Any current/future new fundraising through debt or equity?

No new growth CAPEX is planned from India perspective for fragrances, as existing factories and capacity expansions are considered sufficient for the next 10 years. For Flavours, incremental CAPEX may be required if growth exceeds 15% over 3-4 years. The company plans around Rs. 200 crore CAPEX over next two years, funded through internal accruals and insurance proceeds. Debt position as of March end is around Rs. 658 crore; expected to reduce to circa Rs. 550 crore by FY26, supported by healthy cash flow and insurance receipts. Management indicated a conservative outlook on insurance payouts

Any current/future capex/capital investment/strategic investment?

Ongoing rebuilding of the Vashivali Fragrance facility expected to be commissioned within the current financial year; fully insured with related claims ongoing. Construction of a new Greenfield facility at Vanavate slated for commissioning later this calendar year; proximity to Vashivali site to enable operational synergies and better inventory management. Additional factory being built in parallel with the rebuilding of Vashivali due to a major incident; plans to close Mulund operations faster to offset CAPEX with OPEX savings. Approximately Rs. 200 crore of CAPEX planned over the next two ye

Future growth expectations in sales/revenue/volumes?

The company targets a 12%+ CAGR sales growth for FY26, driven by existing markets in Europe, India, and Southeast Asia, as well as new geographies like Middle East and the U.S. Flavours division expects a strong, robust growth of around 15% CAGR, including contributions from existing and new clients. Fragrance division anticipates 12% growth guided for the coming year, with steady contributions from global MNC accounts and new business wins. Incremental growth from new overseas centres (Germany, USA, UK) is projected, aiming for Rs. 50-60 crore new business annually from these centres, c

Future growth expectations in earnings/operating earnings/profits/EPS?

Revenue Growth: Company projects a 12-15% CAGR growth for FY26, driven by both existing and new clients across India, Middle East, Southeast Asia, and Europe. EBITDA Margins: Expected to improve from current ~15% to 18-20% by FY27, with margin expansion linked to operational efficiencies as new factories come online. CAPEX: Around Rs. 200 crore planned over next two years, largely for factory setups; maintenance CAPEX thereafter, with capacity expansion dependent on growth exceeding 15%. Insurance Claims: Expected to provide incremental cash inflows over next 6-9 months, improving balanc

Current/ Expected Orderbook/ Pending Orders?

The company does not have many long-term contracts but has good visibility based on client behavior and business growth in the past year. To achieve the FY26 growth guidance of 12%, the company expects to secure 7-8% new business wins, consistent with past performance. New wins and a robust pipeline of RFQs (Request for Quotations) are in progress, with some small wins already moving from development to commercial discussions. The global MNC consumer fragrance business achieved roughly $10 million sales last year and continues to gain traction. Continued discussions with multiple global MNCs i

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S H Kelkar & Company LtdQ1 FY25Chemicals & Petrochemicals

S H Kelkar & Company Ltd Q1 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹135P/E: 38.1Market Cap: ₹1.9K CrSector: Chemicals & Petrochemicals

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→The company targets a 12%+ CAGR sales growth for FY26, driven by existing markets in Europe, India, and Southeast Asia, as well as new geographies like Middle East and the U.S.
→Flavours division expects a strong, robust growth of around 15% CAGR, including contributions from existing and new clients.
→Fragrance division anticipates 12% growth guided for the coming year, with steady contributions from global MNC accounts and new business wins.
→Incremental growth from new overseas centres (Germany, USA, UK) is projected, aiming for Rs. 50-60 crore new business annually from these centres, cumulatively Rs. 250-300 crore over three years.
→Global Ingredient business sees good emerging opportunities due to China plus One strategy and favorable global export trends.
→Margin improvement expected alongside growth, with EBITDA margin rising from ~15% to 18-20% by FY27.
→Growth is expected to be steady rather than sudden, emphasizing sustainable, long-term expansion.

Margin guidance

Category 2

→Revenue Growth: Company projects a 12-15% CAGR growth for FY26, driven by both existing and new clients across India, Middle East, Southeast Asia, and Europe.
→EBITDA Margins: Expected to improve from current ~15% to 18-20% by FY27, with margin expansion linked to operational efficiencies as new factories come online.
→CAPEX: Around Rs. 200 crore planned over next two years, largely for factory setups; maintenance CAPEX thereafter, with capacity expansion dependent on growth exceeding 15%.
→Insurance Claims: Expected to provide incremental cash inflows over next 6-9 months, improving balance sheet and enabling debt reduction by FY26 end (estimated net debt ~Rs. 550 crore).
→Global Ingredient Segment: Gradual growth anticipated due to favorable market dynamics and "China plus One" strategy, adding incremental revenues over medium term.
→Price Increases: Average price hikes of 3-3.5% factored into growth and margin improvement plans.
→New Global MNC Facilities: Expected to generate Rs. 250-300 crore additional revenue over next 3 years, supporting sustainable growth.

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Fundraise plans

→No new growth CAPEX is planned from India perspective for fragrances, as existing factories and capacity expansions are considered sufficient for the next 10 years.
→For Flavours, incremental CAPEX may be required if growth exceeds 15% over 3-4 years.
→The company plans around Rs. 200 crore CAPEX over next two years, funded through internal accruals and insurance proceeds.
→Debt position as of March end is around Rs. 658 crore; expected to reduce to circa Rs. 550 crore by FY26, supported by healthy cash flow and insurance receipts.
→Management indicated a conservative outlook on insurance payouts affecting debt reduction speed.
→No mention of raising funds via equity; focus is on repaying debt gradually and funding CAPEX internally.
→Overall, no explicit current or planned fundraising through new debt or equity was indicated during the call.

Order book

→The company does not have many long-term contracts but has good visibility based on client behavior and business growth in the past year.
→To achieve the FY26 growth guidance of 12%, the company expects to secure 7-8% new business wins, consistent with past performance.
→New wins and a robust pipeline of RFQs (Request for Quotations) are in progress, with some small wins already moving from development to commercial discussions.
→The global MNC consumer fragrance business achieved roughly $10 million sales last year and continues to gain traction.
→Continued discussions with multiple global MNCs indicate potential for additional order awards, though nothing concrete yet.
→The company expects steady ongoing order flow from existing clients alongside growth from new client acquisitions and geographies.

Capex plans

Yes

→Ongoing rebuilding of the Vashivali Fragrance facility expected to be commissioned within the current financial year; fully insured with related claims ongoing.
→Construction of a new Greenfield facility at Vanavate slated for commissioning later this calendar year; proximity to Vashivali site to enable operational synergies and better inventory management.
→Additional factory being built in parallel with the rebuilding of Vashivali due to a major incident; plans to close Mulund operations faster to offset CAPEX with OPEX savings.
→Approximately Rs. 200 crore of CAPEX planned over the next two years, partly for reconstruction and capacity expansion.
→New facility investment in Europe, including Germany and Manchester, with a CAPEX of around €6-7 million (~Rs. 60-70 crore) expected this year.
→No major growth CAPEX planned in India for Fragrance after these two plants; Flavours may require incremental investment if growth surpasses 15% CAGR.
→Strategic expansion into new geographies (Middle East, Southeast Asia) and developing flavour ideas for FMCG clients.

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