Key Metrics of Shalimar Paints
About Shalimar Paints
Sectors
Company details
- Website
- shalimarpaints.com
- Founded
- 1902
- Registered office
- Stainless Centre, 4th Floor, Plot No. 50, Sector 32, Gurugram, In-hr, 122001
- Listed
- NSE: SHALPAINTS · ₹79.50
Operational Areas of Shalimar Paints
Company summary
Entity details
Compliance
Industry classification
Financials, ratios and risk analysis
Revenue, EBITDA, net profit, net worth, debt and assets for every filing year, 15+ ratios, the financial health score, shareholding, charges and peer comparison are part of the premium plan.
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Vendor checks & payment capacity
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Credit ratings
WatchNegative outlook (CARE)
WatchLiquidity assessed as Stretched
Rating history
Rating actions
| Date | Agency | Action | Long term | Short term | Outlook | Rated amount | Rationale |
|---|---|---|---|---|---|---|---|
| 02 Jun 2026 | CARE | Reaffirmed | BB+ | A4+ | Negative | ₹205 Cr | View |
| 03 Jun 2025 | CARE | Downgraded (from BBB-) | BB+ | A4+ | Negative | ₹275 Cr | View |
| 27 Dec 2024 | CARE | Watch | BBB- | A3 | Negative | ₹205 Cr | View |
| 28 Nov 2024 | CARE | Other | — | — | — | — | View |
| 11 Dec 2023 | CARE | Watch | BBB- | A3 | Developing | ₹206 Cr | View |
| 19 Oct 2023 | CARE | Watch | BBB- | A3 | Developing | ₹206 Cr | View |
| 03 Mar 2023 | CARE | Reaffirmed | BBB- | A3 | Stable | ₹206 Cr | View |
| 07 Jun 2022 | CARE | Reaffirmed | BBB- | A3 | Stable | ₹218 Cr | View |
| 06 Apr 2022 | CARE | Revised (from BB+) | BBB- | A3 | Stable | ₹414 Cr | View |
| 12 Mar 2021 | CARE | Other | — | — | — | — | View |
| 30 Dec 2019 | CARE | Reaffirmed | BB+ | A4+ | Positive | ₹207 Cr | View |
| 22 Feb 2019 | CARE | Revised | BB+ | A4+ | Positive | ₹207 Cr | View |
| 07 Mar 2018 | CARE | Reaffirmed (from B) | D | A4 | Negative | ₹211 Cr | View |
Credit strengths (CARE, Jun 2026)
+ Strong parentage with demonstrated financial support
SPL is now promoted by Hella, which has held a controlling stake in the company since March 11, 2024. Hella operates in a similar line of business and offers a comprehensive portfolio of construction materials, including ready-mix concrete (RMC), aggregates, fly ash, paints, construction chemicals, steel, and cement. Consequently, SPL is expected to benefit significantly from Hella’s strong parentage through sourcing synergies, enhanced marketing capabilities, shared management expertise, and on
+ SPL’s long track record with experienced management team
SPL was incorporated in 1902. Since then, the company has continued to expand its operations across India by setting up facilities at Howrah, West Bengal; Nasik, Maharashtra (West); Sikandrabad, Uttar Pradesh (North); and Chennai, Tamil Nadu (South), thereby increasing aggregate production capacity. SPL has a long-established track record of over 100 years in the paints industry with an experienced management team. Currently, the board of directors (BOD) of SPL comprises one Managing Director (M
+ Strategically located manufacturing facilities with established brand and dealer network
SPL operates in two major segments: Decorative and Industrial. The decorative paint segment mainly caters to domestic, office, and other building purposes, while the industrial paints segment caters to the protective coating sector, product finish, and a range of marine paints, including antifouling paint. The major brands of SPL under the decorative segment include Signature, Weather Pro+, Hero, Xtra Tough, Superlac, No. 1 Silk Emulsion, Super Shaktiman, and Master Emulsion. The industrial pain
+ Satisfactory capital structure albeit poor coverage indicators
SPL’s capital structure continues to remain satisfactory, marked by strong tangible net worth (TNW) base of Rs.234.53 crore as on March 31, 2026. TNW is largely strengthened by the significant infusion of funds by Hella but partially offset by sustained losses. The overall gearing stood comfortable at 0.76x as on March 31, 2026 (PY: 0.61x), however, the debt coverage indicators of the company remain poor in tandem with subdued profitability as marked by negative interest and debt coverage.
