1. Opening Hook
While paint giants blame the rain gods for their damp results, 20 Microns quietly polished its margins instead of sulking about monsoons. The company’s Q2 felt less like a colour splash and more like a chemistry lab experiment — margins up despite revenue dips, thanks to what management calls “discipline and sourcing efficiency.” (Translation: they finally bullied their suppliers harder.)And just when the paint industry was sulking in puddles, 20 Microns was busy mixing polymers, rubber, and patience. Read on — this quarter’s palette has more than just pastel profit shades.
2. At a Glance
- Revenue ₹230.8 Cr (–3.9% YoY):Blame it on the rain and bored consumers.
- EBITDA ₹31.8 Cr (+4.3% YoY):Margins refused to melt in monsoon humidity.
- EBITDA Margin 13.8% (+100 bps):When discipline beats demand.
- PAT ₹17.4 Cr (+5.5% YoY):Profit paints the quarter mildly green.
- EPS ₹4.92 (vs ₹4.65):Shareholders finally got a brighter shade.
- Operating Expenses ↓ 7.7% QoQ:CFO’s yoga pose — “Cost Control asana.”
3. Management’s Key Commentary
Nihad Baluch:“Revenue declined due to extended monsoons and price pressure in paints.”(So basically, even clouds affect EBITDA now.)
Baluch:“EBITDA margins at 13.8%, up 100 bps.”(A polite way of saying, ‘We didn’t grow, but we squeezed more out of what we had.’)
Atil Parekh:“We are strengthening market share as manufacturers prefer reliable suppliers.”(Because loyalty matters — especially when your pigments don’t.)
Baluch:“Paints form 48% of revenue, plastics 25%, rubber 9%.”(Translation: diversification saves reputations.)
Parekh:“Capex slightly deferred due to soft demand.”(A CFO’s favourite euphemism for ‘We’ll spend later when Excel looks better.’)
Baluch:“EBITDA steady at 13–15% range ahead.”(Predictability > profit growth — the new Indian industrial mantra 😏)
Parekh:“Early signs of demand recovery in H2.”(The corporate
version of ‘acha time aayega.’)
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Change | Commentary |
|---|---|---|---|
| Revenue | ₹230.8 Cr | –3.9% | Paint slowdown hit hard 🎨 |
| EBITDA | ₹31.8 Cr | +4.3% | Cost discipline saves the day |
| EBITDA Margin | 13.8% | +100 bps | Lean and mean |
| PAT | ₹17.4 Cr | +5.5% | Profits resist rain |
| EPS | ₹4.92 | +6% | Investors get a penny more |
| Paint Segment | 48% of rev | Flat | Still the canvas |
| Plastics & Rubber | 34% of rev | + | Margin boosters |
| Operating Expense | ↓ 7.7% QoQ | – | Excel efficiency award 🏅 |
➡ Cost efficiency worked like primer under fading revenue paint.
5. Analyst Questions
Q:“Will revenue improve in H2?”Atil:“Festivals and weddings will fix everything.”(Indian economy’s standard strategy.)
Q:“13% growth guidance still on?”Atil:“Target remains — faith is free of cost.”
Q:“EBITDA sustainability?”Baluch:“Expect 13–14% by year end.”(Flat is the new up.)
Q:“Impact of Malaysian mine?”Atil:“Ask us next year; we’re still digging.”
Q:“Rare earth plans?”Atil:“We’re exploring the earth, rarely.”
6. Guidance & Outlook
Management expectsa colourful H2, assuming monsoon stops playing
