S H Kelkar and Company Ltd

S H Kelkar and Company Limited reported Q2 and H1 FY2027 results with consolidated revenue growing 15% YoY to Rs.636 crore in Q2 and Rs.1,299 crore for H1, driven by 11.9% growth in the Fragrance segment and 47% growth in Flavours. EBITDA increased 33% to Rs.168 crore with margins improving to 13%. Management emphasized strategic focus on global expansion, innovation, and cost optimization to sustain growth. Capex projects in Europe and India are nearing completion, with new factories expected to operationalize by Q4 FY27 and FY28. Inventory levels remain high due to global sourcing uncertainties but are expected to decrease by March 2027. Management guided toward 12-13% revenue growth and 14-15% EBITDA growth over the next 2-3 years, with long-term goals of expanding into 95% of the global Fragrance and Flavour markets. Challenges include inflationary pressures, geopolitical risks, and the need to balance growth in new markets with profitability.

The document highlights both strong revenue and EBITDA growth alongside challenges like inflation, geopolitical risks, and the need to balance new market expansion with profitability.