S H Kelkar & Company Ltd Management Discussions

Economic Overview Global Economy

The global economic landscape in FY 2025-26 was shaped by significant developments across trade, technology and geopolitics. Aggressive US tariff measures disrupted global trade flows, while the rapid advancement of AI accelerated AI-capex- led investment, as well as introduced new uncertainties, with concerns emerging around labour displacement. Geopolitical tensions also intensified during the year, with the ongoing West Asia conflict disrupting critical energy supply routes and contributing to volatility in crude oil prices, inflation and global growth expectations.

Against this backdrop, global growth is projected at 3.1% in 2026, compared with 3.4% in 2025, before improving marginally to 3.2% in 2027, according to the International Monetary Fund (IMF) World Economic Outlook (April 2026). Advanced Economies are projected to grow by 1.8% in 2026 and 1.7% in 2027, compared with 1.9% in 2025. Emerging Market and Developing Economies are projected to grow by 3.9% in 2026, down from 4.4% in 2025, before recovering to 4.2% in 2027.

Global headline inflation is projected to increase from 4.1% in 2025 to 4.4% in 2026, before moderating to 3.7% in 2027.

Looking ahead, some of these pressures are likely to ease as geopolitical tensions stabilise, though they may not fully subside, allowing supply-side constraints to gradually unwind. At the same time, the benefits of AI adoption are expected to translate into productivity gains, supporting medium-term growth increasingly. However, risks remain, particularly if supply shocks begin to transmit into broader demand weakness globally. In this context, the policy response, reforms and balance sheet resilience will be critical in determining the global growth trajectory.

Real GDP Growth

India steps into FY 2026-27 with renewed optimism and on a more confident growth path. A diversified domestic consumption base, sustained government capex growth, resilient services, and support to the manufacturing ecosystem are expected to support the realisation of a potential growth rate of around 6.8-7.2% in FY 2026-27, according to the Economic Survey 2025-26.

This was complemented by fiscal measures from the government, including reductions in income tax and GST rates, aimed at supporting consumption and aiding the economic recovery.

India steps into FY 2026-27 with renewed optimism and on a more confident growth path. A diversified domestic consumption base, sustained government capex growth, resilient services,

Indian Economy

Despite global uncertainty and market volatility, India reaffirmed its position as one of the worlds fastest-growing major economies for the fourth consecutive year in FY 2025-26. According to the Provisional Estimates (PE) of Annual Gross Domestic Product (GDP) for the Financial Year (2025-26) by MoSPI on 05 June 2026, real GDP growth accelerated to 7.6% in FY 2025-26 from 7.1% in FY 2024-25, underscoring the strength of domestic demand, government spending and investment activity.

Inflation dynamics were also favourable in this year, with headline CPI moderating sharply from 4.6% to around 2.0%, largely driven by sustained food deflation. On the external policy front, India made steady progress in strengthening trade linkages, including deeper engagement with key partners such as the UK and the US, alongside multiple free trade agreements that support export competitiveness and supply chain diversification.

The RBI adopted an accommodative monetary policy stance during the year, with cumulative repo rate cuts of 125 bps bringing the repo rate down to 5.25%, alongside sustained liquidity injections and regulatory easing.

and support to the manufacturing ecosystem are expected to support the realisation of a potential growth rate of around 6.8-7.2% in FY 2026-27, according to the Economic Survey 2025-26.

Management Perspective

FY 2025-26 was a year of resilient growth and strategic execution for the Company amidst a challenging global environment characterised by geopolitical uncertainty, evolving trade policies and supply chain disruptions.

Despite these headwinds, the Company delivered doubledigit revenue growth, driven by strong momentum in its core Fragrances business, robust expansion in Flavours and sustained customer engagement across key markets. The Companys diversified geographic footprint, innovation-led approach and strong customer relationships enabled it to navigate market volatility effectively.

