Mysore Petro Chemicals has reported a turnaround, posting a net profit of ₹4.40 crore for FY26 against a loss last year. The company also recommended a dividend of ₹2 per share.
Mysore Petro Chemicals Reports FY26 Profit, Recommends Dividend
Mysore Petro Chemicals Ltd has announced a significant financial turnaround for the fiscal year 2025-26, reporting a net profit of ₹4.40 crore compared to a net loss of ₹7.66 crore in the previous fiscal year. The company's total revenue for FY26 stood at ₹64.60 crore. The Board of Directors has recommended a dividend of ₹2 per equity share.
Reader Takeaway: Turnaround to profitability and dividend payout signals recovery; contingent liability remains a key watch point.
What just happened
Mysore Petro Chemicals Ltd has moved from a net loss of ₹7.66 crore in FY25 to a net profit of ₹4.40 crore in FY26. Total revenue for FY26 was ₹64.60 crore, up from ₹46.43 crore in FY25. The company's board has recommended a 20% dividend, amounting to ₹2 per share.
Why this matters
This marks a substantial recovery for the company, indicating improved operational efficiency and market conditions. The profitability and dividend announcement are positive signals for shareholders, suggesting a healthier financial standing. The revenue growth, driven by petrochemical trading, also shows business expansion.
The backstory
In FY25, Mysore Petro Chemicals faced a net loss of ₹7.66 crore. The company's business involves trading petrochemicals like Orthoxylene, Phthalic Anhydride, Maleic Anhydride, and Benzoic Acid. The current turnaround follows a period of financial challenges.
What changes now
With the return to profitability and a recommended dividend, investor sentiment may improve. The company is also managing ongoing liquidation of a former subsidiary and a labor dispute, which have been key concerns.
Risks to watch
Key risks include a contingent liability of ₹15.56 crore related to a workmen's union dispute, the ongoing liquidation investigation of Q C Polymer Ltd, and customer concentration, with the top three customers accounting for ₹37.21 crore in revenue.
Peer comparison
(No peer comparison data was available in the filing.)
Context metrics (time-bound)
- FY26 Net Profit: ₹4.40 crore
- FY25 Net Loss: (₹7.66 crore)
- FY26 Total Revenue: ₹64.60 crore
- FY25 Total Revenue: ₹46.43 crore
- Recommended Dividend: ₹2 per equity share
What to track next
Investors should closely monitor the outcome of the workmen's union dispute and any further developments regarding the subsidiary liquidation. Continued revenue growth and profitability will be key indicators of sustained recovery.