1. At a Glance

Welcome to the world ofKeva, where your room spray, shampoo, and biscuit essence might all owe a silent “thank you” to one company that’s seen both fire and fragrance—quite literally.S H Kelkar & Company Ltd, India’s largest homegrown fragrance and flavour manufacturer, closedQ2 FY26with sales of ₹554 crore and a jaw-dropping78% profit fallafter the devastating fire at its flagship Vashivali plant earlier this year.

At amarket cap of ₹3,002 croreand trading at₹217/share, the company smells of recovery but with a burnt undertone. PAT for the quarter stood at₹9.17 croreversus ₹39.81 crore last year, while revenue grew a modest2.1% YoY. TheEBITDA margin slippedto9.46%, its lowest in recent memory.

Still, Keva retains its crown as India’s fragrance king—boasting87.8% revenue from fragrances, 12.2% from flavours, and a presence in90+ countries. But the current aroma? More like “Burnt Oud with a hint of Insurance Claim.”

2. Introduction – When the Perfume Factory Catches Fire, Investors Get a Reality Check

Picture this: a company that’s been bottling India’ssmell of successsince independence suddenly becomes the scent of tragedy—thanks to a₹160 crore fire lossat its Vashivali unit in April 2024. Even the gods of fragrance couldn’t make that smell pleasant.

But in true filmi style, S H Kelkar (SHK) didn’t wallow. It shifted operations across alternate sites, filed insurance claims, pocketed a cool₹95 crore interim relief, and began rebuilding. Now, the company’s FY26 journey reads like a Bollywood script—disaster, resilience, and a new CFO twist (welcome, Jagdish Agarwal, joining December 2025).

On paper, the business model remains fragrant—dominant in theIndian fragrance market (61% share)and spreading across Europe and ASEAN via new facilities inAmsterdam, Almere, and Jakarta. But under the glitter of vanilla and sandalwood, margins are bruised.

The market’s reaction? Investors are sniffing suspiciously, especially afterstock’s 28% fall in one year. Yet, as the Vashivali site rebuilds and the upcomingVanavate Greenfield facilitygears for FY26-end commissioning, Keva might soon reclaim its mojo—or should we say, its musk.

3. Business Model – WTF Do They Even Do?

If you’ve ever wondered who decides that your detergent smells like “Morning Fresh” and not “Chlorine Death,” here’s your answer.

S H Kelkar operates in three scented segments:

• Fragrance Products (88% of sales):Everything from soaps and shampoos to air fresheners and fine perfumes.
• Flavour Products (12%):Used in baked goods, beverages, and dairy products. So, yes, yourElaichi biscuitmight owe its identity to Keva.
• Aroma Ingredients & Natural Actives:The science lab where Keva plays God—creating new molecules for deodorants and perfumes. Six of their20 patentsare already commercially used.

The company’s secret sauce lies in being aB2B supplierto FMCG giants—many of whom don’t like you knowing who makes your favourite product smell divine.

Manufacturing bases are spread acrossVashivali, Vapi, Mahad, and Gurugram—with theJakarta plantserving Southeast Asia andAmsterdam-Almereserving Europe. UpcomingVanavate facilityaims to consolidate operations, cut lease costs, and modernize production.

If that doesn’t impress you, maybe this will: SHK is theonly Indian-origin fragrance company with filed patents in aroma molecules. It’s like being the ISRO of smells—except their rockets explode with perfume.

4. Financials Overview – Quarter That Reeked of Trouble

Commentary:That, dear readers, is what happens when your main factory catches fire and you’re forced to operate out of temporary kitchens. TheEBITDA margin collapsedto 9.46%, down from 14.7% YoY. PAT got roasted. Revenue growth barely beat inflation.

But to Keva’s credit, operationsdidn’t stop. They somehow blended, bottled, and billed ₹554 crore worth of fragrance despite the chaos. Think of it as cooking biryani in your neighbor’s kitchen after your own stove exploded.

5. Valuation Discussion – Fair Value Range (Educational)

Let’s play professor: