Shalimar Paints Limited (SHALPAINTS)
₹80.87 -0.74% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Shalimar Paints' revenue was ₹138 Cr (-10.1% year on year, -11.5% on the previous quarter), and net profit ₹-21.0 Cr (a bigger loss than a year earlier); the operating margin was -8.7%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹138 | -10.1% | -11.5% |
| Operating profit | ₹-12.0 | loss widened | to loss |
| Net profit | ₹-21.0 | loss widened | loss widened |
| EPS (₹) | -2.54 | loss widened | loss widened |
| Operating margin | -8.7% | — | — |
SHALPAINTS exchange data
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📢 Recent Corporate Announcements
Shalimar Paints Limited submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended September 30, 2026. Issued by Registrar and Transfer Agent Beetal Financial & Computer Services Private Limited, the certificate confirms that securities received for dematerialization were processed, confirmed to depositories, and listed on exchanges. Additionally, certificates were mutilated and cancelled, with depository names updated within the mandated 15-day timeline. This is a standard quarterly procedural disclosure.
- Compliance certificate filed under Regulation 74(5) for the quarter ended September 30, 2026
- Issued by RTA Beetal Financial & Computer Services (P) Ltd on October 5, 2026
- Dematerialization requests confirmed and processed within the required 15-day period
Shalimar Paints shareholders have approved all resolutions at the Extraordinary General Meeting held on September 11, 2026, with over 99% voting in favour. The approvals include raising up to ₹1,000 Cr via a Qualified Institutions Placement (QIP), representing ~140% of its current market cap of ₹713 Cr. Additionally, shareholders approved a preferential issue of up to 83,03,072 equity shares for cash, alongside massive non-cash preferential issues of up to 41,70,21,987 equity shares and 81,12,02,664 Compulsorily Convertible Preference Shares (CCPS).
- Shareholders approved capital raise via QIP aggregating up to ₹1,000 Cr in one or more tranches with 99.58% votes in favour
- Approved preferential issue of up to 83,03,072 equity shares for cash consideration with 99.58% approval
- Passed preferential allotment of up to 41,70,21,987 equity shares for consideration other than cash with 99.35% votes in favour
- Approved allotment of up to 81,12,02,664 CCPS on a preferential basis for consideration other than cash with 99.35% approval
Shalimar Paints held an EGM on September 11, 2026, where shareholders transacted massive capital restructuring resolutions. These include issuing up to 83,03,072 equity shares for cash, up to 41.70 crore equity shares and 81.12 crore CCPS for non-cash consideration, alongside a QIP fundraise of up to Rs 1,000 crore. Compared to the company's current market cap of Rs 713 crore and TTM revenue of Rs 573 crore, the Rs 1,000 crore QIP approval represents an enormous ~140% of its current market cap. The massive equity and CCPS issuance for non-cash consideration indicates significant impending equity dilution and possible asset or corporate acquisitions.
- Approval to raise up to Rs 1,000 crore via Qualified Institutions Placement (QIP) in one or more tranches
- Preferential issuance of up to 41,70,21,987 equity shares for consideration other than cash
- Preferential issuance of up to 81,12,02,664 Compulsory Convertible Preference Shares (CCPS) for consideration other than cash
- Preferential issue of up to 83,03,072 equity shares for cash consideration
Shalimar Paints conducted an Extraordinary General Meeting (EGM) on September 11, 2026, transacting four major special resolutions for massive capital restructuring. Shareholders considered a Qualified Institutions Placement (QIP) of up to Rs 1,000 crore, which exceeds the company's current market cap of Rs 713 crore (140% of market cap). In addition, resolutions were put forward for preferential allotments, including up to 83.03 lakh shares for cash, 41.70 crore shares for consideration other than cash, and 81.12 crore CCPS for consideration other than cash. The official voting results from the scrutinizer will be declared shortly.
