20 Microns sustains margins despite paint industry slowdown

20 Microns Limited reported consolidated revenue from operations of INR 2,307.8 million for Q2 FY2026, experiencing a 3.9% year-on-year drop due to macro factors affecting the paint industry, extended monsoons, and pricing pressures. Despite this, EBITDA margins expanded to 13.8%, a 100-basis point improvement over the same quarter last year, attributed to continued cost initiatives, operational discipline, and efficient sourcing. Profit after tax (PAT) grew to INR 173.5 million, up 5.5% year-on-year, with PAT margins improving to 7.5%, and EPS rising from 4.65 to 4.92.

The company anticipates recovery in the second half of FY2026, driven by festive and wedding seasons and infrastructure upgrades. It aims for a 13% revenue growth for the full year, with steady-state EBITDA margins expected to remain in the 13-15% range. Efforts in product innovation and value-added formulations are helping capture higher-value market segments, particularly in the polymer and rubber divisions, which are structurally higher margin areas.

The Malaysian mine is now operational, with full optimization expected in the coming months to further improve margins. The company's capital expenditure plan for INR 100 crore has been slightly deferred but will be executed from Q4 onwards, focusing on expanding calcium carbonate operations. Collaborations, including the Doffner joint venture, have shown significant revenue increases, with new product introductions planned for Q4 2026.