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Consumers are increasingly seeking products that contribute to emotional well-being, relaxation and overall health. This has led to growing adoption of aromatherapy-inspired formulations incorporating essential oils, herbal extracts and botanical ingredients.

reducing reliance on synthetic additives and incorporating plant-based alternatives. This trend is particularly evident across food, beverage and personal care segments where demand for organic, minimally processed and sustainably sourced ingredients continues to rise.

Rising Demand for Functional and Wellness Offerings

The convergence of wellness and personal care is driving demand for functional flavours and fragrances that offer benefits beyond sensory appeal. Consumers are increasingly seeking products that contribute to emotional well-being, relaxation and overall health. This has led to growing adoption of aromatherapy-inspired formulations incorporating essential oils, herbal extracts and botanical ingredients. Such offerings are gaining traction across personal care, home care and wellness categories, creating opportunities for value-added and differentiated product development.

Digitalisation and Product Innovation

The integration of digital technologies, such as AI, ML and data analytics is transforming product development and innovation in the flavours and fragrances industry. The use of data analytics,

advanced modelling and digital tools is enabling companies to better understand consumer preferences, identify emerging trends and accelerate formulation cycles. These capabilities are supporting the development of customised solutions, improving speed- to-market and enhancing collaboration with customers.

Focus on Sustainable Sourcing

Sustainability has emerged as a key priority across the value chain with increasing emphasis on responsible sourcing of raw materials and environmentally sustainable practices. Indias strong base in natural raw materials, supported by its biodiversity and traditional expertise in botanical processing, positions it as a strategic sourcing hub. Companies are increasingly focusing on traceability, ethical sourcing and reducing environmental impact while regulatory developments around transparency and sustainability continue to shape industry practices.

Outlook:

The Indian F&F market is expected to grow steadily over the medium term, reaching approximately USD 3.91 billion by FY 2027, implying a CAGR of around 2.7% from FY 2026 onwards. Growth is expected to be driven by continued expansion in food processing, increasing consumer expenditure on premium personal and home care products and sustained demand for natural and sustainable ingredients.

Industry dynamics are also likely to be shaped by increased investments in research and development, the entry of global players and the strengthening of distribution channels including modern trade and e-commerce. In addition, evolving consumer preferences towards healthier consumption, premiumisation and product innovation are expected to create new growth opportunities across segments.

Indian Flavours and Fragrance Market Size (USD billion)

SWOT

Strengths

- Strong domestic demand supported by favourable demographics, rising disposable incomes and increasing urbanisation

- Steady growth in global demand across food, personal care and home care segments

- Continued focus on research and development, enabling innovation-led growth

- Adoption of advanced technologies to enhance product performance and longevity

- Increasing automation supporting operational efficiency and scalability

Weaknesses

- Concerns around the use of synthetic ingredients, including potential health sensitivities and regulatory scrutiny

Opportunities

- Growing demand for fine fragrances across personal care and hygiene categories

- Expansion of the food and beverage industry driving increased flavour consumption

- Rapid growth of the natural and clean-label F&F segment

- Increasing adoption of aromatherapy and fragrance-led experiences across hospitality and wellness sectors

- Rising demand from emerging markets including India and China

- Premiumisation trends driving demand for high-value and differentiated products

- Growing consumer awareness and influence of digital and social media platforms

- Growth in tourism and hospitality sectors supporting fragrance demand

Threats

- Rapidly evolving consumer preferences and demand patterns

- Intensifying competition from domestic and global players

- Changes in regulatory frameworks and international trade policies

- Macro-economic uncertainties impacting demand and input costs

- Increasing exposure to data security and cyber risks

- Need for continuous innovation to remain competitive

- Geopolitical developments impacting supply chains and market access

Manufacturing facility at Fairfield, New Jersey, USA

Company Overview

S H Kelkar and Company Limited (the Company) is a leading Indian-origin manufacturer of fragrances and flavours with a legacy of over 100 years. The Company has built a strong presence across key end-use categories including personal care, home and fabric care, fine fragrances and food and beverages, supported by established brands such as SHK, Cobra, Keva and CFF.

