Advanta Enterprises IPO

Strengths · 7

• 01Revenue from operations grew from Rs 4,291.74 crore in FY2023 to Rs 5,565.74 crore in FY2025.
• 02Gross profit margin was 61.99% in FY2025 against 60.69% in FY2023.
• 03EBITDA margin rose from 22.73% in FY2023 to 24.73% in FY2025, and EBITDA was Rs 1,376.52 crore in FY2025.
• 04Seeds were sold in 74 countries through 4,350 dealers and retailers, and the top 10 dealers and retailers gave less than 50% of revenue in each period.
• 05The company spends 7.23% of revenue on R&D in FY2025 and runs 39 R&D facilities across 12 countries.
• 06The portfolio has more than 900 hybrid seed varieties across 21 breeding crops as of 30 September 2025.
• 07Total borrowings fell to Rs 41.15 crore as of 30 September 2025 from Rs 294.97 crore as of 31 March 2025.

Risks · 10

• 01The company receives no money from the issue. All proceeds go to the selling shareholders.
• 02Field corn gave 54.01% of seeds revenue in the six months ended 30 September 2025, up from 40.81% in FY2025.
• 03Contract growers produced 99.24% of seed volume in FY2025, and the arrangements are short-term and seasonal.
• 04Third-party tolling facilities handled 61.58% of seed volume processed in FY2025.
• 05Net cash used in operating activities was Rs 414.59 crore in the six months ended 30 September 2025, and net working capital days rose to 190 from 131 in FY2025.
• 06The Americas gave 37.99% of revenue in FY2025, so currency, tax and legal changes there matter.
• 07Production costs were 38.01% of revenue from operations in FY2025, so raw material price swings affect profit.
• 08The company and some subsidiaries have made losses in the past, and there is no assurance that loss-making subsidiaries will turn profitable.
• 09Total income from related parties was Rs 190.21 crore, or 3.35% of total income, in FY2025.
• 10Litigation against the promoter involves 39 criminal proceedings and an aggregate amount of Rs 836.39 crore, to the extent ascertainable.

Advanta Enterprises Limited is a global agricultural-solutions company. It sells hybrid seeds and post-harvest solutions. The company was incorporated on 2 June 2022 and is promoted by UPL Limited. Its registered office is in Khar West, Mumbai and its corporate office is in Hyderabad.

In seeds, the company develops, produces and sells seeds with advanced traits. As of 30 September 2025 it had more than 900 hybrid seed varieties across 21 breeding crops and 19 crops that combine its own genetics with in-licensed crop collaborations. Its seeds were sold to 4,350 dealers and retailers in 74 countries in the six months ended 30 September 2025. Field corn made up 54.01% of the seeds revenue in that period.

The post-harvest business runs through Decco, which Advanta Enterprises acquired from UPL Corporation Limited in September 2025. Decco was earlier under the control of the promoter group, so the restated financials show seeds and Decco together for all periods. In FY2025 the seeds business gave Rs 4,633.07 crore of revenue and the post-harvest business gave Rs 932.67 crore.

Seed production depends on growers. The company contracted with over 20,000 growers in 25 countries as of 30 September 2025, and contract growers produced 99.24% of seed volume in FY2025. The company also does research through 39 R&D facilities across 12 countries. R&D cost was 7.23% of revenue from operations in FY2025.

By region, FY2025 revenue was Rs 1,333.09 crore from India, Rs 2,114.17 crore from the Americas, Rs 1,244.94 crore from Asia-Africa excluding India, Rs 546.23 crore from Australia and Rs 327.30 crore from Europe. The company had 1,631 full-time employees as of 30 September 2025.

The industry

The global seeds industry is estimated at US$51.9 billion in CY2025 and is forecast to reach US$68.0 billion by CY2030, a 5.5% CAGR. The report expects growth from rising food demand as the population grows. The global post-harvest treatment industry is estimated at US$2.1 billion in CY2025 and is forecast to reach US$3.0 billion by CY2030, a 7.5% CAGR. Growth there is expected from higher horticultural production and tighter residue and hygiene standards.

Customer concentration: The top 10 dealers and retailers gave less than 50% of revenue from operations in each period. Field corn gave 54.01% of seeds revenue in the six months ended 30 September 2025.