20 Microns revenue rose 2.4 times as margins stayed above 12%

20 Microns Limited increased revenue 2.4 times, from Rs 392 crore in FY17 to Rs 954 crore in FY26, while consolidated EBITDA, or earnings before interest, tax, depreciation and amortisation, margins stayed between 12.1% and 14.4%. FY26 EBITDA was Rs 123.1 crore and the margin was 12.9%.

How did 20 Microns grow revenue and EBITDA?

20 Microns increased revenue from operations from Rs 613.2 crore in FY22 to Rs 953.8 crore in FY26, a compound annual growth rate, or CAGR, of 11.7%. EBITDA rose from Rs 79.4 crore to Rs 123.1 crore over the same period, a 11.6% CAGR. Revenue increased by Rs 41 crore from Rs 912.8 crore in FY25, while EBITDA rose by Rs 5.7 crore from Rs 117.4 crore.

The longer record shows revenue rising from Rs 392 crore in FY17 to Rs 954 crore in FY26, while EBITDA grew from Rs 56 crore to Rs 123 crore. That represents 2.4 times revenue and 2.2 times EBITDA over the decade. The presentation notes that FY17 to FY19 figures were published figures rounded to crore, whereas FY22 to FY26 figures were reported in millions and converted here to crore.

20 Microns recorded higher revenue and EBITDA in every year of the FY22 to FY26 series, although the rate of increase changed. The largest revenue addition was Rs 135.3 crore between FY24 and FY25, compared with Rs 41 crore in FY26. EBITDA increased by Rs 12.3 crore in FY25, then by Rs 5.7 crore in FY26; the company calculates EBITDA before other income and exceptional items.

Were 20 Microns EBITDA margins consistent for a decade?

20 Microns maintained consolidated EBITDA margins between 12.1% and 14.4% in every financial year from FY17 through FY26. The 10-year average was 13.2%, and the FY26 margin of 12.9% matched FY25. The high point was 14.4% in FY19 and the low point was 12.1% in FY21, a 2.3-percentage-point range.

The margin series covers COVID disruption in FY21, input and energy-cost inflation in FY22 and FY23, and subdued paint demand and West Asia disruption in FY26, as identified in the presentation. Margin declined from 12.5% in FY20 to 12.1% in FY21, recovered to 12.9% in FY22 and reached 13.5% in FY24. Across FY22 to FY26, the range narrowed to 12.2% to 13.5%.

Revenue expanded by Rs 562 crore between FY17 and FY26 without a reported annual EBITDA margin below 12%. The presentation does not assign the margin record or individual year-to-year movements to a specific product, customer or geography. Its stated EBITDA measure excludes other income and exceptional items, making the series an operating measure on that basis.

How did 20 Microns profit, cash generation and leverage change?

20 Microns increased profit after tax, or PAT, from Rs 34.7 crore in FY22 to Rs 66.7 crore in FY26, a 17.7% CAGR, while PAT margin rose from 5.7% to 7%. PAT rose in each reported year, reaching Rs 42 crore in FY23, Rs 56.2 crore in FY24 and Rs 62.5 crore in FY25. The profit CAGR exceeded the 11.7% revenue CAGR reported for FY22 to FY26.

Cash flow from operations was Rs 103.6 crore in FY26, about three times Rs 35.3 crore in FY22. The path was uneven: cash flow increased to Rs 63.2 crore in FY24, fell to Rs 31.8 crore in FY25 and then rose by Rs 71.8 crore in FY26. FY26 operating cash flow was Rs 36.9 crore above FY26 PAT of Rs 66.7 crore.

20 Microns reduced net debt to equity to 0.13 times in FY26 from 0.41 times in FY22. The ratio fell to 0.16 times in FY24, increased to 0.26 times in FY25 and declined again in FY26. Return on capital employed, or ROCE, was 16.4% in FY26, below 18.3% in FY25 and 20.3% in FY24, but within the disclosed five-year range of 16% to 20%.

What operating metrics changed for 20 Microns in FY26?

20 Microns reported inventory turnover of 8.3 times in FY26, up from 5.8 times in FY22 and 8.1 times in FY25. Its current ratio reached 1.9 times, compared with 1.3 times in FY22 and 1.7 times in FY25. Total assets turnover was 1.3 times, matching FY22 and below the 1.4 times recorded from FY23 through FY25.

Trade receivables turnover was 6 times in FY26, down from 6.8 times in FY25 and 7.1 times in FY23, while remaining within the company’s stated five-year range of 6 to 7 times. Net capital turnover declined to 4.8 times from 5.9 times in FY25 and 8.9 times in FY22; the presentation attributes this movement to higher working capital. Return on equity was 14.6% in FY26, compared with 16% in FY25.

Conclusion

20 Microns combined a 2.4-times revenue increase between FY17 and FY26 with EBITDA margins that ranged from 12.1% to 14.4% over the same 10 years. Its FY22 to FY26 record also showed PAT rising from Rs 34.7 crore to Rs 66.7 crore, cash flow from operations reaching Rs 103.6 crore in FY26, and net debt to equity declining from 0.41 times to 0.13 times.

The next disclosed milestones concern a Rs 100 crore capital-expenditure programme. Management said Rs 30 crore had been deployed and expected about 47% deployment by the end of the third quarter of FY27; the plan includes 9 megawatts of captive solar capacity targeted for commissioning in Q4 FY27. Management estimates the projects could meet about 40% of power needs and provide about Rs 8 crore of annual EBITDA benefit, while noting that timing and benefits may change.