The Companys operating model is anchored in integrated capabilities across research and development, creation, application and manufacturing. It operates 11 creation and development centres globally, with a presence in India, Amsterdam, Hamburg, Milan, Singapore, Manchester, Almere, USA and Jakarta, enabling close customer engagement and market-relevant innovation. A multidisciplinary team of perfumers, flavourists, evaluators and application specialists drives innovation, supported by the development of 12 captive molecules over the last five years and the filing of 23 patent applications, of which 13 have been commercialised. The Company serves a diversified client base comprising leading domestic and multinational FMCG companies, MSMEs and other fragrance and flavour manufacturers.

The Company operates two primary business segments, Fragrances and Flavours, with the Fragrances segment contributing approximately 90% of revenue in FY 2025-26. Its leadership in the domestic fragrance market is underpinned by strong consumer understanding, deep customer relationships and specialised formulation expertise.

The Company has established a strong and growing presence in the domestic flavours market, supported by its focus on innovation and customer-centric solution development. Its flavour portfolio, produced at modern manufacturing facilities, caters to a wide range of applications, including beverages, bakery, dairy, savoury and pharmaceutical products. The Company adheres to stringent quality standards, with certifications such as FSSAI, USFDA and Halal. The Flavours business continues to gain momentum, driven by its integrated capabilities across sourcing, creation and application, enabling the delivery of tailored solutions aligned with evolving customer needs.

The Companys competitive positioning is built around five key strengths:

- Deep understanding of emerging market consumers, particularly in India and other high-growth markets

- Strong customer relationships across multinational corporations, leading domestic FMCG companies and fastgrowing regional brands

- Integrated capabilities spanning creation, application, manufacturing and commercialisation across fragrances and flavours

- Innovation-led growth supported by global creation centres, proprietary molecules, patent filings and specialised research capabilities

- A diversified geographic presence that balances growth opportunities across emerging markets with access to developed markets in Europe and North America

These strengths enable the Company to respond quickly to evolving consumer trends while delivering differentiated solutions across multiple end-use categories.

Business Segment Performance:

Fragrances Segment (Excluding Global Ingredients)

- Fragrance division achieved 10.4% growth, supported by sustained customer engagement across the portfolio and continued progress with small and mid-sized clients

- Expansion in Europe, backed by the Creative Development Centre in Germany

- The Gross Margin remained broadly steady. Adjusted EBITDA performance also remained steady after adjusting for one off sales undertaken for portfolio optimisation exercise

i

India: Witnessed a growth

led by small and mid

sized companies though

there was a slowdown in

consumption with large

FMCG clients

Rest of the World: Strategic focus

--IS - -

markets for future growth

Region	Revenue contribution (%) in FY 2025-26	Growth (%) in FY 2025-26	Growth (%) in FY 2024-25
India	56.1	5.9	19.1
Europe	24.4	6.5	7.0
RoW	19.5	32.3	8.1
Total	100.0	10.4	13.9

Global Ingredients

- Global Ingredients segment recorded a softer performance, impacted by persistent geopolitical headwinds

- Over the medium to long term, growth prospects remain favourable, supported by structural shifts in global supply chains

* RoW - Rest of the World

Region	Revenue contribution (%) in FY 2024-25	Growth (%) in FY 202526	Growth (%) in FY 202425
India	47.4	9.6	35.5
Europe	26.9	(25.5)	22.1
RoW	25.7	11.8	1.3
Total	100.0	-2.2	22.6

Flavours Segment

- The Flavours business emerged as one of the fastest-growing segments in the portfolio, delivering approximately 30% growth during the year. Growth was broad-based across domestic and international markets and reflected increasing customer acceptance, enhanced application capabilities and deeper engagement with strategic accounts. The strong performance reinforces managements confidence in the long-term opportunity within the flavours market and its role in diversifying the Companys revenue base

