National Peroxide Ltd Achieves Full-Year Profit Turnaround, Proposes 70% Dividend

Q4 and Full-Year Financial Results

National Peroxide Ltd reported standalone total revenue of ₹87.06 Crores for the fourth quarter of fiscal year 2026, up 18.12% year-over-year. The company posted a standalone profit after tax of ₹7.93 Crores for Q4 FY26, reversing a ₹6.49 Crores loss from the previous year.

For the full fiscal year 2026, standalone total revenue grew 1.48% to ₹295.68 Crores. The company achieved a significant turnaround for the full year, reporting a standalone profit after tax of ₹11.04 Crores, compared to a loss of ₹2.25 Crores in FY25.

Why the Turnaround Matters

This financial performance signals a major positive shift for National Peroxide Ltd, showing it has overcome previous losses to become profitable. The turnaround is further bolstered by the board's recommendation of a 70% final dividend, or ₹7 per share, rewarding shareholders directly.

Improved financial health is also evident, with non-current borrowings reduced to zero, strengthening the company's balance sheet.

Company Background

Established in 1954, National Peroxide Ltd is India's largest manufacturer of Hydrogen Peroxide (H₂O₂), with an installed capacity of 150,000 MTPA. The company also produces Peracetic Acid and Compressed Hydrogen Gas.

Prior to this recent turnaround, the company had faced financial challenges, including a net loss in FY25.

Key Risks and Watchpoints

While statutory auditors issued an unmodified opinion, they included an 'Emphasis of Matter' note concerning a proposed payment of ₹17 lakh as commission to Non-Executive Directors. This amount exceeds the limits prescribed by Section 197 of the Companies Act, 2013, and requires member approval.

Investors will also note an upcoming transition in senior leadership, with a new Chief Financial Officer (CFO) scheduled to take over in June 2026.

Competitive Landscape

National Peroxide Ltd operates within the competitive Indian Hydrogen Peroxide market. Key competitors include major players such as Aditya Birla Chemicals, Gujarat Alkalies and Chemical Limited (GACL), Indian Peroxide Limited, and Meghmani Finechem Limited (MFL).

Companies like GACL are significant market participants with expansion plans, while Meghmani Organics Limited is planning a new plant.

Key Financial Metrics

• Standalone Total Revenue: ₹295.68 Crores (₹29,568.37 Lakhs) for FY26, up 1.48% YoY.
• Standalone Profit after Tax: ₹11.04 Crores (₹1,103.71 Lakhs) for FY26, turning around from a ₹2.25 Crores loss in FY25.
• Standalone Total Revenue: ₹87.06 Crores (₹8,706.27 Lakhs) for Q4 FY26, up 18.12% YoY.
• Standalone Profit after Tax: ₹7.93 Crores (₹792.86 Lakhs) for Q4 FY26, turning around from a ₹6.49 Crores loss in Q4 FY25.

What Investors Will Watch Next

Investors will closely monitor for member approval on the proposed director commission payment to ensure regulatory compliance. The smooth transition to a new CFO in June 2026 and their strategic direction will be important to observe.

Sustaining profitability and revenue growth momentum in upcoming quarters will be key to validating the company's turnaround. Further insights will emerge from analyzing market share and competitive positioning against peers like GACL and MFL.