How has been the historical performance of S H Kelkar & Co.?

Nov 26 2025 10:47 PM IST

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S H Kelkar & Co. has shown consistent growth in net sales, reaching 2,123.40 crore in March 2025, but profitability metrics have declined, with profit after tax dropping to 75.46 crore from 123.80 crore the previous year. Total assets and liabilities increased, indicating a rise in debt to 744.85 crore, while cash flow from operating activities decreased.

Revenue and Profit Growth

Over the past six years, S H Kelkar & Co. has consistently increased its net sales, rising from just over ₹1,048 crore in March 2019 to ₹2,123 crore by March 2025. This represents a compound growth trend reflecting the company’s expanding market presence and operational scale. The total operating income mirrors this upward movement, with no other operating income reported, indicating a focus on core business activities.

Operating profit before depreciation and interest (PBDIT) excluding other income has also shown a positive trend, climbing from approximately ₹137 crore in 2019 to nearly ₹297 crore in 2025. Including other income, operating profit reached ₹321 crore in the latest fiscal year, underscoring improved operational efficiency. However, profit before tax and net profit have experienced some volatility, with net profit peaking around ₹148 crore in 2022 before moderating to ₹73 crore in 2025. This fluctuation is partly attributable to rising interest expenses and exceptional items impacting earnings.

Margins and Earnings Per Share

The company’s operating profit margin, excluding other income, has generally ranged between 13% and 18% over the years, with a recent figure of 14.1% in 2025. Gross profit margins have seen a decline from a high of over 19% in 2021 to just under 10% in 2025, reflecting increased raw material and other costs. The profit after tax (PAT) margin has similarly contracted from nearly 11% in 2021 to 3.5% in 2025, indicating pressure on bottom-line profitability.

Earnings per share (EPS) have followed a similar pattern, peaking at over ₹10 in 2022 before declining to ₹5.29 in 2025. This trend highlights the impact of rising expenses and exceptional charges on shareholder returns despite revenue growth.

Balance Sheet and Financial Position

S H Kelkar & Co. has strengthened its balance sheet over the years, with shareholder funds increasing from ₹824 crore in 2020 to ₹1,272 crore in 2025. The company’s reserves have grown steadily, supporting a rising book value per share, which reached ₹91.89 in 2025 from ₹58.31 in 2020. Total assets have expanded significantly, reflecting investments in fixed assets and working capital.

However, the company’s debt levels have also increased, with total debt rising from ₹342 crore in 2020 to ₹745 crore in 2025. This includes both long-term and short-term borrowings, indicating a higher leverage position. Trade payables and current liabilities have similarly increased, consistent with the company’s larger scale of operations.

Cash Flow Trends

Cash flow from operating activities has fluctuated, with a notable dip in 2022 but a recovery to ₹107 crore in 2024. Investing activities have consistently shown cash outflows, reflecting ongoing capital expenditure and asset acquisitions. Financing activities have varied, with inflows and outflows depending on debt servicing and capital raising. The net cash position has been volatile, with negative closing cash balances in some years, signalling the need for careful liquidity management.

Summary of Historical Performance

In summary, S H Kelkar & Co. has exhibited robust revenue growth and expanding shareholder equity over the last six years, supported by steady increases in operating profits. Despite this, the company has faced challenges in maintaining consistent net profitability margins due to rising costs, interest expenses, and exceptional items. The balance sheet reflects a growing asset base alongside increased leverage, while cash flow patterns suggest ongoing investment and financing activity with some liquidity fluctuations.

Investors considering S H Kelkar & Co. should weigh its proven ability to grow sales and shareholder value against the pressures on profitability and cash flow management. The company’s historical performance indicates resilience and operational scale, but also highlights areas requiring close monitoring, particularly in cost control and debt servicing.

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