- EBITDA increased substantially in line with Higher Revenue

- Better margin performance YoY, on account of sales growth and operational efficiency

Region	Revenue contribution (%) in FY 2024-25	Growth (%) in FY 202526	Growth (%) in FY 202425
India	55.9%	26.5%	15%
RoW	44.1%	33.8%	12%
Total	100%	29.6%	13%

Financial Performance

Consolidated total income stood at Rs 2,377.8 crores in FY 2025-26, up 11% as compared to Rs 2,147.3 crores in FY 2024-25. This was driven by sustained demand across segments, with notable traction in the domestic market for both the fragrance and flavour divisions. Core European business also continued to perform well, reinforcing the Companys position in key international markets. The Company reported a robust performance, despite facing significant challenges arising from geopolitical uncertainty. Emerging markets contributed to 80% of business with 11% growth over the previous year and Europe business comprising CFF Keva Italy SPA (Previously Creative Flavours and Fragrances SPA) and Holland Aromatics B.V., the core business grew 15%.

International business

- The Companys core European operations remained resilient, delivering 2% revenue growth on a like-for-like basis despite geopolitical headwinds.

Operating margins were broadly steady Supported by a favourable product mix.

Gross margins stood at 42.3% (Adjusted one-off Sales of Rs 35 crores) and EBITDA margins were at 13.9% (Adjusted EBITDA Margin excludes costs associated with growth-led strategic investments). Adjusted EBITDA stood at Rs 323 crores in FY 2025-26.

The Company reported a robust performance, despite facing significant challenges arising from geopolitical uncertainty. Emerging markets contributed to 80% of business with 11% growth over the previous year and Europe business comprising CFF Keva Italy SPA and Holland Aromatics B.V., the core business grew 15%.

The expansion of Creative Development Centres and manufacturing capabilities is aimed at enhancing innovation, improving customer proximity and driving efficiencies across the value chain. These initiatives reflect a considered approach towards building a stronger and more resilient business platform.

As on 31 March 2026, the consolidated net worth of the Company stood at Rs 1,362.4 crores and total fixed assets stood at Rs 1,278.6 crores. With net debt at Rs 786.0 crores, net debt to equity stood at a healthy 0.58x.

Strategic Priorities for FY 2026-27

The Companys focus during FY 2026-27 will remain centred on building a scalable global platform for sustainable growth.

Key priorities include:

- Accelerate Growth in Core Fragrances:

Continue strengthening market share across domestic and international markets through enhanced customer engagement, innovation and category expansion.

- Scale the Flavours Business:

Expand customer acquisition, deepen relationships with existing customers and increase penetration across high- growth food and beverage categories.

- Strengthen International Presence:

Enhance the Companys presence in strategic markets including Europe, North America and Southeast Asia through local capabilities and customer proximity.

- Commercialise Innovation:

Accelerate monetisation of proprietary molecules, new product platforms and innovation investments while expanding the intellectual property portfolio.

- Drive Operational Excellence:

Improve productivity, optimise supply chain efficiencies and leverage digital technologies to enhance speed, quality and customer responsiveness.

- Execute Growth Capex:

Commission the Vanavate and Holland Aromatics expansion projects while maintaining disciplined capital allocation and financial flexibility.

Business Outlook

The Company continues to progress on its long-term growth strategy with a focus on expanding its global presence, strengthening capabilities and building scale across operations. Investments across key markets, including Germany, the UK and the United States, along with capacity expansion in the Netherlands, are expected to support execution and improve operating leverage over time.

The expansion of Creative Development Centres and manufacturing capabilities is aimed at enhancing innovation, improving customer proximity and driving efficiencies across the value chain. These initiatives reflect a considered approach towards building a stronger and more resilient business platform.

The current phase of investments is aligned with the Companys long-term priorities. While the benefits are expected to be realised over time, these efforts are intended to strengthen competitive positioning and support sustainable growth.

