S H Kelkar and Company Limited reported its audited financial results for the quarter and financial year ended March 31, 2026, approved by the Board of Directors at their meeting held on May 15, 2026. Deloitte Haskins & Sells LLP, Statutory Auditors of the company, issued audit reports with an unmodified opinion on both standalone and consolidated financial results. The results were subsequently published in Financial Express (English) and Mumbai Lakshadeep (Marathi) on May 16, 2026. The company reported consolidated revenue from operations of ₹2,368.26 crore for FY26, a rise of 11.5% compared to ₹2,123.40 crore in the previous year. For Q4 FY26, consolidated revenue stood at ₹649.94 crore, up from ₹567.38 crore in Q4 FY25. However, profitability came under pressure, with Q4 consolidated net profit declining sharply to ₹1.80 crore compared to ₹102.51 crore in the same quarter of the previous year. The audio recording and transcript of the virtual investor and analyst conference call for Q4 & FY26 results, held on May 18, 2026 at 11:00 A.M. IST, is available on the company's website. The company confirmed that no unpublished price sensitive information was shared during the conference call.

Financial Performance

The company's Q4 results reflect a notable contraction in profitability and operating margins on a year-on-year basis. Q4 EBITDA stood at ₹64.60 crore against ₹74.00 crore in Q4 FY25, with the EBITDA margin narrowing to 10.30% from 13.05% in the corresponding period. On an adjusted basis, EBITDA for FY26 was reported at ₹323 crore compared to ₹335 crore in FY25, with an adjusted EBITDA margin of 13.90% versus 15.90% in FY25. The company noted that revenue included a one-off sale of ₹35 crore undertaken as part of a portfolio optimization exercise. For FY26, profit for the year on a consolidated basis stood at ₹69.15 crore compared to ₹73.01 crore in FY25. On a standalone basis, the company reported revenue from operations of ₹1,280.12 crore for FY26 versus ₹1,137.47 crore in FY25, and a standalone profit for the year of ₹33.36 crore compared to a loss of ₹13.56 crore in FY25.

The following table summarises key consolidated financial metrics for the quarter and full year:

Segmental and Geographic Performance

The Group operates two reportable segments — Fragrances and Flavours. The Fragrance division reported FY26 revenue of ₹2,118.54 crore (including other operating income of ₹8.33 crore), up from ₹1,927.49 crore in FY25, while the Flavour division saw revenue grow to ₹240.11 crore from ₹185.23 crore in FY25. Segment results for the Fragrance division stood at ₹152.63 crore for FY26, while the Flavours division contributed ₹57.72 crore. Geographically, the Emerging Markets segment revenue grew 11.7% to ₹1,810 crore, while Europe revenue increased 13.6% to ₹482 crore.

The following table presents segment-wise revenue and results for the full year:

Balance Sheet and Cash Flow Highlights

The consolidated balance sheet as at March 31, 2026 reflects total assets of ₹2,913.19 crore compared to ₹2,684.89 crore as at March 31, 2025. Total equity stood at ₹1,362.43 crore versus ₹1,272.43 crore in the prior year. Non-current assets rose to ₹1,443.32 crore from ₹1,109.04 crore, driven by higher property, plant and equipment of ₹464.46 crore and right-of-use assets of ₹177.74 crore. On the standalone basis, total assets stood at ₹1,538.65 crore as at March 31, 2026 against ₹1,439.23 crore in the prior year, with total equity of ₹739.28 crore. Net cash flows generated from consolidated operating activities for FY26 stood at ₹263.13 crore, a significant improvement from ₹15.74 crore in FY25, while net cash used in investing activities was ₹205.43 crore.

Corporate Developments

At the Board meeting held on May 15, 2026, several key corporate decisions were approved. The Board resolved to convene the 70th Annual General Meeting of the Company on Friday, July 31, 2026, through Video Conferencing or Other Audio Visual Means. On the auditor front, M/s. Ernst & Young LLP (LLP Identification No.: AAB-4343) was appointed as Internal Auditors for FY 2026-27, and M/s. Kishore Bhatia & Associates, Cost Accountants (Firm Registration No. 00294) was appointed as Cost Auditors for FY 2026-27. Notably, M/s. B S R & Co. LLP, Chartered Accountants (Firm Registration No. 101248W/W-100022) was approved as the new Statutory Auditors for a term of five consecutive years from the conclusion of the 70th Annual General Meeting until the conclusion of the 75th Annual General Meeting to be held in the year 2031, subject to member approval, replacing Deloitte Haskins & Sells LLP upon the completion of their term.

Management Commentary

Kedar Vaze, Whole Time Director & CEO, stated that the company delivered healthy revenue growth supported by sustained demand across key customer segments and stable performance in European operations. He added that investments in expanding capacities and enhancing global Creative Development Centres are progressing well. Jagdish Agarwal, Group Chief Financial Officer, noted that while the operating environment remains dynamic with rising raw material prices, the company is actively working on pricing measures and cost optimisation initiatives to protect margins.

During the investor conference call, management provided further insights. The company highlighted that its Almere factory in the Netherlands is now fully operational, debottlenecking European growth. The Vanavate facility in Maharashtra is expected to commence operations in the coming months. Management noted that raw material prices have increased by upwards of 12-13% due to geopolitical developments, but the company is passing on these costs to clients. The company has exited low-margin business worth approximately ₹50 crore annually as part of portfolio optimization. For FY27, the company expects capex to be around ₹140 crore and borrowings to remain around the ₹800 crore mark. Management expressed confidence in maintaining adjusted EBITDA margins of around 13.5% for the first half of the year.

About S H Kelkar and Company Limited

S H Kelkar and Company Limited is the largest Indian-origin Fragrance & Flavour Company in India, with over 100 years of experience. Its products serve the FMCG, personal care, pharmaceutical, and food & beverage industries. The company operates five creation and development centres in India, Singapore, Amsterdam, Indonesia, and Italy.

sh kelkar & company Limited has received a compliance certificate from MUFG Intime India Private Limited confirming adherence to SEBI regulatory requirements for the quarter ended March 31, 2026. The certificate was submitted to both BSE Limited and National Stock Exchange of India Limited on April 08, 2026.

Regulatory Compliance Confirmation

The certificate confirms that Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 is not applicable to S H Kelkar and Company Limited. This exemption applies because all securities of the company are held in dematerialized form, representing complete digitization of shareholding.

Complete Dematerialization Status

MUFG Intime India Private Limited, formerly Link Intime India Private Limited, serves as the company's Registrar and Share Transfer Agent. The RTA confirmed that no requests for dematerialization, mutilation, or cancellation of securities were received during the quarter ended March 31, 2026.

This status indicates that S H Kelkar and Company Limited maintains complete electronic shareholding without any physical share certificates in circulation. The absence of dematerialization requests during the quarter demonstrates the company's successful transition to fully digital securities management.

Documentation and Compliance

The compliance certificate was signed by Deepti Chandratre, Global Legal Counsel and Company Secretary of S H Kelkar and Company Limited. The document was digitally signed on April 08, 2026, and submitted to both stock exchanges where the company's shares are listed.

MUFG Intime India Private Limited issued the confirmation certificate on April 03, 2026, which was signed by Ashok Shetty, Sr. Vice President – Corporate Registry. The certificate serves as formal documentation of the company's compliance with SEBI depositories regulations for the specified quarter.