SHIVALIK - Shivalik Rasayan

📊 NSE: SHIVALIK 🏢 Pesticides / Agrochemicals - Indian 📅 Last Updated: 12/14/2025 13:14

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew by 59.29% YoY, reaching INR 149.23 Cr (Rs. 14,922.59 Lakhs) in FY 2024-25 compared to INR 93.68 Cr (Rs. 9,367.63 Lakhs) in FY 2023-24. Growth is driven by expansion in both the Agrochemicals and API segments, particularly with the commissioning of new capacity.

Geographic Revenue Split

The company is primarily domestic-focused but has started exporting APIs to UAE, Poland, and China. While these exports currently contribute a 'meagre' portion of total revenue, the company is actively targeting expansion into the US, Europe, and Japan to diversify its geographic footprint.

Profitability Margins

Profit After Tax (PAT) for FY 2024-25 was INR 13.87 Cr (Rs. 1,386.68 Lakhs), reflecting a 60.5% increase from INR 8.64 Cr (Rs. 863.58 Lakhs) in the previous year. The net profit margin stands at approximately 9.29%, showing stable profitability despite significant capacity expansion costs.

EBITDA Margin

Not explicitly disclosed in the provided documents; however, the 60.5% growth in PAT suggests strong operational leverage as the company scaled its revenue by 59.29% during the same period.

Capital Expenditure

The company commissioned a new Agro and specialty chemicals plant at Dahej III, which became operational in September 2024. This expansion increased Dimethoate technical capacity by 250% (from 1,450 MTPA to 5,000 MTPA).

Credit Rating & Borrowing

As of September 30, 2025, consolidated short-term borrowings stood at INR 79.10 Cr (Rs. 7,909.54 Lakhs), up from INR 77.38 Cr in March 2025. Total consolidated liabilities reached INR 192.26 Cr.

⚙️ Operational Drivers

Capacity Expansion

Current capacity for Dimethoate technical has been expanded to 5,000 MTPA from a previous 1,450 MTPA (a 250% increase) following the commissioning of the Dahej III plant in September 2024. The Dahej Unit-I API facility also received US FDA approval.

Manufacturing Efficiency

The US FDA approval of the Dahej Unit-I API facility indicates high manufacturing standards and compliance with international quality requirements, which is essential for entering regulated markets.

📈 Strategic Growth

Growth Strategy

Growth is being pursued through a 250% capacity increase in Agrochemicals (Dimethoate technical) and the validation of 20 Oncology and non-oncology APIs for filing in regulated markets. The company is also implementing backward integration for its pharmaceutical arm, Medicamen Biotech, to enhance supply chain control.

Products & Services

Dimethoate technical (Agrochemical), Oncology APIs, Non-oncology APIs, and Specialty chemicals.

Brand Portfolio

Shivalik Rasayan Limited (SRL), Medicamen Biotech Limited (Associate/Pharmaceutical arm).

New Products/Services

20 new Oncology and non-oncology APIs have been validated and are ready for filing in regulated countries; 5 molecules have already been submitted for registration in China.

Market Expansion

Targeting established markets including the US, Europe, and Japan for API exports. The company has already partnered with a Chinese marketing firm for API distribution in China.

Strategic Alliances

Partnered with a Chinese marketing firm for API distribution; maintains a strategic relationship with Medicamen Biotech Limited for pharmaceutical supply chain integration.

🌍 External Factors

Industry Trends

The industry is shifting toward India as a global hub for API and Agrochemical manufacturing. SRL is positioning itself by upgrading facilities to US FDA standards and significantly increasing technical grade production capacity to capture this shift.

Competitive Landscape

Competes in the global API and Agrochemical markets, specifically against other Indian and Chinese manufacturers of Dimethoate and Oncology APIs.

Competitive Moat

SRL's moat is built on regulatory approvals (US FDA) and high-capacity manufacturing (5,000 MTPA Dimethoate). These are sustainable because they require significant capital investment and rigorous quality compliance that act as entry barriers.

Macro Economic Sensitivity

The company is sensitive to global demand for Agrochemicals and APIs, as it aims to leverage India's growing share in world API exports.

Geopolitical Risks

Expansion into China (5 molecules submitted) and Poland exposes the company to geopolitical trade dynamics and regional regulatory changes.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by US FDA standards for API facilities and SEBI (LODR) Regulations for corporate governance and financial reporting.

Taxation Policy Impact

Current tax liabilities (Net) stood at INR 9.08 Cr (Consolidated) as of September 30, 2025.

Legal Contingencies

The company received a formal warning letter from the National Stock Exchange (NSE) on October 14, 2025, regarding non-compliance with Regulation 18(2)(b) of SEBI LODR, as an Audit Committee meeting on August 13, 2024, was attended by only one Independent Director instead of the required two.

⚠️ Risk Analysis

Key Uncertainties

Regulatory risk is high; any 'aberration' in future compliance following the NSE warning letter could lead to serious regulatory action. Additionally, the success of the 250% capacity expansion depends on successful market penetration in the US and Europe.

Geographic Concentration Risk

Currently heavily reliant on the Indian market, though actively diversifying into UAE, Poland, and China.

Third Party Dependencies

Dependency on a Chinese marketing firm for API distribution in the China market.

Technology Obsolescence Risk

The company is mitigating technology risks by validating 20 new APIs and upgrading to US FDA-approved facilities to stay current with global pharmaceutical standards.