- Proposed capital raise via QIP for up to Rs 1,000 crore in one or more tranches, compared to a current market cap of Rs 713 crore
- Preferential issue of up to 41,70,21,987 equity shares for consideration other than cash
- Preferential issue of up to 81,12,02,664 Compulsory Convertible Preference Shares (CCPS) for consideration other than cash
- Preferential allotment of up to 83,03,072 equity shares for cash consideration
Shalimar Paints reported the voting results of its 124th Annual General Meeting held on September 9, 2026. All five ordinary and special resolutions were approved by shareholders with over 99.9% majority of votes cast, representing 75.92% voter turnout of outstanding shares. Key approvals included the adoption of FY26 financial statements, reappointment of director Aaditya Gajendra Sharda, increasing and restructuring authorized share capital, and expanding investment limits under Section 186 of the Companies Act, 2013.
- Shareholder turnout stood at 75.9174% (63,551,350 votes polled out of 83,711,178 shares).
- Adoption of FY26 financial statements passed with 99.9511% votes in favor.
- Special resolution to increase investment limits under Section 186 passed with 99.9098% votes in favor.
- Resolution to increase and restructure authorized share capital approved with 99.9117% votes in favor.
Shalimar Paints concluded its 124th Annual General Meeting on September 09, 2026. Shareholders considered ordinary and special resolutions, including the adoption of FY26 financial statements where the company reported a net loss of Rs 64.58 Cr on revenue of Rs 572.83 Cr. Key proposals tabled included an increase and restructuring in authorized share capital and higher investment limits under Section 186. Formal voting results from the scrutinizer will be submitted separately within prescribed SEBI timelines.
- Held 124th AGM on September 09, 2026 via Video Conferencing
- Special business tabled: Increase and restructuring of Authorised Share Capital
- Special business tabled: Increase in limits of Investment under Section 186 of Companies Act 2013
- Remote e-voting held from September 05, 2026 (09:00 AM IST) to September 08, 2026 (05:00 PM IST)
Shalimar Paints Limited concluded its 124th Annual General Meeting (AGM) held on September 09, 2026, via Video Conferencing. Key items tabled included the adoption of FY26 financial statements, the reappointment of director Mr. Aaditya Gajendra Sharda, and special resolutions regarding an increase and restructuring in authorized share capital as well as higher investment limits under Section 186. The company posted a TTM net loss of Rs 64.58 Cr on revenues of Rs 572.83 Cr in FY26. Scrutinizer voting results will be disclosed within the prescribed SEBI timeframe.
- 124th AGM held on September 09, 2026, commencing at 12:30 p.m. and concluding at 02:35 p.m. IST
- Shareholders voted on 5 resolutions, including FY26 audited accounts and restructuring of authorised share capital
- Special resolution presented to increase investment limits under Section 186 of the Companies Act, 2013
- Remote e-voting window was held from September 05, 2026 (09:00 a.m.) to September 08, 2026 (05:00 p.m.)
Shalimar Paints announced a transformational transaction to acquire a controlling stake in parent/affiliate Hella Infra Market Limited through a massive share-swap structure. The board approved issuing 41.70 Cr equity shares (worth ₹3,544.69 Cr) and 81.12 Cr CCPS (worth ₹6,895.22 Cr) at ₹85 per share for consideration other than cash, alongside a cash preferential issue of ₹105.86 Cr. Additionally, the company approved raising up to ₹1,000 Cr via a Qualified Institutions Placement (QIP) and increasing authorized share capital to ₹1,000 Cr (₹600 Cr equity and ₹400 Cr CCPS).
