Shalimar Paints Ltd
Shalimar Paints FY26: Revenue Dips to ₹569.03 Cr, Loss Narrows to ₹63.34 Cr 🎨📊
- Shalimar Paints Limited is issuing its Annual Report for the financial year ended March 31, 2026 and the Notice of its 124th Annual General Meeting (AGM).
- The 124th AGM is scheduled to be held on Wednesday, September 09, 2026, at 12:30 p.m. through Video Conference (VC).
- The company reported net revenue of over ₹ 522 crores for FY 2025-26.
- The Decorative Paints Division contributed approximately 63% of total revenue.
- The company achieved positive EBITDA in the fourth quarter of FY 2025-26, marking a financial turnaround.
- Eight new products were launched during the year, contributing approximately 8% of total revenue.
- Over 100 new distributors were appointed during the year to expand market reach.
- Marketing initiatives, including collaborations with Bollywood films, generated over 10 million digital views.
- The WeatherGuard 12 campaign achieved over 33,000 seconds of television telecast and over 12,000 seconds of radio airtime.
- Shalimar Paints was honoured with the 'Most Trusted Brand' award for the second consecutive year.
- The AGM notice includes 5 resolutions for shareholder approval.
- The company proposes to increase its Authorised Share Capital from ₹ 20,00,00,000 to ₹ 600,00,00,000 by creating additional equity shares.
- Further, the proposal includes altering the capital clause to add 200,00,00,000 Non-Cumulative Non-Participating Compulsory Convertible Preference Shares of ₹ 2 each.
- A special resolution seeks approval to increase the limit for investments, loans, guarantees, or securities under Section 186 of the Companies Act, 2013 to an aggregate of ₹ 300,00,00,00,000.
- An ordinary resolution seeks ratification of remuneration payable to Cost Auditors, M/s. Sanjay Gupta & Associates, amounting to ₹ 2,00,000 plus taxes for FY 2026-27.
- Remote e-voting facility is provided via National Securities Depository Limited (NSDL). The e-voting period is from September 05, 2026 (09:00 a.m.) to September 08, 2026 (05:00 p.m.).
- The cut-off date for e-voting entitlement is Wednesday, September 02, 2026.
- Mr. Ankush Agarwal is appointed as the Scrutinizer for the e-voting process.
- The notice provides detailed instructions for shareholders to participate in remote e-Voting and join the virtual Annual General Meeting (AGM).
- Shareholders can vote and join the meeting via the NSDL e-Voting website (https://www.evoting.nsdl.com/) or through their depository (NSDL/CDSL) accounts.
- For e-Voting issues, shareholders can contact NSDL at 022 - 4886 7000 / evoting@nsdl.com or CDSL at toll free no. 1800-21-09911 / helpdesk.evoting@cdslindia.com.
- The company proposes to increase its Authorised Share Capital from Rs. 20,00,00,000 (20 crores) to Rs. 600,00,00,000 (600 crores) by creating 290,00,00,000 new equity shares of Rs. 2 each.
- A new class of 200,00,00,000 Non-Cumulative, Non-Participating Compulsorily Convertible Preference Shares of Rs. 2 each (aggregating Rs. 400,00,00,000) is proposed to be added.
- Shareholder approval is sought to increase the limit for investments, loans, guarantees, and securities under Section 186 of the Companies Act to an aggregate of Rs. 300,00,00,00,000 (Thirty Thousand crores).
- The remuneration of Rs. 2,00,000 plus taxes for the Cost Auditors, M/s. Sanjay Gupta & Associates, for FY 2026-27 is proposed for ratification.
- Mr. Aaditya Gajendra Sharda (DIN: 07024283), aged 41, is seeking re-appointment as a Director liable to retire by rotation. He attended 3 out of 7 Board meetings in FY 2025-26.
- The Management Discussion & Analysis highlights that FY 2025-26 was challenging for the paint industry, but Shalimar Paints achieved positive EBITDA in Q4. Decorative paints contributed 67% of total sales.
- The company launched 9 new products in FY 2025-26. Revenue from new products contributed 28% of total sales. The share of water-based paints in the decorative category was 64%.
- The company optimized inventory and working capital by reducing inventory levels by Rs 25 crores and closed 6 non-profitable warehouses.
- For the financial year 2025-26, over 250 new employees joined the company, including several leadership positions.
- The results of the AGM voting along with the Scrutinizer's Report will be placed on the company's website (www.shalimarpaints.com) and NSDL's website within two working days.
- Financial Performance: Company reported a standalone loss of Rs. 63.34 crore for FY 2025-26, an improvement from a loss of Rs. 80.11 crore in the previous year.
- Revenue Decline: Standalone revenue from operations decreased to Rs. 569.03 crore in FY 2025-26 from Rs. 599.06 crore in FY 2024-25, a decline of about 5%.
- Gross Margin Reduction: Gross margin reduced from 34% to 29% due to changes in product mix.
- Employee Recognition: More than 20 employees were awarded the Top Performer Award for FY 2025-26.
- Succession Planning: More than 45+ employees were elevated to the next level in the organization during FY 2025-26.
- Employee Communication: Quarterly town halls are conducted by MD and CEO Mr. Kuldip Raina for all 650+ employees.
