Shalimar Paints: Bank facility ratings reaffirmed with negative outlook
RATING
◆ Monitor Closely
MEDIUM RISK
📅 Filed on BSE: 03 Jun 2026, 12:30 PM IST · BSE ID: 967f9f61-3511-423a-b09f-eff589f8009a
View Original BSE Filing (PDF)
💡
In Simple Terms
The company's credit rating for its bank loans was reviewed and kept the same, with a warning that things could get worse.
🤖 AI Summary
- CARE Ratings reaffirmed Shalimar Paints' long-term bank facilities rating at CARE BB+; Negative.
- Short-term bank facilities rating reaffirmed at CARE A4+.
- Non-Convertible Debentures rating was withdrawn.
- Rationale cites operational losses offset by promoter financial support.
🔢 Key Numbers — exact figures from BSE filing, not rounded
Long Term Bank Facilities
135.88 Rs. Crore
Long Term / Short Term Bank Facilities
68.50 Rs. Crore
Short Term Bank Facilities
0.67 Rs. Crore
🏢 How This Affects the Company
The rating reaffirmation with a negative outlook suggests continued scrutiny on operational performance and profitability challenges within the competitive paints industry.
The 'Negative' outlook on its long-term rating implies potential challenges in securing future financing or higher costs if operational performance does not improve, despite promoter support.
The 'Negative' outlook indicates ongoing risks related to sustained operating losses and vulnerability to raw material price volatility, despite promoter equity infusions.
👥 What This Means For Shareholders
✅
Action Required
No immediate action is required by shareholders based on this credit rating update.
👤
Who Is Affected
All shareholders are indirectly affected by the company's credit rating, which influences its borrowing costs and financial flexibility.
🔍
Management Signal
Management is signalling continued reliance on promoter support to navigate operational challenges and maintain creditworthiness.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
Future financial results to assess operational profitability improvements.
Management commentary on strategies to address operational losses.
Any further rating actions or updates from CARE Ratings.
MEDIUM RISK
Negative rating outlook combined with operational losses indicates elevated financial risks.
💡 Investor Takeaway
Shalimar Paints' bank facility ratings were reaffirmed with a 'Negative' outlook, citing operational losses despite promoter financial support, with long-term bank facilities rated CARE BB+ and short-term CARE A4+.
⚖️ Strengths & Concerns
✅ Positives
- Strong financial support from promoters, Hella, VTPL, and JSL, evident through significant equity infusions.
- Long track record of operations, experienced management, established brand name, and dealer network.
⚠️ Concerns
- Continued and higher than envisaged operational loss in FY26 due to high fixed overheads and sales realization decline.
- Weak debt coverage indicators and vulnerability of profitability margins to raw material price volatility.
❓ Frequently Asked Questions
What is the new credit rating for Shalimar Paints' long-term bank facilities?
The long-term bank facilities rating for Shalimar Paints has been reaffirmed at CARE BB+; Negative by CARE Ratings Limited.
What is the rating for Shalimar Paints' short-term bank facilities?
CARE Ratings Limited has reaffirmed the rating for Shalimar Paints' short-term bank facilities at CARE A4+.
What was the action taken on Shalimar Paints' Non-Convertible Debentures rating?
The rating for Shalimar Paints' Non-Convertible Debentures has been withdrawn by CARE Ratings Limited.
What is the total value of Shalimar Paints' long-term bank facilities?
The total amount for Shalimar Paints' long-term bank facilities is Rs. 135.88 Crore.
What is the reason for the 'Negative' outlook on Shalimar Paints' credit rating?
The 'Negative' outlook is due to continued operational losses in FY26 and vulnerability of profitability margins, despite promoter support.
Questions based on this BSE filing only. For information purposes.