+ Liquidity: Stretched
SPL’s liquidity position is marked stretched on account of the company’s inability to service the debt obligations through in ternal cash accruals due to sustained operational losses. As on May 15,2026, the company’s has free cash and bank balances of Rs 7. 24 available against repayment obligation to the tune of ~Rs.18.30 crore in FY27.Further, average utilization of working capital borrowings stood high at ~93% in the trailing 12 months ended March 31, 2026.
+ Applicable criteria
Definition of Default Liquidity Analysis of Non-financial sector entities Factoring Linkages Parent Sub JV Group Rating Outlook and Rating Watch Manufacturing Companies Financial Ratios – Non financial Sector Withdrawal Policy
Credit challenges
− Moderation in scale of operations and continued loss-making operations in FY26
SPL reported a topline of ₹569.03 crore in FY26, compared to ₹599.25 crore in FY25. The moderation is primarily attributed to the company’s strategic decision to reduce its focus on low-margin products, such as thinners, as well as low-value customers. Further, although lower, the company reported operating loss and let loss of Rs.20.81 crore (PY: Rs.56.48 crore) and Rs.63.34 crore (PY: Rs.80.11 crore) respectively in FY26 (PY: Rs.56.48 crore). To combat increased competition from existing playe
− Low market share in intensely competitive and fragmented industry
The Indian paints industry is characterised by small and regional players constituting the unorganised segment, which accounts ~25% market share, whereas large and organised players account 75% market share. The organised sector is oligopolistic with top four players controlling majority of the overall paint and coatings market. SPL remains exposed to significant competition from the organised and unorganised sector players for its product segments.
− Operating margin susceptible to raw material and crude price fluctuation
Raw materials are critical to paint manufacturing, with the cost of raw materials consumed constituting 55-65% of total operating income. SPL uses raw materials across major categories such as solvents, pigments, titanium dioxide, acids and chemicals, resins and additives. A significant proportion of the raw materials comprises derivatives of crude oil. Changes in crude prices affect the decorative paints segment more than other segments as it is a raw material-intensive industry. With rising ra
− Key strengths
Strong parentage with demonstrated financial support SPL is now promoted by Hella, which has held a controlling stake in the company since March 11, 2024. Hella operates in a similar line of business and offers a comprehensive portfolio of construction materials, including ready-mix concrete (RMC), aggregates, fly ash, paints, construction chemicals, steel, and cement. Consequently, SPL is expected to benefit significantly from Hella’s
− SPL’s long track record with experienced management team
SPL was incorporated in 1902. Since then, the company has continued to expand its operations across India by setting up facilities at Howrah, West Bengal; Nasik, Maharashtra (West); Sikandrabad, Uttar Pradesh (North); and Chennai, Tamil Nadu (South), thereby increasing aggregate production capacity. SPL has a long-established track record of over 100 years in the paints industry with an experienced management team. Currently, the board of directors (BOD) of SPL comprises one Managing Director (M
− Strategically located manufacturing facilities with established brand and dealer network
