Global Economic Overview
The global economy demonstrated moderate resilience during 2025, despite a complex and evolving macroeconomic environment. According to the World Bank, global economic growth was estimated at 2.7% supported by inventory accumulation, positive financial market sentiment and increased investment in Artificial Intelligence (AI). However, the pace of growth remained uneven across regions, influenced by geopolitical uncertainties and the continuing effects of restrictive monetary policies.
Global trade dynamics underwent significant changes during the year, with the United States adopting a more protectionist trade approach. The imposition of reciprocal and additional tariffs on several key trading partners, including India, contributed to heightened uncertainty in international trade and export markets. These developments further accelerated the trend towards supply-chain diversification, regionalisation and greater resilience in sourcing strategies.
Monetary policy continued to remain an important factor influencing global economic conditions. Although inflationary pressures showed signs of moderation, central banks in major economies, including the US Federal Reserve, maintained a cautious approach towards monetary easing. Relatively elevated interest rates during a substantial part of the year continued to influence global liquidity, capital flows and currency movements, particularly across emerging markets.
AI emerged as one of the defining global trends during the year, with rapid advancements and increasing adoption across industries. Technology companies continued to make significant investments in AI infrastructure, while businesses across sectors increasingly adopted AI-enabled solutions to improve productivity, optimise operations, enhance decision-making and support innovation.
Commodity markets remained mixed during the year. Prices across several commodities remained relatively soft to stable, reflecting moderate demand and improved supply conditions. In contrast, certain segments, including fertilizer inputs and precious metals, witnessed firmer price movements due to supply-side constraints and strategic demand. Towards the latter part of the year, heightened geopolitical tensions exerted additional upward pressure on several commodity prices, resulting in increased volatility in energy markets, shipping routes and global logistics costs.
Entering F.Y.2026-27, the global economic outlook remains subject to considerable uncertainty. Continuing geopolitical tensions, particularly in the Middle East, may weigh on global growth and trade. Volatility in energy prices and freight costs could sustain cost pressures and contribute to inflationary risks, particularly across import-dependent Asian economies. These factors may influence the pace of monetary policy easing and could moderate consumption and investment-led growth in the region.
Against this backdrop, businesses are expected to remain focused on operational efficiency, prudent cost management, supply-chain resilience and technology adoption to navigate the evolving macroeconomic environment.
Indian Economic Overview
The Indian economy demonstrated strong macroeconomic resilience during the year, extending the momentum established in the post-pandemic period. Economic activity remained robust, with healthy growth recorded across the quarters, supported by domestic consumption, investment activity and improving economic fundamentals. Monetary conditions also turned more supportive during the year, with the Reserve Bank of India reducing policy rates and taking measures to ease liquidity conditions.
On the fiscal front, the Government continued to pursue fiscal consolidation while maintaining its focus on supporting consumption, infrastructure development and investment. Indias improving macroeconomic fundamentals and resilience were also recognised globally, with sovereign credit rating upgrades by multiple international rating agencies during the year.
The external environment remained challenging, particularly in relation to global trade. Trade relations between India and the United States witnessed significant developments during the year, including the imposition of reciprocal and additional tariffs on certain Indian exports. While these measures resulted in some downward revisions to near-term growth expectations, the Indian economy demonstrated resilience, supported by strong domestic demand and its diversified economic base.
Structural reforms and policy initiatives continued to provide an impetus to economic growth and investment. Key developments included changes to the Goods and Services Tax framework, measures aimed at liberalising strategic sectors, including greater private sector participation in nuclear power, enhanced foreign investment opportunities in the insurance sector, progress towards implementation of the labour codes and rationalisation of environmental compliance requirements. These measures are expected to support formalisation, improve the ease of doing business and strengthen Indias medium- to long-term growth potential.
Against this backdrop, Indias economic growth strengthened during the year, with real GDP growth estimated at 7.7%, reinforcing Indias position among the fastest-growing major economies globally.
Despite strong domestic fundamentals and improving fiscal indicators, the Indian rupee remained subject to external pressures arising from movements in US interest rates, global geopolitical developments and volatility in international commodity markets. These factors continued to influence capital flows, exchange rates and the cost of imported inputs.
The momentum towards clean energy and decarbonisation continued to strengthen during the year. Government initiatives, including the National Green Hydrogen Mission, together with increasing global investments in clean-energy technologies, supported greater interest in green hydrogen and green ammonia. The growing adoption of these technologies is expected to have a long-term impact on the energy and fertiliser sectors, creating opportunities for diversification and supporting the transition towards lower-carbon production processes.
