Descon Oxychem Posts Rs393.6 Million Profit in FY2026 Despite Earnings Decline

Descon Oxychem Limited has reported a profitable financial year ended June 30, 2026, with consolidated net profit reaching Rs393.62 million, compared with Rs860.16 million recorded in the previous year.

According to the company’s financial statements, earnings per share (EPS) on a basic and diluted basis stood at Rs2.25, down from Rs4.91 in FY2025. The decline indicates that while the company remained profitable, its overall earnings performance was considerably weaker than the preceding year.

Standalone Profit Also Declines

On a standalone basis, Descon Oxychem posted a net profit of Rs303.34 million for FY2026, compared with Rs790.16 million a year earlier. Standalone EPS declined to Rs1.73 from Rs4.51.

The company reported operating profit of Rs370.73 million, while profit before taxation stood at Rs335.83 million. After taxation, net profit for the year was recorded at Rs303.34 million.

The consolidated results showed operating profit of Rs474.36 million and profit before taxation of Rs432.20 million. After accounting for taxation, consolidated net profit attributable to the equity holders of the parent company amounted to Rs393.62 million.

Cash Position Shows Improvement on Consolidated Basis

Descon Oxychem’s consolidated cash-flow statement provides another important picture of the company’s financial position. Net cash generated from operating activities stood at Rs399.29 million during FY2026, compared with Rs1.56 billion in FY2025.

The company used Rs214.25 million in investing activities, while net cash used in financing activities amounted to Rs134.24 million. Despite these outflows, consolidated cash and cash equivalents increased to Rs393.71 million at the end of FY2026 from Rs342.92 million a year earlier.

At the standalone level, net cash generated from operating activities was Rs252.44 million, while cash and cash equivalents at year-end stood at Rs100.43 million, compared with Rs192.26 million at the end of FY2025.

Rs2 Per Share Final Dividend Announced

Despite the decline in annual earnings, the company has proposed a final cash dividend of Rs2 per share, equivalent to 20% for the year ended June 30, 2026. The company has not announced any bonus or right shares.

The financial statements also show that Descon Oxychem paid dividends of Rs2 per share during the previous financial year through both a final dividend and an interim dividend, highlighting the company’s continued distribution to shareholders.

Annual General Meeting Set for October 20

The company has scheduled its Annual General Meeting (AGM) for October 20, 2026, at 10:00 AM at Descon Headquarters on Ferozepur Road.

The share transfer books will remain closed from October 13 to October 20, 2026, with transfers received by the company’s registrar by the close of business on October 12 being considered in time for the dividend entitlement. The company also stated that its annual report will be transmitted through PUCARS at least 21 days before the AGM.

Outlook

Descon Oxychem enters the new financial year with a profitable base and continued dividend distribution, although the sharp year-on-year decline in earnings will remain an important consideration for shareholders. The improvement in consolidated year-end cash provides some financial support, while the upcoming AGM will give shareholders an opportunity to review the company’s FY2026 performance and future direction.

Overall, FY2026 was a challenging year for Descon Oxychem from an earnings perspective, but the company maintained profitability and announced a Rs2 per share final cash dividend for shareholders.