SPL operates in two major segments: Decorative and Industrial. The decorative paint segment mainly caters to domestic, office, and other building purposes, while the industrial paints segment caters to the protective coating sector, product finish, and a range of marine paints, including antifouling paint. The major brands of SPL under the decorative segment include Signature, Weather Pro+, Hero, Xtra Tough, Superlac, No. 1 Silk Emulsion, Super Shaktiman, and Master Emulsion. The industrial pain
Could lead to an upgrade
• Ability to sustain scale of operations and achieve profitability, marked by total operating income (TOI) above Rs.500 crore and profit before interest, lease rentals, depreciation, and taxation (PBILDT) margin above 5% on a sustained basis. • Significant improvement in the credit risk profile of parent, Hella
Could lead to a downgrade
• Sustained operating losses and/or inability to turnaround operations to achieve profitability at operating level as envisaged for next fiscal year. • Any higher than envisaged debt-funded capital expenditure (capex) undertaken, adversely impacting
Agency-reported financials (CARE, 03 Jun 2025)
| Metric | March 31, 2024 | March 31, 2025 |
|---|---|---|
| Total operating income | ₹535 Cr | ₹599 Cr |
| PBILDT | ₹-53.97 Cr | ₹-56.48 Cr |
| PAT | ₹-73.75 Cr | ₹-80.11 Cr |
| Overall gearing (times) | 0.33× | 0.60× |
| Interest coverage (times) | -4.16× | -3.22× |
| Revenue growth (YoY) | — | 12.0% |
| EBITDA margin | −10.1% | −9.4% |
| Implied interest cost (EBITDA ÷ coverage) | — | — |
| PAT margin | −13.8% | −13.4% |
Borrowings & rated debt
Rated limits over time
Facility mix
Rated facilities
| Facility | Type | Previous | Current | Change | Rating | Action | Agency |
|---|---|---|---|---|---|---|---|
| Long Term Bank Facilities | Working capital & bank lines | — | ₹136 Cr | — | BB+ (Negative) | Reaffirmed | CARE |
| Long Term Short Term Bank Facilities | Working capital & bank lines | — | ₹68.5 Cr | — | BB+ / A4+ (Negative) | Reaffirmed | CARE |
| Short Term Bank Facilities | Working capital & bank lines | — | ₹67.0 L | — | A4+ | Reaffirmed | CARE |
CARE ratings on record (checked 23 Oct 2026)
| Instrument | Amount | Rating |
|---|---|---|
| Bank Guarantee | ₹13.0 Cr | CARE BB+; Negative / CARE A4+ |
| Cash Credit | ₹111 Cr | CARE BB+; Negative |
| Forward Contract | ₹67.0 L | CARE A4+ |
| Letter of credit | ₹55.5 Cr | CARE BB+; Negative / CARE A4+ |
| Long Term | — | Withdrawn |
| Non Convertible Debentures | — | Withdrawn |
| Term Loan | ₹24.9 Cr | CARE BB+; Negative |
Lenders
| Fund-based - LT | Cash Credit | Proposed |
| Fund-based - LT | Cash Credit | Punjab National Bank |
| Fund-based - LT | Cash Credit | State Bank of India |
| Fund-based - LT | Cash Credit | Union Bank of India |
| Fund-based - LT | Term Loan | Proposed |
| Fund-based - LT | Term Loan | Union Bank of India |
| Non-fund-based - LT/ ST | Bank Guarantee | Punjab National Bank |
| Non-fund-based - LT/ ST | Bank Guarantee | State Bank of India |
| Non-fund-based - LT/ ST | Letter of credit | Proposed |
| Non-fund-based - LT/ ST | Letter of credit | Punjab National Bank |
| Non-fund-based - LT/ ST | Letter of credit | State Bank of India |
| Non-fund-based - ST | Forward Contract | State Bank of India |
Credit assessment · Cement
CARE Ratings’ Criteria for Rating Cement Companies (Sep 2024) · Standalone accounts · FY 2025-26
Ratios, pillar scores and the indicative rating are part of Premium.
Rating status
| Default | Last default 07 Mar 2018, cured 22 Feb 2019 (2808 days; investment grade needs 365) |
| Issuer cooperation | Cooperating |
| Credit enhancement | None – standalone rating |
| Next action stable or better (model) | 17% |
| Information on file | 78% · missing: Capex / investment plans, Auditor details |
Indicative assessment from public data using the published methodology factors; not a credit rating.
