S H Kelkar quarterly revenue rises 15% to 632.7 crore rupees as debt remains high
Key Facts
S H Kelkar reported consolidated revenue of 632.7 crore rupees in the quarter ended September 30, 2026, up 15% year on year. The figure was included in the company’s business update for the second quarter of fiscal 2027. It said its gross margin for the quarter is expected to remain broadly stable compared with the year-earlier period. The outlook comes despite inflationary pressures linked to volatility in supply chains and commodity markets. The update points to sales growth, while the period’s profitability and details remain subject to the full financial results.
The company said net debt stood at 911 crore rupees on September 30, 2026. It attributed the level to ongoing investments in expanding capacity and capabilities, as well as working capital needs. It said deleveraging would remain a focus over the medium to long term. This sets expansion-related spending against the company’s stated goal of reducing debt. The expected stability in gross margin does not change the fact that financing and operating needs are part of the quarter’s picture.
CRISIL on September 28 downgraded its outlook on the company’s long-term bank facilities to negative from stable, while affirming the rating at CRISIL AA-. The ratings agency said EBITDA margin improved to 13.4% in the first quarter of fiscal 2027, compared with 10.2% in fiscal 2026. It attributed the improvement to a wider gross margin, a better product mix, operating leverage and pricing actions. The comparison is between one quarter of the current fiscal year and a full previous fiscal year. CRISIL said it is monitoring the sustainability of margin improvement and the deleveraging trajectory.
On debt, CRISIL said adjusted debt, including lease liabilities, rose to 1,029 crore rupees on March 31, 2026, from 832 crore rupees on March 31, 2025. The agency linked the increase to strategic inventory build-up, redevelopment of the Vashivali facility and the start of operations at the Vanawati facility. This measure differs from the net debt the company reported in its September update, as it includes lease liabilities and relates to an earlier date. Together, the figures show adjusted debt rising during the previous fiscal year, followed by the net debt reported at the end of September. CRISIL kept the facilities’ rating at CRISIL AA- despite revising the outlook to negative.
The sector performance backdrop includes growth in the flavours business in fiscal 2026, when revenue rose to 240 crore rupees from 185 crore rupees in fiscal 2025, an increase of 30%, according to the company’s annual report. But consolidated profit after tax fell in fiscal 2026 to 69.15 crore rupees from 73.01 crore rupees in the previous year. These annual results provide context on the company’s performance before the current quarter and do not detail second-quarter segment revenue. The company had described its gross margin for the current quarter as broadly stable despite inflationary pressures. The financial information in the quarterly update was preliminary and unaudited, and subject to a limited review by the statutory auditors.
The company is scheduled to hold an investor and analyst call on November 3, 2026, to discuss its second-quarter and first-half fiscal 2027 results. The call follows the business update, which provided quarterly revenue, net debt and the gross margin outlook. The event will give investors and analysts an opportunity to hear details of the results. It also comes as CRISIL monitors the sustainability of margin improvement and the deleveraging trajectory. The financial figures in the update remain preliminary until the limited review is complete.