20 Microns Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript 20 Microns Ltd filed with BSE on 30 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
20 Microns reported Q4 FY26 revenue growth of 14.8% year-on-year, led by recovery in paint and polymer rubber demand, with EBITDA growing 9.6% YoY to Rs 31.8 crore and PAT growing 16.6% YoY. Full year FY26 revenue crossed Rs 953 crore with EBITDA margin stable at 12.9%, supported by better product mix. Management outlined a Rs 100 crore capex plan focused on specialty products, backward integration and Malaysian operations, and declined to give specific FY27 revenue and margin guidance, citing current uncertainty.
Numbers mentioned
Revenue growth: 14.8% YoY (Q4 FY26)
p. 3
“So if we see the graph, the revenue growth was about 14.8% YoY led by recovery in the paint and the polymer rubber demands.”
Mr. Nihad Baluch, page 3 of the filed PDF · View the filing
Sequential revenue growth: 21.5% (Q4 FY26)
p. 3
“If you see the sequential growth, this indicators around 21.5% stronger quarter momentum.”
Mr. Nihad Baluch, page 3 of the filed PDF · View the filing
EBITDA margin: about 12% (Q4 FY26)
p. 3
“EBITDA margin remains stable about 12% reflecting the pricing discipline, whereas the EBITDA grew at 9.6% YoY to 31.8 crore PAT grew 16.6% YoY and 17.6% supported by lower finance cost and operational efficiencies.”
Mr. Nihad Baluch, page 3 of the filed PDF · View the filing
EBITDA: Rs 31.8 crore (Q4 FY26)
p. 3
“EBITDA margin remains stable about 12% reflecting the pricing discipline, whereas the EBITDA grew at 9.6% YoY to 31.8 crore PAT grew 16.6% YoY and 17.6% supported by lower finance cost and operational efficiencies.”
Mr. Nihad Baluch, page 3 of the filed PDF · View the filing
PBT growth: 28% YoY (FY26)
p. 3
“Company avoided aggressive low margin business which contributed to PBT increase by 28%.”
Mr. Nihad Baluch, page 3 of the filed PDF · View the filing
EPS: 4.98 (FY26)
p. 3
“YoY outperforming the revenue growth and the EPS increase to 4.98 reflecting the improved profitability.”
Mr. Nihad Baluch, page 3 of the filed PDF · View the filing
Full year revenue: crossed 953 crore (FY26)
p. 3
“Full year revenue crossed 953 crore despite slow quarters.”
Mr. Nihad Baluch, page 3 of the filed PDF · View the filing
EBITDA margin: 12.9% (FY26)
p. 3
“EBITDA maintained EBITDA margins remained stable at 12.9% supported by better product mix.”
Mr. Nihad Baluch, page 3 of the filed PDF · View the filing
RoCE: 16.4% (FY26)
p. 4
“The RoCE remained healthy at 16.4% in FY26.”
Mr. Nihad Baluch, page 4 of the filed PDF · View the filing
Operating cash flows: Rs 103.6 crore (FY26)
p. 4
“Operating cash flows increased sharply to 103.6 CR.”
Mr. Nihad Baluch, page 4 of the filed PDF · View the filing
Net equity ratio: 0.1X (FY26)
p. 4
“The net equity ratio remained to 0.1 X from 0.4 X in FY26.”
Mr. Nihad Baluch, page 4 of the filed PDF · View the filing
Inventory turnover: 8.3X (FY26)
p. 4
“Inventory turn around improved from 5.8 to 8.3 X.”
Mr. Nihad Baluch, page 4 of the filed PDF · View the filing
Current ratio: 1.9 (FY26)
p. 4
“The current ratio improved to 1.9.”
Mr. Nihad Baluch, page 4 of the filed PDF · View the filing
Return on equity: 14.6% (FY26)
p. 4
“The return on equity remain healthy despite temporary moderation to 14.6%.”
Mr. Nihad Baluch, page 4 of the filed PDF · View the filing
Net capital turnover ratio: 4.8X (FY26)
p. 4
“The net capital turnover ratio stands to 4.8 X in FY26.”
Mr. Nihad Baluch, page 4 of the filed PDF · View the filing
Current PE: 9.3X
p. 4
“Current PE stands at 9.3 X appeared reasonable relative to the abroad outlook.”
Mr. Nihad Baluch, page 4 of the filed PDF · View the filing
Free cash flow: Rs 42.28 crore (FY26)
p. 9
“So the free cash flows for generated in the previous year was around 42.28 crores.”