- Marketing & Awards: Shalimar Paints received the 'Most Trusted Brand' award twice in a row. Movie collaborations garnered 15Mn views on digital platforms.
- Brand Visibility: Cab branding during Diwali grabbed more than 10+ Mn eyeballs. TV spots during the festive season garnered 100Mn+ unique views per week.
- Product Launches: Entered the floor coating segment with 'Hero Floor Shield' launched in July'25. Expanded the Zero Damp waterproofing portfolio and launched luxury emulsion products with warranties of up to 12 years.
- Credit Rating: Company's credit rating is 'CARE BB+; Negative' for long-term bank facilities and 'CARE A4+' for short-term facilities.
- Share Capital: Paid-up equity share capital as of March 31, 2026, is Rs. 16,74,22,356 divided into 8,37,11,178 equity shares of Rs. 2/- each.
- No Dividend: In view of losses, the Board did not recommend any dividend for FY 2025-26.
- Management Changes: Mr. Kuldip Raina was appointed as Managing Director & CEO effective April 10, 2025. Mr. Venugopal Chetlur stepped down as Whole-time Director but continues as COO. Mr. Sachin Naik resigned as CFO effective May 30, 2026.
- Subsidiaries: The company has two subsidiaries: Shalimar Adhunik Nirman Limited and IM Inicio Projects Private Limited.
- Key Financial Ratios: Notable changes include Debt Equity Ratio increasing from 0.55 to 0.69, Current Ratio decreasing from 1.00 to 0.82, and Operating Profit Margin improving from -13.37% to -2.42%.
- Cost Optimization: Initiatives include leveraging automation, outsourcing non-core functions, minimizing travel, and promoting energy-efficient practices.
- Decorative Business: New products contributed nearly 10% of the decorative business turnover. Dedicated distributor model in rural areas generated business of almost 20CR.
- Industrial Paints Segment: Business faced headwinds due to slowdown in the Iron and Steel sector and election-year fund release issues in states like West Bengal and Karnataka.
- No material related party transactions occurred during the financial year.
- The company has two subsidiaries: Shalimar Adhunik Nirman Limited (99.99% holding) and IM Inicio Projects Private Limited (100% holding).
- Subsidiary financials (Rs. in Lakhs): Shalimar Adhunik Nirman had a loss after tax of Rs. 8.36, while IM Inicio Projects had a loss after tax of Rs. 187.29.
- No material changes or commitments affecting the company's financial position occurred during or after the financial year.
- The company's equity shares are listed on BSE and NSE, and listing fees for FY 2026-27 have been paid.
- No profits were made in the last three years, so no CSR expenditure was required for FY 2025-26. A CSR policy is in place.
- No complaints were filed, disposed of, or pending regarding sexual harassment at the workplace during the year.
- Employee gender composition as of March 31, 2026: 576 Male, 23 Female, 0 Transgender.
- No proceedings were admitted against the company under the Insolvency and Bankruptcy Code, 2016.
- R&D expenditure for FY 2025-26 was Rs. 712.51 Lakhs (Capital: Rs. 10.55 Lakhs, Recurring: Rs. 701.96 Lakhs).
- Foreign exchange earnings and outgo for FY 2025-26: Inflow of Rs. 1,468.61 Lakhs, Outflow of Rs. 888.87 Lakhs.
- The secretarial audit report confirms general compliance with statutory provisions and corporate governance standards.
- The ratio of the remuneration of the Managing Director & CEO and the COO & WTD to the median employee remuneration was 96:04.
- Median employee remuneration decreased by 5.37% in FY 2025-26.
- The company had 599 permanent employees on its rolls as of March 31, 2026.
- CSR spending for the financial year was Rs. 0, with no unspent amount carried forward from the preceding three financial years (2024-25, 2023-24, 2022-23).
- The Board of Directors consisted of 7 members as of March 31, 2026: 1 executive director, 4 non-executive independent directors, and 2 non-executive non-independent directors.
- Seven Board meetings were held during FY 2025-26. Key appointments included Mr. Kuldip Raina as Managing Director & CEO (from April 10, 2025) and Mr. Abhijeet Jhawar as an Additional Non-Executive Non-Independent Director (from May 12, 2026).
- Key resignations included Mr. Venugopal Chetlur as Whole-time Director (from March 04, 2026) and Mr. Sachin Naik as Chief Financial Officer (from May 30, 2026).
- The Audit Committee, chaired by Mr. Vijay Kumar Sharma, held 4 meetings. The committee reviewed financial statements, internal controls, and auditor independence.
- The Nomination and Remuneration Committee, chaired by Mr. Atul Rasiklal Desai, held 2 meetings and is responsible for director appointments and remuneration policy.
- Executive Director remuneration for FY 2025-26: Mr. Kuldip Raina received Rs. 1,28,12,412 and Mr. Venugopal Chetlur received Rs. 1,14,25,466.
- Sitting fees paid to Non-Executive Independent Directors: Dr. Rajeev Uberoi (Rs. 9,25,000), Mr. Vijay Kumar Sharma (Rs. 5,75,000), Ms. Shan Jain (Rs. 6,00,000), and Mr. Atul Rasiklal Desai (Rs. 4,50,000).
