S H Kelkar and Company Limited reported a consolidated net profit of ₹45.43 crore for the quarter ended June 30, 2026, marking a 78% year-on-year increase from ₹25.55 crore in Q1FY25. The surge was primarily driven by an exceptional item — an on-account insurance claim receipt of ₹29.95 crore related to the April 2024 fire at its Vashivali plant. Excluding this one-time gain, operational profit before tax stood at ₹38.57 crore, up 12% from ₹34.44 crore in the prior year period. Revenue from operations rose 14% to ₹662.42 crore, supported by strong performance in both fragrance and flavour segments.

The Board of Directors approved the unaudited standalone and consolidated financial results on July 28, 2026, pursuant to Regulation 30, 33, and 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Deloitte Haskins & Sells LLP, the statutory auditors, issued an unmodified limited review report on the interim financial information. The results were filed with the Bombay Stock Exchange and National Stock Exchange of India Limited.

Divestment of Keva Ventures

In a strategic move to optimize its portfolio, the Board approved the divestment of its entire equity stake in Keva Ventures Private Limited (KVPL), a wholly owned subsidiary. The stake is being sold to Keva Aromatics Private Limited, a promoter group company, for an aggregate consideration of ₹45.85 lakh. Upon completion, expected by December 31, 2026, KVPL will cease to be a subsidiary, and consequently, its subsidiary AmiKeva Private Limited will also exit the group’s consolidated structure. This transaction is classified as a related party transaction executed at arm’s length.

Segment Performance

The Fragrance segment contributed ₹547.79 crore to sales, up from ₹509.83 crore in Q1FY25, while the Flavours segment saw robust growth with sales rising to ₹111.98 crore from ₹68.60 crore. Segment results (profit before interest and tax) for the group totalled ₹91.62 crore, compared to ₹58.83 crore in the previous year. The Flavours segment reported a segment result of ₹34.20 crore, a significant improvement from ₹13.07 crore in Q1FY25.

What the Numbers Show

While the headline profit growth appears substantial, it is critical to note that nearly 66% of the profit before tax (₹29.95 crore of ₹45.43 crore PAT equivalent impact) stems from the exceptional insurance claim rather than core operations. Operational profitability, however, remains healthy with segment results growing 56% YoY. The standalone entity reported a net profit of ₹15.21 crore, also boosted by the ₹29.95 crore insurance gain, against a standalone pre-tax loss of ₹9.62 crore before exceptional items. This divergence highlights the reliance on non-recurring gains for current quarter profitability, although underlying revenue growth of 14% indicates positive demand trends in the fragrance and flavour markets.

S H Kelkar & Company has scheduled a conference call for investors and analysts on Wednesday, July 29, 2026, at 03:00 PM IST. The call will follow the announcement of the company's Q1 and FY27 financial results on July 28, 2026. The Senior Management team will lead the discussion, which will include a brief management presentation followed by an interactive Question & Answer session.

The company previously reported consolidated revenues of Rs. 660 crore for the quarter ended June 30, 2026, reflecting a growth of 13.7% compared to the corresponding quarter of the previous year. S H Kelkar, the largest Indian-origin Fragrance and Flavours Company in India, noted that gross margins remained stable during the period. As of June 30, 2026, net debt stood at Rs. 864 crore, attributed to planned investments in capacity and capabilities, along with strategic inventory build-up to support business continuity.

Q1 FY2027 Financial Highlights

The following table summarises the key financial metrics reported by S H Kelkar for Q1 FY2027:

Conference Call Details

Investors can participate in the conference call using the following details:

The financial information for the quarter is based on provisional and unaudited consolidated financial results, subject to limited review by the Statutory Auditors of the Company.