The United States remains an important focus area, with the Company making steady progress in establishing its presence. During the period, the US Creative Development Centre secured its first customer order and commenced initial revenue generation, marking an early milestone in entering a large and strategically important market.

On the manufacturing side, the greenfield expansion at Holland Aromatics has commissioned in early Q1 FY27. The greenfield facility at Vanavate is progressing as planned and is expected to be commissioned in Q2 FY27. These projects are expected to enhance capacity, support cost efficiencies and enable the Company to meet growing demand across domestic and international markets.

Quality Management

- All manufacturing facilities are certified under globally recognised standards, including FSSAI, ISO 9001, ISO 14001, ISO 45001, FSSC 22000, ISO/TS 22002-1, along with USFDA registration

- Food safety and compliance are supported through systems such as HACCP and an integrated management framework covering quality, environment, and occupational health and safety

- Strong adherence to Health, Safety and Environment (HSE) policies to ensure a safe and responsible workplace

- GPCB-approved co-processing and pre-processing facilities for safe waste disposal, supporting controlled emissions and efficient resource utilisation

- Implementation of closed-loop chemical transfer systems to minimise emissions and reduce human exposure

- SAP-enabled processes to enhance operational efficiency, traceability, and process standardisation

- Deployment of advanced analytical and testing infrastructure, including gas chromatographs, density meters, polarimeters, flashpoint testers, and microbiological testing systems

- Strict adherence to global quality control standards to ensure product consistency and reliability

- Effluent treatment plants installed across facilities, with operations aligned to Zero Liquid Discharge principles

- R&D centre recognised by the Department of Scientific and Industrial Research (DSIR) for in-house development of innovative molecules

Outlook:

Given the critical nature of applications in the flavours and fragrances industry, adherence to stringent quality standards remains a key priority. The Company continues to focus on delivering products that meet global regulatory and customer requirements across domestic and international markets.

It is also strengthening its capabilities to address the growing preference for environmentally responsible and sustainable solutions. Leveraging its experience, domain expertise, innovation capabilities, and

digitalisation initiatives, the

Company aims to further enhance quality standards, improve process efficiencies and align its offerings with evolving customer expectations.

Risk Management

Successor Risk

Sustaining business continuity and growth requires a capable leadership pipeline aligned with the organisations culture, values, and long-term strategic direction.

Mitigation: The Company focuses on building a strong internal talent pipeline through structured learning and development programmes aimed at strengthening leadership capabilities. Succession planning is embedded across key roles, with identified successors being groomed through targeted training and exposure. Cross-functional training and knowledge-sharing practices are encouraged to reduce reliance on individual leaders and ensure continuity. Succession plans are periodically reviewed and aligned with evolving business needs to maintain leadership-readiness.

Innovation Risk

Rapidly evolving consumer preferences and industry dynamics necessitate continuous innovation to remain competitive and sustain market leadership.

Mitigation: The Company positions innovation as a central pillar of its growth strategy, supported by sustained investments in research and development as well as human capital. Dedicated teams of perfumers, flavourists, scientists and application specialists focus on developing differentiated and sustainable solutions aligned with evolving customer requirements. Robust in-house safety testing capabilities ensure adherence to high standards of quality, safety and regulatory compliance.

The Company is actively advancing research in natural and bio-based alternatives to conventional chemical synthesis, with a focus on sustainability and environmental responsibility. Initiatives also include conservation and propagation of plant- based raw materials and conducting efficacy studies to enhance product performance.

R&D capabilities are further strengthened through specialised domains such as plant biotechnology and microbiology, leveraging advanced techniques including genetic engineering, molecular marker technology, tissue culture and both in vitro and in vivo testing methodologies. These capabilities support the development of innovative molecules and formulations with improved biodegradability and performance characteristics.