- The Stakeholders' Relationship Committee received 3 complaints during the year, all of which were resolved, with no complaints pending as of March 31, 2026.
- The Risk Management Committee, chaired by Dr. Rajeev Uberoi, held 2 meetings to oversee the company's risk management policy and framework.
- Corporate Governance Committee composition as of March 31, 2026 includes Ms. Shan Jain (Chairperson), Dr. Rajeev Uberoi, Mr. Kuldip Raina (MD & CEO), and Mr. Souvik Pulakesh Sengupta.
- Corporate Social Responsibility Committee had no meetings in FY 2025-26 as the company had no CSR obligation for the year.
- Share Transfer Committee held 3 meetings in FY 2025-26. Mr. Sachin Naik attended all 3 meetings.
- Sub-Committee of Board of Directors held 9 meetings in FY 2025-26. Mr. Venugopal Chetlur attended all 9 meetings.
- Senior Management appointments in FY 2025-26 included Mr. Hardik Parikh (June 01, 2025) and Mr. Mathew Joseph Kallor (March 06, 2026). Resignations included Mr. Varun Malik (May 31, 2025) and Ms. Shalmali Sharma (March 31, 2026).
- No shares were offered under the Employee Stock Option Scheme (ESOP 2022) during the year.
- Postal Ballot results: Appointment of Mr. Kuldip Raina as Director received 6,22,25,782 votes in favour (99.99% of votes polled). His appointment as MD & CEO received 6,22,24,548 votes in favour (99.99% of votes polled).
- Postal Ballot results: Reappointment of Ms. Shan Jain as Independent Director received 6,24,36,324 votes in favour (99.945% of votes polled).
- No dividend was recommended for FY 2025-26 due to losses.
- Shareholding as of March 31, 2026: Promoters hold 74.96% (6,27,49,651 shares). 99.79% of the total equity share capital is held in dematerialized form.
- Distribution of shareholding: 96.35% of shareholders (31,320) hold up to 5,000 shares, accounting for 7.98% of equity.
- The company has two unlisted subsidiary companies: Shalimar Adhunik Nirman Limited and IM Inicio Projects Private Limited.
- Total fees paid to the statutory auditor and its network entities on a consolidated basis was ` 78.19 Lakhs.
- Credit rating as of the report date is CARE BB+ (Negative) for long-term bank facilities and CARE A4+ for short-term facilities.
- No complaints were filed under the Sexual Harassment of Women at Workplace Act during FY 2025-26.
- The 124th Annual General Meeting is scheduled for Wednesday, September 09, 2026, at 12:30 p.m., to be held through Video Conferencing.
- Shalimar Paints Limited's Business Responsibility & Sustainability Report for FY 2025-26 is certified by M/s. MAKS & Co., Company Secretaries.
- The company's primary business is manufacturing paints and coatings, accounting for 95% of turnover.
- Total employee count is 581, with a workforce of 479 workers. Gender diversity is low: 95.53% of employees are male, and 4.48% are female.
- The company has 4 plants in India (1 in Howrah is non-operational) and 1 office, serving 22 states + 1 UT domestically and 2 countries internationally. Exports contribute 0.95% of turnover.
- Paid-up capital is 167422356 INR. Turnover is 5661658161 INR and Net Worth is 2376573333 INR. CSR is not applicable as per Section 135 of the Companies Act, 2013.
- Key material risks identified include Waste Management, Water Management, Health & Safety, GHG Emissions, and Chemical Safety & Management.
- The company holds certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, and ISO/IEC 17025:2017.
- The Board has 7 directors, with 1 female (14.29%). Key Management Personnel has 2 members, with 1 female (50%).
- Grievance data: 2 shareholder complaints filed in FY25-26 (0 pending). 1 customer complaint from previous FY is under appeal.
- Accounts payable days increased to 167 days in FY25-26 from 130 days in FY24-25.
- Sales concentration: 66% of sales are to dealers/distributors (7047 entities). Top 10 dealers account for 7.2% of dealer sales.
- Sustainable R&D investment was 11.11% of total R&D in FY25-26, focused on developing high-solids, direct-to-metal, and waterborne coatings.
- The entity is in the process of finalizing its specific ESG goals and targets. The Risk Management Committee oversees sustainability issues.
- Shalimar Paints is building procedures for sustainable sourcing but cannot yet report a percentage of sustainably sourced inputs.
- The company manages waste by sending plastic to certified recyclers, e-waste to authorized recyclers, and hazardous waste via approved vendors with SPCB authorizations.
- R&D is developing eco-friendly products like high-volume solids, water-based paints, and direct-to-metal coatings.
- Extended Producer Responsibility (EPR) for plastic packaging is acknowledged, with a plan involving collection infrastructure, awareness initiatives, and partnerships with authorized agencies.
- Total permanent employees: 556 (533 Male, 23 Female). Other than permanent employees: 25 (22 Male, 3 Female).
- Total permanent workers: 43 (all Male). Other than permanent workers: 436 (429 Male, 7 Female).
- Cost incurred on well-being measures as a % of total revenue: 0.17% (2025-26) vs 0.25% (2024-25).
