New Delhi: Shalimar Paints Ltd reported a steady operational performance for the quarter and half-year ended September 30, 2025, with improved margins, stronger distribution expansion, and tighter cost controls, even as the company remained in the red, according to its board meeting disclosures.
The board approved the unaudited standalone and consolidated financial results for Q2 and H1 FY26, with consolidated revenue rising 6% year-on-year in the first half, despite what the company described as “subdued growth in market/peers.”
Shalimar Paints posted a consolidated loss of ₹14.19 crore for Q2 FY26, compared with ₹19.62 crore a year earlier. For the half-year period, consolidated losses stood at ₹30.53 crore, lower than ₹46.62 crore in H1 FY25.
Margins improved significantly, with the company highlighting a 5.1% improvement over the previous year’s first half, driven by cost optimisation in manpower, supply chain, and manufacturing. EBIDTA improved by ₹20 crore, reflecting a 7.6% rise from the year-ago period.
Distribution Expansion and New Products Boost Growth
The company reported key strategic initiatives:
Launch of differentiated emulsion products contributing 10% of Q2 sales
Appointment of 100 new distributors to deepen rural penetration
20% expansion in active dealer base
Strengthened machine dealer network with higher emulsion saliency
Improved material availability to the channel and a ₹10 crore reduction in inventory further strengthened the working capital position.
During the quarter, the company restated prior comparative financials after its subsidiary IM Inicio Projects Pvt Ltd acquired a painting services business from its ultimate holding company, Hella Infra Market Ltd, under a business transfer agreement effective July 1, 2025. The restatement impacted revenue, expenses, and loss figures for previous periods.
The financial results were reviewed by the audit committee and subjected to a limited review by statutory auditors.