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’s Shivalik Rasayan Ltd (SRL) for you — India’s largest producer of Dimethoate Technical and second-largest for Malathion Technical, now moonlighting as an API player with ambitions louder than its quarterly margins. At ₹406 per share (as of 28th Nov 2025), the stock sits nearly 54% below its 52-week high of ₹879, sulking in the small-cap corner with a market cap of ₹639 crore.
In Q2 FY26 (Sep 2025), the company clocked ₹93.84 crore in sales (up 13.8% YoY) but net profit slid 23.9% YoY to ₹4.31 crore — the classic “sales up, profits down” meme in action. With an EPS of ₹1.94, an ROE of just 3.2%, and an ROCE of 5.51%, Shivalik currently earns less on its capital than a savings account with a decent fixed deposit. The stock trades at 45.5x P/E, which is hilarious considering the industry 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.
From Dimethoate and Malathion to Temozolomide and Fingolimod, this company’s portfolio is as diverse as a college canteen menu. And yes, they’ve even filed Drug Master Files (DMFs) with the USFDA and Certificates of Suitability (CEPs) with EDQM — because apparently, being international makes everything sound cooler.
But numbers don’t lie. While sales growth looks decent at 13% YoY, profit margins have fallen faster than your enthusiasm on Monday mornings. Operating Profit Margin is down from 19% in the pandemic glory days to about 12.8% in Sep 2025, proving once again that expansion dreams often come with debt and depreciation hangovers.
Still, SRL keeps expanding. Its Dahej III greenfield facility is now operational, its USFDA approval came in October 2024, and its associate 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 like Azoxystrobin, Chlorantraniliprole (CTPR), Trifloxystrobin, Dinotefuran, and Pymetrozine. 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 like Temozolomide and Fingolimod Hydrochloride. They’ve even scored two 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 submitting 34 new product registrations with 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 an agro-chemical boss and an API scientist, which is like being Virat Kohli and AR Rahman at once — great in theory, exhausting in practice.