In addition, the Company continuously enhances its innovation pipeline through consumer insights, application-led development and portfolio expansion. Efforts to explore new product formats, distribution channels and market segments enable it to remain aligned with changing consumer preferences and industry trends.

Data Security and Cyber Risk:

In todays dynamic business environment, digitalisation and technology adoption have become integral to business transformation and service delivery, resulting in increased exposure to cyber risks, including data breaches, unauthorised access and potential disruption to critical operations.

Mitigation: The Company has implemented a structured and comprehensive approach to data protection including the identification of critical IT systems and the establishment of robust recovery and business continuity plans. Although not ISO certified, it adheres to recognised ISO standards and maintains a secure infrastructure for data storage and access, supported by controlled data environments and strong server security.

Cyber security measures are designed using a layered approach, incorporating preventive, detective, and responsive controls. These include firewalls, encryption protocols, multi-factor authentication and periodic security audits. To further enhance endpoint security, the Company has deployed FortiClient EMS, enabling centralised endpoint management, real-time visibility, and automated policy enforcement.

These measures are reinforced through regular internal assessments and reviews, ensuring continuous improvement in control effectiveness and the ability to address evolving cyber risks.

ESG Compliance Risk

As a part of the flavours and fragrances industry, the Company is required to comply with evolving environmental, social and governance (ESG) regulations and standards, with increasing expectations around sustainability and responsible business practices.

Mitigation: The Company has implemented a phased ESG roadmap with defined actions across its sites. It continues to invest in energy-efficient systems to reduce emissions and improve resource utilisation. Environmental infrastructure, such as reverse osmosis plants, multi-effect evaporators, and waste- to-manure solutions, supports sustainable operations. The Company is gradually reducing its reliance on fossil fuels while increasing the use of renewable energy. It has also registered under Extended Producer Responsibility (EPR) to ensure

responsible plastic waste management and is investing in low- carbon technologies to strengthen its sustainability initiatives.

Geographical Business Risk

As the Company operates across multiple geographies, it is exposed to varying economic conditions and market dynamics in different regions. Concentration of revenues in specific geographies may increase the sensitivity of earnings to regional volatility.

Mitigation: The Company follows a calibrated expansion strategy to maintain a well-diversified geographic revenue mix. It also has a comprehensive disaster recovery framework in place to ensure business continuity across regions.

Competition Risk

The attractive growth potential of the industry continues to draw participation from both domestic and global players, leading to heightened competitive intensity that may influence pricing and earnings.

Mitigation: The Company leverages its strong brand equity, long-standing customer relationships, and diversified product portfolio to maintain its competitive position. Its focus on innovation supported by experienced talent and robust R&D capabilities enables the development of differentiated solutions. A disciplined approach to operations and a healthy balance sheet further support resilience and sustained market presence.

The Company considers its human capital as a strategic partner to the business, aligning people practices with growth, market expansion and operational excellence. Talent acquisition follows a dual approach, combining lateral hiring from relevant industries with a strong focus on building a pipeline at the entry level through management, technical and sales trainees.

Internal Controls and their Adequacy

The Company has established a robust internal control framework aligned with the nature, scale and complexity of its operations. This framework is designed to ensure compliance with applicable laws and regulations, safeguard assets, and support the accuracy and integrity of financial reporting.

It also facilitates the timely identification and mitigation of risks including the prevention and detection of fraud and errors while ensuring completeness of accounting records.

The Audit Committee of the Board provides oversight of the internal control environment and regularly reviews its adequacy and effectiveness. Observations from the internal audit function are periodically evaluated and appropriate corrective actions are implemented to address gaps and strengthen processes. The internal control systems are aligned with the requirements of the Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Companys internal policies. Continuous monitoring and periodic reviews ensure that the control framework remains relevant, effective and responsive to evolving business needs.

