Shalimar Paints has announced that three members of its promoter group have requested reclassification from the 'Promoter and Promoter Group' category to the 'Public' category. This move comes after these individuals have completely divested their shareholdings in the company.

Reclassification Request Details

The company has received requests under Regulation 31A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 from the following individuals:

As evident from the table, all three individuals currently hold zero shares in the company, which forms the basis of their reclassification request.

Regulatory Process

The reclassification process is subject to several regulatory steps:

1. Approval from the Board of Directors of Shalimar Paints
2. Approval from the stock exchanges where the company is listed

The company has stated that it will follow all necessary regulatory processes as mandated by SEBI regulations to facilitate this reclassification.

Implications

This move could potentially alter the shareholding structure of Shalimar Paints. However, it's important to note that the reclassification, if approved, would only change the category under which these individuals are listed and does not involve any transfer of shares, as they currently hold no shares in the company.

Investors and market participants are advised to monitor further announcements from the company regarding the progress of this reclassification request.

Shalimar Paints Limited , a prominent player in the Indian paint industry, has reported its financial results for the first half of the fiscal year 2026, showing signs of improvement despite ongoing challenges.

Financial Performance

The company reported a consolidated loss of ₹30.53 crores for the six months ended September 30, 2025, marking a significant improvement from the ₹46.62 crores loss recorded in the same period last year. Revenue from operations saw a 6% increase, rising to ₹300.28 crores from ₹284.07 crores in H1 FY25.

Strategic Initiatives

Shalimar Paints has implemented several strategic measures to strengthen its market position and financial stability:

1. Product Innovation: Launched differentiated products in the emulsion category, contributing 10% to sales in Q2.
2. Market Expansion: Appointed 100 new distributors to enhance rural market penetration with affordable product ranges.
3. Dealer Network Growth: Achieved a 20% increase in the active dealer base, with a focus on strengthening machine dealers and increasing emulsion saliency.
4. Cost Optimization: Implemented effective cost control measures across manpower, supply chain, and manufacturing costs.
5. Inventory Management: Improved material availability while reducing total inventory holding by ₹10.00 crores.

Management Commentary

The management of Shalimar Paints expressed optimism about the company's progress, highlighting that the first six months of FY26 have been a period of meaningful advancement. They emphasized the initiatives taken to optimize the financial position and reinforce long-term stability.

Market Performance

Despite challenging market conditions, Shalimar Paints reported a 6% revenue growth in H1, which the company claims outperforms the subdued growth seen in the market and among peers.

Outlook

While the company continues to face challenges, the narrowing losses and strategic initiatives implemented suggest a focus on turnaround and growth. The improvement in EBITDA and margins indicates that the cost optimization efforts are beginning to yield results.

Investors and market observers will likely keep a close watch on Shalimar Paints' performance in the coming quarters to see if the company can sustain this momentum and potentially return to profitability.