SH Kelkar & Company (SHK), India's largest Indian-origin fragrance and flavour company, has announced its financial results for the half-year ended September 30, 2025, showcasing resilient growth amid challenging market conditions.

Financial Highlights

The company reported a consolidated revenue growth of 12.2% year-on-year for H1 FY26, with revenues from operations reaching Rs. 1,135.00 crore. Here's a breakdown of the key financial metrics:

Segment Performance

SH Kelkar's growth was driven by resilient demand across core categories and continued traction with existing and new customers. The company's performance across different segments showed varied results:

1. Domestic Business: Maintained healthy momentum, supported by deeper engagement with small and mid-sized clients.
2. European Operations: Remained steady amid subdued market conditions.
3. Fragrances: Grew by 9.3% YoY to Rs. 973.00 crore in H1 FY26.
4. Flavours: Showed strong growth of 54.4% YoY, reaching Rs. 125.00 crore.
5. Global Ingredients: Experienced a 12.1% YoY decline, with revenue at Rs. 32.00 crore, due to demand softness and geopolitical uncertainty.

Strategic Developments

SH Kelkar announced two significant developments that are expected to strengthen its market position:

1. New CFO Appointment: Mr. Jagdish Agarwal has been appointed as the Chief Financial Officer, effective December 2, 2025. With over 28 years of experience in manufacturing, telecommunications, and banking, Mr. Agarwal is expected to enhance the company's financial governance and operational efficiencies.

2. Capacity Expansion Projects: Two key projects are progressing well and are expected to be commissioned by Q4 FY2026:

   • Greenfield facility at Vanavate
   • Brownfield expansion at Holland Aromatics

These projects aim to enhance capacity, improve operational costs, and support future growth across both domestic and international markets.

Management Commentary

Mr. Kedar Vaze, Whole Time Director and Group CEO at SH Kelkar and Company, commented on the performance: "We delivered a steady performance, with consolidated revenues for the half year growing by 12.2% YoY. This growth momentum was driven by resilient demand across our core categories and continued traction with both existing and new customers."

He further added, "Investments in strategic initiatives across Germany, the UK, and the US, along with capacity expansion projects in the Netherlands are expected to strengthen execution and operating leverage. As these projects scale up over the next 15-18 months, margins and profitability are expected to improve."

Future Outlook

SH Kelkar remains focused on building a stronger foundation for sustainable growth over the long term. The company expects its ongoing investments in growth initiatives to contribute meaningfully over the next 15-18 months, potentially improving margins and profitability.

The medium to long-term outlook for the Global Ingredients segment remains positive, supported by structural growth drivers such as the China-plus-One shift and rising demand from European customers.

As SH Kelkar continues to navigate through market challenges and capitalize on growth opportunities, investors will be keenly watching how these strategic initiatives translate into financial performance in the coming quarters.

SH Kelkar & Company , a key player in the fragrance and flavor industry, has recently disclosed significant management changes alongside its financial results for the second quarter of fiscal year 2026.

Management Transition

The company's Board of Directors has approved a transition in its Chief Financial Officer (CFO) position:

Ms. Deepti Chandratre, who has been serving as the Interim CFO, will step down from this role effective December 1, 2025. She will continue to contribute to the company in her roles as Global Legal Counsel and Company Secretary.

New CFO Appointment

Mr. Jagdish Agarwal has been appointed as the new Chief Financial Officer, designated as Group Chief Financial Officer. His tenure is set to commence on December 2, 2025.

Agarwal brings extensive experience to SH Kelkar & Company:

• Over 28 years of professional experience
• Expertise across various sectors including manufacturing, telecommunications, and banking
• Held senior positions in prominent organizations such as Reliance Communications, ICICI Bank, Owens Corning, and Huhtamaki India

Professional Qualifications

Mr. Agarwal's credentials include:

• Chartered Accountant
• Cost and Management Accountant
• Bachelor's degree in Commerce from Calcutta University

Financial Results

The Board has approved the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2025. Specific details of these results were not provided in the announcement.

This management change comes at a crucial time for SH Kelkar & Company, potentially signaling a strategic move to strengthen its financial leadership as the company navigates the evolving market landscape in the fragrance and flavor industry.