S H Kelkar and Company Ltd

Meeting Details

• Date: November 02, 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve unaudited standalone and consolidated results for quarter and half year ended September 30, 2026.
• Subject to limited review by statutory auditors.

Other Notes

• Trading window closed until November 04, 2026.

Senior Management Changes

• Vivek Kulkarni resigns as EVP - Ingredients, effective 30 September 2026.
• Rajeev Mishra appointed VP - Sales & Ingredients Division, effective 1 October 2026.
• Board approved appointment on 30 September 2026 as part of group re-organisation.
• Rajeev Mishra is IIT Roorkee and IIM Calcutta alumnus with 25+ years of leadership experience.
• He previously served as Associate Vice President - Strategy (Fragrance & AID).
• Board approval recorded at 02:33 p.m. IST.

Rating action details

• Long-term bank loan facilities: Rs 372 crore; CRISIL AA- /Negative; action reaffirmed.
• Rating agency: CRISIL Ratings Limited.

S H Kelkar and Company Limited: Trading window closes from October 01, 2026 till 48 hours after the declaration of the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026

Leadership change

• Chairman and promoter Mr. Ramesh Vaze passed away on September 15, 2026.
• Joined SHK in 1961; on the Board since 1981; Non-Executive Chairman since 2019.
• Led SHK's automation with India's first automated fragrance plant in 1994.
• Intimation to exchanges filed; press release uploaded on the company website.
• Annexures I and II provide related details.

Appointment details

• Type of change: Appointment of EVP - Sales (India Subcontinent).
• Person: Mr. Ranjeet Agrawal appointed EVP - Sales (India Subcontinent).
• Effective date: 20 August 2026.
• Board approval: Approved on 19 August 2026.
• Term: Not Applicable.
• Reason: NRC recommendation.
• Profile: 20+ years in fragrance, consumer insights, FMCG.
• Previous role: GM - Fragrance, India & South Asia, Takasago.
• Education: MMS Marketing; BSc Statistics; IIM Ahmedabad data analysis course.
• Relationships: Not related to any director.
• Impact: No change to board or committees.

Financial Performance

• Consolidated revenue from operations grew 14% YoY to Rs 662 crore.
• Consolidated EBITDA rose 21% to Rs 89 crore; margin 13.4% vs 12.6%.
• Gross margins stable YoY; aided by favourable mix and proactive raw material planning.
• Net debt increased by Rs 65 crore to Rs 852 crore as of June 2026.
• Exceptional income of ~Rs 30 crore from fire-insurance claim; full settlement expected this year.
• Management expects double-digit revenue growth and improved margins for FY27.

Operating Update

• Fragrance segment growth led by Europe and select international markets.
• Flavour segment broad-based growth; timing suggests annualized pace rather than a single quarter.
• Fragrance India soft; high base last year; pricing rationalization underway.
• FX impact: 9% like-for-like growth; net 5% FX sales due to exchange rate.

Balance Sheet and Cash Flow

• Debt to remain around June level; may rise slightly in September.
• ETR (Q1) around 31.5%–32%; target below 30% going forward.
• Insurance claims: ~Rs 30 crore received; total pending ~Rs 50–60 crore.

Projects and Capex

• Q1 Europe capex ~Rs 25 crore; European capex now completed; plant operational since May.
• Vanvate capex ~Rs 25 crore in Q2; majority of India capex by Q2 end.
• Potential remaining Rs 25 crore in Q4 or deferred to Q1 next year.

Outlook and Guidance

• FY27 revenue growth may vary by quarter due to demand timing and geopolitical situations.
• Full-year outlook: double-digit revenue growth and improved margins.
• Capex plan supports Europe/US expansion; long-term deleveraging path discussed.

Q&A Highlights

• Flavours Q1 revenue Rs 112 crore; normalized run rate ~Rs 95–96 crore; 1–3 weeks preponement.
• India Fragrance soft; high base last year; inventory build underway.
• FX impact: 9% LfL growth; 5% net FX sales due to exchange rate.
• European ROCE target ~17–18%; long-term target 20%; breakeven in 3 years for Germany.

Business Overview

• SHK is a fragrance and flavour company serving FMCG, personal care and food & beverage.
• Brands SHK, Cobra, and Keva with global R&D and 11 development centres.
• Strategy focuses on expanding capabilities, deepening partnerships, and expanding the CDC network.

Operational Highlights

• Q1 FY27 revenue: Rs 662 crore, up 14.1% YoY.
• Fragrance growth supported by sustained demand across key customer segments.
• Flavour growth across geographies; strong international demand.
• Global Ingredients softer; near-term visibility limited.
• Inventory build-up improving supply continuity while elevating working capital.
• Expanded global CDC network; EBITDA margin at 13.4%.
• Debt levels in line with earlier guidance.
• Geography mix: India 56%, Europe 27%, RoW 17%.

Financial Performance

• Consolidated revenue 662 crore; gross margins stable YoY.
• EBITDA Rs 88.7 crore; margin 13.4%.
• PBT Rs 68.5 crore; PAT Rs 45.4 crore.
• Earnings per share Rs 3.2.
• Debt levels in line with guidance; cash flow impacted by higher working capital.
• Net debt to equity 0.65x.

Outlook & Priorities

• FY27 target: double-digit revenue growth with improving margins.
• Emphasis on pricing discipline, cost management, and cash conversion.
• Prudent capital allocation and medium-to-long-term deleveraging.
• Quarterly growth may vary by order timing.

Risks & Mitigation

• Geopolitical developments and raw material price volatility.
• Inventory build-up enhances supply continuity but increases working capital.

Governance

• Management commentary by CEO and CFO; no board changes disclosed.