GLOBAL AGRICULTURE:
The global agriculture sector remained broadly stable during F.Y.2025-26, supported by comfortable supply conditions and improved availability of key agricultural commodities. At the same time, the sector continued to navigate challenges arising from geopolitical developments, climate variability and increasing sustainability requirements. Global cereal supplies remained adequate during the year, with the global stocks-to-use ratio increasing to approximately 31%, the highest level since F.Y.2017-18. The relatively comfortable inventory position provided a buffer against short-term supply disruptions and helped contain excessive volatility in agricultural commodity prices.
Over the medium term, the outlook for global agriculture remains positive, although the pace of demand growth is expected to moderate. The OECD-FAO Agricultural Outlook 2025-2034 indicates that global demand for agricultural commodities is likely to expand at a slower rate over the coming decade, influenced by moderating population and income growth and relatively mature food consumption patterns in developed economies. Emerging economies, particularly in Asia and Africa, are expected to account for a significant share of incremental demand, driven by urbanisation, rising disposable incomes and evolving dietary preferences, including increasing consumption of protein and livestock-based products.
Climate change and resource sustainability are increasingly influencing agricultural production systems. Growing pressure on arable land, soil health and water availability is necessitating improvements in farm productivity and resource efficiency. This is driving greater adoption of improved genetics, higher cropping intensity, precision farming, mechanisation and technology-enabled agricultural practices. In parallel, biological and other sustainable crop-input solutions are gaining wider acceptance, reflecting the industrys gradual transition towards more environmentally responsible and resource-efficient agricultural practices.
The increasing use of agricultural commodities for biofuel production represents another important structural factor influencing global agriculture. Greater utilisation of crops such as corn, sugarcane and oilseeds for ethanol and biodiesel is strengthening the interdependence between agricultural and energy markets. This trend has the potential to influence cropping decisions, alter global supply-demand dynamics and contribute to fluctuations in agricultural commodity prices.
The outlook for F.Y.2026-27 is expected to remain influenced by a combination of supply-demand fundamentals, geopolitical developments and climatic conditions. Continuing tensions in the Middle East could have implications for energy and fertiliser prices, with a potential impact on farm input costs and agricultural margins. Weather conditions will also remain a key factor to monitor, particularly with the possibility of a transition towards El Nino conditions, which could result in relatively drier weather across certain major agricultural regions and affect crop yields.
Overall, the global agriculture sector is expected to remain fundamentally supported by long-term food and nutritional requirements, while productivity enhancement, technological adoption, sustainable farming practices and efficient utilisation of natural resources are likely to remain central to the sectors future growth.
Indian Agriculture
The Indian agriculture sector recorded moderate growth during F.Y.2025-26, with agricultural GDP expanding by approximately 3%. Sectoral performance was influenced by uneven weather conditions and relatively softer food commodity prices. Although the southwest monsoon was above normal at 108% of the Long Period Average (LPA), its uneven spatial and temporal distribution, coupled with a delayed withdrawal, affected crop cycles and rural consumption, particularly during October and November. Nevertheless, favourable water availability through the year supported agricultural activity and improved sowing conditions.
The overall cultivated area witnessed a positive trend during the year. Kharif acreage increased to approximately 112 million hectares, representing growth of around 1%, while Rabi sowing increased to approximately 68 million hectares, up by 2%. Supported by improved acreage and favourable water availability, Indias foodgrain production is estimated to have reached a record level of approximately 377 million tonnes, registering growth of around 5%.
Government policy support continued to play an important role in strengthening farm incomes and mitigating agricultural risks. Various initiatives covering crop insurance, interest support, price stabilisation and direct income assistance continued to provide support to farmers. Schemes such as Pradhan Mantri Fasal Bima Yojana, interest subvention measures, PM-AASHA and PM-KISAN remained important components of the policy framework. In parallel, greater emphasis is being placed on irrigation and water-management infrastructure. Large-scale projects, including the Godavari-Krishna linkage and Polavaram project in Andhra Pradesh and the Wainganga linkage in Madhya Pradesh, are expected to improve water availability, support higher cropping intensity and facilitate cultivation of water-intensive crops, including paddy.
Indian agriculture is also undergoing a gradual transition from a predominantly production-oriented model towards crop diversification, value addition and higher farm productivity. Horticulture is gaining increasing importance, supported by initiatives such as the proposed Global Horticulture Hub in Rayalaseema, which aims to expand horticultural cultivation and strengthen value chains. At the same time, policy attention towards achieving greater self-sufficiency in pulses and oilseeds has intensified. Rising domestic consumption of edible oils and continued dependence on imports have reinforced the need to increase domestic production. During the year, the Self-Reliance in Pulses Mission, with an outlay of approximately 11,000 crore, was introduced to enhance domestic pulse production and reduce import dependence.
