Shalimar Paints Faces Financial Challenges Amid Record Sales and Rising Interest Expenses

Shalimar Paints has recently undergone a financial trend adjustment, reflecting a flat performance for the quarter ending March 2025. The company's net sales reached a record high of Rs 177.83 crore, while its PBDIT also marked a peak at Rs -7.35 crore. Additionally, the operating profit to net sales ratio stood at -4.13%, and the profit before tax, less other income, was recorded at Rs -16.28 crore. The net profit after tax for the quarter was Rs -9.52 crore, with an earnings per share of Rs -1.14.
However, the company faces challenges, particularly with interest expenses, which have surged by 41.40% over the last six months, totaling Rs 10.28 crore. This increase in financial burden may impact overall profitability.

In terms of market performance, Shalimar Paints has struggled compared to the Sensex, with significant declines over various periods. Year-to-date, the stock has dropped by 19.78%, and over the past year, it has decreased by 33.92%. Despite a notable return of 87.50% over the past five years, the recent trends indicate a need for strategic adjustments to enhance competitiveness in the paints industry.