Shalimar Paints Limited has announced its unaudited financial results for the third quarter ended December 31, 2025, reporting a standalone net loss of ₹26.62 crore compared to ₹23.98 crore in the corresponding quarter of the previous year. The company's revenue from operations declined by 12.00% to ₹130.40 crore from ₹148.16 crore in Q3FY25.

Financial Performance Overview

The paint manufacturer's quarterly performance reflected challenging market conditions with both revenue contraction and widening losses. The company's total income, including other income, stood at ₹131.23 crore compared to ₹148.99 crore in the same quarter last year.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, Shalimar Paints reported a standalone net loss of ₹57.16 crore compared to ₹70.60 crore in the corresponding period of FY25, showing an improvement of 19.03%. Revenue from operations for the nine-month period was ₹415.97 crore, marginally lower than ₹421.23 crore in the previous year.

Exceptional Items Impact

The company reported exceptional expenses of ₹4.60 crore during Q3FY26, primarily related to the implementation of new labour codes by the Government of India. These codes, effective from November 21, 2025, resulted in increased gratuity liability of ₹4.29 crore and compensated absences liability of ₹0.31 crore due to revised wage definitions.

Operational Highlights

Despite the challenging financial performance, the company highlighted several positive operational developments for the nine-month period:

• Topline growth maintained at par with previous year despite pipeline business impact in industrial domain
• New products contributed 5% incremental business
• Improvement in product mix towards high margin products and emulsions
• EBITDA losses reduced to half through operational efficiencies
• Working capital cycle improved by 15 days over the last quarter

Board Meeting and Regulatory Compliance

The Board of Directors meeting was held on February 12, 2026, from 12:20 p.m. to 03:30 p.m., where the unaudited financial results were considered and approved. The results have been uploaded on stock exchange websites and the company's official website at www.shalimarpaints.com , ensuring compliance with SEBI listing regulations.

Consolidated Results

On a consolidated basis, the company reported a net loss of ₹26.65 crore for Q3FY26 compared to ₹24.56 crore in Q3FY25. Consolidated revenue from operations stood at ₹131.33 crore versus ₹148.48 crore in the corresponding quarter of the previous year.

Shalimar Paints Limited's Board of Directors has approved the reclassification of eight promoter group members from 'Promoter Group' category to 'Public' category during its meeting held on January 13, 2026. The decision comes following formal request letters received from the promoter group members between November 17, 2025, and November 28, 2025, seeking reclassification under Regulation 31A of the Listing Regulations, 2015.

Board Decision and Regulatory Compliance

The board meeting, which commenced at 11:00 a.m. and concluded at 11:55 a.m. on January 13, 2026, involved detailed consideration and analysis of the reclassification requests. The board determined that the promoter group members met the conditions specified in Regulation 31A of the Listing Regulations, 2015. However, the approval remains subject to receipt of necessary approvals and/or no objections from concerned regulatory authorities including SEBI and stock exchanges.

Promoter Group Members Seeking Reclassification

The following table details the eight promoter group members seeking reclassification along with their current shareholding positions:

Shareholding Analysis

Among the eight promoter group members seeking reclassification, seven members currently hold zero shares in the company. Only Ms. Hina Devi Goyal holds 60 shares, representing a minimal 0.0001% of the total shareholding. This minimal shareholding pattern among the promoter group members likely contributed to the board's decision to approve their reclassification request.

Next Steps and Regulatory Process

The reclassification approval is contingent upon receiving necessary regulatory clearances. Shalimar Paints will now await approvals and/or no objection certificates from SEBI and the relevant stock exchanges before the reclassification becomes effective. The company has informed both BSE Limited and National Stock Exchange of India Limited about the board's decision through official communication dated January 13, 2026.

This corporate restructuring move reflects the company's compliance with regulatory frameworks while optimizing its shareholding structure. The reclassification, once approved by regulatory authorities, will formally move these eight individuals from the promoter group category to the public shareholder category.