Key Financial Performance (Consolidated)

Q1 FY27 vs Q1 FY26 Performance:

  • Revenue from operations: ₹662.4 crore vs ₹580.5 crore, up 14.1% YoY
  • EBITDA: ₹88.7 crore vs ₹73.1 crore, up 21.3% YoY
  • EBITDA margin: 13.4% vs 12.6%
  • Profit Before Tax (PBT): ₹68.5 crore vs ₹36.7 crore, up 86.9% YoY
  • Profit After Tax (PAT): ₹45.4 crore vs ₹25.6 crore, up 77.4% YoY
  • Exceptional Items Gain: ₹30.0 crore vs ₹2.1 crore in Q1 FY26

Revenue Breakdown:

  • Sales: ₹642.9 crore (up 14.4% YoY)
  • Contract Manufacturing: ₹16.9 crore (up 1.4% YoY)
  • Other Operating Income: ₹2.7 crore (up 28.0% YoY)

Expenditure Analysis:

  • Raw Material expenses: ₹378.4 crore (up 13.5% YoY)
  • Employee benefits expense: ₹100.0 crore (up 25.6% YoY)
  • Other expenses: ₹95.4 crore (up 0.9% YoY)
  • Finance Costs: ₹15.0 crore (up 14.8% YoY)
  • Depreciation and Amortization: ₹35.1 crore (up 33.2% YoY)

Segmental Performance

Fragrance Business (excl Global Ingredients):

  • Delivered healthy revenue growth with 9.0% YoY increase
  • Geographic breakdown: India 56% of revenue (0.7% growth), Europe 27% (19.9% growth), Rest of World 17% (26.0% growth)
  • Segment EBITDA moderated due to higher operating expenses for R&D capabilities and expanded global Creative Development Centres

Flavour Business:

  • Delivered robust growth during the quarter
  • Geographic breakdown: India 52% of revenue (33.6% growth), Rest of World 48% (114.9% growth)
  • Strong international demand and deeper engagement with key customers across markets

Management Commentary

Mr. Kedar Vaze, Whole Time Director & CEO:

  • Healthy start to the year supported by sustained demand across key customer segments
  • Strength in customer relationships, diversified product portfolio, and execution focus
  • Expanding capabilities through R&D, Creative Development Centres, and manufacturing platform enhancement
  • Diversified presence and established relationships provide platform for long-term growth

Mr. Jagdish Agarwal, Group Chief Financial Officer:

  • Gross margins remained stable YoY supported by healthy product mix and proactive raw material planning
  • Strategic inventory build-up provided supply assurance but resulted in higher working capital requirements
  • Debt levels remain consistent with earlier guidance
  • Committed to deleveraging over medium to long term
  • Expects quarterly revenue growth variations depending on customer order timing
  • Margins influenced by product mix changes, raw material costs, and operating expense phasing
  • Full-year expectation: double-digit revenue growth and improved margins

Business Overview

S H Kelkar is the largest Indian-origin Fragrance & Flavour Company in India with over 100 years of experience. The company operates:

  • 11 creation and development centres across India, Singapore, Netherlands, Indonesia, Italy, Germany, UK and USA
  • Products under SHK, Cobra and Keva brands
  • 20 patent applications filed (6 commercially exploited)
  • Diverse client base including national and multinational FMCG companies