflects the pull from the national edible oils mission.
Cotton: India and the United States remain the largest producers of Bt cotton hybrids. Indian cotton output stood at 29.024 million bales in 2025-26, with the Mission for Cotton Productivity now the principal policy lever for yield improvement.
Vegetables: High-value hybrids and the continued expansion of protected cultivation remain the fastest-growing driver of seed demand, supported by shorter crop cycles, higher seed replacement rates and stronger farm-gate realisations than in field crops.
The industrys centre of gravity continues to move from a commodity orientation to an innovation orientation. As climate volatility, food security and input-use efficiency rise up the policy agenda - a shift underlined in 2026 by the return of El Nino conditions and a projected 26% increase in global fertilizer prices - seed companies are moving closer to the centre of the agri-food value chain, with returns accruing increasingly to those able to convert research into commercially adopted traits.
INDIA SEED MARKET & AGRICULTURE INDUSTRY ANALYSIS
Outlook
Indias agriculture sector will continue to play a critical role in the economy, contributing materially to GVA, employment, rural incomes and food security. Sustained public investment in rural infrastructure, irrigation, agri-technology, seed quality and farmer welfare is expected to strengthen the sectors medium-term growth potential. The near-term environment, however, is more challenging. IMDs updated 2026 Southwest Monsoon forecast had placed seasonal rainfall at 90% of the Long Period Average (LPA), with an 84% probability of below-normal or deficient rainfall, while the emergence of El Nino conditions has increased weather-related risks for agriculture.
Indias agriculture sector performed strongly through FY 2025-26. The 2025 southwest monsoon delivered 108% of LPA, while strong kharif and rabi output contributed to record overall foodgrain production. Total foodgrain production increased by 5.3% year-on-year during FY 2025-26.
Structural constraints nevertheless remain. Fragmented landholdings, continued reliance on farm-saved seed in several crops, and the presence of unregulated or counterfeit seed channels can constrain the expansion of the organised seed market and the adoption of quality-certified and improved varieties.
Indias foodgrain output reached an all-time high of 376.563 million tonnes in 2025-26 as per the Third Advance Estimates released on 27 May 2026, an increase of 18.8 million tonnes or 5.3% over the previous year. Rice production stood at a record 154.024 million tonnes, wheat at 120.657 million tonnes and maize at a record 55.093 million tonnes, up 11.684 million tonnes. Total oilseeds reached 43.059 million tonnes, with groundnut at a record 13.074 million tonnes and rapeseed-mustard at a record 13.768 million tonnes. Sugarcane touched a record 500.063 million tonnes and cotton 29.024 million bales.
Policy support intensified during the year. The PM Dhan-Dhaanya Krishi Yojana, approved by the Union Cabinet with an outlay of Rs. 24,000 crore per year for six years from 2025-26, covers 100 low-productivity districts and is expected to benefit 1.7 crore farmers through convergence of 36 existing schemes. The National Mission on High Yielding Seeds, the Mission for Cotton Productivity and the National Mission on Edible Oils - Oilseeds continue to shape cropping decisions and, in turn, seed demand. ICAR released 339 crop varieties suited to different agro-climatic regions during 2025-26.
Production & cropping patterns affecting seed demand
Rice and wheat remain the largest acreage crops. Organised seed penetration in rice (hybrids in pockets) and wheat (largely varietal replacement through certified seed) continues to improve slowly as mechanisation and procurement economics make certified seed more attractive. Record cereal output in 2025-26 supports continued demand for improved varieties.
Policy attention to reducing edible oil import dependency has elevated demand for improved oilseed varieties. Record groundnut production of 13.074 million tonnes in 2025-26, up 1.132 million tonnes, is directly relevant to the Companys largest seed segment, and the oilseeds mission is expected to sustain acreage support into FY 2026-27.
Rapid growth in horticulture and protected cultivation continues to drive demand for high- value vegetable hybrids with shorter seed cycles and higher seed replacement rates. Private seed companies and specialist vegetable seed firms achieve faster monetisation and repeat purchases in this segment.
Near-universal adoption of Bt hybrids makes cotton the most commercial, high-value seed segment in India, with high renewal frequency and strong private R&D focus, but also persistent susceptibility to illegal seed leakage. Cotton output in 2025-26 stood at 29.024 million bales.
