Q3 2026 S H Kelkar and Company Ltd Earnings Call Transcript
Key Points
- S H Kelkar & Co Ltd (BOM:539450) reported a 10% year-over-year growth in consolidated revenue for the nine months ended FY 2026, reaching INR1,718 crores, despite challenging market conditions.
- The company is investing in expanding its global footprint, particularly in the U.S., U.K., and Europe, which together account for 75% of the global fragrance market.
- The U.S. creative development center secured its first customer order, marking a significant milestone in entering the world's largest flavor and fragrance market.
- The company is focusing on enhancing financial discipline and execution capabilities, with a new CFO, Jagdish Agarwal, bringing 28 years of experience.
- S H Kelkar & Co Ltd (BOM:539450) is working on improving cash flow and balance sheet management, with plans to enhance working capital efficiency and cash conversion.
- The company's EBITDA margin was impacted by costs associated with scaling strategic initiatives and high insurance costs, with an adjusted margin of around 13%.
- Debt levels are expected to see a near-term increase due to strategic initiatives and capacity expansion plans.
- Gross margins have remained stable but have not improved as expected due to slower sales ramp-up and currency exchange rate impacts.
- The company is facing challenges in achieving its target of 17% EBITDA margin over the next two years due to ongoing investments and market conditions.
- The insurance claim process for the fire incident is ongoing, with expectations to settle within 6 to 12 months, impacting cash flow.
Ladies and gentlemen, good day, and welcome to SH Kelkar and Company Limited's Earnings Conference Call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Anoop Poojari from CDR India. Thank you, and over to you, Mr. Poojari.
Thank you. Good afternoon, everyone, and thank you for joining us on SH Kelkar and Company Limited's Q3 and 9M FY 2026 earnings conference call. We have with us Mr. Kedar Vaze, Whole-Time Director and Group CEO; and Mr. Jagdish Agarwal, Group CFO of the company.
We'll begin the call with opening remarks from the management, following which we'll have the forum open for a question-and-answer session. Before we start, I would like to point out that some statements made in today's call may be forward-looking in nature, and a disclaimer to this effect has been included in the earnings presentation shared with you earlier. I would now like to invite Kedar to make his opening remarks.
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