Sh kelkar & company has submitted its investor presentation for the Kotak Annual Investor Conference - Chasing Growth 2026, scheduled to be held on February 25, 2026 at 10:00 a.m. (IST) in Mumbai. The submission was made pursuant to Regulation 30(6) read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Company Overview and Market Position

S H Kelkar and Company Limited stands as India's largest Indian-origin fragrance and flavour company, boasting over 103 years of market experience. The company has established itself as a significant player in the fragrance and flavour industry with a comprehensive operational footprint.

Financial Performance Highlights

The investor presentation showcases strong financial metrics for FY25, demonstrating the company's robust performance and growth trajectory.

Business Operations and Strategy

The company operates across diverse segments, serving personal wash, skin care, fabric care, fine fragrances, beverages, dairy products, confectionery, pharmaceutical, and tea industries. SHK's product applications span domestic, local, and multinational FMCG players, pharmaceutical manufacturers, dairy industry, beverages manufacturers, and bakeries.

The presentation highlights the company's strategic advantages including:

• Proprietary library of 50,000+ recipes for unique fragrance creation
• Strategic inventory management to mitigate supply and price volatility
• Localized product development aligned with market preferences
• Long-term partnerships with key suppliers, some spanning over 20 years

Global Expansion and Market Presence

SHK has established a global presence with recently established Creation & Development Centres across key international markets including Asia, Middle East, and Europe. The company sources raw materials from multiple countries including Indonesia, Germany, Brazil, China, and the US, with approximately 15-20% of total raw material requirements sourced from in-house facilities.

Environmental and Social Initiatives

The presentation outlines various environmental sustainability initiatives undertaken by the company:

• Solar energy adoption with 360 kWh Solar PV plant at Vashivali generating 6,20,500 kWh annually
• Rainwater harvesting collecting 5,000-5,500 KL annually
• Zero Liquid Discharge through MEE & RO facilities
• Recycled paper production from plant waste for internal use

Corporate Governance Structure

The company maintains strong corporate governance practices with a Board of Directors comprising five Independent Directors representing 63% of the total board strength. The governance philosophy is built on ethical and transparent business operations designed to achieve long-term corporate goals and enhance stakeholder value.

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.