The most common and most likely answer to this crossword clue is the 7 letter word JASMINE
I've seen this crossword clue in The Guardian
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More clues leading to the result JASMINE
Buddy explains!

The straight part
We know that "fragrance" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case fragrance = jasmine.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does JASMINE mean?
JASMINE noun- Any of several plants, of the genus Jasminum, mostly native to Asia, having fragrant white or yellow flowers.
- The perfume obtained from these plants.
- Any of several unrelated plants having a similar perfume.
- A yellow colour.