Technology adoption is emerging as an important enabler of productivity and efficiency across the agricultural value chain. The approval of gene-editing technologies for rice represents a significant development in the adoption of advanced agricultural biotechnology. Digital platforms such as Agri-Stack, which seek to integrate farmer, land and crop-related information, are supporting more targeted delivery of agricultural services. The increasing use of Artificial Intelligence (AI), digital farm advisory platforms and drone-based imaging is further enabling precision agriculture, improved crop monitoring and data-driven decision-making.
Rising rural labour costs and the need for timely agricultural operations are accelerating the adoption of mechanisation. Overall agricultural mechanisation is estimated at approximately 45%, with increasing adoption of shared-equipment and service-based models helping small and marginal farmers access modern agricultural machinery without significant upfront investment.
The use of drones in agriculture is also expanding rapidly, supported by government incentives and the emergence of Drone-as-a-Service (DaaS) models. Drones are increasingly being deployed for precision spraying, crop surveillance, field mapping and farm-level advisory services. Their adoption is expected to improve the timeliness and accuracy of farm operations, reduce dependence on manual labour and enable more efficient utilisation of agricultural inputs.
Going forward, the Indian agriculture sector is expected to remain supported by strong domestic food demand, continued policy intervention, investments in irrigation and rural infrastructure, increasing mechanisation and rapid adoption of digital and precision-agriculture technologies. At the same time, monsoon variability, commodity price movements, input costs and rural wage trends will remain key factors influencing farm economics and sectoral growth.
BUSINESS AND FINANCIAL PERFORMANCE
Business Performance
The year under review was marked by stabilisation, operational consolidation and strategic realignment for the Company. While favourable monsoon conditions provided support to overall agricultural activity and farm sentiment, the operating environment remained challenging on account of market saturation, evolving regulatory and policy measures, competitive pressures and elevated input and operating costs.
In response to the prevailing market conditions, the Company adopted a disciplined, demand-driven approach to production and inventory management. Production levels were calibrated with market demand and sales prospects, with greater emphasis on reducing excess inventory and improving inventory turnover. The Company remained focused on liquidation of existing inventory, rationalisation of production and optimisation of operating resources, with the objective of maintaining a healthy balance between capacity utilisation, market demand and profitability.
The Company continued to place emphasis on cost optimisation and operational efficiency across its activities. Greater focus on procurement discipline, efficient utilisation of raw materials and other resources, and close monitoring of operating expenses supported the Companys efforts to protect margins in a challenging cost environment. Management also continued to closely monitor market trends, input prices and customer demand to enable timely adjustments to its production and sales strategy.
Working capital management remained a key area of focus during the year. The Company sought to improve the efficiency of its work capital cycle through better inventory management, prudent deployment of funds and closer monitoring of receivables and payables. These measures were aimed at improving cash generation and ensuring adequate liquidity for ongoing business requirements.
The Company also maintained a conservative approach towards financial leverage. Reduced dependence on borrowed funds helped strengthen liquidity and contributed to a reduction in the interest burden. The focus on financial discipline, efficient cash-flow management and prudent resource allocation enabled the Company to navigate the prevailing business environment while preserving financial flexibility.
Going forward, the Company intends to remain focused on profitable and sustainable growth, supported by demand-led production planning, inventory optimisation, cost discipline, working capital efficiency and prudent financial management. The Company will continue to evaluate market opportunities selectively while remaining responsive to changes in agricultural demand, input costs, government policies and competitive dynamics.
During F.Y.2025-26, the Company recorded a significant increase in production, with total production rising to 55,178 MT from 44,104 MT in the previous year, representing a growth of approximately 25%. The increase was primarily driven by higher production of NPK fertilisers, along with an increase in Single Super Phosphate (hereafter referred to as SSP) and other products.
SSP production increased to 38,658 MT from 34,814 MT, registering a growth of approximately 11%. NPK production witnessed a substantial increase of around 71%, rising from 8,490 MT to 14,560 MT. Production of Other products also increased from 800 MT to 1,960 MT. The overall increase in production reflects the Companys efforts to optimise manufacturing operations and align product availability with anticipated market requirements.
On the sales front, the Company achieved total sales of 49,881 MT during F.Y.2025-26 compared with 48,929 MT in the previous year, representing a modest increase of approximately 2%. The relatively lower growth in sales compared with production indicates that market absorption remained moderate during the year.
Product-wise, SSP sales declined by approximately 8%, from 38,474 MT to 35,271 MT. This decline was partly offset by a strong improvement in NPK sales, which increased by approximately 31%, from 9,684 MT to 12,713 MT. Sales of Other products also increased significantly from 771 MT to 1,897 MT. The product mix therefore shifted towards higher NPK and other product volumes during the year.
