Financial Performance Overview

Q2 FY27 vs Q2 FY26 Performance:

  • Revenue from operations: Rs. 636.2 crore (up 14.9% from Rs. 553.7 crore)
  • EBITDA: Rs. 78.9 crore (up 49.9% from Rs. 52.6 crore)
  • EBITDA margin: 12.5% (improved from 9.5%)
  • Profit Before Tax (PBT): Rs. 27.2 crore (up 125.0% from Rs. 12.1 crore)
  • Profit After Tax (PAT): Rs. 14.5 crore (up 58.1% from Rs. 9.2 crore)
  • Earnings Per Share: Rs. 1.1 (up from Rs. 0.7)

H1 FY27 vs H1 FY26 Performance:

  • Revenue from operations: Rs. 1,298.6 crore (up 14.5% from Rs. 1,134.2 crore)
  • EBITDA: Rs. 167.5 crore (up 33.3% from Rs. 125.7 crore)
  • EBITDA margin: 13.0% (improved from 11.1%)
  • Profit Before Tax (PBT): Rs. 95.7 crore (up 96.3% from Rs. 48.8 crore)
  • Profit After Tax (PAT): Rs. 59.9 crore (up 72.4% from Rs. 34.8 crore)
  • Earnings Per Share: Rs. 4.3 (up from Rs. 2.5)

Detailed Financial Breakdown

Income Statement Components (H1 FY27):

  • Sales: Rs. 1,257.7 crore
  • Contract Manufacturing Sales: Rs. 35.1 crore
  • Other Operating Income: Rs. 5.8 crore
  • Other Income: Rs. 3.7 crore
  • Total Income: Rs. 1,302.3 crore

Expenditure Breakdown (H1 FY27):

  • Raw Material expenses: Rs. 742.2 crore
  • Employee benefits expense: Rs. 197.6 crore
  • Other expenses: Rs. 191.3 crore
  • Finance Costs: Rs. 32.4 crore
  • Depreciation and Amortization: Rs. 72.8 crore

Exceptional Items:

  • H1 FY27: Rs. 30.0 crore gain
  • H1 FY26: Rs. 2.9 crore gain

Balance Sheet Position (as of September 30, 2026)

Assets:

  • Total Assets: Rs. 3,045.5 crore (vs Rs. 2,913.2 crore as of March 31, 2026)
  • Non-current assets: Rs. 1,459.1 crore
  • Current assets: Rs. 1,586.4 crore
  • Inventories: Rs. 798.8 crore (increased from Rs. 665.1 crore)
  • Trade receivables: Rs. 615.2 crore
  • Cash and cash equivalents: Rs. 61.7 crore

Liabilities and Equity:

  • Total Equity: Rs. 1,420.7 crore
  • Equity share capital: Rs. 138.4 crore
  • Non-current liabilities: Rs. 399.8 crore
  • Current liabilities: Rs. 1,224.9 crore
  • Borrowings (current): Rs. 769.3 crore
  • Lease liabilities (current): Rs. 39.4 crore
  • Trade payables: Rs. 274.5 crore total

Management Commentary

Mr. Kedar Vaze, Whole Time Director & CEO:

Commented on encouraging first-half performance with focus on customer proximity and strengthening fragrance and flavour businesses. Priority is integrating creative, technical and manufacturing capabilities to improve customer responsiveness and execution. Long-term vision is building Keva into a globally competitive, technology-led company through research in proprietary molecules, formulation technologies and sustainable ingredients.

Mr. Jagdish Agarwal, Group CFO:

Noted H1 FY27 consolidated revenue growth of 14% YoY to Rs. 1,299 crore and EBITDA growth of 33% to Rs. 168 crore with margins at 13.0%. Attributed profitability protection to proactive raw material planning, pricing actions and cost optimization. Acknowledged consciously higher inventory levels to ensure uninterrupted supplies amid global sourcing volatility, which increased working capital. Stated debt levels peaked at September-end and expected to moderate by March 2027, subject to market conditions. Aim to improve cash generation and reduce debt year-on-year beyond FY2027.

Business Segments and Operations

The company operates as the largest Indian-origin Fragrance & Flavour Company with:

  • Products under SHK, Cobra and Keva brands
  • 11 creation and development centers across India, Singapore, Indonesia, Netherlands, Germany, UK, US and Italy
  • 12 captive molecules developed over last four years
  • 23 patent applications filed (13 commercially exploited)
  • Diverse client base including national and multinational FMCG companies

Forward-Looking Statements Disclaimer

Document contains standard disclaimer noting that forward-looking statements involve risks and uncertainties and actual results may differ materially from expressed or implied statements. Company undertakes no obligation to update information beyond the date hereof.