Specialty Minerals Stock Jumps 16% After Robust Q4 Results; Announces ₹100 Cr Capex

Synopsis: A specialty minerals company quietly approaches the Rs.1,000 crore revenue milestone, posting its strongest quarterly profit in recent memory while laying out an ambitious two-year growth plan backed by fresh capital investment.

India’s industrial minerals sector got a reason to cheer as one of its leading players closed FY26 on a firm note, reporting double-digit profit growth and charting a clear roadmap for capacity expansion even as its core end-market – the paints industry – faced a challenging year. Adding to the cheer, the company declared a dividend of ₹1.25 per share on a face value of ₹5, translating to a payout of 25%. 

Shares of 20 Micron Limited, with a market capitalization of Rs. 709 crore, are trading at a price of Rs.199 i.e. 12% up from its previous closing price of Rs.177.65. It made a high of Rs.207.1 in Monday’s trading session i.e. approx 16% above its previous closing price. It is trading at a P/E ratio of 20.6. 

A Quarter That Delivered

On a consolidated basis, revenue from operations for Q4 FY26 came in at Rs.261.06 crore, up 14.8% year-on-year from Rs.227.41 crore in Q4 FY25, and sharply higher than Rs.214.82 crore in Q3 FY26. Profit After Tax for the quarter rose 15.6% year-on-year to Rs.17.59 crore, compared to Rs.15.21 crore in Q4 FY25. On a sequential basis, PAT grew 18.3% from Rs.14.87 crore in Q3 FY26. Earnings per share for the quarter stood at Rs.4.99, versus Rs.4.31 in Q4 FY25.

EBITDA for the quarter came in at Rs.31.77 crore, up from Rs.28.98 crore in Q4 FY25, though the EBITDA margin contracted marginally to 12.2% from 12.7% a year ago. Finance costs declined 17.8% year-on-year to Rs.3.92 crore, reflecting an improving debt profile.

Full Year Picture

For the full year FY26, consolidated revenues grew to Rs.953.83 crore from Rs.912.78 crore in FY25, a growth of 4.5%. Full-year PAT grew 6.7%, and EBITDA margin remained stable at 12.9%. The management acknowledged that growth was slower through the first nine months of the year, citing subdued paint demand, extended monsoon impact on post-Diwali offtake, and geopolitical headwinds from the West Asia conflict. Paints remained the largest end-market, contributing 46% of revenues in FY26, while polymers accounted for 26% and rubber delivered strong traction during the year.

Rs.100 Crore Capex to Power Next Phase

The company announced a Rs.100 crore capital expenditure programme to be deployed over the next 24 months. The investment will be split across India facilities (30%), Malaysian operations (40%), the Sievert construction chemicals joint venture (15%), and R&D and ESG initiatives (15%). The Malaysia expansion targets annual production capacity of 1.08 lakh MT and quarrying capacity of 0.96 lakh MT by mid-FY2028. Management also outlined medium-term financial targets including 18% revenue CAGR over the next three years, EBITDA margin expansion of 200-250 basis points, and ROCE improvement to 18-20%.

About the Company

20 Microns Limited, headquartered in Waghodia, Vadodara, is India’s largest producer of micronized industrial minerals. The company serves over 65 countries and supplies to industries including paints, plastics, rubber, paper, and ceramics. Its product portfolio spans industrial minerals, functional additives, and specialty chemicals, with subsidiaries in Malaysia, Vietnam, and Sharjah.

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