The movement in production and sales also resulted in a change in the Companys inventory position. During F.Y.2025-26, production exceeded sales by approximately 5,297 MT, whereas in the previous year sales exceeded production by approximately 4,825 MT. The increase in closing inventory was therefore a significant feature of the years operations. Accordingly, the Company continued to focus on inventory liquidation, demand assessment and production planning to align future output more closely with market absorption and optimise working capital.
Overall, the Companys operating performance during the year reflects a significant improvement in production volumes but relatively subdued growth in sales. Going forward, the Company intends to maintain a more calibrated and demand-led production strategy, with emphasis on inventory optimisation, product mix, market development, working capital efficiency and margin protection.
Key figures for MDA
| Particulars | F.Y.2025-26 | F.Y.2024-25 | Change |
| Total Production: | 55,178 MT | 44,104 MT | +25.10% |
| - SSP Production | 38,658 MT | 34,814 MT | +11.00% |
| - NPK Production | 14,560 MT | 8,490 MT | +71.50% |
| - Other Production | 1,960 MT | 800 MT | +145.00% |
| Total Sales: | 49,881 MT | 48,929 MT | +1.90% |
| - SSP Sales | 35,271 MT | 38,474 MT | -8.30% |
| - NPK Sales | 12,713 MT | 9,684 MT | +31.30% |
| - Other Sales | 1,897 MT | 771 MT | +146.04% |
Following is the snapshot of the business performance of the company during the financial year 2025-26:
| Company Overview | Shiva Global Agro Industries Limited is one of the leading manufacturer and supplier of Single Super Phosphate (S.S.P.) and Mix Fertilizers (N.P.K.) in the Marathwada region of Maharashtra. |
| Installed Capacity | The company has an installed capacity of: • 1,20,000 MT for Single Super Phosphate (SSP) • 72,000 MT for NPK Mix Fertilizers |
| Manufacturing Units | The companys manufacturing units are located at: • MIDC, Nanded • Dhakni, Nanded These units have the flexibility to produce multiple grades of fertilizers. |
| Production Volume | The company achieved a total production volume of 55,178 MT, comprising: • Single Super Phosphate (SSP) • NPK Mix Fertilizers • Other fertilizers |
| Sales Volume for F.Y.2025-2026 | The primary sales volume for the financial year 2025-2026 was recorded at: • 35,271 MT for SSP • 12,713 MT for NPK Mix fertilizers |
| Market Presence | The Company enjoys a considerable market presence in: • South-central parts of Marathwada region. • Vidarbha region • Regions in Maharashtra connected with Telangana Border. |
The Company maintains a strong connect with farmers and follows a customer-centric approach by offering advisory services aimed at enhancing farm productivity and prosperity.
To strengthen engagement, the Company regularly undertakes farm extension initiatives such as:
These efforts have reinforced a robust consumption-driven market share. Among its product portfolio, SSP grades fortified with Zinc and Zinc plus Boron continue to lead overall sales volumes, and their contribution is expected to increase further in the coming years.
Financial performance:
Standalone Performance:
On a standalone basis, income from operations increased from 8,603.70 Lakhs in F.Y. 2024-25 to 9,002.35 Lakhs in F.Y. 2025-26, representing an increase of approximately 4.63%. Other income also increased from 42.54 Lakhs to 59.03 Lakhs. Accordingly, total income increased from 8,646.25 Lakhs to 9,061.37 Lakhs, registering growth of approximately 4.80%.
Profit before interest, taxation, depreciation and amortisation (EBITDA) declined from 62.77 Lakhs in F.Y. 2024-25 to a loss of 38.85 Lakhs during F.Y. 2025-26. This represents a significant pressure on margins and operating costs during the year.
Interest expenditure decreased from 284.34 Lakhs to 213.62 Lakhs, while depreciation remained broadly stable at 108.20 Lakhs as compared with 111.74 Lakhs in the previous year. Consequently, the Company reported a loss before exceptional items and tax of 360.68 Lakhs during F.Y. 2025-26 as against a loss of 333.31 Lakhs in F.Y. 2024-25.
The previous year included exceptional income of 887.88 Lakhs, resulting in profit before tax of 554.57 Lakhs. During F.Y. 2025-26 the Company reported a loss before tax of 360.68 Lakhs. The Company reported a loss after tax of 267.99 Lakhs for F.Y. 2025-26 as against a profit after tax of 640.34 Lakhs in the previous financial year.
