News Details

Profit before exceptional items and tax increased 11.6% YoY to Rs 38.57 crore. During the quarter, the company reported an exceptional gain of Rs 29.95 crore, representing an on-account insurance claim received towards property, plant and equipment damaged in the fire at its Vashivali plant in Maharashtra in April 2024.

Operating performance remained strong, with EBITDA rising 21.3% YoY to Rs 89 crore from Rs 73 crore a year ago. Consequently, the EBITDA margin improved to 13.4% in Q1 FY27 from 12.6% in the year-ago period, supported by operating leverage from higher revenues despite increased operating costs associated with the expanded global CDC network. The company noted that margins may vary across quarters depending on revenue scale and the absorption of fixed operating costs.

On the business front, the Fragrances segment posted 9% YoY revenue growth to Rs 539 crore, while the Flavours segment recorded a sharp 63.2% YoY increase to Rs 112 crore. The core fragrance business benefited from sustained customer engagement and demand across key end-use segments, while the flavour business was supported by strong international demand and deeper customer engagement across markets.

Geographically, revenue from India increased 4.8% YoY to Rs 363 crore during the quarter. Revenue from Europe rose 23.7% YoY to Rs 148 crore, while revenue from the Rest of the World surged 44.1% YoY to Rs 140 crore.

Commenting on the company's strategic direction, Kedar Vaze, whole time director & CEO at SH Kelkar and Company, said, 'We have made a healthy start to the year, supported by sustained demand across key customer segments and encouraging momentum in the business. The performance reflects the strength of our customer relationships, diversified product portfolio, and continued focus on execution.

Building on the progress of our strategic growth initiatives, our focus is increasingly on leveraging our expanded capabilities to deepen customer partnerships and broaden the opportunity pipeline. The continued strengthening of our R&D, creative development centres, and manufacturing platform is enhancing our ability to respond more effectively to evolving customer requirements and develop differentiated solutions across categories and markets.'

Commenting on the performance and financial priorities, Jagdish Agarwal, group chief financial officer at SH Kelkar and Company, said: 'The Fragrance segment delivered healthy growth during Q1 FY27, while the Flavour segment recorded strong growth across geographies and was a key contributor to the overall performance.

The global environment remains fluid, with geopolitical developments and volatility in select raw material prices requiring close monitoring. Our strategic inventory build-up has provided greater supply assurance and supported business continuity, while also resulting in higher working capital requirements. Debt levels remain consistent with our earlier guidance.

Looking ahead through FY27, the pace of revenue growth may vary across quarters depending on the timing of customer orders, with margins influenced by changes in product mix, raw material costs and the phasing of operating expenses. Notwithstanding these quarterly variations, the current business momentum keeps us on track to deliver double-digit revenue growth and improved margins for the full year.'

Meanwhile, the board approved the sale of the company's entire equity stake in Keva Ventures (KVPL), its wholly owned subsidiary, to Keva Aromatics, a promoter group company for an aggregate considerations of Rs 45,85,000.

S H Kelkar and Company (SHK) is the largest Indian-origin Fragrance & Flavour Company in India. Its fragrance products and ingredients are used as a raw material in personal wash, fabric care, skin and hair care, fine fragrances and household products. Its flavour products are used as a raw material by producers of baked goods, dairy products, beverages and pharmaceutical products. The Company offers products under SHK, Cobra and Keva brands.

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