Borrowing & funding lifecycle
- Credit outlook model: 15% chance the next rating action is stable or better
- Current rating BB+ (below investment grade)
- Working-capital limits 93% utilised on average
What happened, step by step
- Jun 2026 — ₹345 cr raised through optionally convertible debentures
- Jun 2026 — Full repayment of term loans
“At the time of its initial investment in February 2022, Hella infused approximately ₹345 crore into SPL, comprising ₹290 crore of equity and around ₹55 crore through 9% Optionally Convertible Debentures (OCDs).”
- Jun 2026 — ₹150 cr raised
- Jun 2026 — Full repayment of term loans
“Further, in 2023, SPL raised an additional ₹150 crore through the issuance of share warrants.”
- Jun 2025 — ₹70 cr raised through NCDs / bonds
- Jun 2026 — Full repayment of term loans
“As on May 28, 2025, the company has free cash and bank balances available to the tune of ~Rs.17 crore and is planning to issue non -convertible debentures (NCD) to the tune of Rs.70 crore during FY26 .”
Rated limits by facility
Timeline
From the report
At the time of its initial investment in February 2022, Hella infused approximately ₹345 crore into SPL, comprising ₹290 crore of equity and around ₹55 crore through 9% Optionally Convertible Debentures (OCDs).
From the report
Further, in 2023, SPL raised an additional ₹150 crore through the issuance of share warrants.
From the report
Press Release Private Limited (₹40 crore) and JSL Limited (₹35 crore).The funds raised have largely been utilized to reduce working capital borrowings, repay term loans, fund capital expenditure, and strengthen the company’s overall liquidity position.
From the report
As on May 15,2026, the company’s has free cash and bank balances of Rs 7. 24 available against repayment obligation to the tune of ~Rs.18.30 crore in FY27.Further, average utilization of working capital borrowings stood high at ~93% in the trailing 12 months ended March 31, 2026.
From the report
At the time of initial acquisition of stake in SPL in February 2022, Hella had infused funds to the tune of ~Rs. 345 crores, in form of equity infusion (Rs.290 crores) and through debt (9% Optionally Convertible Debentures (OCD) of ~Rs.55 crores).
From the report
In 2023, SPL additionally raised Rs.150 crores through share warrants, issued to Hella (Rs.75 crore) and other two promoter group companies: Virtuous Tradecorp Private Limited (Rs.40 crores) and JSL Limited (Rs.35 crores).
From the report
These funds are largely applied by SPL towards reducing outstanding of working capital borrowings, repay term loan s, funding of capex and supporting the overall liquidity position.
From the report
As on May 28, 2025, the company has free cash and bank balances available to the tune of ~Rs.17 crore and is planning to issue non -convertible debentures (NCD) to the tune of Rs.70 crore during FY26 .
From the report
As on May 28, 2025, the company has free cash and bank balances available to the tune of ~Rs.17 crore and is planning to issue non -convertible debentures (NCD) to the tune of Rs.70 crore during FY26 .
From the report
Further, average utilization of working capital borrowings stood modera te at ~80% in the trailing 12 months ended May 3 1, 2025.
From the report
At the time of initial acquisition of stake in SPL in February 2022, Hella had infused funds to the tune of ~Rs. 345 crores, in form of equity infusion (Rs.290 crores) and through debt (9% Optionally Convertible Debentures (OCD) of ~Rs.55 crores).
From the report
In 2023, SPL additionally raised Rs.150 crores through share warrants, issued to Hella (Rs.75 crore) and other two promoter group companies: Virtuous Tradecorp Private Limited (Rs.40 crores) and JSL Limited (Rs.35 crores).
From the report
These funds are largely applied by SPL towards reducing outstanding of working capital borrowings, repay term loan s, funding of capex and to strengthen the overall liquidity position.
