20 Microns Q1 FY27 Results (NSE: 20MICRONS)
Signal: Revenue declined
The read
Consolidated revenue flat YoY but gross margin expanded ~200bps on raw material deflation; EBITDA margin improvement modest as employee costs rose faster. Bottom line grew 5.4% YoY aided by lower finance cost and higher other income. Net profit beat masked by flat top line – quality of earnings moderate.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹244.72 Cr | -1.0% | -6.3% |
| EBIT | ₹33.76 Cr | 3.7% | |
| Net profit | ₹17.74 Cr | 5.4% | |
| EPS | ₹5.04 | 5.4% | |
| EBIT margin | 12.2% |
P&L walk
Revenue flat YoY; gross margin expanded sharply due to lower raw material costs; EBITDA margin improved despite higher employee cost; PAT growth aided by lower finance cost and positive other income; EPS tracking PAT.
Key positives
- Gross margin expanded ~200bps YoY with raw material cost % of revenue falling from 51.6% to 49.6%.
- Finance cost down 16.8% YoY to ₹390.85 Lakh, contributing directly to PAT growth.
- Consolidated PAT grew 5.4% YoY despite flat revenue.
Key concerns
- Revenue from operations declined 1.0% YoY – volume/mix weakness.
- Employee cost grew 8.9% YoY, outpacing revenue growth and pressuring margins.
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