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
