S H Kelkar & Company delivered exceptional financial performance in the June 2026 quarter, with consolidated net profit surging 76% to ₹45.40 crore compared to ₹25.57 crore in the corresponding quarter of the previous year. According to reports from Business Standard, this represents a significant improvement in the company's bottom-line performance during the quarter ended June 2026. The Mumbai-based fragrance and flavour manufacturer posted consolidated revenue from operations of ₹662.42 crore, up from ₹580 crore in Q1 FY26, demonstrating strong top-line growth across its business segments. The company's stock price surged 13.09% to ₹162.27 following the announcement of these strong quarterly results.
The company's sales revenue increased 14.11% to ₹662.42 crore in Q1 FY2026, up from ₹578.43 crore in the same period last year. As reported by Business Standard, this revenue growth demonstrates the company's ability to expand its business operations and market presence during the quarter. The latest results show revenue from operations reaching ₹6.62 billion, with broad-based growth across all segments. The Fragrance segment contributed ₹539 crore (up 9% YoY) while the Flavour segment delivered a sharp 63.2% increase to ₹112 crore. Geographically, revenue from India increased 4.8% YoY to ₹363 crore during the quarter, while Europe revenues rose 23.7% YoY to ₹148 crore and Rest of World surged 44.1% YoY to ₹140 crore.
Operating performance remained strong, with EBITDA rising 21.3% YoY to ₹89 crore from ₹73 crore a year ago. According to the financial data reported by Business Standard, this improvement in operational efficiency contributed to the overall profitability enhancement during the quarter. 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. Profit before exceptional items and tax increased 11.6% YoY to ₹38.57 crore during the quarter.
During the quarter, the company reported an exceptional gain of ₹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. As per Business Standard, this exceptional gain significantly contributed to the overall profitability enhancement. The Global Ingredients segment recorded a softer performance, with revenue falling 44.7% to ₹8 crore and posting an EBITDA loss of ₹2.3 crore. Net debt stood at ₹852 crore as of June 30, 2026, with net debt-to-equity at 0.65x, though management remains committed to deleveraging over the medium to long term. The board also 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.
Commenting on the company's performance, Kedar Vaze, whole time director & CEO at SH Kelkar and Company, stated that the company has made a healthy start to the year, supported by sustained demand across key customer segments and encouraging momentum in the business. According to Business Standard, the performance reflects the strength of customer relationships, diversified product portfolio, and continued focus on execution. Jagdish Agarwal, group chief financial officer, noted that the Fragrance segment delivered healthy growth while the Flavour segment recorded strong growth across geographies. Looking ahead through FY27, the company expects the pace of revenue growth may vary across quarters depending on customer order timing, with margins influenced by changes in product mix and raw material costs. Despite quarterly variations, the current business momentum keeps the company on track to deliver double-digit revenue growth and improved margins for the full year.