Mr. Nihad Baluch, page 9 of the filed PDF · View the filing
New product revenue contribution: 4 to 5%
p. 8
“So about 4 to 5% is what the contribution usually comes in from the new products which are you know usually taking shape both from 20 microns and 20 microns Nano Windows Limited.”
Mr. Atil Parikh, page 8 of the filed PDF · View the filing
Raw material from own mines: approximately 30%
p. 5
“So out of that, approximately about 30% of our total raw material requirement comes from the mines and 70% comes from external sources.”
Mr. Atil Parikh, page 5 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue CAGR — around 18% · next three years
stated conditionally by Mr. Nihad Baluch
p. 3
“We assume that considering the next three-year plan with the CapEx, around 18% of revenue CAGR growth, 200 approx. BPS margin expansion, ROCE improvement between 18 to 20%, the forgoing assumption are considered achievable provided that the prevailing economic condition remains stable.”
Mr. Nihad Baluch, page 3 of the filed PDF · View the filing
Capex completion — by FY30
stated conditionally by Mr. Nihad Baluch
p. 6
“So see the timelines. What we have driven in our CapEx plan is by FY30 that we'll be accomplishing most of our projects in case the geopolitical scenario remains stable and supports our business fundamentals and targets, whereas we are expecting Roce around 20% in case by FY30 if the things in the projects are timely being delivered.”
Mr. Nihad Baluch, page 6 of the filed PDF · View the filing
Revenue milestone — cross the thousand crore benchmark · this financial year
stated conditionally by Mr. Atil Parikh
p. 8
“So, but what we expect that at least if things improve in the next, in the next month or two months, then definitely in the second-half, we'll see the growth that we anticipate to you know, cross the thousand crore benchmark and milestone hopefully in this financial year.”
Mr. Atil Parikh, page 8 of the filed PDF · View the filing
Debt free status — debt free
stated as an aspiration by Mr. Nihad Baluch
p. 10
“Yes, there is always an aspiration to be debt free eventually.”
Mr. Nihad Baluch, page 10 of the filed PDF · View the filing
Malaysian entity capex funding — 70:30 equity to debt ratio
stated firmly by Mr. Nihad Baluch
p. 4
“So largely for our domestic plans, the CapEx would be in form of the internal approvals, whereas for Malaysian entity, we are planning to have a ratio around 70 to 30, that is 30% debt.”
Mr. Nihad Baluch, page 4 of the filed PDF · View the filing
Revenue growth from capex — 18% across next three years · next three years
stated conditionally by Mr. Nihad Baluch
p. 9
“So largely in terms of revenue, if you see that we'll be citing an overall growth of from 18% across the next three years and we'll be having a potential margin equation of around 200 BPS in the medium term.”
Mr. Nihad Baluch, page 9 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Domestic capex will be funded internally, while Malaysian capex will use a 70:30 equity to debt ratio.
Answered by Mr. Nihad Baluch
Asked by Amit Mehandale: How does the company plan to fund the Rs 100 crore capex, in terms of equity to debt?
p. 4
“So largely for our domestic plans, the CapEx would be in form of the internal approvals, whereas for Malaysian entity, we are planning to have a ratio around 70 to 30, that is 30% debt.”
Mr. Nihad Baluch, page 4 of the filed PDF · View the filing
Demand recovery starting January 2026 and inventory build-up by customers amid the war situation drove growth.
Answered by Mr. Atil Parikh
Asked: What drove the sharp Q4 FY26 revenue recovery?
p. 5
“Basically since January of 2026, we saw an upward trend in terms of the demand coming back in variety of industries that we are catering to and post that In February also we saw a stable uptrend in terms of the demand.”
Mr. Atil Parikh, page 5 of the filed PDF · View the filing
About 30% comes from owned mines, with 70% sourced externally.
Answered by Mr. Atil Parikh
Asked by Manish Gupta: How much of the company's raw material requirement comes from its own mines?
p. 5
“So out of that, approximately about 30% of our total raw material requirement comes from the mines and 70% comes from external sources.”
Mr. Atil Parikh, page 5 of the filed PDF · View the filing
No production impact currently, though cost and availability challenges are being managed.
Answered by Mr. Atil Parikh
Asked by Prashant Kale: Is the company facing fuel or gas shortages affecting production?
p. 6
“Well, it's not affecting production as of now. We definitely are facing a lot of issues in terms of the gas or the fuels that we use currently.”
