S H Kelkar and Company Limited (SHK), India’s largest homegrown fragrance and flavour company, announced its financial results for the quarter and nine months ended December 31, 2025, posting steady performance amid a challenging operating environment.
For the nine months ended FY2026, revenues from operations reached Rs. 1,718 crore, while EBITDA stood at Rs. 182 crore. Adjusted EBITDA—excluding other income, new initiatives, and incremental insurance costs—was Rs. 240 crore, translating to a 14% margin, and PBT (before exceptional items) stood at Rs. 63 crore.
Commenting on the company’s strategic direction, Kedar Vaze, Whole Time Director & CEO, said: "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. While the benefits will accrue progressively, we believe this is the right point in the cycle to invest for the future. As these capabilities scale, they will strengthen our competitive position and enable us to drive consistent value creation for many years to come.”
On the company’s US expansion, B Ramakrishnan, CEO – Fragrances, Asia and U.S.A., noted: "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.”
Jagdish Agarwal, Group CFO, added perspective on financial priorities: "I am excited to be part of SH Kelkar at a time when the Company is investing to build the next phase of growth. It is a leadership business with strong customer relationships, deep capabilities, and significant long-term potential.
"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."
He added: "Alongside this, we see scope to improve working capital efficiency, which will be an important lever in supporting balance sheet strength over time. We are also focused on strengthening cash conversion and improving the translation of operating performance into bottom-line outcomes. While these initiatives will take time to fully play out, our approach will be structured and disciplined, with the benefits expected to emerge progressively over the medium term.”
Despite the investments, the company delivered steady revenue growth over the nine-month period. Gross margins remained stable, while EBITDA margins reflected costs associated with growth-led strategic initiatives, signaling a long-term focus on building capabilities, global reach, and sustainable value creation.
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