SH Kelkar Q1FY27: revenue +14% YoY, adjusted PAT +7%; OPM hits 13.5% guidance mark

S H Kelkar's consolidated revenue rose 14.1% YoY to ₹662.4 Cr (₹580.5 Cr in Q1 FY26) and 1.9% sequentially from ₹649.6 Cr in Q4 FY26. Reported PAT for the period jumped 77.8% YoY to ₹45.4 Cr (₹25.6 Cr a year ago) and surged from a near-breakeven ₹1.8 Cr in Q4 FY26 — but both the current and year-ago quarters carry a matching exceptional item: an on-account insurance settlement tied to the April 2024 Vashivali plant fire (₹29.95 Cr this quarter vs ₹35.92 Cr consolidated a year ago). Stripping this out (at each period's blended effective tax rate), adjusted PAT growth is only ~7% YoY (≈₹25.8 Cr vs ≈₹24.1 Cr) — the headline PAT surge is substantially a repeat of last year's insurance-driven boost, not genuine profit growth.

Operating margin (EBITDA-proxy, ex-exceptional, ex-other-income, as % of revenue) expanded to ~13.4-13.8% from ~12.6-12.9% a year ago and ~9.2-9.3% last quarter — squarely in line with management's stated target of holding adjusted EBITDA margins around 13.5% through H1 FY27. The gain was led by the Flavours segment, whose revenue jumped 63.3% YoY (and 78.3% QoQ) to ₹112.0 Cr with segment profit more than doubling to ₹34.2 Cr (+161.7% YoY); Fragrances, the larger segment, grew a steadier 7.4% YoY to ₹547.8 Cr with segment profit up 25.5% to ₹57.4 Cr. The cost of materials ratio was flat at ~58.7% of revenue in both periods, so the margin gain came from segment mix and operating leverage rather than input-cost relief. Net profit margin rose to 6.9% from 4.4% YoY and 0.3% QoQ.

The stock went into the print at ₹143.97, up 8.9% over the past month of trading.

For context: this is the second-highest quarterly PAT of the last 6 quarters; revenue is at a 6-quarter high.

External disclosures (business update coverage) put net debt at roughly ₹864 Cr as of June 30, 2026, above management's stated target of holding borrowings near ₹800 Cr with a 10% annual reduction goal — worth watching against the ₹140 Cr FY27 capex plan. No analyst consensus estimate for the quarter could be confirmed via search; available coverage was post-result recaps, not pre-result previews, so the print cannot be benchmarked against Street numbers. Standalone (parent-only) results diverge materially from consolidated: ex-exceptional, standalone swung to a pretax loss of ₹9.6 Cr from a ₹2.8 Cr profit a year ago, with the ₹29.95 Cr insurance credit alone lifting reported standalone PBT to ₹20.3 Cr — the consolidated growth is being driven by subsidiaries (chiefly Flavours), not the parent's core fragrance operations. Separately, the Board approved divesting the wholly-owned, non-core subsidiary Keva Ventures Private Limited (with step-down Amikeva Private Limited) to promoter-group entity Keva Aromatics Private Limited for ₹45.85 lakh; both entities' results are now classified as discontinued operations (₹0.58 Cr profit this quarter vs a ₹0.06 Cr loss a year ago), and the company states this is under 0.1% of consolidated turnover with no meaningful impact on group performance. The filing's covering letter addresses only the board outcomes and the divestment; it carries no separate management commentary on operating performance for the quarter.