Shalimar Paints Q2 FY27 Results (NSE: SHALPAINTS)
Signal: Loss widened
The read
The trajectory deteriorated further: revenue fell 13.6% YoY after a 10.3% decline in Q1FY27, while gross margin compressed by about 1,140bps and the consolidated loss widened to ₹32.55 Cr; this is a continuing operating problem rather than a one-off profit distortion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹115.67 Cr | -13.6% | -16.6% |
| Net profit | ₹-32.55 Cr | -130.2% | |
| EPS | ₹-3.89 | -130.2% |
P&L walk
Revenue fell to ₹115.67 Cr, down 13.6% YoY and 16.6% QoQ, while gross margin compressed to about 22.1% from 33.5% a year ago and 29.5% in the preceding quarter; the resulting operating pressure drove the loss to ₹32.55 Cr from ₹14.14 Cr.
Segments
The group remains effectively single-segment paints; consolidated revenue of ₹115.67 Cr was only ₹1.15 Cr above standalone revenue, while subsidiary revenue was ₹1.29 Cr and subsidiary loss was ₹0.61 Cr for the quarter.
Key positives
- H1FY27 operating cash flow turned positive at ₹4.69 Cr versus an outflow of ₹2.78 Cr in H1FY26, although reported loss remained ₹53.81 Cr.
- Finance cost declined 18.5% YoY to ₹5.29 Cr in the quarter and 19.3% YoY to ₹10.20 Cr in H1FY27.
- Other expenses declined 10.1% QoQ to ₹30.40 Cr, providing some sequential cost relief despite the revenue contraction.
Key concerns
- Consolidated revenue fell 13.6% YoY to ₹115.67 Cr and 16.6% QoQ, extending the prior-quarter decline of 10.3% from the recent results series.
- Gross margin compressed to about 22.1% from 33.5% a year ago, while raw-material cost rose to 70.3% of revenue from 53.0%; the filing does not disclose the driver.
- The company absorbed the margin pressure while revenue declined, with consolidated loss widening to ₹32.55 Cr from ₹14.14 Cr and EBITDA/operating profitability not disclosed as positive.
- Employee cost rose 2.6% YoY on a standalone basis despite a 13.3% revenue decline, reaching 15.5% of standalone revenue.
- Net debt increased to approximately ₹122.20 Cr from ₹109.94 Cr at 31 March 2026 while cash and bank balances were only ₹33.29 Cr.
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