Hybrid maize remains the fastest-growing commercial seed market on the strength of feed and industrial (ethanol and starch) demand and a higher seed replacement rate; record maize production of 55.093 million tonnes in 2025-26, up 26.9% year on year, underlines the momentum in this segment.
Indian seed market · outlook, size, composition
India is among the largest seed markets globally and continues to grow ahead of the underlying agricultural economy, supported by hybridisation, private R&D investment, government seed missions and rising farmer awareness.
The seed industry in India was valued at approximately USD 8.6 billion in 2025 and is projected to reach USD 20.2 billion by 2034, a compound annual growth rate of about 9.68%. Paddy is the largest crop-type segment at roughly 26.5% of the market and Uttar Pradesh the largest state market at about 18.0%.
Cotton (Bt) is dominated by biotech hybrids with near-universal penetration, giving cotton seed companies repeat business and higher margins, but also attracting counterfeit and parallel market activity.
Private sector leads vegetables & maize because of faster innovation and higher SRR.
Formal seed penetration in staple crops continues to improve but still lags the hybrid segments. Seed replacement rates of the order of 40% in wheat and paddy indicate that farm- saved seed remains the dominant practice, a function of smallholder economics and of the limited yield premium from varietal replacement in self-pollinated crops. The gap to full replacement is, in itself, the organised industrys largest structural opportunity.
Regulatory & institutional landscape
The Seeds Act and Seed Rules, state seed certification agencies and the Protection of Plant Varieties and Farmers Rights Authority together form the backbone of seed regulation, quality control and variety protection in India.
Market channels, distribution & value leakage
Traditional channels - agro-retailers and dealer networks - remain the primary route to market, but digital platforms, farm advisory services and company field teams increasingly influence farmer adoption and repeat purchase, particularly for hybrids and vegetable seeds.
Parallel and counterfeit seed channels, most prevalent in cotton and in certain high-value hybrids, continue to divert revenue away from the organised industry. Where such material fails on germination or purity, the resulting loss of farmer confidence extends to genuine brands as well.
Record grain output and near-zero food inflation raised rural cash flows during FY 2025-26 and encouraged the purchase of certified seed for the rabi planting cycle.
Government seed missions, subsidised distribution programmes in several states and firm procurement expectations boosted demand for improved varieties and certified seed.
Monsoon variability remains the biggest short-term risk. The IMD forecast of 90% of the long period average for the 2026 season, with El Nino conditions expected to develop, points to a materially more challenging kharif 2026 for seed offtake in rainfed geographies.
Price sensitivity among smallholders remains a constraint in lower-value crops absent subsidy or credit support, and is likely to increase as energy-driven inflation raises the overall input bill.
OPPORTUNITIES & THREATS Opportunities:
1. Increasing Food Demand and Population growth:
Indias population, projected to cross 1.5 billion by 2030, will continue to fuel demand for cereals, pulses, fruits, vegetables and oilseeds.
This will translate into wider adoption of hybrid and improved varieties offering higher productivity, a better nutritional profile and greater tolerance of the growing conditions farmers actually face.
2. Growth opportunities in Hybrid Seeds:
Hybrid penetration in maize, rice, bajra and vegetables remains well below the levels achieved in comparable agricultural economies. With seed replacement rates in wheat and paddy still around 40%, the headroom in staples is as significant as that in hybrids.
Rising farmer awareness, seed replacement rate programmes under the National Mission on High Yielding Seeds, and continued state-level promotion of certified seed together provide a durable growth avenue.
3. Climate-Resilient and Stress-Tolerant Seeds:
Climate change and erratic rainfall create structural demand for drought-tolerant, flood- resistant and heat-stress tolerant seed. The below-normal monsoon forecast for 2026, with El Nino conditions developing, is expected to accelerate farmer preference for short- duration and stress-tolerant hybrids.
Climate-smart genetics is an area in which Indian breeders can compete globally. The below-normal monsoon forecast for 2026 will provide an unusually direct field test of which portfolios carry genuine stress tolerance, and of which companies can demonstrate it to farmers.
Indian hybrids in cotton, maize, rice and vegetables continue to gain acceptance across Africa, Southeast Asia and Latin America. Indias overall agricultural exports reached a record of approximately USD 52.5 billion in FY 2025-26, against USD 51.1 billion in the preceding year, notwithstanding tariff headwinds.
