S H Kelkar & Company Ltd Q1 FY26 – Perfume Profits, Fire Losses & Fragile Margins
1. At a Glance
S H Kelkar (ticker: SHK) is India’s largest fragrance maker, but its share price at ₹231 smells less like Chanel No.5 and more like “Agarbatti after rain.” Market cap sits at ₹3,193 Cr, P/E at 24x (cheaper than Pidilite’s 68x, but hey, adhesives stick better than perfumes, apparently). FY25 revenue was ₹2,234 Cr, PAT ₹131 Cr, with EBITDA margins at ~13%. ROE is just 7.7%, i.e., barely better than your savings account. Debt? ₹832 Cr – heavy for a business that sells “scents,” not cement.
Quarterly (Q1 FY26): Sales rose 23.5% YoY to ₹581 Cr, PAT jumped 47% YoY to ₹24.5 Cr – recovery post the Vashivali plant fire that burnt ₹160 Cr worth of value in FY25. Smells like trouble, but also like survival.
Question: if perfumes are supposed to mask bad odours, why hasn’t SHK’s stock masked its –23% 1-year return?
2. Introduction
In a world where FMCG giants like HUL and P&G sell everything from shampoos to mosquito repellents, S H Kelkar quietly plays god — deciding how those products smell. Yes, every soap, detergent, deo, or biscuit you’ve ever consumed might have SHK’s molecules dancing in the background.
This company has been around since the 1920s (family-run, now professionalized), and today boasts 4,100+ clients in 90 countries. Still, the street calls it “Keva,” a nice short name for a business that tries to bottle emotions in aldehydes and esters.
But the last few years haven’t exactly been a fragrance ad. Margins compressed, profits stagnated, a factory went up in smoke, and promoters cut their stake. Meanwhile, capex of ₹200 Cr+ is planned across India, Europe, and Indonesia. They’re fighting global giants like Givaudan and Symrise, except those guys smell of Swiss francs while SHK smells of Indian bank loans.
3. Business Model – WTF Do They Even Do?
Think of SHK as the background DJ of FMCG. They don’t own the party, but they decide what music (or fragrance) you dance to.
Fragrance Products (88% of revenue): Found in soaps, shampoos, detergents, fine fragrances, and household products. If your detergent smells like “Ocean Breeze” (even though you’ve never seen an ocean), that’s SHK’s handiwork.
Flavour Products (12%): Used in bakery, dairy, beverages, and pharma. That “orange-flavoured” syrup you hated as a kid? SHK’s fault.
Aroma Ingredients & Actives: Proprietary molecules, some patented, commercialised in deodorants and fine fragrance. Their R&D pitch: “We make molecules smell sexy.”
Global Footprint:
India – big daddy market, 61% fragrance revenue.
Europe – Amsterdam, Almere, Milan hubs.
ASEAN – new Indonesian facility for growth.
USA & UAE – subsidiaries for presence, not yet profit centres.
Bottom line: SHK makes molecules that others brand, package, and sell. They’re the ghostwriters of FMCG smells.
4. Financials Overview
Source table
Metric
Latest Qtr (Q1 FY26)
YoY Qtr (Q1 FY25)
Prev Qtr (Q4 FY25)
YoY %
QoQ %
Revenue
581
470
567
+23.5%
+2.5%
EBITDA
73
78
73
–6.4%
0%
PAT
24.5
16.6
103*
+47%
–76%
EPS (₹)
1.85
1.27
7.4
+46%
–75%
*Note: Q4 FY25 included one-off insurance claim, so base effect is smelly.
Commentary: Top line growing, margins stable-ish, but PAT fragile. It’s like spraying Axe in a crowded train – feels impactful, but doesn’t last long.