- Retirement benefits coverage for 2025-26: PF at 100% for employees & workers, Gratuity at 95.7% for employees & 100% for workers, ESI at 0.86% for employees & 100% for workers.
- Premises are fully accessible for differently-abled persons, and the company has an equal opportunity policy.
- Return to work and retention rates for employees who took parental leave were 100% for both males and females.
- A grievance redressal system exists for all, with a dedicated email (hrd@shalimarpaints.com) and a POSH committee.
- 0% of permanent employees and workers were union members in 2025-26.
- In 2025-26, 100% of employees (581 total) received health & safety training, and 89.85% received skill training.
- 100% of employees received performance reviews in 2025-26, compared to 8.98% of workers.
- A comprehensive Health and Safety Management System is implemented, including VOC monitoring, annual EHS audits, and a safety work permit system.
- Lost Time Injury Frequency Rate (LTIFR) for 2025-26: Employees 6.24, Workers 14.36. Total recordable injuries: Employees 1, Workers 19.
- 0 complaints were filed in 2025-26 regarding working conditions or health & safety.
- 100% of plants and offices were assessed for health & safety practices and working conditions.
- Corrective safety actions include installing fire safety systems, conducting mock drills, and planning a dust suction system.
- Key stakeholder groups are Employees/Workers, Shareholders/Investors, Customers, Vendors, Supply Chain Partners, Communities, and Government/Regulatory Authorities.
- 100% of employees and workers received human rights training in 2025-26.
- 100% of employees and workers were paid more than the minimum wage in 2025-26.
- Median remuneration for 2025-26: Key Managerial Personnel Male 9121068 INR, Female 1912488 INR; Employees (other than BoD & KMP) Male 567184610 INR, Female 18658670 INR; Workers Male 153258927 INR, Female 2272908 INR.
- Gross wages paid to females as % of total wages: 3.38% (2025-26) vs 3.78% (2024-25).
- HR team is the focal point for human rights issues, with an internal grievance mechanism.
- 0 complaints were filed in 2025-26 across categories like sexual harassment, discrimination, child labour, forced labour, wages, and other human rights issues.
- 0 complaints were reported under the POSH Act in 2025-26.
- 100% of plants and offices were assessed for child labour, forced labour, sexual harassment, discrimination, and wages.
- No significant human rights risks were identified, so no corrective actions were needed.
- Total energy consumption (2025-26): 1814,08,63,159 Kilo Joules. Energy intensity per rupee of turnover: 3,20,416.
- Water withdrawal (2025-26): 25,741 kilolitres (22,016 groundwater, 3,724 third-party). Water intensity per rupee of turnover: 0.44.
- Water discharge (2025-26): 675.56 kilolitres, all treated (e.g., via aeration, chemical separation, evaporation in solar pond).
- A Zero Liquid Discharge mechanism is implemented with ETP/STP capacities: Chennai (ETP 1 KLD, STP 4 KLD), Nashik (ETP & STP 15 KLD each), SKBD (ETP 9 KLD).
- Air emissions (2025-26): NOx 101.08 Mg/Nm3, SOx 17.81 Mg/Nm3, Particulate Matter 24.09 Mg/Nm3, VOC 1.50 Mg/Nm3.
- Greenhouse gas emissions (2025-26): Scope 1 469.69 T CO2e, Scope 2 1,106.89 T CO2e. Total intensity per rupee of turnover: 0.02 T CO2e / L INR.
- The company currently has no active GHG reduction projects but is committed to developing them.
- Total waste generated (2025-26): 180.22 metric tonnes (Plastic 29.45, Other Hazardous 54.97, Other Non-hazardous 95.80). Waste intensity per rupee of turnover: 0.0031.
- Waste recovered through recycling (2025-26): 4.88 metric tonnes. Waste disposed (2025-26): 175.33 metric tonnes (Incineration 50.55, Other disposal 124.78).
- Waste management strategy includes segregation, storage, use of authorized vendors, and minimizing hazardous chemicals via substitution and process optimization.
- The entity has no operations or offices in or around ecologically sensitive areas and is fully compliant with all applicable environmental laws and regulations in India.
- The entity holds necessary environmental permits, including Consent to Operate (CTO) for air and water quality monitoring.
- The entity has no affiliations with trade and industry chambers/associations and no adverse orders from regulatory authorities regarding anti-competitive conduct.
- No Social Impact Assessments (SIA) or Rehabilitation and Resettlement (R&R) projects were undertaken in the reporting year.
- A community grievance redressal mechanism is under development. Consumer complaints and feedback are managed via email: askus@shalimarpaints.com.
- Sourcing from MSMEs/small producers increased to 50% in 2025-26 from 31% in 2024-25. Direct sourcing from India increased to 99.68% from 69%.
- Wage cost distribution: Rural 31.63%, Urban 25.18%, Metropolitan 43.21% for 2025-26.
- 65% of total turnover carries information on environmental and social parameters. 100% carries information on safe usage and recycling/disposal.
- Consumer complaints: One data privacy complaint pending from 2024-25. One advertising complaint in 2024-25 led to an appeal before the State Consumer Disputes Redressal Commission, Chandigarh.
- No product recalls, data breaches, or corrective actions required on advertising, cyber security, or data privacy issues.