Comparatively low seed production costs, a wide spread of agro-climatic zones permitting year-round production, and an established contract-growing base together keep India competitive in the global seed value chain.
5. Biotechnology and New Breeding Techniques:
Advances in biotechnology - Bt traits, CRISPR-based genome editing and marker-assisted molecular breeding - continue to shorten breeding cycles and improve the precision with which traits can be introgressed.
The regulatory position has begun to move. During the year India became the first country in the world to release genome-edited rice varieties for commercial cultivation, developed under the New Breeding Technologies framework and exempted from genetically modified organism regulation under the Environment (Protection) Act, 1986. Taken with the scale of the domestic market, this creates room for incremental adoption of advanced traits well beyond Bt cotton.
6. Government Support & Policy Push:
The National Mission on High Yielding Seeds aims to improve the availability of quality, high-yielding and climate-resilient seed at affordable prices.
The PM Dhan-Dhaanya Krishi Yojana, with an outlay of Rs. 24,000 crore per annum for six years across 100 districts, and state programmes under the Rashtriya Krishi Vikas Yojana continue to incentivise certified seed usage.
The Government continues to encourage the development of high-yielding, bio-fortified and stress-tolerant seed to address nutritional security and climate adaptation.
Research support through ICAR - which released 339 crop varieties in 2025-26 - and collaborations with private companies continue to promote innovation in crop breeding.
Income support under PM-KISAN, crop insurance under PMFBY - allocated Rs. 12,200 crore in the Union Budget 2026-27 - and subsidised credit schemes continue to improve farmer liquidity and, with it, the capacity to invest in quality seed.
Institutional credit access continues to widen. The collateral-free Kisan Credit Card limit under the Modified Interest Subvention Scheme now stands at Rs. 5 lakh, against Rs. 3 lakh previously, with Rs. 22,600 crore allocated to the scheme for 2026-27 - improving the affordability of hybrids and specialty seed at the point of purchase.
7. Digital Agriculture & Agri-Tech Integration:
Mobile advisory applications, e-commerce channels and farmer-facing digital platforms continue to give seed companies a direct line to the end user, shortening the distance between observed field performance and the breeding programme.
Precision agriculture, satellite-based advisory services and data-driven agronomy continue to improve realised seed performance in the field and, in doing so, farmer willingness to pay for superior genetics.
1. Climate Variability & Natural Disasters:
The rising frequency of drought, flood and erratic rainfall affects both seed demand and the Companys own production cycles. The 2026 season is a live illustration: the IMD forecast of 90% of the long period average, with El Nino conditions developing, carries risk on both sides of the balance sheet.
2. Regulatory and Policy Uncertainty:
Delay in approval of GM crops (like GM mustard, maize, or pulses) restricts adoption of next-generation seeds. Frequent changes in seed pricing regulations, especially in cotton, affect profitability.
3. Farmer Price Sensitivity & Affordability:
The large majority of Indian holdings remain small and marginal, with limited capacity to absorb the cost of premium hybrid seed. That constraint tightens in a year such as FY 202627, in which the wider input bill is rising on the back of a projected 26% increase in global fertilizer prices.
4. Competition from Unorganized Sector:
Unbranded, spurious and sub-standard seed sold by informal players continues to erode both farmer confidence and the organised sectors market share. Counterfeit distribution remains a persistent challenge, and enforcement under the Seeds Act and through state certification machinery continues to lag the scale of the problem.
Costs of R&D, seed treatment chemicals, labour, packaging, freight and compliance are rising. With fertilizer prices projected to rise 26% and global food prices 8% in 2026, the overall farm input bill will increase, sharpening farmer price sensitivity while the Companys own processing, packaging and logistics costs rise.
In several crops, and most visibly in Bt cotton, the build-up of pest resistance continues to reduce the field efficacy of established traits, requiring sustained reinvestment in research simply to hold performance at existing levels.
International seed companies with deeper biotechnology capability continue to expand their Indian presence, while the domestic market itself remains fragmented and price- competitive. Indian companies therefore compete against global research budgets at one end of the market and unorganised price competition at the other.
In FY 2025-26, the Companys performance continued to be driven by its core crops - groundnut (peanut), cotton, chilli and maize (corn). The groundnut seed segment operated against the backdrop of a record national groundnut crop of 13.074 million tonnes and sustained policy support for oilseed self-sufficiency. The chilli seed segment continued to see traction in high-demand regions, and the maize segment benefited from a record national maize crop of 55.093 million tonnes driven by feed and industrial demand.
