Shivchem Agro’s top-10 supplier share fell to 71.29% in FY26

Shivchem Agro sourced 71.29% of its FY26 purchases of material and stock in trade from its 10 largest suppliers, down from 83.81% in FY25. The reduction occurred even though Shivchem Agro generally has no long-term raw-material supply contracts and purchases domestic inputs from third-party suppliers at prices that generally follow market prices.

How concentrated were Shivchem Agro’s FY26 supplier purchases?

Shivchem Agro’s top 10 suppliers accounted for Rs 14.68 crore of FY26 purchases, or 71.29% of total purchases excluding goods and services tax. The largest supplier accounted for Rs 6.91 crore, equal to 33.57% of purchases. The figures cover material and stock-in-trade purchases for the financial year ended March 31, 2026.

Shivchem Agro’s supplier concentration extended beyond its largest vendor. Its top three suppliers accounted for 53.75% of FY26 purchases and its top five suppliers accounted for 60.60%. The first five suppliers therefore provided 60.60% of procurement, while suppliers ranked sixth through 10th accounted for the remaining 10.69 percentage points within the top-10 group.

Why did Shivchem Agro’s supplier concentration ease in FY26?

Shivchem Agro’s supplier concentration eased in FY26 because the disclosed share supplied by its largest vendors declined from FY25 levels. The top-10 share fell by 12.52 percentage points to 71.29% in FY26 from 83.81% in FY25. The largest supplier’s share declined by 10.59 percentage points to 33.57% from 44.16% over the same period.

The movement was also visible in the value of purchases from the top-10 group. Purchases from those suppliers declined to Rs 14.68 crore in FY26 from Rs 20.52 crore in FY25, while their share of total purchases also fell. In FY24, the same group supplied Rs 10.61 crore, or 77.35% of purchases, making FY26 less concentrated than both FY25 and FY24 under the disclosed top-10 measure.

How does the lack of long-term supply contracts affect Shivchem Agro?

Shivchem Agro generally does not enter into long-term supply contracts with raw-material suppliers, so its purchases are not described as being committed at a stated long-term price or volume. Shivchem Agro typically buys raw materials from third-party suppliers, and says the purchase price generally follows market prices. Procurement costs can therefore change with market prices when raw materials are replenished.

Shivchem Agro says it plans purchases using historical sales, sales orders on hand and anticipated production requirements. The process also considers expected raw-material price fluctuations and delivery delays. Supply continuity consequently depends on the availability and delivery of required inputs when needed, rather than on a disclosed long-term supplier commitment.

Shivchem Agro sources raw materials only from domestic sources, including Solvent C9, Chlorpyrphos Technical, Paraquat Dichloride Technical, Pretlachlor Technical and Glyphosate Technical. The company identifies dependence on a few suppliers as a risk because a failure to procure raw materials from them may adversely affect manufacturing operations and results of operations.

What role did materials have in Shivchem Agro’s FY26 expenses?

Net cost of materials consumed represented 63.41% of Shivchem Agro’s FY26 total expenses. Net cost of materials consumed, defined in the disclosure as cost of materials consumed plus change in inventory, was Rs 18.67 crore against total expenses of Rs 29.44 crore. The ratio was close to FY25’s 63.54%, despite the decline in the top-10 supplier share.

Shivchem Agro’s net material cost rose from Rs 15.24 crore in FY25 and Rs 5.64 crore in FY24. Cost of materials consumed itself declined to Rs 15.43 crore in FY26 from Rs 20.15 crore in FY25, but the inventory change was a positive Rs 3.23 crore in FY26 after a negative Rs 4.91 crore in FY25. That reversal in inventory movement resulted in a higher reported net material cost in FY26.

Shivchem Agro reported revenue from operations of Rs 33.82 crore in FY26, compared with Rs 27.47 crore in FY25. Herbicides contributed Rs 14.72 crore, or 43.53% of FY26 revenue, while insecticides contributed Rs 10.25 crore, or 30.32%. The company’s products also include fungicides, plant growth regulators, rodenticides and fertilizers, all of which require continued availability of manufacturing inputs.

What should readers watch in Shivchem Agro’s supply model?

Readers should watch whether the FY26 reduction in supplier concentration continues as Shivchem Agro expands sales and distribution. Shivchem Agro had 685 distributors across six states in FY26, compared with 516 distributors across five states in FY25. More distribution points and higher revenue may require additional procurement, making domestic input availability, pricing and delivery timing relevant to execution.

Shivchem Agro plans to enter states where it currently has limited or no presence and to onboard distributors in untapped regions. Its total production volume capacity was 65,07,500 kilograms or litres in FY26, unchanged from FY25 and above 56,00,000 kilograms or litres in FY24. The disclosed plan does not specify new long-term supplier contracts, so a subsequent change in supplier mix, procurement arrangements or raw-material price exposure would be relevant.

Conclusion

Shivchem Agro’s FY26 disclosures show lower supplier concentration than in FY25 and FY24, with the top-10 share falling to 71.29% and the largest supplier’s share falling to 33.57%. Yet the company still obtained more than seven-tenths of material and stock-in-trade purchases from 10 suppliers, while net material cost accounted for 63.41% of total FY26 expenses.

The next development to watch is whether Shivchem Agro’s planned expansion into additional states and its distributor-onboarding plan alter the procurement model. Shivchem Agro continues to disclose domestic third-party sourcing, market-linked purchase prices and buying decisions based on sales requirements, anticipated price movements and potential delivery delays.