SH Kelkar & Company Limited, India's largest Indian origin fragrance and flavours company, has released its business update for Q4 and FY2025-26, showcasing solid revenue growth despite challenging market conditions. The company reported consolidated revenues of Rs.2,355 crore for the year ended March 31, 2026, marking growth of approximately 11.5% over the previous year.

Financial Performance Highlights

The company's financial performance for FY2025-26 demonstrates resilience in a challenging operating environment:

Operational Environment and Strategic Focus

SH Kelkar continues to operate in a fluid environment characterized by multiple challenges. The company faces inflationary pressures shaped by geopolitical developments in the Middle East and evolving supply-side dynamics. Despite these headwinds, the organization remains focused on ensuring uninterrupted supplies to customers while adopting prudent measures to protect margins and sustain operational stability.

Investment and Capacity Expansion

The net debt position of Rs.789 crore as of March 31, 2026, reflects the company's continued investments towards capacity expansion and capability building. This strategic approach underscores SH Kelkar's commitment to value-accretive growth even amid market uncertainties.

Supply Chain Management

The company has implemented strategic inventory management practices during the quarter. While overall inventory levels have been reduced, adequate coverage has been maintained for commodities impacted by the Middle East crisis, ensuring business continuity and customer service levels.

Regulatory Disclosure

The financial information presented is based on provisional and unaudited consolidated financial results, subject to limited review by the company's statutory auditors. This business update was filed under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Keva Constructions Private Limited, a promoter group member of SH Kelkar and Company Limited , has pledged additional shares to address margin requirements with its lender. The company filed a disclosure under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, detailing the pledge transaction executed on March 23, 2026.

Additional Share Pledge Details

The transaction involves pledging additional shares with Infina Finance Private Limited to meet margin shortfall requirements. The pledge was necessitated due to declining market prices of SH Kelkar shares, requiring additional collateral to maintain adequate margin coverage.

Updated Shareholding Position

Following the additional pledge, Keva Constructions' total encumbered shareholding in SH Kelkar has increased significantly. The company's updated position reflects the cumulative impact of both previous and current pledge transactions.

Regulatory Compliance

The disclosure was filed with both BSE Limited and National Stock Exchange of India Limited, where SH Kelkar shares are listed. Keva Constructions Private Limited operates as part of an extensive promoter group that includes multiple family members and related entities.

The promoter group encompasses various individuals and companies, including Ramesh Vaze, Kedar Vaze, family trusts, and multiple private limited companies across different business verticals. The pledge arrangement serves to secure existing credit facilities that Keva Constructions has availed from Infina Finance Private Limited.

Background Context

SH Kelkar and Company Limited maintains an equity share capital of 13,84,20,801 shares with a face value of ₹10 each. The additional pledge represents a strategic financial arrangement to maintain compliance with lender requirements amid market volatility affecting share valuations.