Shalimar Paints Q1 FY27 Results (NSE: SHALPAINTS)
Signal: Loss widened
The read
The operating inflection has reversed: compared with Q4FY26's 1.33% OPM and ₹7.39 Cr loss in the prior-results series, Q1FY27 reported an EBITDA margin of -8.2%, EBITDA loss of ₹11.28 Cr and PAT loss of ₹21.26 Cr on revenue down 10.3% YoY; with no disclosed volume, mix or cost bridge, the proposed capital raise and strategic combination with Hella Infra Market Limited—not current earnings momentum—are the dominant trajectory drivers.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹137.72 Cr | -10.3% | N/A |
| EBIT | ₹-16.35 Cr | -55.4% | |
| Net profit | ₹-21.26 Cr | -27.5% | |
| EPS | ₹-2.54 | -27.6% | |
| EBIT margin | -8.2% |
P&L walk
Consolidated revenue was ₹137.72 Cr, down 10.3% YoY, and EBITDA deteriorated 88.6% YoY to a ₹11.28 Cr loss, driving EBIT to a ₹16.35 Cr loss and PAT to a ₹21.26 Cr loss; the filing provides no cost-of-materials, depreciation, finance-cost or QoQ detail to identify the operating driver.
Key positives
- The board approved proposed financing initiatives including a QIP of up to ₹1,000 crores and a preferential issue of 12,454,608 equity shares at ₹85 per share, which could address the company's weak operating profile and funding needs, subject to approvals.
- Consolidated and standalone results were close: revenue was ₹137.72 Cr versus ₹136.19 Cr and PAT loss was ₹21.26 Cr versus ₹20.78 Cr, indicating limited subsidiary distortion.
Key concerns
- Revenue fell 10.3% YoY to ₹137.72 Cr and EBITDA loss widened 88.6% YoY to ₹11.28 Cr, reversing the Q4FY26 OPM recovery to 1.33%.
- The company remains deeply loss-making, with EBIT loss of ₹16.35 Cr and PAT loss of ₹21.26 Cr; tax was ₹0, so the loss is operational rather than tax-driven.
- The filing does not disclose volume, realisation, product mix, raw-material costs or segment performance, limiting confidence in the cause and durability of the earnings deterioration.
- Standalone basic EPS fell 24.6% YoY to ₹-2.48 and consolidated basic EPS fell 27.6% to ₹-2.54, leaving per-share earnings firmly negative.
Research and educational content only. Not investment advice.