Mr. Atil Parikh, page 6 of the filed PDF · View the filing
Management said it is difficult to predict but reiterated the capex plan is in place and targets would be achievable if executed on schedule.
Answered by Mr. Atil Parikh
Asked by Ravikanth Manchem: Given the 18% CAGR growth and margin expansion guidance in the presentation, can investors expect Rs 100 crore PAT in FY27?
p. 6
“Well, it's very difficult to predict as of now because of the current situations and we don't know for how long these current situations are going to last for.”
Mr. Atil Parikh, page 6 of the filed PDF · View the filing
Doffner is already contributing; Sievert's second phase should stabilize by year-end; Malaysian plant construction will take about 12 months before operations begin.
Answered by Mr. Atil Parikh
Asked by Kunal Bhatia: When will the Seivert and Doffner JVs and Malaysian limestone acquisition start meaningfully contributing to earnings?
p. 7
“For the Malaysian operation, the mines have already been, you know started operating and currently we are in that scenario of you know, organizing the mine in a proper way and followed with the construction of the plant, which will be a minimum of, you know, 12 months.”
Mr. Atil Parikh, page 7 of the filed PDF · View the filing
Management said guidance was not withdrawn but current conditions make it unsuitable to give a broader forecast, with focus on maximizing revenue and maintaining margins.
Answered by Mr. Atil Parikh
Asked by Janish Shah: Why has the company withdrawn annual guidance for FY27, and what are the expectations on revenue and margins?
p. 8
“Well, looking at the current scenario, we have not withdrawn ourselves, but we don't find it suitable enough to give any kind of broader picture in terms of the expected revenues that we would foresee because when we look at the current situations, it's very hard to predict that and if it continues.”
Mr. Atil Parikh, page 8 of the filed PDF · View the filing
Management cited fuel, gas, forex, freight and raw material cost increases, and said cost increases are passed to customers over time on a case-by-case basis.
Answered by Mr. Atil Parikh
Asked by Ravikanth: Are there supply chain challenges or cost implications from the current war situation, and are these costs being passed to customers?
p. 9
“Yes, there are many, many areas in which we are facing challenges. In the current scenarios, it ranges from fuel hikes to gas hikes to foreign exchange hikes.”
Mr. Atil Parikh, page 9 of the filed PDF · View the filing
Market share ranges from 10% to 30% depending on the product, with both international and domestic competitors.
Answered by Mr. Atil Parikh
Asked by Ajay Jindal: What is the company's market share within core products and who are the major competitors?
p. 10
“So basically it's, it's the market share if we look at it, it ranges anywhere from 10% to 30% depending on what kind of things are talking about.”
Mr. Atil Parikh, page 10 of the filed PDF · View the filing
Management confirmed a long-term aspiration to be debt free, with details to be shared as timelines approach.
Answered by Mr. Nihad Baluch
Asked by LRS Capital: Does the company aspire to be debt free, and by when?
p. 10
“Yes, there is always an aspiration to be debt free eventually. Yes, there are plans also in long term that we're also working on it.”
Mr. Nihad Baluch, page 10 of the filed PDF · View the filing
Risks flagged
Restrained demand in key user industries, particularly paints and coatings
p. 2
“Despite restrained demand condition in the key user industry, particularly Paints and coating along with prolonged monsoon impact, geo-political uncertainties, the company delivers stable growth with the healthy profitability.”
Mr. Nihad Baluch, page 2 of the filed PDF · View the filing
Fuel, gas and foreign exchange cost hikes and supply chain disturbance from the war situation
p. 9
“Yes, there are many, many areas in which we are facing challenges. In the current scenarios, it ranges from fuel hikes to gas hikes to foreign exchange hikes.”
Mr. Atil Parikh, page 9 of the filed PDF · View the filing
Difficulty predicting demand and financial performance due to current geopolitical uncertainty
p. 6
“Well, it's very difficult to predict as of now because of the current situations and we don't know for how long these current situations are going to last for.”
Mr. Atil Parikh, page 6 of the filed PDF · View the filing
Weaker current demand potentially affecting the typically strongest revenue quarter
p. 10
“Well, it doesn't seem like it because currently the demand is a little weaker, but we are trying our best to showcase that because it all depends on the entire year.”
Mr. Atil Parikh, page 10 of the filed PDF · View the filing
Potential need to modify or defer capex phasing due to geopolitical developments
p. 3
“However, in light to the current geopolitical development, the Company shall modify or defer its phase plans accordingly.”
Mr. Nihad Baluch, page 3 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.