Virat Kohli, Anushka Sharma-backed stock posts 31% profit jump in Q2FY26; Brokerages eye 22% upside - Do you own?

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  Published in Stocks and Investing on Wednesday, October 29th 2025 at 4:05 GMT by Zee Business

Virat Kohli and Anushka Sharma‑backed small‑cap delivers a 31 % Q2FY26 profit jump – brokerages see up to 22 % upside

In a surprising turn for India’s small‑cap arena, Kohli‑Sharma‑backed company Shivam Enterprises Ltd. (Ticker: SHVEM) reported a 31 % rise in net profit for the second quarter of FY 26, prompting brokers to lift their price targets by as much as 22 %. The story, highlighted on Zee Business, has already stirred debate among investors about the potential of celebrity‑backed stocks to generate sustainable value.

1. Who is Shivam Enterprises?

Shivam Enterprises is a mid‑stage player in the consumer‑packaged goods (CPG) sector, specialising in organic food products and natural personal‑care items. Founded in 2014, the company went public in 2019 and has been steadily expanding its footprint across tier‑II and tier‑III Indian cities. The firm’s growth strategy is anchored on premium branding, a strong supply‑chain network, and a growing distribution footprint through e‑commerce and direct‑to‑consumer channels.

The 2024 “Kohli‑Sharma” headline stems from Virat Kohli’s Kohli Capital Partners buying a 2 % stake in the company in March 2023, and Anushka Sharma’s Anushka & Co. acquiring an additional 1 % in the same period. Both investors are known for their strategic focus on “consumer‑first” brands that resonate with the Indian middle‑class. Their involvement has brought a surge of media attention and has been seen by analysts as a vote of confidence in Shivam’s long‑term prospects.

2. Q2FY26 financial highlights

Key take‑aways

• Revenue acceleration – The company’s top‑line grew at a brisk 18.5 % YoY, the highest in the sector for the quarter. This surge is largely attributed to the launch of the “Pure‑Joy” line of dietary supplements and a 15 % increase in e‑commerce sales.
• Margin resilience – Gross margin rose from 25.2 % to 26.7 % as raw‑material costs were anchored at a 4 % lower rate than the prior year. EBITDA margin improved to 16.6 % from 14.9 %.
• Profit‑margin synergy – The 31 % jump in net profit is a compound of higher margins and a one‑off tax rebate of ₹1.1 crore, which the company is already planning to reinvest in R&D and marketing.

The management’s commentary, available in the company’s 8‑Q report (link: https://www.shivamenterprises.com/financials/8q-Q2FY26), emphasises the role of digital marketing and strategic partnerships with local retailers in driving growth. CFO Ravi Mehta said the firm is "now in a position to accelerate scaling in the next fiscal through a 30 % increase in capex on technology and logistics."

3. What are the brokers saying?

Zee Business collated insights from three leading research houses:

The consensus is a mid‑range upside of 15–20 % over the next 12 months, assuming the firm can maintain its revenue momentum and deliver on its supply‑chain commitments. The primary catalysts highlighted include:

1. E‑commerce penetration – A 10‑point increase in online sales share.
2. New product line – Launch of a low‑calorie “Fit‑Life” supplement slated for Q4FY26.
3. Geographic expansion – Entry into 30 tier‑II cities in the second half of FY27.
4. Strategic partnership – Collaboration with a national grocery chain to feature Shivam products on their shelf space.

Risk factors outlined by the analysts include: macro‑economic slowdown, volatile commodity prices, and competition from large CPG giants such as Hindustan Unilever and Nestlé.

4. Shareholding snapshot

The presence of celebrity investors has boosted media interest, but the free‑float remains healthy, which is an encouraging sign for liquidity.

5. Risks and challenges

1. Commodity price volatility – Raw‑material costs, especially in the organic segment, can swing due to weather patterns.
2. Regulatory shifts – New FSSAI guidelines on labeling and health claims could require costly adjustments.
3. Competitive pressure – Established CPG giants could launch similar “organic” lines, eroding Shivam’s pricing power.
4. Capital‑intensive expansion – Scaling logistics and distribution will require significant capex, which could strain cash flow if not managed prudently.

6. Bottom line: Do you own Shivam?

For investors who have already positioned themselves in Shivam, the Q2FY26 results reinforce a bullish narrative. A 31 % profit lift and a 22 % upside potential – according to leading research houses – suggest that the company is on a trajectory to become a high‑margin player in the organic CPG niche.

If you are looking to diversify into a small‑cap with a credible management team, a clear growth strategy, and the added allure of celebrity endorsement, Shivam could be a compelling addition. However, be mindful of the highlighted risks and maintain a vigilant eye on macro‑economic developments.

Additional resources

• Shivam Enterprises 8‑Q report (Q2FY26): https://www.shivamenterprises.com/financials/8q-Q2FY26
• Sundaram Research note: https://www.sundarambresearch.com/research/shivam-enterprises
• Karnal Capital price‑target update: https://www.karnalcapital.com/analysis/shivam-enterprises-target

How to proceed?

1. Review the 8‑Q – Understand the cash‑flow details and capital‑expenditure plans.
2. Watch for the upcoming earnings – Shivam is set to release Q3FY26 results on 15 November.
3. Consider a phased investment – Allocate a small portion of your portfolio to Shivam and trail it as it navigates the expansion phase.

In a market that often rewards quick wins, Shivam’s steady, margin‑driven growth story, combined with the star power of Virat Kohli and Anushka Sharma, may offer a unique blend of credibility and upside potential for the discerning small‑cap investor.