Consolidated Performance:
On a consolidated basis, income from operations stood at 27,525.46 Lakhs during F.Y. 2025-26 as against 37,992.85 Lakhs in F.Y. 2024-25, representing a decline of approximately 27.55%. Other income increased from 112.80 Lakhs to 132.28 Lakhs. Consequently, total income decreased from 38,105.65 Lakhs in the previous year to 27,657.73 Lakhs during the year under review, a decline of approximately 27.42%.
Profit before interest, taxation, depreciation and amortisation (EBITDA) increased substantially from 402.49 Lakhs in F.Y. 2024-25 to 834.73 Lakhs in F.Y. 2025-26. Accordingly, the EBITDA margin increased reflecting better operating profitability during the year.
Interest cost decreased significantly from 779.54 Lakhs to 296.71 Lakhs, while depreciation decreased from 232.84 Lakhs to 188.94 Lakhs. As a result, profit before exceptional items and tax stood at 349.08 Lakhs, as compared with loss of 609.89 Lakhs in the previous year.
The previous year included exceptional income of 887.88 Lakhs, which resulted in profit before tax of 277.99 Lakhs after considering the exceptional item. During the year under review, profit before tax stood at 349.08 Lakhs.
After provision for tax, the Group recorded a profit after tax of 260.74 Lakhs for F.Y. 2025-26 as against 22.37 Lakhs in F.Y. 2024-25. Thus, despite the decline in revenue, the Group reported a significant improvement in net profit.
The year-on-year consolidated revenue comparison is also affected by the divestment of Shiva-Parvati Poultry Feed Private Limited and Ghatprabha Fertilizers Private Limited during F.Y. 2024-25; accordingly, the comparative consolidated figures are not fully comparable.
Key Financial Ratios:
Key Financial Ratios analyses and its elements are given under note no. 46 to the Accounts of Standalone Financial Statements
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has established and maintains a robust and comprehensive internal control framework commensurate with the nature, size, scale and complexity of its business operations. The internal control system is designed to provide reasonable assurance regarding the safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, reliability of financial reporting, operational efficiency, and compliance with applicable laws, regulations, policies and accounting standards.
The Company has implemented appropriate policies, procedures, authorisation mechanisms, segregation of duties, checks and balances and monitoring systems across its key business and financial processes. These controls are intended to ensure disciplined operations, optimum utilisation of resources, proper recording of transactions and adherence to approved policies and delegated financial and operational authorities.
The internal control framework is supported by an independent internal audit function, supplemented, wherever considered appropriate, by external professional firms. Internal audits are conducted periodically across significant functions, processes and locations based on a risk-based approach. The scope of audit includes review of financial and operational controls, compliance processes, risk mitigation measures and the effectiveness of established control procedures. The observations and recommendations arising from such reviews are communicated to the concerned management personnel for corrective action and are followed up to ensure timely implementation.
The Audit Committee periodically reviews the significant findings and observations of the Internal Auditors, the status of implementation of audit recommendations, and the adequacy and effectiveness of the Companys internal financial controls and risk management systems. Significant matters requiring attention are appropriately escalated to the Board of Directors. The Management also undertakes periodic reviews of the control environment and initiates necessary corrective and preventive measures wherever required.
The Company has put in place a Whistle Blower/Vigil Mechanism, in accordance with applicable statutory and regulatory requirements, to provide a structured and confidential mechanism for employees and other eligible stakeholders to report concerns relating to fraud, financial irregularities, unethical conduct, violation of the Companys policies or applicable laws, and other matters requiring attention. The mechanism incorporates appropriate safeguards against victimisation and provides for review and investigation of complaints in accordance with the applicable policy.
The Company also undertakes periodic employee awareness and training initiatives relating to internal controls, financial discipline, ethical conduct, statutory compliance, fraud prevention and the Companys policies and procedures. Regulatory and statutory developments are monitored on an ongoing basis and relevant policies, processes and controls are suitably reviewed and updated to address changes in the applicable legal and business environment.
Based on the assessments carried out during the year, the Company believes that its internal control systems are adequate and operating effectively, commensurate with its size, nature and complexity of operations. The Board of Directors, through the Audit Committee,
OPPORTUNITIES, STRENGTHS & THREATS
OPPORTUNITIES
Growing adoption of balanced crop nutrition: Increasing awareness among farmers regarding balanced nutrient application is expected to support sustained demand for NPK fertilizers, speciality nutrients, water-soluble fertilizers and organic inputs.
Expansion of irrigation and cropping intensity: Continued expansion of irrigation coverage, coupled with improvements in agricultural infrastructure, is expected to facilitate higher cropping intensity and support long-term demand for fertilizers and other agri-inputs.
Increasing focus on resource-use efficiency: The growing emphasis on efficient utilisation of water, nutrients and other farm resources is driving the adoption of precision farming practices, water-soluble fertilizers, liquid nutrients, speciality products and other efficient crop nutrition solutions.
