Spotted a factual error — a wrong number, date, or fact? Tell us and we will check the source.
General information and entertainment, not investment advice. The author is not a SEBI-registered adviser or research analyst. No recommendation, no promised returns. Markets carry risk including loss of capital. Figures may not be current. Consult a registered adviser before acting.
1. At a Glance
The company ends FY26 with consolidated revenue of ₹368 crore, up 18% YoY. Profit is the tension: net profit fell 27% to ₹12.1 crore on the same revenue rise. Margins compressed.
At ₹222 per share (prices referenced are not live), the stock trades at 28.8x the annualised FY26 earnings of ₹7.71 per share.
Return on equity sits at 2.1% last year—the company’s equity is ₹599 crore, producing just ₹12.1 crore of profit. ROCE is 4.6%.
The balance sheet holds ₹34.4 crore in cash against ₹113.6 crore in borrowings. Net debt is ₹79.2 crore.
A company mid-expansion: new capacity at Dahej-III came online in September 2023, US FDA approval landed in October 2024, and 34 agrochemical registrations await CIB&RC clearance. The arithmetic is not yet paying off.
2. Introduction
Shivalik Rasayan was incorporated in 1979. It is the largest Indian maker of Dimethoate Technical and the second-largest maker of Malathion Technical—organophosphorus insecticides used in agriculture.
The company has two operating verticals: agrochemicals (92% of FY23 revenue) and APIs—Active Pharmaceutical Ingredients (8%).
For agrochemicals, the playbook is old: India makes commodity insecticides and sells to local distributors and exports. The upside is import substitution (non-infringing processes for newer molecules like Chlorantraniliprole, Azoxystrobin, Trifloxystrobin, Dinotefuran). Capex-heavy, margin-thin, and execution-dependent.
For APIs, the company develops oncology and non-oncology drugs—Pirfenidone, Temozolomide, Palbociclib, Fingolimod. These carry higher margins but require regulatory approvals. A US FDA approval for the Dahej-II facility came in October 2024. A ₹120 crore plant at Dahej-III was commissioned in September 2023 for agro chemical synthesis.
Promoters (Growel Remedies Limited) hold 47.4%. FIIs hold 4.2%, DIIs hold 0%. Public owns the balance.
Recent news: Former director Sanjay Bansal (who held 1.3% of shares) resigned in May 2026. No reason stated beyond “personal reasons.”
3. Business Model: WTF Do They Even Do?
Shivalik Rasayan is a two-legged operation bolted to one balance sheet.
Leg One: Agrochemicals. The company owns three manufacturing sites: Dehradun (1,450 MT/year capacity, legacy insecticide plant), Dahej-II (API facility, FDA-compliant, for pharma), and Dahej-III (20,100 MT agro-chemical capacity, greenfield, opened Sept 2023). It makes Dimethoate Technical (the workhorse—₹40+ cr annual revenue, best guess from order book chatter) and now wants to push newer molecules where pricing is less commodity-like. But getting CIB&RC clearance takes 18–24 months. 34 pending applications sit in the queue. The order book is disclosed nowhere, so we assume a ramp is building.
Leg Two: APIs. Twelve developed molecules (as of FY25), oncology and non-oncology. US FDA approval arrived Oct 2024. The company is pitching these to Japanese generic makers (Ibrutinib, Lenvatinib) and Chinese players (Bendamustine, via NMPA dossier). Regulatory approvals move in dog years; commercial traction is invisible in the financials yet. But the beachhead is there.
The tension: Agrochemicals are low-margin, commodity-like, competing on price and supply reliability. APIs are high-margin but have zero revenue shown in the P&L so far (likely in “other income” or too small to report). The capex for Dahej-III (₹120 cr deployed by end-FY24) is now live. The return on that capex is still being baked.
4. Financials Overview
Figures are consolidated, in ₹ crore.
Metric
Latest Q (Q4 FY26)
Q4 FY25
YoY
Revenue
102.82
69.39
+48.2%
EBITDA
17.59
10.54
+67.0%
Net Profit
4.53
4.13
+9.7%
EPS (annualised from Q4)
2.88
2.62
+10.0%
FY26 full-year:
Metric
FY26
FY25
YoY
Revenue
368.00
311.77
+18.0%
Operating Profit
46.00
40.84
+12.6%
Net Profit
12.14
16.70
-27.3%
EPS (full-year)
7.71
10.60
-27.3%
The top line grew 18% but the bottom dropped 27%. Operating profit (EBITDA proxy) rose 12.6%. The gap is interest and tax: interest expense jumped from ₹10.0 cr (FY25) to ₹9.6 cr (FY26)—a cut, but still elevated. Tax as a percentage of PBT swung from 12.7% (FY25) to 16.3% (FY26). The real culprit: Other Expenses jumped to ₹73.3 cr in FY26 from ₹0.97 cr in FY25. This is not detailed in the filings, but capex, employee payouts, or one-off restructuring are candidates.
Q4 FY26 is notably stronger than prior quarters (Q1 FY26 net profit was ₹5.2 cr, Q2 was ₹1.6 cr, Q3 was ₹3.1 cr). The quarter came in on the back of 48% revenue growth.
5. Market Expectations & Historical Multiples
This section describes how the market is currently pricing the company and how that compares with its own history and peer group. It is descriptive, not predictive.
Metric
Current
5-Yr Avg
Peer Median
P/E
28.8
20.7
23.6
EV/EBITDA
8.6
12.4
10.5
P/B
0.58
1.22
1.15
ROE
2.1%
3.4%
8.9%
ROCE
4.6%
7.2%
15.3%
The market currently pays 28.8x earnings. Its own 5-year average was 20.7x. The peer median (UPL, PI Industries, Sumitomo, Bayer, Sharda Cropchem, Dhanuka, Rallis) is 23.6x.
The multiple has re-rated higher despite ROE and ROCE both falling. The market appears to be pricing in the FDA approval (Oct 2024) and the Dahej-III ramp (live since Sept 2023) as a forward earnings recovery. But the financials so far show margin compression, not expansion—a gap to watch.
At 8.6x EV/EBITDA, it sits above its 5-year average of 12.4x (note: lower EV/EBITDA is cheaper—the current number reflects
