Shalimar Paints filed its Business Responsibility and Sustainability Report (BRSR) for the financial year ending March 31, 2026, with the Bombay Stock Exchange and National Stock Exchange on August 18, 2026. The filing, prepared on a standalone basis, outlines the company’s performance against the nine principles of the National Guidelines on Responsible Business Conduct (NGRBC).

The company reported a turnover of ₹5,661,658,161 and a net worth of ₹2,376,573,333 for FY26. Despite these figures, Shalimar Paints stated it does not fall under the mandatory Corporate Social Responsibility (CSR) obligations under Section 135 of the Companies Act, 2013.

Workforce and Governance

As of the end of FY26, the entity employed 581 permanent and non-permanent employees, with males constituting 95.53% of this group. Additionally, there were 479 workers, of whom 98.54% were male. The board comprises seven directors, including one female director (14.29%), while key management personnel includes one female member (50%).

The turnover rate for permanent employees stood at 48.02% in FY26, down from 51.02% in FY25. For permanent workers, the turnover rate was 26.27%, compared to 5.10% in the previous year. No differently abled employees or workers were recorded during the period.

Environmental Metrics

The company disclosed significant energy consumption data for FY26. Total energy consumed reached 18,140,863,159 kJ, comprising 208,056,960 kJ from renewable sources and 16,060,293,559 kJ from non-renewable sources. This resulted in an energy intensity per rupee of turnover of 3,20,416 kJ/₹, up from 2,00,000 kJ/₹ in FY25.

Water withdrawal totaled 25,741 kilolitres, primarily from groundwater (22,016 kL) and third-party sources (3,724 kL). Total water consumption was 25,065 kL, with water intensity per rupee of turnover decreasing to 0.44 kL/₹ from 1.11 kL/₹ in FY25.

Greenhouse gas emissions for Scope 1 and Scope 2 totaled 1,576.58 T CO2e (469.69 T CO2e for Scope 1 and 1,106.89 T CO2e for Scope 2). The emission intensity per rupee of turnover was 0.02 T CO2e/L INR, down from 0.04 T CO2e/L INR in FY25.

Waste Management and Safety

Total waste generated increased to 180.22 metric tonnes in FY26 from 27.22 metric tonnes in FY25. This included 29.45 metric tonnes of plastic waste, 54.97 metric tonnes of other hazardous waste, and 95.80 metric tonnes of other non-hazardous waste. Of the total waste generated, 4.88 metric tonnes were recycled, while 175.33 metric tonnes were disposed of through incineration and other operations.

Safety metrics showed a Lost Time Injury Frequency Rate (LTIFR) of 6.24 for employees and 14.36 for workers. There was one recordable work-related injury for employees and 19 for workers. No fatalities or high-consequence injuries were reported.

What the Numbers Show

The data reveals a divergence between waste generation volumes and recycling efforts. While total waste generated surged to 180.22 metric tonnes in FY26—more than six times the FY25 level—the volume of waste recycled dropped sharply to 4.88 metric tonnes from 64.51 metric tonnes. This indicates that the majority of the increased waste stream (approximately 97%) was directed toward disposal operations rather than recovery, highlighting a shift in waste management outcomes despite stable or improved resource intensity metrics like water usage.

Shalimar Paints Limited has released its Annual Report for FY26 and issued notice of its 124th Annual General Meeting (AGM) scheduled for Wednesday, September 09, 2026, at 12:30 p.m. (IST) through video conference. The company, established in 1902, reported a narrowing of its standalone net loss to ₹63.34 crore in FY26 compared to ₹80.11 crore in the previous year, even as revenue from operations declined approximately 5% year-on-year.

Financial Performance: FY26 vs FY25

The following table summarises the company's standalone and consolidated financial performance for FY26 and FY25:

On a standalone basis, the negative EBITDA improved to ₹18.54 crore in FY26 from ₹46.81 crore in FY25. The gross margin declined from 34% to 29% due to product mix changes, primarily a shift in the water-based emulsion portfolio. Finance costs rose to ₹25.26 crore from ₹17.55 crore, reflecting higher borrowings. The exceptional item of ₹4.60 crore in FY26 relates to past service cost arising from the implementation of new labour codes notified by the Government of India on November 21, 2025, which revised the definition of wages applicable to gratuity computations.

