20 Microns Ltd (BOM:533022) Q2 2026 Earnings Call Highlights: Navigating Challenges with ...

This article first appeared on GuruFocus .

Release Date: November 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• 20 Microns Ltd ( BOM:533022 ) reported an EBITDA growth to INR318 million, showing a 3.4% improvement year on year.

• The company's EBITDA margins expanded to 13.8%, a 100 basis point improvement over the same quarter last year.

• Operating expenses were tightly controlled, declining 7.7% sequentially and 5% year on year, demonstrating effective cost management.

• The company maintained a healthy financial profile with stable financial costs and disciplined working capital.

• 20 Microns Ltd ( BOM:533022 ) is optimistic about the second half of the financial year, expecting a more constructive environment with improving activity levels.

Negative Points

• Revenue from operations dropped by 3.9% year on year and 6.6% sequentially, impacted by macro factors affecting the paint industry.

• The paint industry, which contributes 48% of the company's revenue, experienced a temporary slowdown due to external factors.

• Despite the growth in EBITDA, the company faced challenges in demand, particularly in the paint segment.

• The nano division did not see significant growth in the first half compared to the previous year.

• The company's CapEx plan has been slightly deferred due to current demand conditions, impacting future growth initiatives.

Q & A Highlights

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Q: The second half revenues for 20 Microns typically tend to be lower than the first half. Do we expect a difference this year? A: Unidentified_1: We are expecting the third and fourth quarters to be decent compared to the last half of the year, despite the usual trend of lower second-half revenues.

Q: Are we on track to achieve the 13% revenue growth for the full year, given the dip in Q2 sales? A: Unidentified_1: Yes, the target remains the same. We are hopeful that with encouraging demand in the upcoming months, we should achieve the targeted growth rate of 13% and above.

Q: What is the outlook for the EBITDA margin? How sustainable is the level seen in Q2? A: Unidentified_1: We have reached our anticipated targets between 13% and 15%. We expect to sustain this range, if not improve, and hopefully end the year in the 13% to 14% range.

Q: Since the Malaysian mine is operational now, how much can margins improve from that? A: Unidentified_1: It will take a few more months to reach optimal levels. Once we segregate the grades for production, we will have a clearer picture of cost savings and margin improvements, likely by the beginning of the next financial year.