20 Microns more than doubled revenue, held EBITDA margins

20 Microns Limited increased consolidated revenue 2.4 times to Rs 954 crore in FY26 from Rs 392 crore in FY17, while EBITDA rose 2.2 times to Rs 123 crore from Rs 56 crore. EBITDA margin remained within a 12.1% to 14.4% range through FY17–FY26, including disruptions identified by management.

How fast did 20 Microns grow revenue and profit?

20 Microns expanded revenue 2.4 times and EBITDA 2.2 times between FY17 and FY26. Revenue reached Rs 954 crore in FY26, compared with Rs 392 crore in FY17, while EBITDA reached Rs 123 crore from Rs 56 crore. The company presents EBITDA before other income and exceptional items, providing a consistent basis for its reported margin series.

The FY22–FY26 record shows that sales, EBITDA and profit after tax all increased. Revenue from operations rose from Rs 613.2 crore in FY22 to Rs 953.8 crore in FY26, a compound annual growth rate (CAGR) of 11.7%. EBITDA increased from Rs 79.4 crore to Rs 123.1 crore, a CAGR of 11.6%, while profit after tax rose from Rs 34.7 crore to Rs 66.7 crore, a CAGR of 17.7%.

Profit after tax margin increased to 7.0% in FY26 from 5.7% in FY22. Sales growth slowed in the latest year, with revenue increasing by Rs 41 crore in FY26 after a Rs 135.3 crore increase in FY25. Profit after tax nevertheless increased by Rs 4.2 crore in FY26, following a Rs 6.3 crore rise in FY25.

How consistent were 20 Microns EBITDA margins over ten years?

20 Microns maintained consolidated EBITDA margin between 12.1% and 14.4% in every year from FY17 to FY26, with a 10-year average of 13.2%. The highest reported margin was 14.4% in FY19 and the lowest was 12.1% in FY21, a range of 2.3 percentage points.

The margin declined from 14.3% in FY17 to 12.5% in FY20 and then reached 12.1% during the COVID disruption in FY21. It was 12.9% in FY22, 12.2% in FY23, 13.5% in FY24, and 12.9% in both FY25 and FY26. FY26 was therefore 0.6 percentage points below FY24 but 0.8 percentage points above the FY21 low.

Management says the period included COVID disruption in FY21, input and energy-cost inflation in FY22 and FY23, and subdued paint demand alongside West Asia disruption in FY26. Against those conditions, revenue increased from Rs 392 crore to Rs 954 crore and EBITDA increased from Rs 56 crore to Rs 123 crore over the decade.

What happened to cash generation and leverage at 20 Microns?

20 Microns reported cash flow from operations of Rs 103.6 crore in FY26, nearly three times the Rs 35.3 crore reported in FY22. The progression was uneven: operating cash flow increased to Rs 54.4 crore in FY23 and Rs 63.2 crore in FY24, fell to Rs 31.8 crore in FY25, and then rose by Rs 71.8 crore in FY26.

Net debt to equity declined 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 then declined again. Return on capital employed was 16.4% in FY26, compared with 20.3% in FY24 and 18.3% in FY25, while remaining within the 16% to 20% range reported across FY22–FY26.

Did working-capital efficiency improve at 20 Microns?

20 Microns increased inventory turnover to 8.3 times in FY26 from 5.8 times in FY22. The ratio rose in every reported year, from 6.2 times in FY23 to 7.4 times in FY24 and 8.1 times in FY25. The current ratio also increased to 1.9 times in FY26 from 1.3 times in FY22.

Other turnover measures moved in the opposite direction. Trade receivables turnover declined to 6.0 times in FY26 from 7.1 times in FY23 and 6.8 times in FY25. Net capital turnover declined to 4.8 times in FY26 from 8.9 times in FY22, and the presentation attributes the FY26 figure to higher working capital. Total assets turnover was 1.3 times in FY26, versus 1.4 times in FY23 through FY25.

What is 20 Microns planning after FY26?

20 Microns has announced a Rs 100 crore capital-expenditure programme, with Rs 30 crore deployed at the time of the presentation. This amount includes Rs 12 crore for captive solar and Rs 7 crore for two mine acquisitions. Management said Rs 17 crore of Q3 FY27 spending was allocated to solar, taking solar expenditure to Rs 29 crore and expected programme deployment to nearly 47% by the end of Q3 FY27.

The captive-solar project comprises 9 megawatts across a 5.5-megawatt Rajasthan plant and a 3.5-megawatt Gujarat plant. Management targets commissioning in Q4 FY27 and estimates that the plants could meet about 40% of power needs and generate an annual EBITDA benefit of about Rs 8 crore. The presentation identifies the timeline and expected benefits as management estimates that may change.

Management has also set medium-term targets of 18% revenue CAGR over three years, a 200 to 250 basis-point EBITDA-margin increase, return on capital employed of 18% to 20%, and more than 20% market share in high-value products by FY2030. Its stated funding plan is internal accruals plus selective debt, phased over 24 months.

Conclusion

20 Microns combined a 2.4-times increase in revenue over FY17–FY26 with a decade in which EBITDA margin did not fall below 12.1%. FY22–FY26 also brought higher profit after tax, lower net debt to equity and a substantial increase in FY26 operating cash flow. Inventory turnover improved, but receivables turnover and net capital turnover declined, making working capital an important counterpoint to the growth record.

The next disclosed milestones are expected deployment of nearly 47% of the Rs 100 crore capital programme by the end of Q3 FY27 and commissioning of 9 megawatts of captive solar in Q4 FY27. Management’s three-year revenue CAGR target, planned EBITDA-margin expansion and estimated Rs 8 crore annual solar EBITDA benefit can be assessed against subsequent reported results.