20 microns has recommended a final dividend of ₹1.25 per fully paid-up equity share, representing 25% of the face value of ₹5 each, for the financial year ended March 31, 2026. The dividend distribution is subject to approval by shareholders at the 39th Annual General Meeting (AGM) scheduled for July 31, 2026. Upon approval, the payout will be made to eligible shareholders on or before August 29, 2026. The record date to determine shareholder entitlement has been fixed as July 17, 2026.

The company has communicated the tax implications for the dividend, noting that tax will be deducted at source (TDS) as per the Income Tax Act, 2025, and the Finance Act, 2026. For resident shareholders with a valid Permanent Account Number (PAN), the TDS rate is 10%. If the PAN is invalid, inoperative, or not linked with Aadhaar, the TDS rate increases to 20%. Resident individuals are exempt from TDS if the total dividend during FY 2026-27 does not exceed ₹10,000 or if they furnish Form 121 or an exemption certificate.

Resident non-individual entities such as insurance companies, mutual funds, and Alternative Investment Funds (AIF) can claim exemption by submitting specific self-declarations and registration documents. Non-resident shareholders face a withholding tax rate of 20%, plus applicable surcharge and cess, unless they provide a certificate for lower or nil withholding under Section 395 of the Act or opt for benefits under the Double Tax Avoidance Agreement (DTAA). To avail DTAA benefits, non-resident shareholders must submit a Tax Residency Certificate (TRC), e-filed Form 41, and a self-declaration of treaty eligibility.

Shareholders seeking lower withholding rates must ensure the certificate is issued against the company's TAN BRDM03839D. The company has set a cut-off date of July 20, 2026, for submitting details to determine the appropriate withholding tax rate. Additionally, all tax-related documents, including Form 121 and declarations under Section 393(5), must be submitted to the registered office or via email by June 15, 2026, at 6:00 p.m. IST. Documents received after this deadline may not be considered, potentially resulting in a higher TDS deduction.

The company also advised shareholders to update their bank account details in their demat accounts or physical folios to ensure timely dividend credit. Following SEBI mandates, dividends for physical shareholders will be paid only via electronic mode from April 1, 2024, requiring the submission of PAN, nomination details, and bank information.

Dividend and Tax Details

20 microns has outlined a strategic roadmap targeting over 20% market share in high-value products by FY2030, alongside an 18% revenue CAGR over the next three years. The company anticipates EBITDA margin expansion of 200–250 basis points, driven by operational efficiencies and a shift towards specialty materials. These targets are supported by a ₹100 crore CapEx plan focused on strengthening specialty product capabilities and international operations.

Strategic Growth Targets

The company’s long-term vision centers on transitioning from a transitional industrial mineral player to a diversified specialty material platform. Management expects the Return on Capital Employed (ROCE) to improve to a range of 18–20% through enhanced capital efficiency. The ₹100 crore CapEx, representing approximately 16% of the current market capitalization, will see 40% allocated to Malaysian operations. Funding for the Malaysian entity is planned with a 70:30 equity-to-debt ratio, while domestic plans will utilize internal accruals.

Financial Performance and Outlook

For the financial year ended March 31, 2026, 20 Microns reported full-year revenue of ₹953 crore, with EBITDA margins stable at 12.9%. Over the last five years, revenue has nearly doubled, growing from ₹613 crore in FY22 to ₹954 crore in FY26, while PAT has almost tripled from ₹35 crore to ₹67 crore. The RoCE stood at 16.4% in FY26, with operating cash flows increasing sharply to ₹103.6 crore. The company’s leverage has reduced significantly, with a net equity ratio of 0.1 X compared to 0.4 X previously.

Operational Highlights

The company is focusing on diversifying outside the paint segment, which currently contributes over 46% of revenue. Growth drivers include polymer and rubber applications, export expansions, and construction chemicals. Inventory turnover improved from 5.8 X to 8.3 X, and the current ratio strengthened to 1.9. Management highlighted that new products launched in the past two years contribute approximately 4–5% to revenue, with expectations for this to rise as these products gain traction in new customer segments.