The study analysed the distribution of benefits of the hybrid rice seed sector among various stakeholders, viz., seed growers, seed organisers, seed companies, seed distributors, and seed dealers. This study was based on farm level data collected from 196 sample seed growers, 60 seed organisers, and 10 seed companies engaged in 30 seed villages of two prime hybrid rice seed producing districts in Telangana state, India (2020–21 dry season). The collected data were analysed using the capital budgeting technique to estimate costs and returns at each stage of the seed value chain. The results indicated that the total cost of the hybrid rice seed value chain (including the cost at each stakeholder) was estimated at ₹67,890/tonne. The gross value of the hybrid rice seed chain was ₹2,60,000/tonne, resulting in a net benefit of ₹1,92,110/tonne. In the total cost of the hybrid rice seed chain, about 73.47 percent was incurred by seed growers, followed by seed companies (23.58%), and seed organisers (2.95%). Since the companies incur the cost of marketing until it reaches consumers, there are no costs at the level of the seed distributor and dealer. But they will receive a margin for the sale of a unit quantity of seed (per tonne), which is also considered a net benefit for them. In the total benefits of the hybrid rice seed value chain, about 53.82 percent was accumulated by the seed companies, followed by seed dealers (20.30%), seed distributors (13.53%), seed growers (10.26%), and organisers (2.08%). Though the seed growers incurred around 73 percent of the total cost of the hybrid rice seed chain, they only received 10 percent of the benefits from the gross value of the hybrid rice seed chain. While the seed companies incurred only 23 per cent the total cost of the hybrid rice seed value chain, they received a net benefit of 53.82 percent from the gross value of the hybrid rice seed chain. This paper discussed in detail the cost and returns of the hybrid rice seed value chain for different stakeholders, along with major constraints and relevant policy implications for promoting the hybrid rice seed industry.