Shivam Chemicals Ltd Management Discussions

The Management Discussion and Analysis Report (MD&A) provides an overview of the business environment, operational performance and financial performance of Shivam Chemicals Limited ( the Company ) for the financial year ended 31 st March, 2026. This report should be read in conjunction with the Audited Financial Statements of the Company and the Notes forming part thereof.

1. INTRODUCTION

Shivam Chemicals Limited was originally incorporated as Sun Organosys Private Limited on 12 th October, 2010 under the provisions of the Companies Act, 1956, with the Registrar of Companies, Mumbai, bearing Registration No. 208870.

The name of the Company was subsequently changed to Shivam Chemicals Private Limited. Thereafter, pursuant to the requisite statutory and regulatory approvals, the Company was converted from a private limited company into a public limited company and its name was changed to Shivam Chemicals Limited. A fresh

Certificate of Incorporation consequent upon conversion was issued on 21 st November, 2023.

The Corporate Identification Number (CIN) of the Company is L24100MH2010PLC208870. The equity shares of the Company were listed on the BSE SME Platform with effect from 30 th April, 2024.

The Company is primarily engaged in the business of manufacturing, trading and distribution of feed supplements, feed ingredients and allied products.

2. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian animal feed and feed ingredients industry forms an integral part of the livestock, dairy, poultry and animal nutrition ecosystem. Increasing awareness regarding animal health, nutrition, productivity, feed efficiency and food safety continues to support demand for quality feed supplements and allied nutritional products.

The industry is witnessing gradual transformation driven by increasing emphasis on quality assurance, nutritional efficiency, traceability, organised sourcing and adherence to evolving product standards.

Customers are increasingly focused on consistent product quality, reliable supply and value-added nutritional solutions.

Against this backdrop, the Company continues to monitor industry developments and changing customer requirements while focusing on strengthening its product portfolio, sourcing capabilities, manufacturing operations and distribution network.

3. BUSINESS DEVELOPMENTS DURING THE YEAR

During FY 2025-26, the Company continued to strengthen its existing business activities while pursuing opportunities for diversification and expansion.

The Company remained focused on:

? expanding its trading and distribution activities; ? broadening its product portfolio;

? strengthening manufacturing and supply-chain capabilities; ? developing and expanding its customer base; and

? improving the overall scale and efficiency of operations.

These initiatives contributed to a substantial increase in the Companys scale of operations during the year.

Revenue from Operations increased by approximately 30%, from 20,736.55 Lakhs in FY 2024-25 to 26,955.64 Lakhs in FY 2025-26.

The Company intends to continue pursuing sustainable growth opportunities while maintaining appropriate focus on quality, customer relationships, operational efficiency and prudent financial management.

4. STRENGTHS, OPPORTUNITIES AND THREATS

Strengths

? Experienced Promoters and senior management with industry knowledge and established business relationships.

? Long-standing customer relationships and repeat business across key product categories.

? Focus on product quality, consistency and customer satisfaction.

? Presence across both trading/distribution and manufacturing activities.

? Ability to expand and diversify the product portfolio in response to evolving customer requirements.

Opportunities

The animal nutrition and feed ingredients industry offers opportunities arising from increasing demand for quality feed products, growing awareness of animal nutrition and the gradual shift towards organised and quality-assured suppliers.

The Company believes that further opportunities may arise from: ? expansion of its customer base across existing and new markets;

? diversification into complementary feed ingredients and nutritional products; ? strengthening of its manufacturing capabilities;

? development of value-added and customised nutritional solutions;

? strengthening of its distribution and sourcing network; and

? greater integration of its supply chain. Threats and Challenges

The Company operates in a competitive business environment comprising both organised and unorganised participants. Product pricing, quality, availability, customer relationships, credit terms and distribution capabilities remain important competitive factors.

The Company s performance may also be influenced by fluctuations in raw material and commodity prices, freight and logistics costs, foreign exchange movements, availability of key products and raw materials, changes in customer preferences, regulatory developments and general economic conditions.