- Approved issue of 41,70,21,987 equity shares at ₹85/share aggregating ₹3,544.69 Cr for share swap consideration
- Approved issue of 81,12,02,664 CCPS (0.001% coupon) at ₹85/share aggregating ₹6,895.22 Cr for share swap consideration
- Proposed cash fundraise via QIP of up to ₹1,000 Cr and preferential equity issue of ₹105.86 Cr (1.25 Cr shares at ₹85)
- Authorized share capital expanded from ₹20 Cr to ₹1,000 Cr (₹600 Cr equity + ₹400 Cr CCPS)
- Appointed Mr. Kundan Sangwar as Chief Financial Officer
Shalimar Paints has issued a corrigendum to its September 11, 2026 EGM notice following observations from the NSE regarding SEBI ICDR regulations. Due to share sales within the preceding 90-day window, Pro Fin Capital Services Limited was disqualified from participating, reducing the preferential cash issue by 41,51,536 equity shares. Consequently, the cash fundraise is revised down to 83,03,072 equity shares aggregating ₹70.58 Cr. Other disqualified participants in the Hella Infra Market Limited (HIML) share swap were replaced by eligible HIML shareholders, leaving the aggregate non-cash equity shares (41.70 Cr shares) and CCPS (81.12 Cr) unchanged.
- Preferential cash issue reduced by 41,51,536 shares to 83,03,072 equity shares following NSE observation
- Revised cash issue size stands at ₹70,57,61,120 (₹70.58 Cr)
- Non-cash share swap allotment remains unchanged at 41,70,21,987 equity shares and 81,12,02,664 CCPS
- Disqualified allottees under SEBI ICDR Regulation 159(1) replaced by other shareholders of Hella Infra Market Limited
- EGM scheduled to be held on Friday, September 11, 2026 via Video Conferencing
Shalimar Paints has issued a corrigendum to its August 12, 2026 board meeting outcome regarding a proposed preferential issue for consideration other than cash. The aggregate consideration for the issuance of up to 81,12,02,664 CCPS (face value ₹2 at an issue price of ₹85) has been corrected to ₹6,895.22 Cr from ₹6,895.22 Cr (a minor ₹8,571 calculation adjustment). The filing also amends specific allottee quantities across Annexure II (equity shares) and Annexure III (CCPS), while keeping overall aggregate share counts unchanged. The transaction remains subject to shareholder approval.
- Total CCPS issue consideration corrected to ₹68,95,22,26,440 (from ₹68,95,22,17,869)
- Proposed preferential issue entails up to 81,12,02,664 CCPS at an issue price of ₹85 per share (₹2 face value + ₹83 premium)
- Aggregate number of Equity Shares and CCPS proposed to be issued remains unchanged
- Adjustments made to individual allottee lists across Annexure II and Annexure III
Shalimar Paints has issued an Extraordinary General Meeting (EGM) notice for September 11, 2026, to seek shareholder approval for raising up to ₹105.86 crore. The company plans to issue up to 1,24,54,608 equity shares at ₹85 per share (₹2 face value + ₹83 premium) on a preferential basis to three non-promoter entities. The fundraise represents approximately 15.3% of its ₹691 crore market capitalization and 44.5% of its net worth (₹238 crore). CARE Ratings has been appointed as the monitoring agency for the issue utilization.
- Proposed issuance of up to 1,24,54,608 equity shares on a preferential basis at ₹85 per share
- Total capital to be raised aggregates to ₹1,05,86,41,680 (₹105.86 crore)
- Shares to be allotted equally among three non-promoter entities (41,51,536 shares each)
- CARE Ratings Limited appointed as the monitoring agency under SEBI ICDR regulations
- E-voting period scheduled from September 07 to September 10, 2026, ahead of the September 11 EGM
Shalimar Paints Limited has issued a weblink intimation letter to shareholders whose email addresses are not registered, providing access to the FY 2025-26 Annual Report and AGM Notice. The 124th Annual General Meeting (AGM) is scheduled to be held virtually on Wednesday, September 09, 2026, at 12:30 PM IST. The cut-off date for sending this intimation was August 14, 2026. This is a standard regulatory disclosure under Regulation 36(1)(b) of SEBI LODR with no direct operational or financial impact.
