Shivam Chemicals (SHIVAM) Q2 FY27 Profit Jumps 350% on Export Revival and New Plant
The animal feed supplement maker’s Q2 FY27 profit surged to ₹9 crore as renewed US exports and a new DCP plant drove an 80% revenue jump.
Shivam Chemicals posted an 80% year-on-year revenue surge to ₹238 crore in Q2 FY27. Net profit multiplied 3.5 times to ₹9 crore, fueled by resumed US feedstock exports and the start of DCP production.
For Shivam Chemicals, the September quarter was about turning new capacity into sales. The animal feed supplement maker’s profit surged 350% year-on-year to ₹9 crore, as a strategic push into exports and backward integration paid off.
The numbers show a company hitting its stride. Revenue jumped 80% to ₹238 crore, while net profit margin expanded 230 basis points to 3.8%. Sequentially, revenue grew 56% and profit more than doubled.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 (Sep 2026) | PreviousQ4 FY26 (Mar 2026) |
|---|---|---|
| Revenue (₹ Cr) | 238.0 | 153.0 |
| Profit (₹ Cr) | 9.0 | 4.0 |
| Net Profit Margin (%) | 3.8 | 2.6 |
The Export Engine Restarts
A key driver was the resumption of US renewable energy feedstock exports in September. ALFA News reported this restart contributed meaningfully to turnover, aligning with management’s earlier guidance. The company has also secured repeat business, providing visibility for the coming quarters.
This came alongside a major operational milestone. Phase I commercial production of feed-grade Dicalcium Phosphate (DCP) began at the Dahej facility in early October, as noted by ALFA News. The new plant adds a high-value manufactured product to its trading portfolio.
Where the Profit Came From
The profit surge was largely operational. Flash Finance data shows 88% of pre-tax profit came from the core business, with operating margin expanding 336 basis points year-on-year. A one-time accounting benefit also helped: depreciation expense fell to zero in Q2, compared to ₹1 crore a year ago.
This likely stems from a reassessment of asset life, a move similar to one reported by Sportking India. It provided a temporary boost to the bottom line without recurring cash cost savings.
The Road Ahead and Its Bumps
Management is optimistic, with US export momentum and the new DCP plant set to lift second-half performance. However, the broader industry faces headwinds. Reports cite a 25% recent rise in poultry feed costs due to lower soybean and maize output.
As a distributor of feed ingredients, Shivam Chemicals operates in a price-sensitive market. While its own backward integration mitigates some raw material risk, sustained industry cost pressure could challenge margin expansion from here.
The market cheered the print, with the stock rising 5% in a day post-results, according to ALFA News. At a P/E of 39.3, it trades at a discount to the industry average of 45.3, reflecting its smaller scale.
Key Points
- Revenue grew 80% year-on-year to ₹238 crore, driven by resumed US exports and scaling operations.
- Net profit jumped 350% to ₹9 crore, with core business contributing 88% of the pre-tax profit.
- Phase I production of feed-grade DCP began in October, adding a new manufactured product line.
- The company faces a rising cost environment for feed ingredients, which may pressure future margins.
Hexa Perspective
Shivam Chemicals delivered a powerful quarter of operational scaling, proving its export channel and new plant can drive growth. The profit quality is sound, with most gains from the core business.
The sustainability now hinges on two factors: maintaining export order flow amid global trade shifts, and navigating rising input costs in the domestic feed market. The next few quarters will show if the margin expansion is durable or a one-time lift from the capacity ramp-up.
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