S H Kelkar and Company Ltd Reports 17.4% YoY Revenue Growth in Q2 FY2025, Despite Supply Chain Challenges

S H Kelkar and Company Ltd, the largest Indian origin Fragrance and Flavours Company in India, reported a 17.4% YoY revenue growth in Q2 FY2025, reaching INR 1,000 crore (provisional and unaudited). The growth was driven by positive business sentiment, healthy demand across segments, and the recovery of order backlog. The core European segment also performed well, achieving double-digit revenue growth. However, the product mix shift led to a sequential moderation in gross margins, and the Company faces availability issues in some strategic raw materials, expecting price increases. Net debt rose to INR 596 crore as of September 30, 2024, due to inventory replenishment. The promoter group sold 3.32% of the total fully paid-up equity shares during the quarter to meet personal requirements, reducing their holding to 55.63%.