Key Financial Ratios

The following table presents key standalone financial ratios for FY26 compared to FY25:

The current ratio declined to 0.82 from 1.00, primarily due to an increase in current borrowings. As at March 31, 2026, the company's standalone accumulated losses stood at ₹543.73 crore, and current liabilities exceeded current assets by ₹65.48 crore.

Business Segments and Operations

The decorative paints division accounted for approximately 67% of total standalone sales in FY26. The share of water-based paints within the decorative category stood at 64%, with a stated objective of taking this to 70%. Revenue contribution from new products launched under the Hero and Zero Damp brand umbrellas stood at 28% of total sales. Nine new products were launched during the year across decorative and industrial categories, including Hero Weatherguard12 (12-year warranty exterior emulsion), Hero Insignia (10-year warranty interior emulsion), Hero Floorshield, Zero Damp Interior, and a PU gloss enamel.

The industrial paints segment faced significant headwinds during FY26, including a slowdown in the iron and steel sector, fund flow disruptions in the Jal Jeevan Mission, and raw material price volatility. The company operates three manufacturing facilities at Chennai, Nashik, and Sikandrabad (Uttar Pradesh), all certified under ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018. The R&D laboratory at Nashik holds NABL accreditation under ISO/IEC 17025:2017.

The company's distribution network comprised 47 sales depots and over 7,500 retail touchpoints in the decorative segment. Inventory levels were reduced by ₹25 crore and six non-profitable warehouses were closed during the year. Foreign exchange inflows stood at ₹1,468.61 lakhs in FY26 compared to ₹701.85 lakhs in FY25, while outflows were ₹888.87 lakhs versus ₹493.49 lakhs in FY25.

124th AGM: Key Agenda Items

The 124th AGM is scheduled for September 09, 2026, at 12:30 p.m. via video conference. Remote e-voting will be available from September 05, 2026 (9:00 a.m.) to September 08, 2026 (5:00 p.m.), with the cut-off date for e-voting entitlement set at September 02, 2026. Five resolutions are proposed:

The proposed increase in authorised share capital involves creating 290,00,00,000 additional equity shares of ₹2 each and adding 200,00,00,000 Non-Cumulative Non-Participating Compulsory Convertible Preference Shares of ₹2 each at a coupon rate of 0.001% per annum. These preference shares will be compulsorily convertible within a period not exceeding twenty years from the date of issue.

Corporate Governance and Auditors

The statutory audit for FY26 was conducted by M/s. Walker Chandiok & Co LLP (Firm Registration No. 001076N/N500013), appointed at the 120th AGM for a five-year term ending at the 125th AGM. The auditors' report does not contain any qualification, reservation, or adverse remark. Secretarial audit was conducted by M/s. MAKS & CO., Company Secretaries (FRN P2018UP067700), appointed at the 123rd AGM for a five-year term from FY26 to FY30. The secretarial audit report is also free of qualifications.

The company's credit ratings were reaffirmed by CARE Ratings Limited at 'CARE BB+; Negative' for long-term bank facilities and 'CARE A4+' for short-term bank facilities. As at March 31, 2026, the promoter and promoter group held 74.96% of the paid-up equity share capital of 8,37,11,178 shares, with Hella Infra Market Limited holding 52.85% and Virtuous Tradecorp Private Limited holding 12.62%.

The Board of Directors did not recommend any dividend on equity shares for FY26 in view of the losses during the year. The company has two subsidiaries: Shalimar Adhunik Nirman Limited (99.99% held) and IM Inicio Projects Private Limited, formerly Eastern Speciality Paints & Coatings Private Limited (100% held). The Gurugram commercial plot held by Shalimar Adhunik Nirman Limited has been classified as an asset held for sale in the consolidated financial statements at a carrying value of ₹27.13 crore.