S H Kelkar & Company Ltd announced on September 30, 2026, that Vivek Kulkarni has resigned from his position as Executive Vice President of the Ingredients Division. The resignation is effective from the close of business hours on the same day, as he moves to pursue professional interests outside the Keva Group.

In a concurrent development, the Board of Directors approved the appointment of Rajeev Mishra as Vice President for the Sales and Ingredients Division. This appointment is effective October 1, 2026, and follows a recommendation by the Nomination and Remuneration Committee. The move is part of a re-organisation within the group following Kulkarni’s departure.

Leadership Transition Details

The company disclosed these changes in a filing to the BSE and NSE under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transition ensures continuity in the leadership of the Ingredients Division, which is a core segment of the company's operations.

Profile of Incoming Leadership

Rajeev Mishra brings over 25 years of professional experience across various industries and geographies. He is an alumnus of IIT Roorkee and IIM Calcutta. His career includes senior leadership roles such as Business Head, Board Member, Strategy Development, P&L Accountability, and Business Turnaround.

Prior to this appointment, Mishra served as Associate Vice President for Strategy in the Fragrance and AID divisions. The company confirmed that he is not related to any director of S H Kelkar & Company Ltd.

Strategic Context

The resignation letter from Vivek Kulkarni was dated August 3, 2026, addressed to Group CEO Kedar Vaze. In the letter, Kulkarni cited his decision to move on to pursue other professional interests outside the Keva Group. The immediate appointment of Mishra suggests a pre-planned succession strategy to minimize disruption in the Sales and Ingredients verticals.

The Board received approval for the new appointment at 2:33 pm IST on September 30, 2026. The details of the changes were enclosed in Annexure I of the regulatory filing, with the resignation letter attached as Annexure II.

S H Kelkar & Company Limited reported a robust start to FY27, with consolidated revenue from operations growing 14% year-on-year to ₹662 crore for the quarter ended June 30, 2026. The fragrance and flavour specialist attributed the growth to strong performance in the Fragrance segment, particularly in Europe and select international markets, alongside broad-based growth in the Flavour segment. Consolidated EBITDA rose 21% to ₹89 crore, expanding margins to 13.4% from 12.6% in the corresponding quarter of the previous year, aided by operating leverage on the higher revenue base.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors on July 28, 2026. Deloitte Haskins & Sells LLP, the statutory auditors, issued an unmodified opinion on the unaudited standalone and consolidated financial statements. The disclosure was made on July 29, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. A virtual conference call with investors and analysts was held on the same day to discuss the performance.

Segment Performance and Operational Drivers

Management highlighted that the Flavour segment’s growth was partly influenced by the timing of customer orders, suggesting that the pace should be viewed on an annualized basis rather than extrapolated from a single quarter. Whole-time Director and Group CEO Kedar Vaze noted that while overall revenue met budget expectations, the product mix skewed towards flavours, which outperformed, while the Global Ingredients business saw muted growth due to lower demand in select export markets.

In the Fragrance segment, reported profitability absorbed higher operating expenses linked to investments in R&D capabilities and the global Creative Development Center (CDC) network. These are described as deliberate growth-oriented investments intended to secure larger briefs and build durable positions in European and American markets. Gross margins remained stable year-on-year, supported by a favourable product mix and proactive raw material planning amidst input price volatility.

Balance Sheet and Cash Flow Dynamics

Net debt increased by ₹65 crore during the quarter to ₹852 crore as of June 2026. Group Chief Financial Officer Jagdish Agarwal explained this increase as a result of two conscious decisions: strategic inventory buildup to ensure supply security amid geopolitical uncertainties in West Asia, and continued capital deployment towards capacity expansion. The company recognized exceptional income of approximately ₹30 crore towards an insurance claim relating to a past fire incident, with full settlement expected within the current financial year.

Looking ahead, management indicated that net debt is expected to remain broadly at current levels through September before deleveraging begins in earnest from Q3FY27 onwards, with an expectation of reducing debt by approximately ₹25 crore quarter-on-quarter thereafter. Depreciation expenses are projected to rise from the current run rate of ₹35 crore per quarter to ₹38–39 crore per quarter once the Vanvate plant capitalizations are completed.

What the Numbers Show

The improvement in EBITDA margin despite higher R&D spend indicates effective cost management and pricing power, particularly given the geopolitical headwinds affecting raw material costs. The significant rise in net debt is not driven by operational cash flow deficits but by strategic inventory hoarding and capex, signaling management’s confidence in future demand continuity. The divergence between the high-growth Flavour segment and the softer Global Ingredients business highlights a shifting revenue mix, where premiumisation and international expansion in fragrances and flavours are offsetting traditional ingredient supply challenges. With a target long-term ROCE of 20%, the current investment phase in Europe (Germany, UK, USA) is critical; management expects these new centers to reach EBITDA breakeven within three years.