From the report
Liquidity: Adequate SPL’s liquidity position continues to remain adequate, as reflected by moderate utilization of working capital limits to the tune of ~80% in the trailing 12 months ended November 30, 2024, along with free cash and bank balances of ~Rs.12.50 crores as on September 30, 2024; thereby providing adequate cover to meet scheduled debt repayments of ~Rs .13.25 crores in FY25.
From the report
CARE Ratings has also taken a note of adequate liquidity available with the company in the form of unencumbered fixed deposits to the tune of Rs.12.50 crore and the unutilized balance in cash credit limits to the tune of Rs.19.50 crore as on September 30, 2024.
From the report
Liquidity: Adequate Liquidity is marked adequate with buffer available in form of unutilized working capital lines of ~80% to the tune of Rs 78 crores (approx.) along with cash and cash equivalents of close to Rs. 75 crores as on October 31,2023 providing adequate cover for meeting the scheduled debt repayment of Rs 11.70 crores in FY24 which shall be paid out of surplus funds lying with company.
From the report
Analytical approach: Standalone Detailed description of the key rating drivers: Key strengths Significant fund infusion boosting liquidity position The company has received Rs. 112.50 crores (i.e. 75% of issue proceeds) during October 2023 upon conversion of 1,14,94,252 share warrants from Hella Infra, Virtuous Tradecorp Private Limited (a promoter group entity of JSL Limited) and JSL Limited.
From the report
Liquidity: Adequate Liquidity is marked adequate with buffer available in the form of unutilized working capital lines of Rs. 97.50 crores (Nil utilization as on October 15, 2023) and cash and cash equivalents of Rs. 74.54 crores as on October 15, 2023 in form of FDs providing adequate buffer to meet debt repayment obligations in a timely manner.
Lender names, bank charges and audited borrowings are part of Premium.
Built from MCA charges, ICRA/CARE rating reports and audited accounts. The borrowing view is an estimate, not a lender's credit decision.
Registered office and contact
Directors and key people
Directors are read from the MGT-7 annual return and AOC-4 signatories.
Competitors of Shalimar Paints
Top competitors by location
| Company | Description | Domain | Founded | Location |
|---|---|---|---|---|
| Outlets operated by Sarfaraz. | asianpaints.com | — | Mumbai, India | |
 Pidilite Industries |
Paints, Panels & Construction Chemicals · Cement, Building Materials & Polymers | pidilite.com | 1959 | Mumbai, India |
 Berger Paints India |
Paints, Panels & Construction Chemicals · Cement, Building Materials & Polymers | bergerpaints.com | 1923 | Kolkata, India |
| Paints, Panels & Construction Chemicals · Cement, Building Materials & Polymers | nerolac.com | 1920 | Mumbai, India | |
| Paints & Coatings · Cement, Building Materials & Polymers | jswpaints.in | — | Mumbai, India | |
 Greenpanel Industries Limited |
Wood, Plywood & Furniture · Cement, Building Materials & Polymers | greenpanel.com | — | Gurgaon, Haryana, India |
 Indigo Paints Limited |
Paints & Coatings · Manufacturing (Metals and Chemicals, and products thereof) | indigopaints.com | — | Pune, Maharashtra, India |
| Sirca Paints India Limited | · Manufacturing (Metals and Chemicals, and products thereof) | — | — | Delhi, India |
| HP Adhesives Limited | Paints, Panels & Construction Chemicals · Cement, Building Materials & Polymers | — | — | Mumbai, Maharashtra, India |
| Coatings And Coatings (India) Private Limited | Paints & Coatings · Cement, Building Materials & Polymers | — | — | India |
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Charges (secured borrowings)
0 registered charges. Lenders, amounts and dates are part of the premium plan.
Statutory auditors
Auditors are read from the AOC-4 auditor's report section.
Business activities and related parties
paint
Filings
No filings on record yet.