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, representing a growth of 10.4%. 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.

Nine-Month Performance Highlights

The company's nine-month performance demonstrated steady growth across key financial metrics. EBITDA stood at ₹182 crores, while adjusted EBITDA reached ₹240 crores with margins at 14.0%. The gross profit for the nine-month period was ₹724 crores, maintaining margins at 42.3%.

Strategic US Market Entry

A significant development during the quarter was the company's entry into the US market. According to B. Ramakrishnan, CEO – Fragrances, Asia and U.S.A., "The US market represents a significant strategic opportunity for us, and we are making steady progress in building our presence there. During the quarter, the US Creative Development Centre secured its first customer order and began generating initial revenues, marking an important early milestone in our entry into the world's largest flavours and fragrances market."

Segment-wise Performance Analysis

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.

For the nine-month period, the Flavours segment demonstrated exceptional growth of 37.9%, driven by strong demand in international markets and deeper engagement with existing customers. The segment achieved EBITDA of ₹39 crores with margins at 22%.

Management Commentary on Strategic Direction

Kedar Vaze, Whole Time Director & CEO, emphasized the company's long-term growth strategy: "Our current phase of investments reflects a clear strategic choice to build the Company for the next leg of growth. We are strengthening our global Creative Development Centres, expanding capacity, and investing in capabilities that enhance innovation, execution, and customer engagement across markets. These initiatives are not designed for short-term outcomes, but to position the Company for sustainable and profitable growth over the long term."

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.

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, to fund business requirements of the Middle East operations.

Financial Discipline and Future Outlook

Jagdish Agarwal, Group Chief Financial Officer, outlined the company's financial priorities: "During the nine months ended FY2026, the Company delivered steady revenue growth in a challenging operating environment. As I step into this role, my focus will be on strengthening the Company's financial discipline while supporting its ongoing investment phase. We remain committed to maintaining a prudent capital structure, even as debt levels may see a near-term increase in line with the execution of our strategic initiatives."

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.