20 Microns Reports Q2 FY26 Results: PAT Grows 5.5% Despite Revenue Dip

20 Microns Limited , a leading player in the industrial minerals sector, has released its financial results for the second quarter of fiscal year 2025-26, showcasing resilience in the face of industry headwinds.

Financial Highlights

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue	₹2,307.80 Mn	₹2,401.80 Mn	-3.9%
EBITDA	₹318.50 Mn	₹308.00 Mn	+3.4%
EBITDA Margin	13.8%	12.8%	+100 bps
PAT	₹173.50 Mn	₹164.50 Mn	+5.5%
EPS	₹4.92	₹4.65	+5.8%

Despite a 3.9% year-on-year decline in consolidated revenue to ₹2,307.80 million, 20 Microns demonstrated strong profitability. The company's profit after tax (PAT) grew by 5.5% to ₹173.50 million, while EBITDA margins improved significantly to 13.8% from 12.8% in the same quarter last year.

Segment Performance

The company's revenue mix for Q2 FY26 was as follows:

Paints: 48%
Plastics: 25%
Rubber: 9%
Others: 18%

Market Challenges and Company Response

The paint industry, which contributes nearly half of 20 Microns' revenue, faced headwinds due to extended monsoons and a delayed festive season. However, the company managed to strengthen its market position, gaining share and maintaining margin stability amidst intense competition in the paint manufacturing sector.

Management Commentary

Rajesh C. Parikh, Chairman and Managing Director, stated, "Despite headwinds from the paint industry, we reported robust consolidated revenue. Our improved EBITDA margins, driven by cost efficiencies, underscore our commitment to operational excellence."

He added, "We are confident of a demand recovery in the second half of FY26, driven by the festive and wedding season. Our focus remains on margin enhancement, product diversification, and geographic expansion."

Strategic Initiatives

20 Microns is actively expanding its global presence through participation in international trade fairs. The company showcased its products at K Fair 2025 in Düsseldorf and plans to participate in upcoming domestic exhibitions including PlastIndia 2026, PaintIndia 2026, and India Rubber Expo 2026.

Outlook

Management expects a demand recovery in the second half of FY26, supported by seasonal factors. The company's strategic focus on innovation, product diversification (especially in plastics and rubber segments), and operational efficiencies is expected to drive future growth and margin improvement.

Conclusion

Despite short-term challenges in its primary market segment, 20 Microns Limited has demonstrated financial resilience and strategic adaptability. The company's focus on diversification, cost efficiency, and global expansion positions it well for sustainable growth in the industrial minerals and specialty chemicals sectors.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.78%	-7.78%	-6.00%	-12.17%	-16.19%	+549.02%

20 Microns Limited , a leading player in the micronized minerals industry, has reported a mixed set of financial results for the second quarter and approved a strategic acquisition to strengthen its international presence.

Financial Highlights

For the quarter ended September 30, 20 Microns reported:

Metric	Q2	Q2 Previous Year	YoY Change
Net Profit	₹174.00 million	₹164.00 million	+6.10%
Revenue	₹2.31 billion	₹2.40 billion	-3.75%
EBITDA	₹322.00 million	₹308.00 million	+4.55%
EBITDA Margin	13.96%	12.82%	+114 bps

The company's net profit increased by 6.10% year-over-year to ₹174.00 million, up from ₹164.00 million in the same quarter last year. This growth in profitability came despite a 3.75% decline in revenue, which stood at ₹2.31 billion compared to ₹2.40 billion in the previous year's corresponding quarter.

Improved Operational Efficiency

20 Microns demonstrated enhanced operational efficiency in the quarter, as evidenced by the improvement in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The EBITDA rose to ₹322.00 million from ₹308.00 million in the corresponding quarter of the previous year, marking a 4.55% increase.

The EBITDA margin also saw a significant improvement, expanding by 114 basis points to reach 13.96%, up from 12.82% in the previous year's quarter. This expansion in margin indicates the company's ability to manage costs effectively and improve its operational performance even in the face of revenue challenges.

Strategic Acquisition in Malaysia

In a significant move, 20 Microns' Board has approved the acquisition of 14 equity shares of its Malaysian subsidiary, 20 Microns (Malaysia) Sdn. Bhd., from minority shareholder Mr. Krishnaji Rao for MYR 14. This acquisition will increase the company's shareholding from 99.9987% to 100%, making it a wholly-owned subsidiary.

The transaction aims to enable complete ownership, effective control, faster decision-making, and strategic operational synergies. One equity share will continue to be held by Mr. Rao as a nominee to comply with Malaysian statutory requirements.

The Malaysian subsidiary is engaged in extraction and processing of high-purity minerals, including acquisition, exploration, development, and operation of quarries and metalliferous lands. This move is expected to strengthen 20 Microns' international presence and potentially contribute to future growth.

Looking Ahead

As 20 Microns navigates through the current fiscal year, the company's performance in the coming quarters could be crucial in determining its trajectory. The micronized minerals industry continues to be an important sector, with applications across various industries including paints, plastics, and ceramics. 20 Microns' ability to improve its operational metrics in a challenging environment, coupled with its strategic moves in international markets, may position it well to capitalize on any upturn in demand across these sectors.