1. At a Glance – The Wadia-Owned Chemical Dinosaur Wakes Up (Sort Of)
National Peroxide Ltd (NPL) is that one uncle in the chemical industry who has been around since 1954, owns half the market, but still forgets to generate returns. Promoted by the Wadia Group (70.8% holding), this company controls nearly 50% of India’s hydrogen peroxide capacity from a single integrated plant at Kalyan, Maharashtra.
Market cap? A compact ₹244 Cr.
Stock price? ₹424, down ~41% YoY.
Sales (TTM)? ₹278 Cr.
PAT (TTM)? –₹2.82 Cr (yes, still negative).
Debt? Practically pocket change at ₹14 Cr.
ROCE? A majestic 0.20% — competing aggressively with fixed deposits kept under mattresses.
And yet…
Q3 FY26 PAT jumped 257% QoQ and turned positive at ₹1.83 Cr.
So is this a turnaround… or just a quarterly mood swing?
Let’s open the lab report 🧪
2. Introduction – India’s Largest Hydrogen Peroxide Maker, Still Struggling for Oxygen
National Peroxide Ltd should, on paper, be a cash machine.
It dominates a commodity chemical that is used everywhere — textiles, paper, pharma, electronics, water treatment, and even food processing.
It has:
- Scale ✅
- Market share ✅
- Legacy promoter group ✅
- Low debt ✅
And yet…
Over the last 3 years, profits have evaporated faster than hydrogen peroxide left uncapped.
From ₹40 Cr PAT in FY23 → ₹17 Cr in FY24 → loss in FY25 → TTM still negative.
Margins collapsed. ROE vanished. Investors vanished faster.
The irony?
This is not a startup. This is not a cyclical newcomer. This is a 70-year-old monopoly-ish chemical player.
So what went wrong? And more importantly — is something finally changing in FY26?
3. Business Model – WTF Do They Even Do? (Spoiler: One Chemical, Many Uses)
National Peroxide Ltd does not diversify.
It does not experiment.
It does not chase buzzwords.
It makes Hydrogen Peroxide (H₂O₂). Period.
What exactly is hydrogen peroxide?
Think of it as:
- Bleach’s smarter cousin
- A cleaner that decomposes into water + oxygen
- A must-have input in textiles, paper & pulp, pharma, electronics, and environmental applications
NPL’s positioning:
- Largest producer in India
- Installed capacity: 1.50 lakh MTPA (50% w/w)
- ~50% of India’s total capacity
- Single, fully integrated Kalyan plant
Revenue split FY24:
- Manufactured goods: ~99%
- Other operating income: ~1%
Geography FY24:
- Domestic: ~75%
- Exports: ~25%
This is a pure-play commodity chemical business.
No brand premium. No pricing power. Only:
“Can you produce cheaper and sell consistently?”
And that’s where the trouble begins.
4. Financials Overview – Quarterly Table
Quarterly Comparison Table (₹ Cr)
| Metric | Latest Qtr (Dec-25) | YoY Qtr (Dec-24) | Prev Qtr (Sep-25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 69.09 | 62.16 | 68.29 | +11.1% | +1.2% |
| EBITDA | 6.99 | 3.23 | 4.50 | +116% | +55% |
| PAT | 1.83 | -1.52 | 0.39 | Turnaround | +369% |
| EPS (₹) | ~3.05* | Negative | ~0.65 | NA | NA |
*EPS calculated using ~6 Cr equity shares.
Commentary:
Revenue growth is modest.
But margins bounced sharply — OPM recovered to 10.1% from the horror show of Q4 FY25.
Question for you:
👉 Is this operational recovery… or just raw material prices behaving for one quarter?
5. Valuation Discussion – Fair Value Range Only (No Dreams, Just Math)
Method 1: P/E (Normalized)
- FY23 EPS implied from PAT ₹40 Cr → ~₹66/share
- FY26 TTM EPS still negative → unusable
So we use normalized mid-cycle EPS of ₹20–25 (historically visible, not guessed).
Industry mid P/E
