Shalimar Paints' operating margin slides 11.02 points as revenue falls
Consolidated Q2 revenue fell 16.01% qoq, while expenses declined only 7.51%; the net loss widened 53.10%.
Filed 28 Oct 2026, 16:20 IST · after market close · SHALPAINTS (SHALPAINTS)
Key takeaways
- Consolidated revenue fell 16.01% qoq to Rs 115.67 cr, while the operating loss widened to Rs 22.97 cr.
- Costs declined only 7.51% qoq against the revenue fall, taking operating margin down 11.02 percentage points to -19.86%.
- Net loss widened 53.10% qoq to Rs 32.55 cr, with interest expense up 7.74% and no tax benefit.
Revenue contraction widens the operating loss
Consolidated revenue fell 16.01% qoq to Rs 115.67 cr, while operating profit declined to a loss of Rs 22.97 cr from a loss of Rs 12.17 cr in Q1FY27. Expenses fell 7.51%, much less than revenue, leaving the company with weaker operating leverage.
Costs and interest add to the margin pressure
Because expenses declined more slowly than revenue, operating margin narrowed 11.02 percentage points to -19.86%. Interest expense also rose 7.74% qoq to Rs 5.29 cr, while depreciation was broadly unchanged at Rs 5.06 cr.
A second straight quarter of negative operating margin
Operating margin moved from -8.84% in Q1FY27 to -19.86% in Q2FY27, marking a second consecutive quarter below zero. Other income of Rs 0.77 cr represented -2.37% of profit before tax, while the 0% tax rate provided no tax benefit; net loss therefore matched the Rs 32.55 cr pre-tax loss.
Results filed after market close
The consolidated results were filed after market close on 28 Oct 2026. The results are therefore too fresh for a market reaction to assess.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹116 cr | ₹138 cr | -16.01% |
| Other income | ₹1 cr | ₹1 cr | -13.48% |
| Expenses | ₹139 cr | ₹150 cr | -7.51% |
| Operating profit | ₹-23 cr | ₹-12 cr | -88.74% |
| Operating margin (%) | -19.86% | -8.84% | — |
| Interest | ₹5 cr | ₹5 cr | +7.74% |
| Depreciation | ₹5 cr | ₹5 cr | -0.20% |
| Profit before tax | ₹-33 cr | ₹-21 cr | -53.10% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹-33 cr | ₹-21 cr | -53.10% |
| EPS (₹) | ₹-3.89 | ₹-2.54 | -53.15% |
What to watch
- Whether revenue recovers from Rs 115.67 cr after the 16.01% qoq decline.
- Whether operating margin improves from -19.86% after the 11.02 percentage-point qoq fall.
- Whether interest expense reverses from Rs 5.29 cr after rising 7.74% qoq.