Shivalik Rasayan Ltd Q2 FY26 – Agro-Chem Profits Meet Pharma Dreams, But Margins Say “Thoda Control Karo!”

1. At a Glance

Picture this: a company that wants to be both a pesticide pasha and a pharma prince. That’sShivalik Rasayan Ltd (SRL)for you — India’s largest producer ofDimethoate Technicaland second-largest forMalathion Technical, now moonlighting as an API player with ambitions louder than its quarterly margins. At ₹406 per share (as of28th Nov 2025), the stock sits nearly 54% below its 52-week high of ₹879, sulking in the small-cap corner with amarket cap of ₹639 crore.

In Q2 FY26 (Sep 2025), the company clocked₹93.84 crore in sales(up13.8% YoY) but net profit slid23.9% YoYto₹4.31 crore— the classic “sales up, profits down” meme in action. With anEPS of ₹1.94, anROE of just 3.2%, and anROCE of 5.51%, Shivalik currently earns less on its capital than a savings account with a decent fixed deposit. Thestock trades at 45.5x P/E, which is hilarious considering theindustry average P/E is 29.8. But who cares about logic when you have “USFDA approval” sprinkled in the annual report, right?

So here’s the TL;DR: Shivalik is a chemical cocktail of promise, patents, and a patience test. Now let’s dissect it, auditor style.

2. Introduction

Back in 1979, when bell-bottoms were in fashion and Doordarshan ruled the screens, Shivalik Rasayan decided to make agrochemicals. Decades later, it’s still at it — except now it’s flirting with the pharmaceutical industry like that overconfident cousin who thinks he can do IIT and film school simultaneously.

FromDimethoateandMalathiontoTemozolomideandFingolimod, this company’s portfolio is as diverse as a college canteen menu. And yes, they’ve even filedDrug Master Files (DMFs)with theUSFDAandCertificates of Suitability (CEPs)withEDQM— because apparently, being international makes everything sound cooler.

But numbers don’t lie. While sales growth looks decent at13% YoY, profit margins have fallen faster than your enthusiasm on Monday mornings.Operating Profit Marginis down from 19% in the pandemic glory days to about12.8% in Sep 2025, proving once again that expansion dreams often come with debt and depreciation hangovers.

Still, SRL keeps expanding. ItsDahej III greenfield facilityis now operational, itsUSFDA approvalcame in October 2024, and itsassociate Medicamen Biotech Ltd (MBL)is busy with oncology formulations. Shivalik seems to be cooking something potent — but will it hit the market before investors lose patience?

3. Business Model – WTF Do They Even Do?

In short, Shivalik makes stuff that either kills pests or cancer cells. Sometimes both (not literally).

Business Verticals:

• Agrochemicals (≈92% of revenue):This is Shivalik’s bread, butter, and insecticide. The Dahej-III plant produces technical-grade insecticides and intermediates likeAzoxystrobin,Chlorantraniliprole (CTPR),Trifloxystrobin,Dinotefuran, andPymetrozine. In simpler terms: ingredients that make crops happy and insects sad.
• Pharma API (≈8% of revenue):The Dehradun and Dahej-II facilities churn out oncology and non-oncology APIs likeTemozolomideandFingolimod Hydrochloride. They’ve even scoredtwo US patents, which sounds fancy until you see the PAT margin of 4%. Still, the intent is clear — they want to become a legit pharma player, not just a chemical supplier with lab coats.

And if that wasn’t enough, they’re also submitting34 new product registrationswith the Central Insecticides Board & Registration Committee (CIB&RC). That’s more paperwork than a CA’s desk in March.

So yes, Shivalik is trying to be both anagro-chemical boss and an API scientist, which is like being Virat Kohli and AR Rahman at once — great in theory, exhausting in practice.

4. Financials Overview

Let’s unpack Q2 FY26 like a forensic accountant:

Commentary:Revenue is growing, EBITDA is trying its best, and PAT is doing the emotional damage dance — recovering QoQ but still worse than last year. TheEPS dropscreams “margin compression,” while theannualised EPS of ₹7.76(₹1.94 × 4) gives a