- The entity has a Data Protection Policy for cybersecurity and data privacy.
- Independent Auditor's Report gives an unmodified opinion on the standalone financial statements for the year ended 31 March 2026.
- Key audit matters: Revenue recognition from sale of goods and Net realisable value assessment of inventory (inventory: Rs. 102.14 crores; provision: Rs. 4.58 crores).
- The Company has paid remuneration to its directors in accordance with the Companies Act, 2013.
- Quarterly returns filed for working capital limits (sanctioned Rs. 185.17 crores) showed discrepancies vs. books of account (differences ranging from Rs. 16.86 crores to Rs. 20.17 crores).
- Loans granted to subsidiaries: Aggregate during year Rs. 5.51 crores; Outstanding balance Rs. 11.86 crores (includes Rs. 6.34 crore deemed investment).
- Statutory dues generally deposited regularly, with slight delays in a few cases. Disputed dues include Income Tax (Rs. 2.58 crores for AY 2015-16, Rs. 2.46 crores for AY 2018-19), Sales Tax/VAT, GST, and Employee State Insurance.
- No defaults in repayment of loans or borrowings. The Company has not been declared a willful defaulter.
- The Company used third-party accounting software with audit trail at application level, but audit trail at database level cannot be verified.
- The company, Shalimar Paints Limited, reported a loss for the year ended 31 March 2026 of ₹ 63.34 crore, compared to a loss of ₹ 80.11 crore in the previous year.
- Revenue from operations decreased to ₹ 569.03 crore from ₹ 599.06 crore in the previous year.
- The company incurred cash losses of ₹ 43.81 crore in the current financial year and ₹ 64.36 crore in the immediately preceding financial year.
- Total assets decreased to ₹ 621.84 crore as at 31 March 2026 from ₹ 683.96 crore as at 31 March 2025.
- Total equity decreased to ₹ 237.66 crore from ₹ 299.21 crore, primarily due to the year's loss reducing retained earnings.
- Current liabilities increased to ₹ 372.87 crore from ₹ 354.84 crore, with short-term borrowings rising to ₹ 157.03 crore from ₹ 135.06 crore.
- The auditor's report states that no fraud by or on the company was noticed or reported during the audit period.
- The company received whistle blower complaints during the year, which were considered in the audit procedures.
- The auditor issued an unmodified opinion, stating the company has adequate internal financial controls operating effectively as at 31 March 2026.
- Basic and diluted loss per equity share (face value Rs. 2) was ₹ (7.57) for the year ended 31 March 2026, compared to ₹ (9.57) for the previous year.
- The Company's accounting policy for leases: For land and building leases, the Company does not separate non-lease components and accounts for them as a single lease component. It recognises a right-of-use asset and lease liability at commencement.
- Employee benefits: Provident fund is a defined contribution scheme. Gratuity is a defined benefit scheme, with costs determined using the projected unit credit method. Actuarial gains/losses for gratuity are recognised in OCI.
- Property, Plant and Equipment (PPE): Gross PPE increased from Rs. 326.14 crore as at 31 March 2025 to Rs. 358.68 crore as at 31 March 2026. Net carrying value increased from Rs. 244.95 crore to Rs. 269.39 crore.
- PPE Additions: Additions during the year ended 31 March 2026 were Rs. 42.83 crore, compared to Rs. 33.74 crore in the previous year.
- PPE Transfer: During the year, an office in Mumbai with a net carrying value of Rs. 3.22 crore was transferred from PPE to Investment Property due to a change in use (commencement of an operating lease).
- Capital Work-in-Progress (CWIP): CWIP decreased significantly from Rs. 26.27 crore as at 31 March 2025 to Rs. 0.01 crore as at 31 March 2026, as Rs. 42.83 crore was capitalised during the year.
- Land Security: Land at Goaberia (adjacent to Howrah plant) amounting to Rs. 4.50 crore is given as security to Tara Properties Private Limited.
- Recent Accounting Standards: The Company applied amendments to Ind AS 21 (Lack of exchangeability) and Ind AS 1 (Classification of Liabilities) effective from 1 April 2025. These did not have a material impact.
- Future Accounting Standard: An amendment to Ind AS 1 regarding liability classification with covenants is effective from 1 April 2026 and is not expected to have a material impact.
- Key Estimates & Judgements: Management identifies significant judgements in areas like contingencies, provisions, and deferred tax assets. Key estimates include useful lives of assets, defined benefit obligations, lease discount rates, inventory net realisable value, and fair value of financial instruments.
- Right-of-use assets: Total net carrying value decreased from Rs. 26.99 crore (31-Mar-25) to Rs. 24.19 crore (31-Mar-26). Major components are Plant & Machinery (Rs. 9.40 crore) and Land leasehold (Rs. 14.79 crore).
- Investment Property: A Mumbai office with a net carrying value of Rs. 2.87 crore was transferred from Property, Plant & Equipment. Its fair value is estimated at Rs. 14.18 crore (Level 3). The property is held as security for a High Court award related to the Nashik plant fire.
- Intangible Assets: Net carrying value decreased from Rs. 4.21 crore (31-Mar-25) to Rs. 3.13 crore (31-Mar-26). Major components are Computer Software (Rs. 2.77 crore) and Technical Know How (Rs. 0.33 crore).