Capacity expansion and backward integration: Commissioning of new manufacturing capacities, including NPK granulation and backward integration projects, is expected to strengthen the Companys position in existing markets, enhance supply-chain resilience and facilitate expansion into new geographies.
Sustainable agriculture: Increasing adoption of sustainable and environmentally responsible farming practices is expected to drive demand for organic and natural inputs and fertilisers.
Digitalisation and precision agriculture: Growing adoption of digital farming tools, drones, remote sensing and precision agriculture technologies provides opportunities to improve farm-level productivity, strengthen farmer engagement and develop technology-enabled agricultural solutions and services.
Expansion of Dealer and farmer Network: Expansion of the Companys Dealers and farmers Network, supported by increasing rural digital penetration, provides opportunities to deepen farmer engagement, improve last-mile reach and offer more products.
STRENGTHS
Strong corporate governance: A robust corporate governance framework promotes transparency, accountability, responsible decision-making and ethical business practices, thereby supporting sustainable and long-term value creation.
Strong position in phosphatic fertilisers: The Company is a leading manufacturer and marketer of phosphatic fertilisers in the region, with a diversified product portfolio and established capabilities to manufacture multiple grades of NPK fertilisers.
Integrated fertiliser value chain: An integrated presence across key stages of the fertiliser value chain, including rock import, production of intermediates, fertiliser manufacturing and distribution, provides advantages in terms of supply security, operational efficiency, cost optimisation and supply-chain resilience.
Strategically located manufacturing facilities: Manufacturing facilities located in key agricultural consumption markets provide logistical advantages, facilitate efficient distribution and enable faster response to market requirements.
Strong and established brand: The well-established Trishul & Shiva Gold brands enjoys strong market recognition and farmer recall, supporting customer loyalty, market penetration and long-term relationships with the farming community.
Robust R&D capabilities: A strong research and development ecosystem, supported by NABLs Research Lab at Dhanki, facilities capabilities for new product development, portfolio enhancement, process improvement.
Diversified and integrated business model: The Companys presence across SSP fertilisers, NPK Fertilizers and Secondary Fertilizers provides diversification and range of fertilizers to farmers.
THREATS
Erratic monsoon and weather patterns: Unpredictable and irregular monsoon patterns, including variations in rainfall intensity and distribution across Marathwada, Vidarbha and South-Central Maharashtra, may adversely impact agricultural activity, cropping intensity, farm incomes and consequently the demand for agri-inputs.
Intensifying competitive environment: Increasing competition in the Indian fertiliser and agri-input industry, including competition from established players and new entrants, may exert pressure on market share, pricing, margins and customer retention.
Global commodity and currency volatility: Volatility in international prices of key raw materials, energy and commodities, coupled with fluctuations in foreign exchange rates, may impact input costs, profitability and overall cost competitiveness.
Regulatory and policy changes: Changes in government policies, fertiliser subsidy mechanisms, pricing regulations, import-export policies, environmental norms and other regulatory requirements may affect the Companys operations, costs, margins and market dynamics.
Rising Input and operating costs: Escalation in the cost of raw materials, energy, logistics, labour and other operating inputs may put pressure on margins, particularly where increased costs cannot be fully passed on to customers.
Supply-chain disruptions: Geopolitical developments, international trade restrictions, logistical constraints, natural calamities and disruptions in the availability or transportation of key raw materials may affect production schedules, product availability and costs.
Environmental and sustainability risks: Increasing environmental expectations and regulatory requirements relating to emissions, water consumption, waste management, resource efficiency and sustainable agricultural practices may require continued investment in technology, processes and compliance systems.
Increasing regulatory burden on smaller enterprises: Evolving regulatory requirements and increasing compliance obligations, including those applicable to smaller companies and businesses operating in the agri-input sector, may increase the cost and complexity of doing business and could place additional administrative and operational demands on the Company.
Climate-change related risks: Long-term changes in climatic conditions, including extreme weather events, prolonged dry spells, excessive rainfall and changing cropping patterns, may adversely affect agricultural productivity and the demand environment for agri-input products.
RISK MANAGEMENT
The Company recognizes that effective risk management is fundamental to achieving its strategic objectives, protecting stakeholder interests and ensuring sustainable long-term growth. The Company has adopted a structured and proactive approach to identify, assess, mitigate and monitor risks arising from its business operations and the external environment.
The risk management framework is designed to facilitate timely identification of material risks, evaluation of their potential impact and implementation of appropriate mitigation measures. The framework is periodically reviewed and strengthened to respond to changes in market conditions, regulatory requirements, business operations and emerging risks.
