Brazilian agri-biologicals company Solubio Tecnologias Agrícolas has returned to a strong growth path in 2025 after completing financial restructuring and improving operational efficiency, marking a clear turnaround following a difficult phase for Brazil’s agricultural input sector. Controlled by private equity firm Aqua Capital, the company now projects revenues of at least R$200 million (about US$40 million), with EBITDA expected to exceed R$40 million, reflecting renewed financial stability and market confidence.
Founded in 2016, Solubio expanded steadily until 2022, when revenues reached R$190 million. However, sector-wide challenges such as rising costs, excess manufacturing capacity, and tighter credit conditions affected agri-input suppliers across Brazil, leading to a contraction in Solubio’s revenues to R$150 million in 2024. According to CEO Ernesto Cavasin, 2025 has emerged as a recovery year, supported by a positive EBITDA of R$8 million in the first half, a period that traditionally delivered losses, while July 2025 became the strongest month in the company’s history.
The operational recovery enabled Solubio to strengthen its balance sheet through early redemption of Agricultural Receivables Certificates (CRAs) issued in 2021 and 2022, originally worth R$250 million. Through financial restructuring involving R$70 million in payments, the company reinforced guarantees for its third CRA issued in September 2024 valued at R$130 million, while also improving short-term liquidity by around R$15 million. With its debt position stabilised, Solubio is now preparing to raise an additional R$40 million to refresh cash and support future growth initiatives.
As growth accelerates, Solubio is increasing its focus on research and development, raising R&D spending to 5 percent of revenue, up from about 3 percent in recent years. During 2025, the company launched two newly registered biological products, while six additional technologies are lined up for commercial release in 2026. Management has underlined that strengthening innovation capabilities is essential in a market characterised by increasing competition, excess production capacity, and narrowing margins. Alongside this, Solubio is expanding partnerships with fertiliser companies, while continuing to prioritise its on-farm biological production model, which enables fresher product delivery and reduces reliance on cold-chain logistics.
A major driver of Solubio’s growth strategy is its expanding microalgae platform. The company’s microalgae-based solution, Primafert, is designed to improve crop tolerance to stress and drought, enhance soil biological activity, and provide an additional carbon source for plants. Primarily used in grain and cotton crops, the microalgae line is expected to generate around R$15 million in sales in 2025, contributing roughly 7.5 percent of total company revenue. Interest in microalgae-based agricultural inputs is growing due to their bioactive properties and role in plant growth regulation and stress mitigation, and Solubio continues to invest in this segment despite broader industry challenges related to large-scale production economics and field-level performance validation.
Solubio’s recovery reflects a wider stabilisation of Brazil’s agricultural input market, as commodity prices moderate, credit availability improves, and inventory overhangs gradually clear. The ongoing consolidation of the biologicals sector is increasingly favouring companies with strong distribution networks, technical expertise, and differentiated product portfolios. By accelerating R&D investment and expanding its product range, Solubio is positioning itself to capitalise on this shift and sustain long-term growth in Brazil’s evolving agricultural biologicals landscape.
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