- Non-current Investments: Total value decreased from Rs. 8.90 crore (31-Mar-25) to Rs. 6.97 crore (31-Mar-26). Includes investments in wholly-owned subsidiaries Shalimar Adhunik Nirman Limited (Rs. 6.47 crore) and IM Inicio Projects Private Limited (Rs. 0.00 crore after impairment).
- Inventories: Total decreased from Rs. 133.87 crore (31-Mar-25) to Rs. 102.14 crore (31-Mar-26). Includes Raw Material (Rs. 35.26 crore), Finished Goods (Rs. 55.83 crore), and a provision for obsolete/slow-moving inventory of Rs. 4.58 crore.
- Trade Receivables: Gross receivables were Rs. 143.12 crore (31-Mar-26), with an allowance for expected credit losses of Rs. 7.73 crore, resulting in a net balance of Rs. 135.39 crore. Rs. 17.81 crore of receivables are subject to a factoring arrangement.
- Cash & Equivalents: Total cash and cash equivalents were Rs. 7.08 crore (31-Mar-26), down from Rs. 7.00 crore (31-Mar-25). Bank balances other than cash were Rs. 39.95 crore.
- Equity Share Capital: Authorised capital is Rs. 20.00 crore. Issued, subscribed, and fully paid-up capital is Rs. 16.74 crore (83,711,178 shares of Rs. 2 each). Major shareholders are Hella Infra Market Limited (52.85%) and Virtuous Tradecorp Private Limited (12.62%).
- Other Equity: Total equity decreased from Rs. 282.47 crore (31-Mar-25) to Rs. 220.92 crore (31-Mar-26), primarily due to an increase in retained losses from Rs. (482.48) crore to Rs. (543.73) crore.
- Borrowings: Current borrowings increased to Rs. 157.03 crore (31-Mar-26) from Rs. 135.06 crore (31-Mar-25), including Working Capital Loans (Rs. 118.13 crore) and Factored Receivables (Rs. 17.81 crore). Non-current borrowings were fully repaid, down from Rs. 17.49 crore to Rs. 0.00 crore.
- Trade Payables: Total decreased to Rs. 175.41 crore (31-Mar-26) from Rs. 192.12 crore (31-Mar-25). Dues to micro and small enterprises were Rs. 19.44 crore.
- Total trade payables decreased to Rs. 175.41 crore as at 31 March 2026 from Rs. 192.12 crore as at 31 March 2025.
- Outstanding dues to Micro and Small Enterprises (MSMEs) decreased to Rs. 19.44 crore (including Rs. 0.33 crore interest) as at 31 March 2026 from Rs. 33.40 crore (including Rs. 0.11 crore interest) as at 31 March 2025.
- Revenue from operations decreased to Rs. 569.03 crore for the year ended 31 March 2026 from Rs. 599.06 crore for the previous year.
- The Company reported a net loss of Rs. 63.34 crore for the year ended 31 March 2026, compared to a net loss of Rs. 80.11 crore for the previous year.
- Basic and diluted earnings per share (EPS) were (Rs. 7.57) for the year ended 31 March 2026, compared to (Rs. 9.57) for the previous year.
- Employee benefits expense decreased to Rs. 67.04 crore from Rs. 79.28 crore, partly due to a past service cost of Rs. 4.60 crore (Rs. 4.29 crore for gratuity + Rs. 0.31 crore for compensated absences) recognized under exceptional items due to new labour codes.
- Total borrowings stood at Rs. 157.03 crore as at 31 March 2026, compared to Rs. 152.55 crore as at 31 March 2025.
- The Company has unrecognised deferred tax assets on tax losses of Rs. 259.44 crore and unabsorbed depreciation of Rs. 100.47 crore as at 31 March 2026.
- Contingent liabilities include letters of credit of Rs. 14.50 crore and various tax and other demands totaling Rs. 24.67 crore.
- Lease liabilities decreased to Rs. 7.73 crore as at 31 March 2026 from Rs. 11.31 crore as at 31 March 2025.
- Trade receivables (net) stood at Rs. 135.39 crore as of 31 March 2026, with an allowance for expected credit loss of Rs. 7.73 crore.
- Total borrowings (including lease liabilities) were Rs. 164.76 crore as of 31 March 2026, with a net debt of Rs. 115.07 crore.
- The gearing ratio increased to 32.62% as of 31 March 2026 from 26.54% the previous year.
- The company reported a net loss after tax of Rs. 63.34 crore for the year ended 31 March 2026, with accumulated losses aggregating to Rs. 543.73 crore.
- Current liabilities exceeded current assets by Rs. 65.48 crore as of 31 March 2026, with a current ratio of 0.82 times.
- The debt-equity ratio increased to 0.69 times as of 31 March 2026 from 0.55 times the previous year.
- The debt service coverage ratio was negative at (0.71) times for the year ended 31 March 2026.
- Return on equity was negative at -23.60% for the year ended 31 March 2026.
- The company's ultimate holding company is Hella Infra Market Limited, holding a 52.85% ownership interest.
