Shalimar Paints Limited has informed the Exchange about Credit Rating
SHALPAINTS · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
CARE Ratings has downgraded Shalimar Paints' long-term bank facilities of ₹127.38 crore from CARE BBB- (Negative) to CARE BB+ (Negative), and combined long-term/short-term facilities of ₹77 crore from CARE BBB-/A3 to CARE BB+/A4+. Short-term facilities of ₹0.67 crore were also cut from CARE A3 to CARE A4+. A new rating of CARE BB+ (Negative) was assigned to proposed non-convertible debentures of ₹70 crore. The downgrade is driven by sustained operating losses in FY25 (PBILDT loss of ₹56.48 crore, net loss of ₹80.11 crore) despite 12% revenue growth to ₹599.25 crore, weak debt coverage, and intense competition in the paints industry. The outlook remains Negative, with further downside risks flagged if losses continue or promoter support weakens.
Negative for shareholders — the move from BBB- to BB+ pushes the company into speculative-grade (junk) territory, signaling higher financial risk. This could raise future borrowing costs, weigh on stock sentiment, and raise concerns about the company's ability to service debt without continued promoter support from Hella Infra Market.