Shalimar Paints Reports Widened Q2 Loss of Rs 32.55 Crore

Revenue for the quarter stood at Rs 115.67 crore, down from Rs 133.81 crore in Q2 FY2026.

Reader Takeaway: Management is cutting costs and selling real estate to offset widening losses and improve decorative margins.

What just happened

Shalimar Paints has released its unaudited financial results for the quarter ended September 30, 2026. The company reported a net loss of Rs 32.55 crore for Q2 FY2027, significantly higher than the Rs 14.14 crore loss reported in the year-ago period. Total revenue from operations for the quarter dropped to Rs 115.67 crore, reflecting operational headwinds across its business segments.

Why this matters

The widening loss highlights the ongoing struggle to return to profitability despite management's focus on operational efficiency. Shareholders are looking for signs that the company’s strategic shift—specifically the increase in decorative paint sales—will eventually translate into positive bottom-line growth.

Performance Highlights

Management cited several recovery initiatives:

• Decorative paints' share in the business mix grew by 5%, with a projected 3% margin improvement ahead.
• Average Selling Price (ASP) rose by 18% in decorative paints and 13% in industrial paints.
• A 13% reduction in debtors was achieved due to improved collection efficiency.
• Overhead rationalization measures are currently underway to reduce operating costs.

Asset Monetization

To support the balance sheet, the company is actively disposing of non-core assets:

• Howrah Property: Land and buildings with a carrying amount of Rs 73.43 crore are now classified as held for sale.
• Gurugram Property: The sale of land and buildings worth Rs 27.13 crore is in the final stages of transfer following a executed definitive agreement.

What to track next

Investors should monitor the execution of the property sales and whether the improved decorative product mix effectively narrows losses in the second half of the fiscal year.