S H Kelkar & Company Ltd Q2 FY26 Results & Concall Highlights: Revenue, Margins & Order Book
Published 28 May 2026 | Chemicals & Petrochemicals | Market Cap: ₹2.4K Cr
The company expects a revenue CAGR of approximately 15% over the next 3 to 4 years. Revenue Growth:** Company targets a CAGR of around 15% over the next 3-4 years.
From S H Kelkar & Company Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.
Price
₹157
Market Cap
₹2.4K Cr
P/E Ratio
50.0
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S H Kelkar & Company Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹650 Cr, net profit ₹2 Cr.
Full financials →📊 Revenue & Sales Performance
- →The company expects a revenue CAGR of approximately 15% over the next 3 to 4 years.
- →EBITDA margins are targeted to improve from the current 11-12% level to around 18% within 2 to 3 years.
- →Growth momentum is strong with sustained traction in new initiatives and global accounts.
- →The second half of FY26 is expected to see better growth compared to the first half, supported by improved market conditions and ramp-up of new capacity.
- →The brownfield expansion in the Netherlands and the new factory starting operations in early FY27 will enhance capacity and cost efficiency.
- →New creative development centers in the U.S., Europe, and India aim to accelerate product development and market penetration, contributing to volume growth.
- →Overall, strong business momentum and operating leverage are expected to drive faster EBITDA growth alongside the top line.
📈 Profitability & Margins
- →**Revenue Growth:** Company targets a CAGR of around 15% over the next 3-4 years.
- →**EBITDA Margins:** Currently around 11-12%, expected to improve to 14-15% in H2 FY26 and reach 18%+ EBITDA margin in 2-3 years; long-term target is 18-20% EBITDA margin by FY27.
- →**Profitability:** Investments in new initiatives (~Rs. 32 crore in H1 FY26) will mute EBITDA short-term but are expected to yield substantial margin improvements within 2-3 years.
- →**EPS:** Expected to improve in line with margin expansion and revenue growth; no explicit EPS figures given, but steady operating leverage and lower costs from factory consolidation will aid profit growth.
- →**Other Factors:** Gross margin anticipated to improve by about 1-1.5% due to raw material cost stabilization; factory capacity expansions and creative development centers to support sustained future profit growth.
🏗️ Capital Expenditure Plans
- →Rs. 60 crore discretionary investment related to a new factory expected to start by March; requires 2-3 years to yield returns.
- →Current investment run rate in new initiatives is about Rs. 17 crore per quarter, totaling Rs. 32 crore in the recent half-year.
- →No major new financial investments or capex planned for the next 1 to 2 years.
- →New factory construction on schedule; operations expected to begin in Q1 calendar year (Q4 FY26).
- →Investment tied to readiness for global accounts engagement in U.S., Europe, and other geographies; focus on calibrated growth.
- →The company is cautious following a recent fire incident and emphasizes controlling investments to ensure quicker returns.
- →Management open to derisking strategies, including exploring partnerships or contract manufacturing, especially in Europe and U.S.
💰 Fundraising & Capital Structure
- →The company does not plan any major new financial investments for at least the next 1 to 2 years.
- →Current investments, such as the new factory expected to start by March, involve discretionary spending of around Rs. 60 crore.
- →Management is focused on controlling costs and ensuring returns on existing investments rather than initiating new capex or opex.
- →Debt levels are stable, with some expected reduction as insurance payments come through.
- →No mention of any planned new equity fundraising was made.
- →The company continues to monitor risk carefully, but no immediate plans for raising funds through debt or equity were indicated in the transcript.
📋 Order Book & Pipeline
- →The company has assured business exceeding $10 million for the current year from global contracts.
- →They continue to submit and make progress in newer projects but do not have specific announcements on larger orders yet.
- →Flavour tender approvals have been obtained; initial trial orders have been placed, but full-scale business development is expected to be multi-year.
- →The U.S. and Europe markets are key targets, with new initiatives including creative development centers in the U.S. and ongoing global account engagements.
- →Management is monitoring new initiatives carefully due to investment and external risks but is confident about growth opportunities ahead.
Key Metrics
Frequently Asked Questions
What were S H Kelkar & Company Ltd Q2 FY26 results?
The company expects a revenue CAGR of approximately 15% over the next 3 to 4 years. Revenue Growth:** Company targets a CAGR of around 15% over the next 3-4 years.
What is S H Kelkar & Company Ltd share price analysis?
S H Kelkar & Company Ltd currently shows a neutral. The stock trades at a P/E of 50.0 with a market cap of ₹2,363 Cr. Investors should review the full earnings analysis for detailed insights.
Is S H Kelkar & Company Ltd planning capital expenditure?
Rs.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.