20 Microns Q2 FY27 Results (NSE: 20MICRONS)
Signal: Margin pressure
The read
The key inflection is a reversal of the recent margin recovery: after OPM expanded in Q2FY26 and Q3FY26, consolidated EBITDA margin contracted 230bps YoY to 12.2% in Q2FY27 even as revenue grew 3.2%; PAT fell 21.4% to ₹1,364.00 lakh, while inventory rose 24.5% and operating cash flow fell 53.2% YoY.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹238.16 Cr | +3.2% | -2.7% |
| EBIT | ₹23.66 Cr | -15.3% | |
| Net profit | ₹13.64 Cr | -21.4% | |
| EPS | ₹3.87 | -21.5% | |
| EBIT margin | 12.2% |
P&L walk
Revenue increased 3.2% YoY to ₹23,815.54 lakh, but EBITDA fell 13.0% to ₹2,904.10 lakh and EBITDA margin contracted 230bps to 12.2%; lower finance cost was insufficient to prevent PAT declining 21.4% to ₹1,364.00 lakh.
Segments
The group is single-segment micronised minerals, but subsidiaries and other consolidated operations lifted quarterly revenue to ₹23,815.54 lakh versus standalone ₹19,978.60 lakh while consolidated PAT fell 21.4% versus a 9.6% standalone decline, indicating greater profit drag outside the parent.
Key positives
- Consolidated revenue increased 3.2% YoY to ₹23,815.54 lakh after flat YoY revenue in Q3FY26 and a 0.8% decline in Q1FY27.
- Finance cost declined 5.5% YoY to ₹419.89 lakh, while standalone finance cost declined 10.2% to ₹328.52 lakh.
- Gross margin was broadly stable YoY at 47.7%, improving 14bps despite a 4.3 percentage-point increase in raw material consumption as a percentage of revenue.
- EPS tracked PAT closely, declining 21.5% to ₹3.87 with paid-up capital unchanged at ₹1,764.33 lakh.
Key concerns
- Consolidated EBITDA margin contracted 230bps YoY to 12.2%, reversing the 100bps margin expansions recorded in Q2FY26 and Q3FY26.
- Employee costs increased 12.5% YoY to ₹2,333.30 lakh against 3.2% revenue growth, while other expenses increased 9.4% to ₹6,260.56 lakh.
- Inventory increased 24.5% to ₹17,713.93 lakh from 31 March 2026, while operating cash flow declined 53.2% YoY to ₹2,452.08 lakh.
- Consolidated PAT declined 21.4% to ₹1,364.00 lakh, materially worse than the 9.6% standalone decline, with a ₹25.32 lakh share of loss from an equity-accounted investee.
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