Backed by its distribution network and farmer connect programmes, Vishwas Agri Seeds further strengthened its presence in its key markets of Gujarat and adjoining states during the year, adding new dealers and reaching farmers through field demonstrations and village-level engagement, reinforcing the Companys position as a trusted partner across its core crop portfolio.
Looking ahead to FY 2026-27, the Company expects demand across its major crop segments to be shaped by two opposing forces: continued policy support for oilseeds and pulses on the one hand, and a below-normal monsoon forecast of 90% of the long period average with El Nino conditions developing on the other. Groundnut seed should continue to benefit from farmer preference for oilseeds amid supportive government policy on edible oils, though rainfed acreage in the Saurashtra belt is sensitive to the timing of monsoon onset.
The chilli seed market continues to present attractive growth opportunities, supported by domestic consumption, export-oriented cultivation and increasing adoption of improved and premium hybrid varieties. However, elevated input, energy and logistics costs, together with weather variability, continue to influence farmer purchasing decisions and reinforce the importance of demonstrating clear productivity and value benefits through improved seed.
During FY 2025-26, the Company remained focused on strengthening its seed portfolio, maintaining farmer engagement and expanding its distribution reach. Looking ahead to FY 2026-27, the Company intends to adopt a calibrated approach to production and inventory planning in response to evolving monsoon conditions and regional demand patterns. Greater emphasis will be placed on quality, varietal performance, shorter-duration and stress-tolerant material, while maintaining prudent inventory levels and disciplined working-capital management. The Company will also continue to assess opportunities in complementary crops and new geographies where market potential, farmer demand and distribution economics support sustainable expansion.
The Company maintains a structured mechanism to identify, assess, monitor and mitigate the risks to its key business objectives, with risk management integrated into annual business planning and into season-wise operating decisions rather than treated as a separate exercise. The risks set out below, and the mitigation approach against each, were reviewed during the year in the light of the geopolitical, energy and weather developments described earlier in this report.
Climate and Weather Challenges:
Agriculture is highly dependent on the monsoon and on climatic conditions. Erratic rainfall, drought or flood can adversely affect both seed demand and seed production. The IMDs second-stage forecast for the 2026 southwest monsoon at 90% of the long period average, with an 84% probability of below-normal or lower rainfall and El Nino conditions expected to develop, elevates this risk materially for FY 2026-27.
The Company focuses on developing climate-resilient and drought-tolerant varieties, diversifying its crop portfolio, locating seed production across multiple agro-climatic zones, and maintaining contingency production plans and inventory discipline to reduce region- specific and season-specific exposure.
Changes in government policy on seed pricing, biotechnology approvals or trade may affect profitability. Cotton seed pricing regulation remains the single most material exposure, and the evolving framework for New Breeding Technologies, following the release of genome- edited varieties during the year, is an area of active monitoring.
The Company engages with policymakers and industry associations, maintains strict compliance with applicable regulation, and keeps a pipeline of notified and approved hybrids sufficiently broad that no single regulatory outcome is determinative of its performance.
The seed industry remains highly competitive, with pressure from multinational, national and regional players. Because the farmers purchase decision is taken afresh each season, price undercutting or the launch of a competing hybrid can erode market share within a single cycle.
The Company competes on product differentiation, farmer-centric innovation and the depth of its distribution and field-force relationships rather than on price alone.
Production and Supply Chain Constraints:
Reliance on contracted growers for seed production creates exposure to crop failure, quality inconsistency and logistical delay. This exposure is elevated for the 2026 production season given the monsoon outlook.
Vishwas Agri Seeds maintains long-term relationships with its grower base, applies stringent stage-wise quality checks, and deliberately spreads production across agro-climatic zones so that a single adverse weather event does not compromise a seasons supply.
The emergence of new pests, pathogens or races may reduce field performance and, with it, farmer confidence in the Companys material.
Sustained research investment in pest and disease resistance, farmer awareness programmes on integrated pest management, and close monitoring of field feedback through the season together contain this risk.
