National Peroxide FY26 Profit Reaches ₹11 Cr, Marking Strong Turnaround

National Peroxide Limited is preparing for a new era with Mr. Chirag Kothari appointed as Chief Financial Officer & Chief Risk Officer, effective June 1, 2026. He succeeds Mr. Amit Goriwale. This leadership transition accompanies the company’s announcement of a significant financial turnaround for fiscal year 2026, which saw profits return after a period of losses. Shareholders can anticipate a proposed final dividend of ₹7 per share, subject to approval at the upcoming Annual General Meeting.

Fiscal Year 2026 Financial Results

For the fiscal year ending March 31, 2026, National Peroxide Limited posted a Profit After Tax (PAT) of ₹1,103.71 lakh (₹11.04 crore). This marks a substantial recovery from the net loss of ₹224.64 lakh (-₹2.25 crore) recorded in the previous fiscal year, FY25.

Navigating Past Scrutiny and Risks

The company, part of the Wadia Group and a leading hydrogen peroxide producer, has faced considerable scrutiny regarding its past financial dealings. In February 2025, National Peroxide settled with the Securities and Exchange Board of India (SEBI) for ₹9.42 lakh over disclosure lapses, including significant delays in share listing post-NCLT order. Further complicating its recent history, the company disclosed in May 2024 potential embezzlement by an employee, estimated to be around ₹36 crore, which is currently under forensic audit. Earlier analyses, including one from February 2026, had flagged underlying structural concerns such as a 'fragile recovery,' 'ROE collapse,' and weak growth trends, indicating that sustained profitability may still encounter challenges.

Shareholder Value and Future Outlook

The proposed ₹7 per share final dividend signals a commitment to returning value to shareholders as the company moves from deficit to surplus. The incoming CFO & CRO, Mr. Kothari, will play a key role in guiding the company's financial management and strategy. Key areas for investors to monitor include the formal approval of the dividend at the Annual General Meeting, the integration of new financial leadership, the outcomes of the forensic audit into alleged fund embezzlement, and the company’s ability to sustain revenue and profit growth in the coming quarters.

Competitive Environment

National Peroxide competes in the Indian hydrogen peroxide market with players like Gujarat Alkalies and Chemicals Ltd (GACL), Aditya Birla Chemicals, Indian Peroxide Limited, and Meghmani Finechem Limited (MFL). These peers also cater to similar industrial sectors demanding hydrogen peroxide for applications like pulp and paper, textiles, and water treatment.

Key Metrics and Dates

The recommended final dividend stands at ₹7 per equity share. Mr. Chirag Kothari is set to commence his role as CFO & CRO on June 1, 2026.