Shivchem Agro Limited unsecured debt exceeds secured borrowings

Shivchem Agro Limited had Rs 3.78 crore of unsecured borrowings as of March 31, 2026, compared with Rs 3.50 crore of secured borrowings. The unsecured total was Rs 27.72 lakh higher and included a Rs 37.50 lakh Rajsin Infin Consultants Private Limited loan with a 12-month tenor and a 34% interest rate.

Why does Shivchem Agro have more unsecured than secured debt?

Shivchem Agro’s financial-indebtedness schedule puts unsecured borrowings at 51.9% of its Rs 7.28 crore total borrowings at March 31, 2026, calculated from the disclosed category totals. Secured facilities accounted for the other 48.1%, meaning unsecured debt exceeded secured debt by Rs 27.72 lakh rather than by a large absolute amount.

The unsecured balance was spread across 18 named lender facilities and Rs 59,000 due as a loan from directors in the schedule. Aditya Birla Capital Limited was the largest single unsecured exposure at Rs 74.24 lakh, or about 19.7% of unsecured borrowings, while the Rs 37.50 lakh Rajsin Infin facility represented about 9.9%.

The distinction arises from the company’s classification of Union Bank of India Limited facilities as secured and the other listed facilities as unsecured. Shivchem Agro can retain this funding mix only while the facilities remain outstanding under their stated terms or are replaced by other funding; the schedule does not disclose a refinancing plan or repayment dates beyond the stated tenors.

Which Shivchem Agro loan carries the 34% interest rate?

The highest stated rate is 34% on the Rajsin Infin Consultants Private Limited facility, sanctioned or disbursed on January 16, 2026. The loan had a Rs 45 lakh sanctioned amount, a 12-month tenor and Rs 37.50 lakh outstanding on March 31, 2026, leaving most of its sanctioned amount unpaid at that date.

Rajsin Infin’s 34% rate exceeded every other stated unsecured-facility rate in the schedule. The next-highest stated rate was 24.75% for Neogrowth Credit Private Limited, with Rs 6.29 lakh outstanding, followed by 24% each for Ambit Finacbe Private Limited and Muthoot Finance Limited, with Rs 5.61 lakh and Rs 4.88 lakh outstanding, respectively.

Unsecured borrowing rates ranged from 14.25% to 34% where the schedule stated a rate. The lowest stated rate, 14.25%, applied to Aditya Birla Capital’s Rs 74.24 lakh outstanding facility, which had a tenor of 90 days from disbursement and a Rs 7.50 lakh fixed deposit under lien in the lender’s favour, equal to 10% of its sanctioned amount.

The loan list also shows that elevated stated rates were not limited to the January 2026 Rajsin Infin facility. Herofin Corporation Limited, Bajaj Finance Limited and Clix Capital Services carried rates of 18%, 18% and 19.5%, respectively, while several facilities sanctioned in April 2025 carried rates between 15.75% and 18.5%. The schedule does not state whether any rate will change upon renewal, refinancing or repayment.

What collateral supports Shivchem Agro’s secured borrowing?

Shivchem Agro’s Rs 3.50 crore secured balance consists entirely of Union Bank of India facilities: two car loans, a machinery term loan and a cash-credit working-capital loan. The Rs 1.87 crore cash-credit facility was the largest secured component, followed by the Rs 1.48 crore machinery term loan; the two car loans together accounted for Rs 15.44 lakh.

The borrowing table states rates of 8.85% floating for the car loans, 10.45% for the machinery term loan and 9.95% for the cash-credit facility. The cash-credit facility was sanctioned on March 30, 2026, is payable on demand and had a Rs 2.25 crore sanctioned limit, against its Rs 1.87 crore outstanding balance at March 31, 2026.

For the Union Bank working-capital facility, Shivchem Agro provided 100% hypothecation of stock and book debts, meaning the bank has a charge over those business assets. Machinery acquired from borrowing proceeds is subject to 100% hypothecation for the term loan, and collateral includes an equitable mortgage over land in Village Barhana, Jhajjar, owned by Sachin Agarwal and valued at Rs 2.45 crore.

The Union Bank documentation names Sachin Agarwal and Rohit Agarwal as personal guarantors. It also requires cash flows to be routed through Union Bank accounts, periodic stock statements and quarterly chartered-accountant-certified book-debt statements; failure to submit those statements can trigger 1% penal interest, while default can trigger an additional 2% above the stipulated rate on the entire loan amount.

How did Shivchem Agro’s interest expense change in FY 2026?

Shivchem Agro reported interest on loans of Rs 1.34 crore for FY 2025-26, compared with Rs 71.97 lakh for FY 2024-25. The year-on-year increase was Rs 61.94 lakh, or 86.1%, while the March 31, 2026 schedule shows secured rates from 8.85% to 10.45% and unsecured rates from 14.25% to 34%.

The disclosure does not attribute the FY 2025-26 increase in interest on loans to a particular lender or facility, so the borrowing schedule cannot establish causation. Interest on loans formed part of the company’s reconciliation to earnings before interest, tax, depreciation and amortisation, or EBITDA, which rose to Rs 5.98 crore in FY 2025-26 from Rs 4.32 crore in FY 2024-25.

A reviewed Union Bank sanction letter dated March 30, 2026, revised the benchmark-linked margins to the benchmark plus 1.90% for the cash-credit limit and plus 2.40% for the term loan. Shivchem Agro disclosed that FY 2025-26 finance cost had instead been charged using earlier margins of the benchmark plus 4.10% for cash credit and plus 4.60% for the term loan, so the revised terms did not apply to the full year’s reported charge.

The Union Bank terms also restrict dividends until debt-servicing obligations are honoured and require prior approval before company shares are pledged. These provisions apply to the bank facilities described in the disclosure, while the supplied material does not provide equivalent covenant terms for the 18 named unsecured lender facilities.

Conclusion

Shivchem Agro’s March 31, 2026 borrowing profile was marginally weighted toward unsecured funding, with Rs 3.78 crore unsecured against Rs 3.50 crore secured. The unsecured category was diversified across 18 named lender facilities, but the stated pricing range and the 34% Rajsin Infin loan show that total borrowings alone do not show differences in lender terms, tenor and collateral.

The next disclosed matter to watch is implementation of the March 30, 2026 revised Union Bank pricing, because Shivchem Agro says FY 2025-26 finance cost used earlier, higher benchmark margins. Repayment, renewal or replacement of the 12-month Rajsin Infin facility and the 90-day Aditya Birla Capital facility remain unresolved in the supplied schedule, which is certified through September 12, 2026.