SH Kelkar & Company Limited announced its unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2025, demonstrating strong operational performance across key business segments. The fragrance and flavour manufacturer's Board of Directors approved the results at their meeting held on February 6, 2026, along with several strategic decisions including dividend declaration and subsidiary investment.

Financial Performance Overview

The company delivered robust consolidated financial results for Q3 FY26, with revenue from operations growing to ₹583.80 crores compared to ₹543.21 crores in the corresponding quarter of the previous year. Net profit for the quarter reached ₹32.63 crores, significantly higher than ₹17.51 crores recorded in Q3 FY25.

For the nine-month period ended December 31, 2025, consolidated revenue from operations increased to ₹1,718.32 crores from ₹1,556.02 crores in the corresponding period of the previous year. The company achieved a remarkable turnaround with net profit of ₹67.35 crores compared to a loss of ₹29.50 crores in the nine months ended December 31, 2024.

Segment-wise Performance

The company operates through two primary business segments - Fragrances and Flavours. The Fragrance segment continued to be the major revenue contributor, generating ₹528.91 crores in Q3 FY26 compared to ₹493.19 crores in Q3 FY25. The Flavours segment recorded revenue of ₹52.22 crores versus ₹47.56 crores in the corresponding quarter.

Exceptional Items and Insurance Recovery

The company recognized exceptional gains of ₹33.07 crores in Q3 FY26 and ₹35.92 crores for the nine-month period, primarily related to insurance claim recoveries from the Vashivali plant fire incident that occurred on April 23, 2024. During the quarter, the company realized ₹35.46 crores from insurance claims and incurred ₹2.39 crores in expenses related to GST input credit reversal interest.

Corporate Actions and Interim Dividend Details

The Board of Directors declared an interim dividend of Re. 1 per equity share for FY 2025-26, totaling ₹13.84 crores. The company has officially confirmed Friday, February 13, 2026 as the record date for determining dividend entitlement, with payment to be made within stipulated timelines to eligible shareholders.

The interim dividend will be paid to members whose names appear as Beneficial Owners at the end of business hours on the record date, as furnished by National Securities Depository Limited and Central Depository Services (India) Limited.

Strategic Investment Approval

Additionally, the Board approved an additional equity investment of AED 5 million by Keva Fragrances Private Limited in Keva Middle East FZE, a wholly-owned subsidiary. This investment aims to fund the business requirements of the Middle East operations and is expected to be completed by March 31, 2027.

Standalone Results

On a standalone basis, the company reported revenue from operations of ₹297.92 crores in Q3 FY26 compared to ₹298.41 crores in Q3 FY25. Standalone net profit for the quarter was ₹18.65 crores versus ₹6.33 crores in the corresponding quarter of the previous year. For the nine-month period, standalone revenue reached ₹943.69 crores with net profit of ₹33.35 crores, marking a significant improvement from the loss of ₹74.40 crores in the previous year.

The company's improved performance reflects its operational efficiency and successful recovery from previous challenges, positioning it well for continued growth in the fragrance and flavour industry.

Keva Constructions Private Limited, a promoter group member of sh kelkar & company , has pledged additional shares with Infina Finance Private Limited to secure credit facilities. The company disclosed this transaction under regulatory requirements on January 30, 2026.

Additional Share Pledge Details

The promoter group entity pledged an additional 10,00,000 shares of SH Kelkar and Company Limited on January 29, 2026. This pledge was created to address margin shortfall arising from the decline in market price of the shares.

Updated Shareholding Position

Following this additional pledge, Keva Constructions Private Limited's total encumbered shareholding in SH Kelkar and Company Limited has increased significantly.

Regulatory Compliance

The disclosure was made pursuant to Regulation 29(2) of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Keva Constructions Private Limited operates as part of an extensive promoter group network that includes multiple family trusts, investment entities, and related companies.

The company's equity shares are listed on both Bombay Stock Exchange Limited and National Stock Exchange of India Limited. The total equity share capital remains unchanged at 13,84,20,801 equity shares of Rs. 10 each.

Purpose and Background

The additional pledge serves to secure credit facilities availed by Keva Constructions Private Limited from Infina Finance Private Limited. The margin shortfall necessitating this additional security arose due to the fall in market price of the previously pledged shares. This transaction represents a standard practice in secured lending arrangements where borrowers provide additional collateral to maintain required loan-to-value ratios.