Shivchem Agro’s FY26 insecticide and fertilizer use stayed low

Shivchem Agro reported FY 2025-26 utilisation of 25.53% for insecticides and 6.17% for fertilizers, despite revenue from operations increasing 23.13% to Rs 33.8159 crore. The category schedule shows substantial unused annual capacity, while herbicides reached 57.35%, the highest rate among the six disclosed product groups.

How much of Shivchem Agro’s manufacturing capacity was used in FY26?

Shivchem Agro used less than 60% of installed capacity in every disclosed product category in FY 2025-26, with herbicides recording the highest rate at 57.35%. The company measures installed and utilised capacity on an annualised kilograms-or-litres basis, so the measure represents potential production volume rather than the value of sales. Insecticides had the largest disclosed capacity base of 30,00,000 kg/litre and utilised 7,65,757 kg/litre during FY 2025-26.

Shivchem Agro’s lowest FY 2025-26 rate was fertilizers at 6.17%, followed by plant growth regulators at 7.00%. Fertilizer capacity was added in FY 2024-25, when utilisation was 2.73%, and rodenticide capacity was also introduced that year with utilisation of 12.67%. Shivchem Agro says initial utilisation was low while it established operations, built product visibility and developed demand, and says production continues to depend on prevailing market requirements for each category.

How did Shivchem Agro’s capacity use change over three years?

Shivchem Agro increased utilisation in every category disclosed from FY 2023-24 through FY 2025-26, although the final rates differed widely by product. Insecticide utilisation rose from 8.19% in FY 2023-24 to 19.03% in FY 2024-25 and 25.53% in FY 2025-26. Herbicide utilisation increased more sharply, from 12.53% to 27.32% and then 57.35% over the same three financial years.

Fungicide utilisation rose from 20.83% in FY 2023-24 to 21.74% in FY 2024-25 and 42.81% in FY 2025-26. Plant growth regulator utilisation moved from 5.00% to 5.23% and then 7.00% over those years. Installed capacity for insecticides, fungicides, herbicides and plant growth regulators remained unchanged from FY 2023-24 through FY 2025-26, meaning the reported gains resulted from higher utilised volumes rather than an expansion of the stated capacity base.

Why has product expansion not lifted capacity use evenly?

Shivchem Agro’s revenue mix shifted towards herbicides, fungicides and plant growth regulators in FY 2025-26, while insecticide revenue declined. Insecticide revenue fell to Rs 10.2536 crore, or 30.32% of revenue from operations, from Rs 16.1548 crore, or 58.82%, in FY 2024-25. Herbicide revenue increased to Rs 14.7202 crore from Rs 7.8196 crore, while its utilisation rate rose by 30.03 percentage points to 57.35%.

Fungicide revenue increased to Rs 5.3624 crore in FY 2025-26 from Rs 1.5081 crore in FY 2024-25, while plant growth regulator revenue rose to Rs 2.7277 crore from Rs 83.35 lakh. Fertilizer revenue declined to Rs 70.95 lakh from Rs 77.60 lakh, alongside its 6.17% utilisation rate. Product revenue does not itself establish production volumes because inventory movements and formulation mix may differ, but the disclosed mix coincided with higher utilisation for herbicides and fungicides than for fertilizers and plant growth regulators.

Can Shivchem Agro’s distribution expansion support higher capacity use?

Shivchem Agro expanded the commercial network that it plans to use to increase product volumes, with distributors rising to 685 in FY 2025-26 from 516 in FY 2024-25 and 185 in FY 2023-24. The sales and marketing team increased to 39 people from 22 a year earlier, and the company reported coverage of six states in FY 2025-26, compared with five states in each of the prior two financial years. These measures provide a stated route to wider sales coverage, but category demand must increase for plant utilisation to rise.

Shivchem Agro recorded FY 2025-26 revenue from operations of Rs 33.8159 crore, compared with Rs 27.465 crore in FY 2024-25 and Rs 10.9425 crore in FY 2023-24. Andhra Pradesh accounted for 33.98% of FY 2025-26 revenue, Assam for 20.82%, Haryana for 19.76% and Telangana for 16.49%, together representing 91.05%. Higher capacity use will therefore depend on demand across individual product categories as well as on Shivchem Agro’s stated plan to add distributors in untapped or limited-presence regions.

What does Shivchem Agro’s plant base mean for utilisation?

Shivchem Agro’s disclosures show a plant base capable of producing more than current category-level output, but they also contain two different capacity measures. The operational key performance indicators list total production volume capacity of 65,07,500 kg/litre in FY 2025-26, while the six category-level installed capacities in the utilisation schedule total 87,57,500 kg/litre. Shivchem Agro does not provide a reconciliation between the two measures in the supplied disclosure.

Shivchem Agro says ancillary equipment acquired in FY 2023-24 and FY 2024-25, including packaging and filling machines, was intended to improve efficiency and support higher use of capacity rather than increase core installed capacity. Gross block for plant and machinery was Rs 2.0715 crore as of March 31, 2026, including machinery acquired for future expansion and improved efficiency. Shivchem Agro was not engaged in job work or outsourced contract manufacturing as of the prospectus date, although it says the facility is equipped to undertake such assignments for other brands.

Conclusion

Shivchem Agro’s FY 2025-26 data combines revenue growth, 258 licensed products and 685 distributors with unused manufacturing capacity across all six disclosed categories. Herbicides provide the clearest evidence of rising capacity absorption at 57.35%, while insecticides at 25.53%, fertilizers at 6.17% and plant growth regulators at 7.00% show that product expansion has not produced uniform utilisation.

The next indicators to watch are whether Shivchem Agro’s plan to add distributors and enter additional states results in higher category-level production volumes, particularly for fertilizers and plant growth regulators. A later clarification of the difference between the 65,07,500 kg/litre total-capacity key performance indicator and the 87,57,500 kg/litre category schedule would also be needed to assess the manufacturing base on a consistent measure.