S H Kelkar and Company Limited, a leading fragrances and flavours manufacturer, reported steady topline growth for the quarter and nine months ended December 31, 2025, supported by strong demand across core product categories and continued international expansion. For the nine-month period, the company recorded revenues from operations of ₹1,718 crore, marking a 10.4% year-on-year increase. Growth was primarily driven by resilient performance in the flavours segment and consistent contributions from its flagship fragrance business.
Flavours Segment Leads Growth Momentum
The flavours division emerged as a key growth engine during the period. Revenues from the segment surged 38%, backed by robust demand from international markets and deeper customer penetration across geographies. Meanwhile, the fragrance division continued to anchor the company’s portfolio. The segment generated ₹1,488 crore in revenue, maintaining its position as the largest contributor to overall sales. Together, both segments highlight SHK’s balanced and diversified business model.
Profitability Reflects Strategic Investments
On the profitability front, SHK reported EBITDA of ₹182 crore for the nine months. Adjusted EBITDA stood higher at ₹240 crore, translating into a healthy margin of 14%. However, margins also reflected the impact of ongoing investments aimed at building long-term capabilities. The company is actively funding global creative development centres, upgrading technology platforms, and expanding production capacity to support future growth. These initiatives, while temporarily weighing on near-term earnings, are expected to enhance competitiveness and unlock sustainable value over time.
Global Expansion Gains Traction
SHK continues to accelerate its international footprint through targeted infrastructure investments. A notable milestone came from the company’s newly established US creative development centre, which secured its first customer order and began generating initial revenues during the quarter. This early traction signals growing acceptance in global markets and validates SHK’s strategy to move closer to customers through localized innovation. By strengthening its global presence, the company aims to diversify revenue streams and capture higher-value opportunities overseas.
Outlook: Positioned for Long-Term Value Creation
Looking ahead, S H Kelkar plans to sustain its growth momentum by expanding capacity, deepening global reach, and strengthening innovation capabilities. With strong demand in flavours, steady fragrance revenues, and increasing international traction, the company appears well-positioned to capitalize on emerging opportunities in the global fragrances and flavours market. As reported by filingreader.com, overall, SHK’s latest performance underscores a clear strategy: invest today to secure scalable, sustainable growth tomorrow.