The Company seeks to mitigate these risks through diversification, prudent sourcing, and supplier relationships, quality assurance and continuous improvement in operational efficiency.

5. SEGMENT-WISE / PRODUCT-WISE PERFORMANCE

During FY 2025-26, the Company continued to strengthen and diversify its portfolio within the feed ingredients and animal nutrition segment.

During the year, the Company expanded its product offerings through the introduction of Amino Acids, Feed Phosphate products and customised Vitamin Premix formulations, enabling it to address a broader range of nutritional requirements and offer value-added solutions to customers in the feed industry.

As part of its efforts towards strengthening supply-chain integration, the Company also took on lease a Quick Lime manufacturing unit at Khimsar, Rajasthan. The unit currently caters to more than 50% of the raw material requirements of the manufacturing operations of the Companys subsidiary at Dahej, Gujarat.

These initiatives are expected to strengthen the Companys product portfolio, sourcing capabilities, supply-chain integration and overall market presence.

Revenue from Operations increased from 20,736.55 lakh in FY 2024-25 to 26,955.64 lakh in FY 2025-26, representing growth of approximately 30% during the year.

6. OPERATIONAL AND FINANCIAL OVERVIEW

The Company recorded significant improvement in its overall financial performance during FY 2025-26, supported by an increase in the scale of operations and improved profitability .

Key financial highlights for the year include:

? Revenue from Operations increased by approximately 30%, from 20,736.55 lakh to 26,955.64 lakh.

? Total Income increased from 20,810.41 lakh to 27,123.27 lakh.

? Profit Before Tax (PBT) increased from 346.04 lakh to 673.84 lakh.

? Profit After Tax (PAT) increased from 257.14 lakh to 504.72 lakh.

? Basic Earnings Per Share (EPS) increased from 1.55 to 2.97 per share.

? Reserves & Surplus increased from 1,971.62 lakh to 2,476.34 lakh.

The improvement in profitability reflects the increased scale of operations and improvement in the Companys overall business performance during the year.

7. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established internal control systems commensurate with the size, nature and complexity of its operations.

The internal control framework is designed to facilitate the orderly and efficientconduct of business, safeguard the Companys assets, prevent and detect fraud and errors, maintain accuracy and completeness of accounting records and facilitate the timely preparation of reliable financial information.

The adequacy and effectiveness of the Companys internal control systems are reviewed periodically by the Management and are also subject to review by the Internal Auditors and Statutory Auditors, as applicable.

The Company continues to strengthen its internal processes and controls in line with the growth and evolving requirements of its business.

8. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

( in lakh, except EPS)

Particulars	FY 2025-26	FY 2024-25
Revenue from Operations	26,955.64	20,736.55
Total Income	27,123.27	20,810.40
Profit BeforeTax	673.84	346.03
Profit After Tax	504.72	257.14
Reserves & Surplus	2,476.34	1,971.62
Basic EPS ( per share)	2.97	1.55

Revenue from Operations increased by approximately 30% during FY 2025-26. Profit Before Tax increased by approximately 95%, while Profit After Tax increased by approximately 96% compared with the previous financial year.

The Company s Reserves & Surplus stood at 2,476.34 lakh as at March 31, 2026, compared with 1,971.62 lakh as at March 31, 2025.

The improvement in profitability was supported by the increased scale of business and improvement in overall operating performance.

9. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company recognises that its employees are an important contributor to its long-term growth and operational effectiveness.

The Companys human resource structure is maintained in accordance with the scale and requirements of its operations. The Company continues to focus on employee engagement, skill development, productivity, retention and creating a professional working environment.

Industrial relations remained cordial during FY 2025-26, and there were no material developments in human resources or industrial relations having a significant adverse impact on the Companys operations.

