💰 Financial Performance

Revenue Growth by Segment

The Company operates in a single business segment (import and distribution of hydrocarbon-based chemicals), which generated revenue of INR 2,201.62 Cr in FY25, representing a 37% CAGR from FY22 to FY25.

Geographic Revenue Split

Not disclosed in available documents, though the company maintains a presence at 5 major Indian ports (Kandla, Mundra, JNPT, Mumbai, Hazira) to facilitate domestic distribution.

Profitability Margins

Net Profit Margin improved to 2.19% in FY25 from 1.96% in FY24. Operating margins have consistently sustained in the range of 3.0% to 4.0% over the last three fiscal years.

EBITDA Margin

EBITDA grew at a CAGR of 58% between FY22 and FY25, supported by value-added services and fixed formula-based pricing models.

Credit Rating & Borrowing

Crisil BBB+/Watch Negative (placed on watch on October 20, 2025). Finance costs for FY25 were INR 23.45 Cr on total borrowings of approximately INR 409.25 Cr.

⚙️ Operational Drivers

Raw Materials

Hydrocarbon-based and performance chemicals including Acetyls, Alcohols, Aromatics, Phenols, Ketones, Inorganics, Intermediates, Monomers, Glycols, and Isocyanates, which constitute the bulk of procurement costs.

Import Sources

Sourced globally from international manufacturers; specific countries are not listed, but the company leverages a global supplier network of 65+ vendors.

Key Suppliers

The company partners with 65+ global manufacturers, including strategic relationships with firms like BASF for specialized sourcing and logistics.

Capacity Expansion

Not disclosed in available documents; however, the company aims to broaden its chemical product basket (currently 45+ products) and increase geographic reach.

Raw Material Costs

Inventory stood at INR 495.11 Cr in FY25. The company uses a procurement strategy where 75% to 80% of inventory is order-backed to mitigate price fluctuation risks.

Manufacturing Efficiency

Not applicable as the company is a distributor; however, Inventory Turnover Ratio improved to 4.47 in FY25 from 3.93 in FY24.

Logistics & Distribution

Not disclosed as a specific % of revenue, but end-to-end handling and transportation are provided through a specialized logistics team.

📈 Strategic Growth

Expected Growth Rate

37%

Growth Strategy

The company aims to be the 'Amazon of Petrochemicals' by broadening its product basket, increasing geographic reach, and exploring downstream value addition. It leverages a proprietary price forecasting model to provide consultative sourcing to clients like GreenLam and BASF.

Products & Services

Hydrocarbon-based chemicals (Acetyls, Alcohols, Aromatics, Phenols, Ketones, etc.) and value-added logistics/storage services.

Brand Portfolio

Shiv Texchem Limited.

New Products/Services

Broadening the chemical product basket beyond the current 45+ products to cater to the shift toward eco-friendly and high-performance formulations.

Market Expansion

Increasing geographic reach and market penetration following post-listing capital infusion in October 2024.

Strategic Alliances

Strategic sourcing partnerships with 65+ global suppliers and consultative relationships with major domestic clients like BASF and GreenLam Industries.

🌍 External Factors

Industry Trends

India's chemical sector faces a projected $40-42 Bn trade deficit by 2040, creating a massive opportunity for strategic import partners like Shiv Texchem to bridge the gap.

Competitive Landscape

Operates in a niche segment of hydrocarbon distribution, competing with global players and domestic distributors by offering consultative, insight-driven sourcing.

Competitive Moat

Durable advantages include a proprietary price forecasting model, 20-year promoter experience, and specialized port-based logistics infrastructure which are difficult for new entrants to replicate quickly.

Macro Economic Sensitivity

Highly sensitive to industrial growth in end-user sectors like Paints, Agrochemicals, and Pharmaceuticals, which drive demand for specialty inputs.

Consumer Behavior

Shift toward sustainable, customized, and biodegradable chemical solutions in end-user industries.

Geopolitical Risks

The 'China+1' strategy and global supply chain realignment present opportunities, while the US State Department announcement (October 2025) poses a negative watch risk.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Companies Act 2013, FEMA 1999, and international trade policies. The US State Department announcement in October 2025 is a critical regulatory development.

Environmental Compliance

The company is aligning with the industry shift toward eco-friendly, high-performance formulations.

Legal Contingencies

The US State Department announcement (October 20, 2025) led Crisil to place ratings on 'Watch Negative'; specific case values or pending court litigation are not detailed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the impact of the US State Department announcement on the company's ability to maintain global supplier relationships and credit lines.

Geographic Concentration Risk

Operations are concentrated in India with logistics hubs at 5 major ports; sourcing is globally diversified across 65+ suppliers.

Third Party Dependencies

Dependent on 65+ global manufacturers for product supply and international logistics providers for timely delivery.

Technology Obsolescence Risk

The company uses a proprietary data-driven model for price forecasting to mitigate the risk of mispricing in volatile hydrocarbon markets.

Credit & Counterparty Risk

Low concentration risk with 750+ customers; Top 5 customers contribute less than 17% of revenue.