S H Kelkar and Company reported strong H1 FY27 results with a 14.5% revenue growth to Rs 1,299 crore. Profitability saw a significant boost as PAT climbed 72.4% to Rs 60 crore, driven by robust performance in the Fragrance and Flavour segments despite challenges in the Global Ingredients business.
S H Kelkar H1 Profit Soars 72% on Core Segment Growth
H1 FY27 PAT: Rs 60 crore | Revenue: Rs 1,299 crore
Reader Takeaway: Robust growth in fragrance and flavour segments drove profitability, while management targets inventory reduction to trim debt.
What just happened
S H Kelkar and Company posted strong half-yearly results for the period ended September 30, 2026. The company saw a 14.5% year-on-year increase in revenue from operations, reaching Rs 1,299 crore. Profit after tax (PAT) rose sharply by 72.4% to Rs 60 crore compared to the same period in the previous fiscal year. EBITDA margins also expanded by 190 basis points to 13.0%.
Why this matters
The company’s core segments demonstrated effective operational leverage. The Fragrance division, which is the primary revenue driver, reported an 11.9% rise in revenue and a 24.1% jump in EBITDA. Meanwhile, the Flavour segment delivered exceptional growth, with revenue up 47.4% and EBITDA surging 92.0% year-on-year. These segments are successfully navigating market demand across end-use industries.
Risks to watch
The Global Ingredients segment remains a pain point, reporting a revenue decline to Rs 20 crore from Rs 32 crore in the previous year, resulting in an EBITDA loss of Rs 5 crore. This segment continues to face export headwinds, supply chain volatility, and commodity market instability. Additionally, net debt sits at Rs 911 crore as of September 2026, largely due to a strategic build-up of inventory.
What changes now
Management has confirmed that the elevated debt levels and high inventory are conscious, temporary decisions intended to ensure supply chain stability for customers. CFO Jagdish Agarwal stated that the company expects to return to normalized inventory levels through the second half of the fiscal year, with a clear focus on year-on-year debt reduction by March 2027.
What to track next
Investors should watch for the anticipated moderation in net debt and the ability of the company to stabilize its Global Ingredients segment. Management's commitment to improving technical and manufacturing responsiveness will be key to sustaining the current margin expansion trajectory.