JK Agri Genetics - JK Agri Genetics

📊 BSE: 536493 🏢 Other Agricultural Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total operating income declined by 26.29% from INR 200.92 Cr in FY23 to INR 148.10 Cr in FY24. Field crops revenue fell by 19% in FY24 (following a 16% decline in FY23), while vegetable seed revenue dropped by 48% in FY24 (following a 33% decline in FY23). Institutional orders saw a significant 60% reduction in FY23.

Geographic Revenue Split

The company operates a pan-India distribution network across 28 states. While specific regional percentages are not disclosed, production is concentrated in Andhra Pradesh and Telangana, and the company maintains 18 Carry & Forward agents nationwide.

Profitability Margins

Profitability has been severely impacted, with PAT margins falling to -14.05% in FY24 (INR -20.82 Cr loss) from -5.37% in FY23 (INR -10.80 Cr loss). H1FY25 reported a PAT of INR -4.74 Cr on revenue of INR 108.20 Cr.

EBITDA Margin

PBILDT was negative at INR -25.23 Cr in FY24 compared to INR -8.32 Cr in FY23. H1FY25 PBILDT remained negative at INR -3.00 Cr. The decline is attributed to lower sales volumes in high-margin vegetable crops like hot pepper and okra.

Capital Expenditure

The company has planned capex of INR 11-12 Cr for FY25, dedicated to R&D, the construction of a research laboratory, and the procurement of laboratory equipment, funded through internal cash and liquid investments.

Credit Rating & Borrowing

Long-term bank facilities are rated CARE A-; Negative (reaffirmed January 2025). The company faces debt and interest repayments of ~INR 15 Cr in FY25 and INR 12-13 Cr annually in FY26 and FY27.

⚙️ Operational Drivers

Raw Materials

The primary raw materials are seeds for crops including Cotton, Paddy, Maize, Jowar, Bajra, and various vegetables, sourced directly from producing farmers.

Import Sources

Raw materials are primarily sourced domestically from production centers in Andhra Pradesh, Telangana, and other Indian states.

Key Suppliers

Procurement is conducted through a network of individual and contract producing farmers across major agricultural states.

Capacity Expansion

Current expansion focuses on R&D infrastructure, including a new research laboratory and biotech facilities at Dundigal, Telangana, to support the launch of new hybrid varieties.

Raw Material Costs

Procurement costs are highly sensitive to commodity price fluctuations; a rise in commodity prices increases farmer expectations for revenue per unit of land, raising seed procurement costs. No institutional hedging is available for these costs.

Manufacturing Efficiency

The company operates state-of-the-art seed processing plants in Hyderabad and Kota. Efficiency measures include rationalizing the product portfolio and upgrading logistics and supply chain operations.

Logistics & Distribution

The company is currently upgrading its logistics and supply chain operations to improve efficiency and reduce the impact of the elongated operating cycle.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth is targeted through the launch of new hybrids (22 launched recently), rationalizing the product portfolio by dropping low-margin/slow-moving items, thrust on digital marketing, and strengthening planning and forecasting. The company also monetized land in Hyderabad for INR 72 Cr to bolster liquidity for growth initiatives.

Products & Services

High-quality hybrid seeds for Bajra, Jowar, Paddy, Cotton, Maize, and vegetables, along with plant nutrient products.

Brand Portfolio

JK Seeds

New Products/Services

22 new hybrids launched in FY22 contributed INR 8.99 Cr to turnover in FY24, up from INR 6.74 Cr in FY23 and INR 2.11 Cr in FY22.

Market Expansion

The company is focusing on expanding its presence in 28 states and recovering export sales, which had previously declined due to reduced institutional orders.

Strategic Alliances

Technical collaborations with leading research-driven institutes and a network of 23 multi-location trial centers covering all Indian climate zones.

🌍 External Factors

Industry Trends

The seed industry is evolving with a shift toward genetically modified crops and high-yield hybrids, though it faces a counter-trend of farmers reverting to saved seeds in certain vegetable categories due to cost pressures.

Competitive Landscape

Competes with both organized seed players and the unorganized sector (saved seeds), particularly in the vegetable and field crop segments.

Competitive Moat

The moat is built on the 'JK Seeds' brand, a strong R&D team of 35 scientists, and the financial backing of the JK Group (BACL), which holds investments with a market value of INR 13,794 Cr.

Macro Economic Sensitivity

Highly sensitive to agricultural GDP and monsoon patterns, as 55-60% of sales are concentrated in the Q1 (April-June) period.

Consumer Behavior

Farmers are increasingly making choices based on cropping pattern shifts and the availability of irrigation, impacting demand for high-margin crops like hot pepper.

Geopolitical Risks

Vulnerability to international trade dynamics, evidenced by the decline in export sales and institutional orders in FY23.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Seed Act, requiring state-level approvals for new varieties and adherence to government-mandated price caps on cotton seeds.

Legal Contingencies

As of May 2025, no directors on the Board have been debarred or disqualified by SEBI or the Ministry of Corporate Affairs.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the dependence on monsoon conditions; lack of adequate irrigation makes 50-60% of annual sales vulnerable to weather fluctuations.