Shalimar Paints Limited

Shalimar Paints Limited (SHALPAINTS) - Company Profile (FY 2025-26)

Business overview Shalimar Paints Limited, established in 1902, is an Indian manufacturer and distributor of a comprehensive range of paints and coatings. The company operates in two primary segments: Decorative Paints, offering interior, exterior, waterproofing, wood coatings, and ancillary tools; and Industrial Coatings, which includes protective coatings, can coatings, pipeline coatings, and OEM solutions. Shalimar Paints serves customers across India, and internationally in Nepal, UAE, Bhutan, and Seychelles.

Key facts

• Revenue: Consolidated revenue from operations was ₹575.63 crore for FY 2025-26.
• Revenue Mix (FY26): Decorative Paints contributed approximately 63% of the total revenue.
• Manufacturing: Operates three manufacturing facilities located in Chennai, Nashik, and Sikandrabad (Uttar Pradesh).
• Distribution: Maintains a distribution network of 47 sales depots and over 7500+ retail touchpoints nationwide.
• Promoter: Hella Infra Market Limited is the ultimate holding company, holding 52.85% of shares.
• Brand Recognition: Awarded "Most Trusted Brand" for the second consecutive year in the Indian paints sector.

Recent developments (FY 2025-26)

• Strategic Transformation: The "Shalimar 2.0" initiative aims to transform the company into a modern, agile, technology-driven organization with a vision to be among India's top five paint companies.
• Product Launches: Introduced eight new products across emulsion, enamel, and waterproofing categories, contributing approximately 8% to total revenue. The company also entered the floor coating segment in July'25.
• Operational Investments: Significant investments were made in capacity augmentation, automation, modernization, and productivity enhancement across all manufacturing facilities and the R&D Centre in Nashik.
• Market Expansion: Accelerated its distributor-led business model by appointing over 100 new distributors to enhance presence in rural and semi-urban markets.
• Financial Turnaround: Achieved a positive EBITDA in the fourth quarter of FY 2025-26, indicating a return to profitability after a period of negative profitability.

Key risks flagged by management

• Raw Material Price Volatility: High dependency on a complex global supply chain makes the company vulnerable to price fluctuations and availability issues for crude oil derivatives, pigments, resins, solvents, additives, and packaging materials.
• Intense Competition: The paint industry faces heightened competition from established brands expanding their reach and new entrants, leading to pricing pressure.
• Geopolitical and Climatic Uncertainties: Geopolitical conflicts, trade restrictions, and climate-related events can disrupt operations, supply chain, and raw material availability.
• Financial Performance: The company continues to face a net loss and accumulated losses for FY 2025-26, and its current liabilities exceed current assets.

Pros

• Legacy Brand: Over a century-long history with strong brand equity, reinforced by being recognized as a "Most Trusted Brand."
• Product Innovation: Continuous investment in R&D and a track record of launching new, high-performance products across diverse categories.
• Expanding Reach: Strategic focus on deepening market penetration in Tier 2 and Tier 3 cities through an expanded distribution network.

Cons

• Continued Losses: The company reported a net loss for FY 2025-26 and has accumulated losses.
• Liquidity Concerns: Current liabilities exceeding current assets indicates potential short-term liquidity challenges.
• Industrial Segment Headwinds: The Industrial Coatings business experienced muted growth and a decline due to reduced pipeline coating demand and geopolitical developments.