Shivchem Agro IPO

Shivchem Agro makes agrochemical formulations at a single plant in Jhajjar, Haryana, and sells them to farmers through a distributor network. As of the prospectus it held licences under the Insecticides Act, 1968 to manufacture 176 agrochemical products — 88 insecticides, 40 fungicides, 37 herbicides, 8 plant growth regulators and 3 rodenticides — plus a Letter of Authorization from Haryana's Agriculture and Farmers Welfare Department to make 82 fertilizers under the Fertilizer Control Order, 1985. Products ship as solids such as powders and granules, or as liquid emulsifiable concentrates, in packs from 50 ml to 5 kg under in-house brands including Kridhan 4G, Shivgent, Alphameen and Chlomate 10 G. It is licensed to sell in eight states — Andhra Pradesh, Telangana, Odisha, Assam, Bihar, West Bengal, Uttar Pradesh and Madhya Pradesh — and had 685 distributors, five godowns and 66 permanent employees as of 31 March 2026.

Revenue is the wholesale sale of formulated agrochemicals to distributors who, per the prospectus, generally pay only after selling the lot on. That credit practice is the structural constraint: trade receivables stood at Rs 1,693.56 lakhs at 31 March 2026, or 50.08% of the year's Rs 3,381.59 lakhs revenue from operations, and operating cash flow was negative in FY24 (Rs -434.34 lakhs) and FY25 (Rs -299.85 lakhs) before turning positive at Rs 179.25 lakhs in FY26. Materials dominate cost; employee benefit expense ran 11.60% of revenue and discounts and rebates 1.37% in FY26, against a 17.69% EBITDA margin and 9.61% PAT margin. Debt-to-equity was 0.56. Of net proceeds, Rs 690 lakhs funds working capital and Rs 350 lakhs repays loans.