- Key related party transactions included sales to Jindal Stainless Limited of Rs. 2.38 crore and purchases from Hella Chemical Market Private Limited of Rs. 6.70 crore in the previous year.
- The company has 3,96,820 employee stock options outstanding as of 31 March 2026, with a weighted average exercise price of Rs. 139.20.
- The company received an arbitration award of Rs. 22.01 crore related to a fire insurance claim, which is held as a payable under Other Financial Liabilities pending finalization.
- The financial statements have been prepared on a going concern basis, considering management's plans for asset monetization and financial support from the holding company.
- Auditor identified two Key Audit Matters: Revenue Recognition and Net Realizable Value Assessment of Inventory.
- Revenue recognition considered a presumed significant risk of fraud due to focus on revenue as a key performance measure.
- Holding Company's inventory as at 31 March 2026 was Rs. 102.14 crores, with a slow-moving/obsolescence provision of Rs. 4.58 crores.
- Auditor's opinion on consolidated financial statements is unmodified (clean opinion).
- Consolidated financials show a Loss for the year of Rs. (64.95) crores (FY26) vs Rs. (81.17) crores (FY25).
- Revenue from operations decreased to Rs. 575.63 crores (FY26) from Rs. 599.81 crores (FY25).
- Total assets decreased to Rs. 640.56 crores (31 Mar 2026) from Rs. 702.07 crores (31 Mar 2025).
- Total equity decreased to Rs. 251.18 crores (31 Mar 2026) from Rs. 314.25 crores (31 Mar 2025).
- Auditor relied on reports of other auditors for 2 subsidiaries with total assets of Rs. 31.60 crore and revenues of Rs. 7.75 crore.
- Adverse remark in CARO report for Holding Company (Shalimar Paints Limited) under clause 3(iii)(c).
- Auditor issued an unmodified opinion on the adequacy and operating effectiveness of internal financial controls.
- No dividend declared or paid during the year ended 31 March 2026.
- The Holding Company uses third-party accounting software; audit trail was enabled at application level but auditor is unable to comment on its operation at database level.
- Shalimar Paints Limited and its subsidiaries are engaged in manufacturing, selling, and distribution of paints and coatings.
- The Group has a pan-India presence with marketing offices in all major states and manufacturing units in Nashik, Howrah, Sikandrabad, and Chennai.
- The consolidated financial statements are for the year ended 31 March 2026 and are presented in Indian Rupees, rounded to the nearest crore and two decimals.
- The financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) and were approved by the Board of Directors on 28 May 2026.
- Revenue is recognized upon transfer of control of goods or services to customers, net of discounts and incentives.
- Inventories are valued at the lower of cost and net realizable value, with cost determined on a weighted average basis.
- Property, plant, and equipment are stated at cost, net of depreciation and impairment, with depreciation provided using the Straight-Line Method.
- The estimated useful lives of assets include Factory Building (30 years), Plant and machinery (7-15 years), and Computer (3 years), among others.
- Intangible assets such as Computer software, Trademark, and Technical Knowhow are amortized over 6 years, 10 years, and 25 years, respectively.
- The Group applies Ind AS 116 for leases, recognizing right-of-use assets and lease liabilities, with short-term leases of 12 months or less expensed on a straight-line basis.
- Employee benefits include defined contribution schemes (provident fund) and defined benefit schemes (gratuity), with actuarial valuations performed.
- Income tax expense comprises current tax and deferred tax, with deferred tax recognized on temporary differences between tax and book bases.
- The Group operates predominantly in a single operating segment: manufacturing and sale of paints.
- Cash and cash equivalents include cash on hand, bank balances, and short-term deposits with original maturities of three months or less.
- Impairment of non-financial assets is assessed at each reporting date, with recoverable amount determined as the higher of fair value less costs of disposal and value in use.
- Debt instruments in FVTPL category are measured at fair value with changes in P&L, but the Group has not designated any debt instrument in this category.
- Equity investments are measured at fair value. The Group can make an irrevocable election to present subsequent fair value changes in OCI on an instrument-by-instrument basis.
- Financial asset impairment is measured using Expected Credit Loss (ECL) model based on historical trends, industry practices, and business environment.
- Financial liabilities are classified at initial recognition as FVTPL, loans and borrowings, payables, or derivatives. They are initially recognised at fair value.
- Borrowings are utilised for the purposes for which they were taken and are subsequently measured at amortised cost.
- Property, Plant and Equipment (PPE) net carrying value as at 31 March 2026 is Rs. 269.55 crore (31 March 2025: Rs. 272.16 crore).
- Capital Work-in-Progress as at 31 March 2026 is Rs. 0.01 crore (31 March 2025: Rs. 26.27 crore).
- Right-of-use assets net carrying value as at 31 March 2026 is Rs. 24.19 crore (31 March 2025: Rs. 26.99 crore).
- Investment Property net carrying amount as at 31 March 2026 is Rs. 2.87 crore. Fair value of Mumbai office (Level 3) is Rs. 14.18 crore.
- Intangible assets net carrying value as at 31 March 2026 is Rs. 3.19 crore (31 March 2025: Rs. 4.21 crore).
- Inventories as at 31 March 2026 are Rs. 102.14 crore (31 March 2025: Rs. 134.25 crore), net of a provision for obsolete/slow-moving inventory of Rs. 4.58 crore.
