S H KELKAR AND CO. LTD.

Management reported a solid performance for Q1 FY27, with consolidated revenue from operations growing 14% year-on-year to Rs. 662 crore. The fragrance segment saw healthy growth, particularly in Europe and select international markets, while the flavor segment recorded broad-based growth. Gross margins remained stable, supported by a favorable product mix and proactive raw material planning. EBITDA rose 21% to Rs. 89 crore, with an improved EBITDA margin of 13.4%. Management noted that geopolitical developments have created a cautious operating environment, but demand drivers in the fragrance and taste categories remain intact. They emphasized ongoing investments in R&D and manufacturing capabilities to position the company for future growth. The company recognized exceptional income of approximately Rs. 30 crore from an insurance claim related to a fire incident. Management indicated a commitment to deleveraging in the medium to long term, despite an increase in net debt during the quarter.

Management highlighted both growth achievements and caution regarding the operating environment.