JK Agri Genetics posts Q2 loss as revenue falls 24% year-on-year

JK Agri Genetics Ltd. reported a Rs 7.0106 crore net loss for the quarter ended 30 September 2026, compared with a Rs 5.0908 crore loss a year earlier, as revenue from operations fell 24% to Rs 14.4974 crore. JK Agri Genetics said El Niño conditions affected operations and noted that its business is seasonal.

Why did JK Agri Genetics report a second-quarter loss?

JK Agri Genetics reported a Rs 7.0106 crore net loss after tax for the quarter ended 30 September 2026 because total income of Rs 15.282 crore was lower than total expenses of Rs 24.1032 crore. The loss before tax was Rs 8.8212 crore, compared with a loss before tax of Rs 7.5941 crore in the quarter ended 30 September 2025.

Revenue from operations declined by Rs 4.5757 crore from Rs 19.0731 crore a year earlier to Rs 14.4974 crore. Other income also decreased to Rs 76.46 lakh from Rs 1.137 crore. Total expenses fell by Rs 3.701 crore year on year, but the decline was smaller than the Rs 4.9281 crore fall in total income.

The comparison with the preceding quarter also reflects the seasonal pattern identified in the filing. Revenue was Rs 84.3303 crore in the quarter ended 30 June 2026, or Rs 69.8329 crore above the September-quarter figure, while net profit changed from Rs 10.8668 crore to a Rs 7.0106 crore loss. The company cautioned that current-quarter results are not representative of full-year performance.

How did JK Agri Genetics perform in the first half?

JK Agri Genetics remained profitable in the six months ended 30 September 2026, reporting net profit of Rs 3.8562 crore, down from Rs 7.1938 crore in the corresponding six months of 2025. Revenue from operations declined 11% to Rs 98.8277 crore from Rs 111.0049 crore over the same periods.

Profit before tax fell to Rs 6.4753 crore from Rs 10.1274 crore, a reduction of Rs 3.6521 crore. Total income decreased by Rs 13.3624 crore to Rs 101.0342 crore, while total expenses declined by Rs 9.7103 crore to Rs 94.5589 crore. Income therefore contracted more than expenses during the half year.

Basic and diluted earnings per share for the six months were Rs 8.32, versus Rs 15.51 in the prior-year period. For the September 2026 quarter, basic and diluted loss per share was Rs 15.12, compared with a Rs 10.98 loss per share a year earlier. The half-year outcome combined the June-quarter profit of Rs 10.8668 crore with the September-quarter loss.

What operating costs and conditions affected JK Agri Genetics?

JK Agri Genetics identified El Niño conditions as an impact on current-period operations, although the filing does not quantify the financial effect. The company operates in one reported segment, Agri and Allied Products, so it did not provide a product or segment split for the weather-related impact.

In the quarter ended 30 September 2026, the increase in inventories of finished goods, work in progress and stock in trade was Rs 7.9783 crore, while other expenses were Rs 5.6077 crore. Material consumption was Rs 4.1249 crore, employee-benefit expense was Rs 4.8643 crore, finance cost was Rs 90.48 lakh and depreciation and amortisation was Rs 60.32 lakh.

For the six months ended 30 September 2026, material consumption fell to Rs 50.1741 crore from Rs 71.7477 crore a year earlier. Employee-benefit expense decreased to Rs 10.1693 crore from Rs 14.7597 crore, finance cost fell to Rs 1.5767 crore from Rs 2.5095 crore, and other expenses declined to Rs 18.6656 crore from Rs 19.9943 crore.

The half-year inventory movement was an increase of Rs 12.7419 crore, compared with a decrease of Rs 6.7645 crore in the corresponding prior-year period. This accounting line and the lower revenue contributed to the change in the half-year cost structure. The filing gives no guidance, target or quantified estimate for the operational effect of El Niño in later periods.

What did JK Agri Genetics' balance sheet and cash flow show?

JK Agri Genetics reported total assets of Rs 256.0456 crore at 30 September 2026, down from Rs 272.2158 crore at 31 March 2026. Inventories fell to Rs 85.7523 crore from Rs 98.0957 crore, while investments classified as current assets declined to Rs 71.1796 crore from Rs 72.9109 crore.

Total equity increased to Rs 104.1874 crore from Rs 100.3581 crore over the six months. Current liabilities decreased to Rs 151.2958 crore from Rs 171.0243 crore, while current borrowings were Rs 4 crore at 30 September 2026 compared with no current borrowings at 31 March 2026.

Net cash used in operating activities was Rs 3.9936 crore in the six months ended 30 September 2026. A Rs 12.3434 crore decrease in inventories was accompanied by a Rs 23.2259 crore decrease in trade and other payables, resulting in cash generated from operations of negative Rs 4.1012 crore before net direct taxes.

Investing activities generated Rs 3.7074 crore and financing activities generated Rs 1.6008 crore during the half year. Net proceeds from short-term borrowings were Rs 4 crore, while interest paid was Rs 2.3064 crore and lease repayments were Rs 9.28 lakh. Cash and cash equivalents plus bank balances rose by Rs 1.3146 crore to Rs 1.9297 crore at 30 September 2026.

Conclusion

JK Agri Genetics remained profitable for the six months ended 30 September 2026, but its Rs 3.8562 crore profit was lower than the Rs 7.1938 crore reported a year earlier. The September-quarter loss widened year on year as revenue fell to Rs 14.4974 crore, with the company citing both seasonal business conditions and the impact of El Niño.

The unresolved matter to watch is the recovery of Rs 18.2361 crore of overdue trade receivables and a Rs 1.2168 crore security deposit from Rajasthan State Seeds Corporation. The auditor said JK Agri Genetics has filed an objection application before the High Court of Rajasthan at Jaipur challenging earlier orders, while its review conclusion was not modified in respect of this matter.