20 Microns Q2FY26 Concall Decoded: Margins Shine Even as Paints Fade 🎨📉


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

MetricQ2 FY26YoY ChangeCommentary
Revenue₹230.8 Cr–3.9%Paint slowdown hit hard 🎨
EBITDA₹31.8 Cr+4.3%Cost discipline saves the day
EBITDA Margin13.8%+100 bpsLean and mean
PAT₹17.4 Cr+5.5%Profits resist rain
EPS₹4.92+6%Investors get a penny more
Paint Segment48% of revFlatStill the canvas
Plastics & Rubber34% of rev+Margin boosters
Operating Expense↓ 7.7% QoQExcel efficiency award 🏅

➡ Cost efficiency worked like primer under fading revenue paint.


5. Analyst Questions

Q: “Will revenue improve in H2?”
Atil: “Festivals and

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