- 124th Annual General Meeting scheduled for September 09, 2026, at 12:30 PM IST via VC/OAVM
- Letters dispatched to shareholders without registered emails as per cut-off date of August 14, 2026
- Online access provided for FY 2025-26 Annual Report and Notice of AGM
Shalimar Paints Limited has submitted its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26 pursuant to SEBI Listing Regulations. The report details company operations across 4 national manufacturing locations, noting that the Howrah plant remains non-operational. Core manufacturing accounts for 95% of total turnover, while export contribution stood minimal at 0.95%. The workforce comprises 581 total employees and 479 workers across operations.
- Core paint manufacturing activities accounted for 95% of entity turnover in FY26
- Entity operates across 4 plant locations, with 1 facility (Howrah plant) remaining non-operational
- Exports contributed 0.95% of total turnover, with domestic sales spanning 22 states and 1 UT
- Total headcount stands at 581 employees (556 permanent) and 479 workers (43 permanent)
Shalimar Paints Limited has issued the notice for its 124th Annual General Meeting (AGM) scheduled for September 09, 2026, along with its FY 2025-26 Annual Report. Remote e-voting is set from September 05 to September 08, 2026, with a record/cut-off date of September 02, 2026, to vote on 5 resolutions. The company's annual message highlighted that the decorative segment contributed ~63% of FY26 revenue, supported by 8 new product launches, while reiterating modernization across plants in Sikandrabad, Nashik, and Chennai.
- 124th Annual General Meeting scheduled for September 09, 2026, via Video Conference
- E-voting window active from September 05 to September 08, 2026, with cut-off date on September 02, 2026
- Total of 5 resolutions proposed for shareholder approval
- Annual report highlights Decorative Paints accounting for ~63% of total revenue with 8 new product launches
Shalimar Paints has appointed Mr. Kundan Sangwar as Chief Financial Officer (CFO) effective August 12, 2026. Following this appointment, the company has updated its list of Key Managerial Personnel (KMP) authorized to determine the materiality of events under SEBI Regulation 30(5). This leadership change comes as the company attempts a turnaround, having reported a TTM net loss of ‡65 Cr on a revenue of ‡573 Cr. The new CFO will be part of the core team driving the company's strategy to reach ‡1,000 Cr in revenue over the next 3-4 years.
- Appointment of Mr. Kundan Sangwar as Chief Financial Officer (CFO) effective August 12, 2026
- Authorization of three KMPs (MD & CEO, CFO, and Company Secretary) for SEBI materiality disclosures
- Company reported a TTM revenue of ‡573 Cr with a negative operating margin of -3.8%
- Promoter holding remains stable at 74.96% as of March 2026
- Company is targeting a revenue milestone of ‡1,000 Cr within 3-4 years
Financial Performance
Revenue Growth by Segment
The company reported an overall revenue growth of 12% in FY25, reaching INR 599.06 Cr. In Q1 FY24, the Industrial segment grew by 28% while the Decorative segment grew by 7% YoY.
Profitability Margins
Gross margins stood at 27% in FY25, a decline from 28% in FY24 due to higher input costs. Net profit margin was -13.37% in FY25 compared to -13.79% in FY24, reflecting sustained losses.
EBITDA Margin
EBITDA margin was -7.81% (Negative INR 46.81 Cr) in FY25, compared to -8.59% (Negative INR 45.97 Cr) in FY24. The company targets a positive EBITDA of 5% to 7% in the medium term.
Capital Expenditure
The company is investing in new R&D facilities, plant upgrades, and warehousing, though specific total INR Cr figures for the full year are not disclosed. Q1 FY24 saw INR 0.59 Cr spent on supply chain turnaround.
Credit Rating & Borrowing
Ratings were downgraded in June 2025 to 'CARE BB+; Negative' from 'CARE BBB-; Negative'. Finance costs increased by 35.4% to INR 17.55 Cr in FY25 from INR 12.96 Cr in FY24.