The Companys approach to risk management is guided by the following key principles:
Key Risks and Mitigation Strategies
The Companys principal risks include market and business risks, agricultural and climatic risks, operational risks, raw-material and supply-chain risks, financial risks, regulatory and compliance risks, environmental and safety risks, and reputational risks. The key risks and broad mitigation measures are set out below:
1. Market and Business Risk
Risks:
Fluctuations in demand, selling prices and market conditions for SSP and other fertilizer products. Intensifying competition within the Indian fertilizer industry. Changes in farmer preferences, cropping patterns and regional agricultural demand. Market saturation and changes in product mix affecting margins and volumes.
Mitigation:
2. Agricultural and Climatic Risk
Risks:
Unpredictable and irregular monsoon patterns, particularly across key agricultural markets in Maharashtra. Variations in rainfall, water availability and cropping patterns affecting fertilizer consumption. Extreme weather events and other climatic conditions impacting agricultural activity and farmer purchasing behaviour.
Mitigation:
Monitoring monsoon forecasts, rainfall patterns and agricultural trends across key operating markets. Maintaining flexibility in production and inventory planning based on seasonal demand. Diversifying geographic markets and customer segments, wherever commercially feasible. Maintaining regular engagement with dealers and market participants to assess changes in ground-level demand.
3. Operational Risk
Risks:
Plant accidents, incidents and workplace safety events. Equipment breakdowns, production interruptions and maintenance-related challenges. Operational inefficiencies or disruptions affecting production schedules and product availability.
Mitigation:
Implementation of established safety procedures, operating protocols and regular employee training. Preventive and periodic maintenance of plant and machinery. Continuous monitoring of critical plant operations and equipment performance. Appropriate emergency response and business continuity procedures. Periodic review of operational controls to identify areas for improvement.
4. Raw Material and Supply Chain Risk
Risks:
Volatility in the prices and availability of key raw materials such as rock phosphate, sulphuric acid and other inputs. Disruptions in transportation, logistics and supply chains. Dependence on external suppliers and, where applicable, imported raw materials. Increased procurement and logistics costs affecting operating margins.
Mitigation:
Continuous monitoring of raw-material markets and procurement requirements. Developing and maintaining relationships with reliable suppliers. Forward planning of procurement based on production requirements and market conditions. Optimizing inventory levels while maintaining adequate availability of critical inputs. Periodic evaluation of alternative sourcing and supply arrangements, wherever feasible.
5. Financial Risk
Risks:
Volatility in raw-material and other input costs affecting profitability. Foreign exchange fluctuations impacting the cost of imported materials and other foreign currency transactions. Working capital requirements arising from inventory levels, receivables and seasonal demand. Interest-rate and liquidity risks.
Mitigation:
6. Regulatory and Compliance Risk
Risks:
Changes in fertilizer policies, subsidy mechanisms, pricing regulations and other applicable government policies. Changes in taxation, environmental, labour, health and safety requirements. Risk of non-compliance with applicable statutory and regulatory requirements.
Mitigation:
7. Environmental, Health and Safety Risk
Risks:
Environmental impact arising from manufacturing activities, emissions, waste generation and handling of materials. Occupational health and safety incidents. Changes in environmental standards and compliance requirements.
Mitigation:
8. Quality and Reputational Risk
Risks:
Product quality issues, contamination or failure to meet prescribed specifications. Customer complaints and loss of confidence among farmers, dealers and other stakeholders. Negative publicity or adverse developments affecting the Companys reputation.
Mitigation:
9. Technology and Cybersecurity Risk
Risks:
Cybersecurity incidents, unauthorized access, data loss or disruption of information systems. Dependence on technology for financial, operational and business processes. Risks arising from inadequate information-security controls.
Mitigation:
Monitoring and Review
Risk management is an ongoing process and forms an integral part of the Companys management and decision-making processes. The Companys risk profile is monitored periodically with a focus on changes in the business environment, market conditions, regulatory developments, operational performance and emerging risks.
The Company undertakes periodic reviews of identified risks and the effectiveness of corresponding mitigation measures. Significant risks and developments, wherever applicable, are escalated to the appropriate management and governance forums for consideration and necessary action.
The risk management framework is also reviewed and updated periodically to incorporate emerging risks, changes in the regulatory environment, evolving market conditions, operational learnings and changes in the Companys business strategy.
Through this structured and forward-looking approach, the Company seeks to enhance its resilience, minimize potential disruptions, protect its assets and stakeholders, and create sustainable long-term value while pursuing its strategic objectives.
