S H Kelkar & Co Reports Q1 FY27 Net Profit of ₹45.4 Crore and ₹662 Crore Revenue

MUMBAI — S H Kelkar and Company Limited (SHK), India’s largest home-grown fragrance and flavour manufacturer, announced its financial results for the first quarter ended June 30, 2026, delivering double-digit revenue growth and a significant increase in net profit.

The Mumbai-headquartered company reported a consolidated revenue from operations of ₹662.42 crore for Q1 FY27, registering a 14.1% increase compared to ₹580.50 crore in the corresponding quarter of the previous financial year. Consolidated net profit for the quarter rose by 77.4% year-on-year to ₹45.43 crore, up from ₹25.55 crore in Q1 FY26.

The board of directors formally approved the unaudited financial results and a key strategic divestment during its meeting held in Mumbai.

Operational Performance and Strategic Divestment

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|                 S H KELKAR Q1 FY27 FINANCIAL HIGHLIGHTS                 |
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| Metric                                 | Q1 FY27       | Q1 FY26       | YoY Change |
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| Revenue from Operations  | ₹662.4 crore  | ₹580.5 crore  | +14.1%       |
| EBITDA                              | ₹88.7 crore     | ₹73.1 crore   | +21.3%       |
| EBITDA Margin                  | 13.4%             | 12.6%           | +81 bps       |
| Profit Before Tax (PBT)      | ₹68.5 crore     | ₹36.7 crore   | +86.9%       |
| Profit After Tax (PAT)          | ₹45.4 crore     | ₹25.6 crore   | +77.4%       |
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Fragrance and Flavour Segment Results

The core Fragrance business generated segment sales of ₹547.79 crore (excluding other operating income), compared to ₹509.83 crore in Q1 FY26, representing a 7.4% expansion. On an overall division basis, revenue reached ₹539 crore, up 9.0% YoY. Segment EBITDA for fragrances stood at ₹56 crore.

The Flavour business served as a major growth driver during the quarter, surging 63.2% year-on-year. Segment sales reached ₹111.98 crore, compared to ₹68.60 crore recorded in the same period last year. Flavour division EBITDA surged by 154.8% to ₹35 crore.

Geographically, revenue from Europe under the market segment grew 21.3% to ₹128 crore, while emerging markets expanded 14.3% to ₹523 crore. However, the Global Ingredients segment faced softer demand due to ongoing geopolitical uncertainties in select export markets, registering revenue of ₹15 crore.

Divestment of Keva Ventures

In a key structural development, the Board of Directors approved the sale of the company's entire equity stake in its wholly owned subsidiary, Keva Ventures Private Limited (KVPL), to Keva Aromatics Private Limited, a promoter group entity, for a total consideration of ₹45,85,000.

Upon completion of the transaction—targeted on or before December 31, 2026—KVPL and its subsidiary, Amikeva Private Limited, will cease to be subsidiaries of SHK. Management noted that KVPL contributed just 0.04% (₹0.83 crore) to consolidated revenue in FY26, making it a non-core asset whose divestment will allow the company to optimize its business portfolio.

Official Statements and Leadership Commentary

Executive Statements

Commenting on the strategic direction and operational momentum, Kedar Vaze, Whole Time Director and Chief Executive Officer at S H Kelkar and Company Ltd., stated:

"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..."

Addressing financial discipline, raw material management, and outlook, Jagdish Agarwal, Group Chief Financial Officer, stated:

"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. On a consolidated basis, revenues increased by 14% YoY to Rs. 662 crore.

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."

Why It Matters

The Q1 FY27 performance demonstrates S H Kelkar’s capacity to pass operating leverage into improved profitability despite global supply chain dynamics and raw material volatility.

For investors and industry observers, the 63.2% growth in the higher-margin Flavour segment indicates expanding market penetration in food, beverage, and pharmaceutical categories across international markets. Furthermore, the divestment of non-core entities like KVPL sharpens corporate focus on high-yield fragrance and flavour capabilities, supported by an international network of 11 Creative Development Centres.

Key Facts at a Glance

• Consolidated Revenue: ₹662.42 crore in Q1 FY27, up 14.1% YoY from ₹580.50 crore.

• Net Profit (PAT): ₹45.43 crore, registering a 77.4% surge YoY.

• EBITDA: Improved by 21.3% to ₹88.7 crore, expanding EBITDA margin to 13.4%.

• Flavour Division Performance: Revenue spiked 63.2% YoY to ₹112 crore, with EBITDA rising 154.8% to ₹35 crore.

• Corporate Restructuring: Approved 100% equity divestment of Keva Ventures Private Limited to promoter entity Keva Aromatics for ₹45.85 lakh.

• Exceptional Item: Recognized ₹29.95 crore on-account insurance claim receipt for property, plant, and equipment following the earlier Vashivali plant incident.

Frequently Asked Questions (FAQ)

What were the revenue and net profit figures for S H Kelkar in Q1 FY27?

S H Kelkar reported a consolidated revenue from operations of ₹662.42 crore and a consolidated net profit of ₹45.43 crore for the quarter ended June 30, 2026.

Why is S H Kelkar divesting Keva Ventures Private Limited?

The company is selling its non-core subsidiary KVPL to a promoter group company for ₹45.85 lakh to streamline its portfolio and reallocate focus toward core long-term growth opportunities.

How did the individual business segments perform?

The Fragrance division recorded revenue of ₹539 crore (up 9.0% YoY), while the Flavour division achieved strong growth of 63.2% YoY with revenue reaching ₹112 crore.

What is S H Kelkar’s full-year outlook for FY27?

Management expects to deliver double-digit revenue growth and expanded operating margins for the full financial year FY27, supported by current business momentum.

Source: Official regulatory disclosures, earnings presentations, and financial statements submitted to the BSE Limited and the National Stock Exchange of India Limited.