Rapid advances in biotechnology, genomics, genome editing and digital agronomy could reset competitive dynamics faster than in previous cycles. The Company continues to invest in research, in collaborations and in technology adoption so as to remain competitive as the regulatory framework for new breeding technologies opens up.
The Company is exposed to risks from credit defaults in the dealer channel, working capital cycles inherent to a seasonal business, interest rate movements, and cost inflation in inputs such as fertilizer, transport, packaging and seed treatment chemicals - the last of which is expected to intensify in FY 2026-27 given projected increases of 26% in global fertilizer prices and elevated freight costs.
The Company applies prudent financial management, disciplined credit appraisal at the dealer level, diversified funding sources, and a liquidity buffer sized to the seasonal working capital cycle of the business.
Human Resource and Labour Risks:
The industry depends on skilled manpower across research, seed production and the farmer interface. Attrition in technical roles, seasonal labour availability at peak production and processing periods, and health and safety exposure can each affect operations.
The Company invests in employee development, maintains fair labour practices and safe working conditions, and runs capacity-building and retention initiatives targeted at the roles it identifies as critical to the breeding and production functions.
Geopolitical, Energy and Input Cost Risk:
The conflict in the Middle East and the consequent disruption to energy flows have raised the cost of fertilizer, freight, packaging and seed treatment chemicals, and have weakened the rupee. Sustained cost inflation compresses either the Companys margin or the farmers willingness to pay for hybrid seed.
The Company mitigates this through advance procurement of packaging and treatment chemicals, multi-vendor sourcing, calibrated price revisions timed to the season, and continuous monitoring of the landed cost of key inputs.
Cybersecurity and Data Privacy Risk:
The Companys breeding data, grower records, dealer transaction data and farmer contact databases are business-critical, and their loss or compromise would carry both operational and regulatory consequences under the Digital Personal Data Protection Act, 2023.
Mitigation includes access controls, periodic backups and restoration testing, endpoint protection, employee awareness programmes and periodic review of information technology controls as part of the internal audit plan.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company maintains an internal control framework commensurate with the size, scale and nature of its operations, designed to provide reasonable assurance on the effectiveness and efficiency of operations, the safeguarding of assets, the reliability of financial reporting and compliance with applicable laws and regulations. The framework was reviewed during FY 2025-26 and remains appropriate to the Companys current scale of business.
The framework is structured to ensure:
• that transactions are properly authorised, recorded and reported;
• that assets are safeguarded against unauthorised use, loss or disposal;
• that statutory and regulatory compliance obligations are discharged across every function;
• that frauds and irregularities are prevented and, where they occur, detected on a timely basis; and
• that financial and operational reporting is accurate, complete and reliable.
Documented policies, standard operating procedures and a defined delegation of authority are in place for each key process. These are reviewed by the Internal Audit function, which operates independently of line management and reports its findings directly to the Audit Committee of the Board.
The Audit Committee reviews audit observations, tracks managements corrective actions through to closure, and satisfies itself that the control environment remains robust and aligned to the Companys business objectives.
Taking the above into account, the Board is of the opinion that the Companys internal control systems were adequate and operating effectively during FY 2025-26 in relation to operational efficiency, reliable financial reporting and compliance with applicable laws and regulations.
In addition, the Company has laid down internal financial controls with reference to the financial statements as contemplated by Section 134(5) (e) of the Companies Act, 2013. These controls are designed around a risk and control matrix covering the Companys significant processes - procurement and grower payments, seed processing and inventory, sales and dealer credit, payroll and financial closure - and are tested periodically. The statutory auditors have also reported on the adequacy and operating effectiveness of internal financial controls over financial reporting in their report on the financial statements for the year.
Unlike manufacturing industries where fluctuations in commodity prices significantly affect margins, the Companys primary raw material is seed of various types sourced from contracted growers or through in-licensing. Because seed is procured largely under preagreed arrangements with growers within an open market framework, volatility in raw material cost is comparatively contained.
Pricing of raw material in the seed industry is driven more by quality, the demand-supply balance for particular hybrids and climatic conditions during the production season than by commodity cycles. The Company is therefore less exposed to raw material price shocks than most agri-input industries. That said, the FY 2026-27 environment carries higher input-cost risk than the year under review: global fertilizer prices are projected to rise 26% and food prices 8% in 2026, while elevated crude prices raise the cost of packaging, seed treatment chemicals and freight. The Company monitors these exposures through its procurement planning and grower contracting cycle.