Operational Drivers
Raw Materials
Raw materials are primarily crude oil derivatives and pigments; specific names like titanium dioxide or solvents are implied by 'crude prices' which dictate the volatility of 73% of total material costs.
Import Sources
Global markets for crude-linked derivatives; the company notes dependency on imported raw materials which subjects them to geopolitical and exchange rate risks.
Capacity Expansion
Current capacity not specified in MT; however, the company is expanding its reach by adding 2,000 new dealers over five quarters and increasing its warehouse and sales depot count to improve market penetration.
Raw Material Costs
Raw material costs (COGS) represented approximately 73% of net sales in FY25. Gross margins compressed by 100 basis points (from 28% to 27%) due to higher input costs.
Manufacturing Efficiency
Inventory turnover ratio improved slightly to 3.48 times in FY25 from 3.37 times in FY24, indicating marginal improvement in stock management despite higher closing inventory.
Logistics & Distribution
Distribution reach improved by adding 646 new dealers in Q1 FY24 alone. Dealer-contributed sales account for approximately 14% to 15% of total revenue.
Strategic Growth
Expected Growth Rate
20-25%
Growth Strategy
The company aims to cross INR 1,000 Cr revenue in 3-4 years by increasing marketing spend from <2% to >5% of topline, expanding the dealer network (2,000+ added), and focusing on high-growth water-based emulsions and industrial B2B verticals.
Products & Services
Decorative paints (emulsions, water-based products), Industrial coatings, and integrated application services for industrial projects.
Brand Portfolio
Shalimar Paints.
New Products/Services
Healthy shift toward water-based products and specific emulsion portfolios which contributed to the 12% revenue growth in FY25.
Market Expansion
Aggressive expansion in the Industrial segment through an integrated supply-and-apply model and increasing dealer reach in the Decorative segment.
Market Share & Ranking
The company acknowledges a low market share but is growing faster than the industry average (14% vs industry in Q1 FY24) to acquire more share.
Strategic Alliances
Promoter support from Hella Infra Market Private Limited (Hella), Virtuous Tradecorp, and JSL Limited, involving significant equity infusions.
External Factors
Industry Trends
The industry is shifting toward water-based emulsions and integrated service models. While the decorative market is dealer-heavy, the industrial segment is moving toward B2B direct supply and application support.
Competitive Landscape
Faces intense competition from large organized players with superior pricing power and 40%+ gross margins.
Competitive Moat
Brand legacy (established 1902) and a growing dealer network of 2,000+ new additions provide a moderate moat, though it is currently challenged by weak profitability and high competitive intensity.
Macro Economic Sensitivity
Highly sensitive to crude oil price volatility and inflationary trends which compress operating margins.
Consumer Behavior
Growing preference for water-based and emulsion products over traditional solvent-based paints.
Geopolitical Risks
Global uncertainties impact the supply chain for imported raw materials, leading to production delays or cost escalations.
Regulatory & Governance
Industry Regulations
Subject to pollution norms and manufacturing standards typical for chemical/paint industries; specific impact costs not disclosed.
Taxation Policy Impact
Not disclosed; the company reported a loss before tax of INR 80.11 Cr with no tax expense for FY25.
Legal Contingencies
Hella Infra Market Limited (promoter) pledged 80,50,747 equity shares in favor of Catalyst Trusteeship Limited in late 2025 as per SEBI Takeover Regulations.
Risk Analysis
Key Uncertainties
Inability to turnaround operations to profitability (PBILDT margin below 2% is a negative rating factor). Promoter Hella's deteriorating credit profile poses a liquidity risk.
Third Party Dependencies
High dependency on promoter fund infusions for debt servicing and liquidity; absence of timely support is a key negative factor.
Technology Obsolescence Risk
Risk of falling behind in R&D compared to larger competitors; currently mitigating through new R&D investments and product mix shifts.
Credit & Counterparty Risk
Worsening credit cycles in the manufacturing sector impacted the Industrial segment in H2 FY25, leading to fluctuating consumption and dispatch delays.
