Shalimar Paints narrows FY26 loss to ₹63.34 crore, turns EBITDA positive
Shalimar Paints reported a narrowed net loss of ₹63.34 crore for FY26, compared to ₹80.11 crore in the previous year, achieving positive EBITDA for the first time since acquisition. Revenue from operations was ₹569.03 crore, with total expenses decreasing to ₹634.63 crore. The Board approved the audited results on May 28, 2026, with an unmodified opinion from statutory auditors.
*this image is generated using AI for illustrative purposes only.
Shalimar Paints reported a net loss of ₹63.34 crore for the financial year ended March 31, 2026, a significant improvement from the net loss of ₹80.11 crore in the previous year. The company achieved positive EBITDA for the first time since its acquisition by Hella Infra Market Limited, driven by cost rationalization and operational efficiencies. Revenue from operations for the year stood at ₹569.03 crore, compared to ₹599.06 crore in FY25.
The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 28, 2026. M/s Walker Chandio & Co., LLP, Statutory Auditors, provided an unmodified opinion on the standalone and consolidated financial results. The company reported a loss per share of ₹7.57 for FY26, compared to ₹9.57 in the previous year.
Financial Performance
The company's total income for FY26 was ₹575.89 crore, down from ₹608.92 crore in the previous year. Total expenses decreased to ₹634.63 crore from ₹689.03 crore, aided by reductions in employee costs and manufacturing expenses. For the quarter ended March 31, 2026, the company reported a net loss of ₹6.18 crore, compared to a loss of ₹9.51 crore in the same quarter last year.
| Metric | FY26 (₹ crore) | FY25 (₹ crore) |
|---|---|---|
| Revenue from operations | 569.03 | 599.06 |
| Total income | 575.89 | 608.92 |
| Total expenses | 634.63 | 689.03 |
| Net loss | (63.34) | (80.11) |
| Loss per share (₹) | (7.57) | (9.57) |
Operational Highlights
The company attributed its improved performance to focused cost rationalization initiatives, which led to significant reductions in employee costs and manufacturing expenses. It also continued the premiumization of its portfolio, emphasizing high-margin emulsion products to enhance its margin profile. Despite industry headwinds and volatile demand conditions, Shalimar Paints delivered a strong operational turnaround.
Going Concern and Exceptional Items
The financial statements were prepared on a going concern basis, supported by management's plans for asset monetization, additional credit facilities under the ECLGS 5.0 scheme, and financial support from the holding company. The company reported an exceptional item of ₹4.60 crore for the year, primarily due to a one-time charge arising from the implementation of new labour codes effective November 21, 2025. This charge included an increase in gratuity liability and compensated absences liability.
Historical Stock Returns for Shalimar Paints
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.68% | -2.33% | +3.57% | -9.77% | -46.10% | -50.73% |
What is the timeline for the company to achieve net profitability following its first positive EBITDA?
How will the proposed asset monetization and ECLGS 5.0 credit facilities specifically impact the company's liquidity position in the coming year?
Will the cost rationalization measures be sufficient to sustain margins if raw material prices rise or demand volatility continues?
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