During the year under review, the Company has generated total revenue of Rs. 11,383.54/- (in lakhs) (Previous Year Rs. 10330.02/ - (in lakhs). The net profit before exceptional items and taxes is Rs. 296.47/- (in lakhs) (Previous Year Rs. 878.70/- (in lakhs). The net profit after taxes resulted into the profit for the year at Rs. 214.20/- (in lakhs) (Previous Year Rs. 670.80/- (in lakhs).
The Company regards its human capital as the foundation of sustainable growth and a key differentiator in an industry where field credibility with the farmer is built person by person. Guided by its core values of Integrity, Passion, Speed and Commitment, Vishwas Agri Seeds Limited continued through FY 2025-26 to build an environment that supports collaboration, performance excellence and innovation.
Industrial relations remained harmonious across all locations through the year, with no man- days lost to industrial action. Employee welfare and safety continued to be treated as priorities, and initiatives were undertaken during the year to strengthen workplace health, safety standards and overall employee well-being.
As on 31st March, 2026, the Company employed 37 people on its permanent rolls and approximately 113 individuals on a contractual or seasonal basis, reflecting a balanced mix of core and flexible workforce tailored to business requirements.
The Company remains confident that with a motivated workforce and employee-centric practices, it will be able to deliver sustainable value to its stakeholders and strengthen its leadership position in the agriculture and seed industry.
The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. The financial statements have been prepared under the historical cost convention on an accrual basis. The management accepts responsibility for the integrity and objectivity of the financial statements, as well as for the various estimates and judgment used therein.
DISCLOSURE OF ACCOUNTING TREATMENT IN PREPARATION OF FINANCIAL STATEMENT
The Company has followed all relevant Accounting Standards laid down by the Institute of Chartered Accountants of India (ICAI) while preparing Financial Statements.
DETAILS OF SIGNIFICANT CHANGES (i.e. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS
The Company has identified the following ratios as key financial ratios:
Sr. No. Particulars |
2025-2026 |
2024-2025 |
Changes |
Reason |
1. Current Ratio |
1.76 |
1.73 |
1.61% |
- |
2. Debt Equity Ratio |
0.93 |
0.85 |
9.74% |
- |
3. Return on Equity Ratio |
4.21% |
13.98% |
(69.87)% |
The decrease is mainly attributable to lower profit levels |
4. Trade payables turnover ratio |
12.64 |
13.46 |
(6.08)% |
- |
5. Net Capital Turnover ratio |
3.06 |
2.93 |
4.47% |
- |
6. Debtors Turnover Ratio |
2.52 |
3.05 |
(17.42)% |
- |
7. Inventory Turnover Ratio |
2.73 |
2.81 |
(2.92)% |
- |
8. Interest Coverage Ratio |
1.78 |
3.42 |
(47.95)% |
The decrease is mainly attributable to lower profit levels |
9. Operating Profit Margin (%) |
7.80 |
14.46 |
(46.06)% |
The decline is primarily due to reduced profitability. |
10. Net Profit Ratio (%) |
1.89% |
6.56% |
(71.24)% |
The reduction is driven by a decline in overall profitability |
11. Debt Service Coverage Ratio |
0.95 |
2.49 |
(61.83)% |
The decline is primarily due to reduced profitability. |
12. Return on Capital Employed |
6.74% |
13.50% |
(50.08)% |
The decline is mainly due to decreased profits during the year |
13. Return on investment |
4.12% |
13.47% |
(69.39)% |
The decrease is primarily attributable to lower earnings |
DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF
Sr. No. Particulars |
2025-2026 |
2024-2025 |
Changes |
Reason |
1. Return on Net Worth |
4.12% |
13.47% |
(69.41)% |
The decline is mainly due to decreased profits during the year |
Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied.
Date: September 05, 2026 |
By Order of the Board of Directors |
|
Place: Bavla |
For Vishwas Agri Seeds Limited |
|
Sd/- |
Sd/- |
|
Ashokbhai Shibabhai Gajera |
Bharatbhai Shibabhai Gajera |
|
DIN: 06503966 |
DIN: 10165735 |
|
Managing Director |
Director |
|
Registered Office: Near Toll Tax, S. No. 460, Gangad Road, |
||
Bhayla, Ahmedabad, Bavla-382220, Gujarat |
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