Prevention of Sexual Harassment at Workplace:
The Company is committed to providing a safe and respectful workplace for all employees. In compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, an Internal Complaints Committee has been constituted to investigate and address any complaints of sexual harassment. During the year 2025-26, the Committee confirmed that no complaints or cases were filed or pending with the Company. The Company adheres to a zero-tolerance policy on harassment and is dedicated to ensuring a workplace free from any form of harassment. As a result, no cases of sexual harassment were reported during the year.
At Shiva Global Agro Industries Limited, environmental responsibility and sustainable resource management form an integral part of our approach to responsible and long-term business growth. The Company continues to focus on improving resource efficiency, reducing environmental impact and promoting sustainable practices across its operations.
During F.Y.2025-26, the Company undertook various initiatives aimed at strengthening its environmental performance and embedding sustainability considerations into day-to-day operations. Key initiatives during the year included:
Energy Efficiency: The Company continued to focus on optimising energy consumption through the use of energy-efficient lighting, equipment and operating practices, with the objective of reducing energy intensity and improving overall operational efficiency.
Waste Management: Measures were undertaken to promote segregation, recycling, reuse and responsible disposal of waste generated from operations, including paper, plastic, metal and other recyclable materials.
Water Conservation: The Company implemented process and operational measures aimed at reducing water consumption, improving water-use efficiency and promoting responsible management of water resources.
Sustainable Supply Chain: The Company continues to engage with suppliers and business partners to encourage responsible sourcing practices, efficient utilisation of resources and adoption of environmentally conscious processes, wherever feasible.
Employee Awareness: Periodic awareness and training initiatives are undertaken to encourage employees to adopt environmentally responsible practices, including efficient use of energy and water, waste segregation, recycling and reduction of avoidable consumption.
Extended Producer Responsibility (EPR)
The Company remains committed to complying with applicable Extended Producer Responsibility (EPR) requirements relating to plastic waste management. Appropriate measures are undertaken for the collection, recycling, reuse and responsible management of plastic waste in accordance with applicable regulatory requirements.
These initiatives contribute towards reducing the environmental impact associated with plastic waste, promoting resource recovery and supporting the principles of a circular economy. The Company continues to review its processes and practices to identify opportunities for further improvement in resource efficiency and waste management.
Commitment to Sustainable Growth
The Company recognises that sustainable business practices are essential for creating long-term value for stakeholders while conserving natural resources for future generations. Accordingly, it remains focused on progressively strengthening its environmental management practices, improving operational efficiency, promoting responsible resource utilisation and integrating sustainability considerations into business operations.
The Company will continue to evaluate and implement appropriate initiatives in line with its operational requirements, applicable regulatory developments and evolving environmental and sustainability expectations.
BUSINESS OUTLOOK
F.Y.2025-26 was marked by a dynamic operating environment, evolving market conditions and continued emphasis on operational efficiency, cost discipline and prudent working capital management. The Company remains focused on strengthening its core fertiliser business while responding to changing farmer requirements, evolving agricultural practices and emerging opportunities across the agri-input value chain.
The outlook for the fertiliser and agri-input sector remains constructive, supported by the long-term requirements of agricultural productivity, food security, balanced crop nutrition, soil health and increasing awareness among farmers regarding efficient use of nutrients. The expansion of irrigation facilities, adoption of precision farming and soil-testing practices, and increasing preference for balanced and crop-specific nutrition are expected to support demand for NPK fertilisers, SSP, fortified fertilisers, specialty nutrients and other value-added products.
The Company will continue to leverage its manufacturing capabilities, established distribution network, product portfolio and farmer relationships to strengthen its market position. At the same time, the Company remains cognisant of challenges arising from commodity price volatility, weather uncertainties, competitive intensity, regulatory developments and fluctuations in input and logistics costs.
Going forward, the Company will focus on the key priorities such as Operational Excellence, Cost and Working Capital Discipline, Product and Portfolio Development, Capacity Augmentation, Market and Distribution Expansion, Farmer Engagement and Advisory, and Technology and Sustainability.
The Company remains cautiously optimistic about its medium to long-term growth prospects. Its established market presence, manufacturing capabilities, diversified product portfolio, distribution reach and focus on operational efficiency provide a strong foundation for sustainable growth.
While near-term performance may remain subject to monsoon conditions, commodity prices, regulatory policies, input costs and overall agricultural market conditions, the Company will continue to focus on strengthening its competitive position, improving operational and financial performance and creating sustainable value for its stakeholders.
With a continued focus on operational excellence, prudent financial management, product innovation, market expansion and customer-centricity, Shiva Global Agro Industries Limited is well positioned to participate in the evolving opportunities in the Indian agriculture and agri-input sector and contribute to the productivity, sustainability and resilience of Indian agriculture.
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1860-267-3000 / 7039-050-000
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+91 9892691696
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