10. KEY FINANCIAL RATIOS

Particulars	FY 2025-26	FY 2024-25	Change
Current Ratio	2.41	2.74	(0.33)
Debt-Equity Ratio	0.42	0.28	0.14
Inventory Turnover Ratio	57.01	100.52	(43.51)
Trade Receivables Turnover Ratio	11.08	10.77	0.31
Net Profit Ratio	1.87%	1.24%	0.63%

The Current Ratio decreased during the year primarily due to an increase in current liabilities in line with the higher scale of operations.

The Debt-Equity Ratio increased mainly on account of higher borrowings utilised to support the increased scale of business operations.

The Inventory Turnover Ratio decreased primarily due to higher inventory levels maintained during the year in support of business requirements and the expanded scale of operations.

The Trade Receivables Turnover Ratio improved marginally during the year, reflecting turnover growth and management of receivables in the context of increased business volumes.

The Net Profit Ratio improved from 1.24% to 1.87%, reflectingthe substantial increase

FY 2025-26.

11. RETURN ON NET WORTH

The Companys Return on Net Worth (RoNW) for FY 2025-26 was approximately 12.87%, compared with approximately 7.01% in FY 2024-25.

The improvement in RoNW was primarily attributable to the substantial increase in profitability during the year. Profit After Tax increased from 257.14 lakh in FY 2024-25 to 504.72 lakh in FY 2025-26, resulting in improved returns on shareholders funds.

12. OUTLOOK

The Company remains focused on strengthening its position in the feed ingredients and allied products industry through a combination of product diversification, expansion of its customer base, strengthening of manufacturing capabilities and greater supply-chain integration.

The Company intends to pursue growth opportunities in a prudent manner while maintaining its focus on product quality, customer satisfaction, operational efficiency, working capital management and financial discipline.

The Company s diversified presence across trading, distribution and manufacturing activities, together with its expanding product portfolio, provides a platform for pursuing sustainable growth opportunities over the medium to long term.

13. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, plans or outlook may constitute forward-looking statements within the meaning of applicable laws and regulations.

Actual results may differ materially from those expressed or implied due to various factors, including changes in economic conditions, government policies and regulations, market conditions, raw material prices, foreign exchange fluctuations, competitive conditions and other factors affecting the Company s operations.

The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of subsequent developments, information or events, except as may be required under applicable laws and regulations.

CHIEF FINANCIAL OFFICER CERTIFICATION

To

The Board of Directors, Shivam Chemicals Limited

Office No. 108, 1 st Floor,

Hubtown Solaris, Off N.S. Phadke Marg, Saiwadi, Andheri (E), Mumbai - 400 069, Maharashtra, India. accordance with Regulation 17(8) read with Part B of Schedule II and Regulation 33(2)(a) Sub.:Certificate of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

I, undersigned certify that the Audited Financial Results for the year ended 31 st March, 2026 prepared in accordance with Clause 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 do not contain any false or misleading statement or figures and do not omit any material fact which may make the statements or figures contained therein misleading and I further certify that.

? I have reviewed financial statements and the cash flow statement for the quarter and year ended 31 st March, 2026 and that to the best of my knowledge and belief: these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading; These statements together present a true and fair view of the listed entitys affairs and are in compliance with existing accounting standards, applicable laws and regulations.

There are, to the best of our knowledge and belief, no transactions entered into by the listed entity during the year which are fraudulent, illegal or violation of the listed entitys code of conduct.

? I accept responsibility for establishing and maintaining internal controls for financial evaluated the effectiveness of internal control systems of the listed entity pertaining to financial reporting and I have disclosed to the Auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps I have taken or propose to take to rectify these deficiencies.

? I have indicated to the Auditors and the Audit Committee:

significant changes in internal control over financial reporting during the year; changes in accounting policies during the year and that the same have been disclosed in the significant notes to the financial statements; and fraud of which they have become aware and the involvement therein, if any, of the Instances of significant management or an employee having significant role in the listed entity s internal control system over financial reporting.

For and on behalf of the Board of Shivam Chemicals Limited

Sd/-

Soham Sanjiv Vasant

Chief Financial Officer

Date: 27 th August, 2026

Place: Mumbai