- Trade receivables (net of allowance) as at 31 March 2026 are Rs. 138.34 crore (31 March 2025: Rs. 147.21 crore). Allowance for expected credit loss is Rs. 7.73 crore.
- Cash and cash equivalents as at 31 March 2026 are Rs. 7.14 crore (31 March 2025: Rs. 7.06 crore).
- Bank balances other than cash and cash equivalents as at 31 March 2026 are Rs. 39.95 crore (31 March 2025: Rs. 38.41 crore).
- Assets held for sale (Gurugram property) as at 31 March 2026 are Rs. 27.13 crore.
- Equity Share Capital (issued, subscribed & fully paid) is Rs. 16.74 crore, comprising 83,711,178 shares of Rs. 2 each.
- The Group applied amendments to Ind AS 21 (Lack of exchangeability) and Ind AS 1 (Classification of Liabilities) effective from 1 April 2025, with no material impact.
- An amendment to Ind AS 1, effective from 01 April 2026, regarding classification of liabilities with covenants is not expected to have a material impact.
- Promoter Hella Infra Market Limited holds 52.85% (4,42,42,921 shares) as of 31 March 2026, unchanged from the previous year.
- Virtuous Tradecorp Private Limited is a significant shareholder with a 12.62% stake (1,05,67,523 shares).
- Total promoter shareholding is 74.96% (6,27,49,651 shares) as of 31 March 2026.
- The Group reported a loss for the year of Rs. 64.95 crore, leading to retained earnings of Rs. (529.75) crore.
- Total Other Equity decreased to Rs. 234.44 crore from Rs. 297.51 crore in the previous year.
- Non-current borrowings reduced significantly to Rs. 0.00 crore from Rs. 17.49 crore, mainly due to repayment of a term loan from IDFC First Bank (previously Rs. 17.19 crore).
- Current borrowings increased to Rs. 157.03 crore from Rs. 135.06 crore, with working capital loans from banks at Rs. 118.13 crore.
- Trade payables stood at Rs. 176.16 crore, with Rs. 19.65 crore owed to micro and small enterprises.
- Revenue from operations was Rs. 575.63 crore, down from Rs. 599.81 crore in the previous year.
- The Group recorded a basic and diluted loss per share of Rs. (7.76) for the year ended 31 March 2026.
- Contingent liabilities include Letters of Credit of Rs. 14.50 crore and various tax and legal demands totaling Rs. 24.67 crore.
- Gratuity obligation increased to Rs. 10.05 crore (present value) due in part to a past service cost of Rs. 4.29 crore related to new labour codes.
- Sensitivity analysis shows a +/- 0.50% movement in discount rate impacts Gratuity liabilities by (0.14)/0.14 crore as at 31 March 2026 and (0.29)/0.31 crore as at 31 March 2025.
- Sensitivity analysis shows a +/- 0.50% movement in future salary growth impacts Gratuity liabilities by 0.14/(0.13) crore as at 31 March 2026 and 0.31/(0.28) crore as at 31 March 2025.
- Maturity profile of discounted Gratuity obligations shows the largest portion (Rs. 2.76 crore) is due within 0 to 1 year as at 31 March 2026.
- Expected contribution for the next annual reporting period for Gratuity is Rs. 2.01 crore (Service cost: Rs. 1.26 crore, Net interest cost: Rs. 0.75 crore) as at 31 March 2026.
- Lease liabilities total Rs. 7.73 crore as at 31 March 2026 (Current: Rs. 3.91 crore, Non-current: Rs. 3.82 crore), down from Rs. 11.31 crore in the previous year.
- Total cash outflow for the principal element of lease liabilities was Rs. 3.58 crore for the year ended 31 March 2026.
- Trade receivables (net) stand at Rs. 138.34 crore as at 31 March 2026, with an allowance for expected credit loss of Rs. 7.73 crore.
- Total borrowings (including lease liabilities) are Rs. 164.76 crore as at 31 March 2026. Net debt is Rs. 114.99 crore, resulting in a Gearing ratio of 31%.
- The Ultimate Holding Company is Hella Infra Market Limited with a 52.85% ownership interest.
- Key Managerial Personnel (KMP) remuneration includes Mr. C Venugopal (Rs. 1.06 crore), Mr. Kuldip Raina (Rs. 1.23 crore), and Mr. Sachin Naik (Rs. 0.80 crore) for the year ended 31 March 2026.
- Related party sale to Jindal Stainless Limited was Rs. 2.38 crore for the year ended 31 March 2026.
- Employee Stock Option Plan (ESOP) expense for the year was Rs. 0.68 crore. 3,96,820 options are outstanding with a weighted average exercise price of Rs. 139.20.
- The Group acquired the painting services business from its Ultimate Holding Company, Hella Infra Market Limited, for a consideration of Rs. 0.26 crore, leading to a restatement of prior year figures.
- Segment information confirms a single reportable business segment: manufacturing and sale of paints within India and outside India.
- An arbitration award of Rs. 20.01 crore related to the Nashik plant fire insurance claim (Reinstatement Policy) was received but is shown as payable under Other Financial Liabilities pending final case resolution.