Human Resources

The Company considers its human capital as a strategic partner to the business, aligning people practices with growth, market expansion and operational excellence. Talent acquisition follows a dual approach, combining lateral hiring from relevant industries with a strong focus on building a pipeline at the entry level through management, technical and sales trainees. The Company remains among the largest campus recruiters in its segment with structured training programmes that enable trainees to transition into business-facing roles within 3-4 years. As of FY 2025-26, the Companys workforce in India stood at approximately 1,149 employees across business verticals. Efforts to strengthen diversity include focused hiring at entry and lateral levels along with localisation of talent to enhance inclusivity.

Learning and development remained a key priority during the year supported by the implementation of a Learning Management System (LMS) offering access to over 4,500 courses. The platform recorded an adoption rate of around 65%, with managers actively tracking team development. In addition, a structured capability-building programme was conducted for the commercial team in collaboration with

Mercuri Goldman Sachs covering areas such as value selling, key account management and channel management. Leadership development initiatives and high-potential identification programmes were also undertaken to build a robust talent pipeline. Keva remains focussed and committed towards creating future leaders and robust succession plan. Digital enablement was strengthened through the implementation of a cloud-based HRMS platform, achieving near 100% adoption and improving process efficiency by approximately 70%.

The Company continues to focus on building a performance- driven and inclusive culture. Performance management is aligned with defined KPIs supported by periodic reviews and continuous feedback mechanisms. Employee engagement initiatives are conducted through a structured annual calendar with emphasis on well-being, including mental, physical and emotional health. Programmes such as employee assistance support, health initiatives and targeted benefits have been introduced to enhance employee welfare. A formal grievance redressal mechanism and whistleblower policy are in place to ensure transparency and fairness. Health, Safety and Environment (HSE) practices are reinforced across manufacturing sites through dedicated teams, periodic health checks and awareness initiatives.

Corporate Social Responsibility

The Company remains committed to contributing to the social and economic development of communities with a focus on education, environmental sustainability and skill development. Its CSR initiatives are guided by a structured policy framework and are directed towards creating meaningful and longterm impact, particularly in underserved and rural areas. The framework for the Companys CSR Programme is detailed in the CSR Policy, which is accessible on the Companys website at the link: https://keva.co.in/investor-updates/#92-178-policies.

The Company continues to support initiatives aimed at improving access to quality education, strengthening educational infrastructure, empowering the differently abled and enhancing employability through vocational training. Special emphasis is placed on empowering visually challenged individuals through targeted training programmes in perfumery and related skills, enabling greater inclusion and livelihood opportunities.

During FY 2025-26, we have spent 4.03 crores on CSR initiatives as a Group (of which 1.86 crores pertain to the Company), thereby reinforcing Kevas commitment to responsible and inclusive growth.

Cautionary Statement

This report contains statements regarding expected future events and the financial and operating performance of the Company, which are forward-looking in nature. Such statements involve assumptions and are subject to inherent risks and uncertainties. There is a significant possibility that these assumptions, estimates and forward-looking statements may not prove to be accurate.

Readers are therefore cautioned not to place undue reliance on such statements, as actual results and events may differ materially due to various factors. Accordingly, this report should be read in conjunction with, and is qualified in its entirety by, the assumptions, qualifications, and risk factors outlined in the report.

The Key Financial Ratios of the Group are given as below:

Particulars	FY 2025-26	FY 2024-25	Change(%)	Explanation for Variation of 25% or more
Debtors Turnover (times)	4.13	4.24	(2.48)%	-
Inventory Turnover (times)	2.00	1.74	14.71%
Interest Coverage Ratio (times)	4.40	4.58	(4.04)%
Current Ratio (times)	1.27	1.39	(8.74)%
Debt Equity Ratio (times)	0.62	0.59	5.91%
Operating Profit Margin (%)	10.21	13.99	(27.01%)	The Margins have been impacted due to ongoing growth-led strategic initiatives and the revenue generation may take 2-3 years.
Net Profit Margin (%)	2.92	3.46	(15.61%)
Return on Net Worth (%)	5.09	5.76	(11.88%)