S H Kelkar and Company Ltd

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.

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.

Meeting Details

• Date and time: July 29, 2026, 03:00 PM IST.
• Event: Q1 FY27 Conference Call; Organizer: S H Kelkar and Company Limited.
• Mode: Virtual group conference call for investors and analysts.

Participants

• Senior Management team to represent the company on the call.

Purpose

• Discuss Q1 FY27 results to be announced July 28, 2026, followed by Q&A.

Meeting Details

• Board meeting scheduled for Tuesday, July 28, 2026 (time and venue not disclosed)

Key Agenda Items

• Consider and approve unaudited standalone and consolidated results for quarter ended June 30, 2026, subject to limited review.

Other Notes

• Trading window remains closed until July 30, 2026.

Operational Update

• Consolidated revenue for quarter ended June 30, 2026: Rs 660 crore, up 13.7% YoY.
• Gross margins remained stable versus the same period last year.
• Net debt as of June 30, 2026: around Rs 864 crore.
• Debt reflects planned capacity and capability investments and strategic inventory build-up.
• Results are provisional and unaudited, subject to limited review by statutory auditors.

Regulation 74(5) status

• Regulation 74(5) not applicable; all securities dematerialised and no requests received in quarter ended 30 June 2026.

AGM details and document access

• AGM on 31 July 2026 at 4:30 p.m. IST via VC/OAVM.
• Electronic AGM notice and FY2025-26 Annual Report sent to registered emails.
• For unregistered emails, a letter with web-link sent to access documents.
• Web-link to Annual Report FY2025-26: https://keva.co.in/wp-content/uploads/2026/06/SHK-Annual-Report-FY-2025-26.pdf
• Documents also available on BSE, NSE and CDSL evoting site.
• Register email by contacting your depository participant (DP).
• Company website hosts AGM notice and Annual Report: www.keva.co.in.

Overview

• BRSR for FY2025-26 reported on a standalone basis.
• Main activity: fragrance, aroma ingredients, and flavours manufacturing.
• Exports contribute 2.95% of turnover.

Key ESG Risks & Opportunities

• Climate change risk from GHG regulations; mitigations include renewable energy deployment.
• Opportunities from energy efficiency and cleaner technologies; potential cost savings.
• GHG implications include emission reductions and fossil fuel taxes.
• Water stewardship risk; mitigations include rainwater harvesting, RO, MEE, and ZLD.
• Human rights and community development through HR policies and CSR initiatives.
• Occupational health and safety risk; mitigations via comprehensive EHS framework.
• Responsible supply chain risk; mitigations include sustainable sourcing and supplier assessments.
• ESG actions imply potential positive financial impact through resilience and efficiencies.

Governance & Policy Highlights

• Group CEO oversees ESG implementation with board/committee oversight.
• Head of EHS and Head of HR assist in execution.
• Anti-corruption policy applicable to directors, officers, employees and agents.
• Human Rights Policy and Whistle Blower Policy in place.
• Policies extend to value chain; policy portal linked in disclosures.
• Certifications: ISO 9001, ISO 14001/45001, SEDEX Verified, HALAL.
• No external independent policy assessment; internal IMS and DISH/Sedex audits.
• EPR registered with CPCB for plastic waste disposal; aligned with MPCB plan.
• NGRBC reviews conducted; frequency annually or as required.

Social Responsibility & Workforce

• Total permanent employees: 484; total workers: 166.
• Board female representation: 3 of 8; KMP female: 1 of 3.
• Permanent turnover: 9.96%; permanent workers turnover: 0.20%.
• Health and accident insurance coverage: 100% for employees and workers.
• Maternity benefits not provided; equal opportunity policy in place.
• Return-to-work and retention after parental leave: 100%.
• Grievance redressal policy accessible; whistle-blower mechanisms in place.
• Premises accessible to differently abled; equal opportunity policy exists.
• Well-being spend: 0.18% of total revenue.

Environmental Performance

• Total energy use around 7.9 million GJ; renewable share included.
• Scope 1 emissions: 120,269 tCO2e; Scope 2: 6,808 tCO2e.
• Emissions intensity: 0.00000993 tCO2e per INR; PPP-adjusted: 0.0002019.
• Vashivali plant operates Zero Liquid Discharge with DMF/RO; wastewater reused.
• Water withdrawal: 144,856 KL; discharge: 63,389 KL.
• 35% of inputs sourced sustainably.
• Total waste: 1,686 MT; hazardous waste 353 MT; 313 MT recycled.
• Pallets repurposed as boiler fuel; waste-to-wealth initiatives.
• Air emissions: NOx 26.07 ppm; SOx 19.42 ppm; PM 53.52 mg/Nm3.
• Certifications include ISO 9001, ISO 14001, ISO 45001; SEDEX Verified; HALAL.

Stakeholder Engagement & Complaints

• Key stakeholders: government/regulators, employees, customers, suppliers, investors, communities.
• Engagement channels: meetings, townhalls, website, emails; ongoing.
• Board reviews incorporate stakeholder feedback from engagements.
• Communities: CSR programs addressing education, sustainability and empowerment.
• Customer complaints: 201 filed FY2025-26; addressed satisfactorily.
• Grievance redressal policy and investor/customer portals provided for transparency.
• Data privacy/cybersecurity policy in place; no data breaches reported.
• Public policy advocacy: none reported.

Other Notable Metrics

• 35% of inputs sourced sustainably; 60.6% India-sourced inputs; 7.9% from MSMEs.
• Purchases from top 10 trading houses: 79.02% of trading purchases; related-party purchases 46.59%.
• Sales to related parties: 46.82%; loans to related parties: 77.09%; investments to related parties: 100%.
• Affiliations with 13 trade associations; public policy disclosures limited to non-existent advocacy.
• Cybersecurity policy in place; no product recalls or penalties reported.