Shareholders of National Oxygen approved the disposal of specific plant and machinery assets during its 51st Annual General Meeting on August 28, 2026. The scrutinizer’s report, dated August 31, 2026, confirms that all six resolutions passed with requisite majorities, though promoters abstained from voting on the asset sale resolutions.

The meeting, conducted via video conference, saw the attendance of 53 members. Rajesh Kumar Saraf, Managing Director, chaired the proceedings. The e-voting process was scrutinized by S. Vasudevan of Lakshmi Subramanian & Associates.

Voting Results Overview

The total number of shares entitled to vote stood at 50,42,385. A total of 31,95,541 shares voted on ordinary business resolutions, representing a participation rate of 63.37%. However, for the special resolutions regarding asset sales, only 17,770 shares were polled, resulting in a significantly lower participation rate of 0.35%.

Key Resolutions Passed

The agenda included routine statutory matters alongside significant strategic asset disposals. Shareholders approved the following special resolutions:

• Adoption of new Memorandum of Association (MOA) as per the Companies Act, 2013.
• Adoption of new Articles of Association (AOA) as per the Companies Act, 2013.
• Approval for the sale or transfer of certain assets as a whole in the SIPCOT Perundurai unit.
• Approval for the sale or transfer of plant and machinery (liquid unit) in the Pondicherry unit.

Additionally, the board appointed Rajesh Kumar Saraf as a director upon his retirement by rotation. The resolution received 31,95,521 votes in favor and 20 votes against.

Management Commentary

During the meeting, management addressed shareholder queries regarding the proposed asset sales. The chairman stated that the sale process is ongoing and that details, including consideration amounts, will be disclosed to stock exchanges once finalized in compliance with regulations.

Regarding capital allocation, the chairman explained that decisions on bonus issues and dividends would be reconsidered at an appropriate future time, citing the company’s current losses. He also acknowledged a typographical error in the Statement of Changes in Equity within the annual report, clarifying that it had no impact on financial figures or equity balances.

What the Numbers Show

The voting pattern reveals a distinct divergence in shareholder engagement between routine corporate governance matters and strategic asset disposals. While 63.37% of outstanding shares participated in approving the financial statements and new MOA/AOA, only 0.35% participated in the asset sale votes. Notably, the promoter group, holding 32,43,998 shares, cast zero votes on the asset disposal resolutions, abstaining entirely. The entire support for the asset sales came from public non-institutional shareholders, who voted 17,770 shares in favor with negligible dissent.

National Oxygen Limited reported a net loss of ₹200.64 lakh for the quarter ended June 30, 2026 (Q1FY26), widening from a loss of ₹187.03 lakh in the same period of FY25. The deterioration in profitability was primarily driven by a sharp decline in revenue and structural changes in operations, specifically the shutdown of its liquid plant in Pondicherry. This operational shift has significantly impacted the company’s cost structure and top-line growth prospects for the fiscal year.

The Board of Directors approved the unaudited standalone financial results on August 12, 2026, pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and accompanied by a limited review report issued by the statutory auditors, PSDY & Associates. The financial statements were prepared in accordance with Indian Accounting Standard 34 (Ind AS 34) "Interim Financial Reporting".

Revenue from operations contracted sharply to ₹304.50 lakh in Q1FY26, down from ₹758.45 lakh in Q1FY25, representing a year-on-year decline of approximately 59.85%. Total income stood at ₹328.81 lakh, compared to ₹763.90 lakh in the corresponding previous period. Other income also saw a modest increase to ₹24.31 lakh from ₹5.45 lakh a year ago.

Total expenses amounted to ₹529.45 lakh, down from ₹950.92 lakh in Q1FY25. However, the reduction in expenses did not offset the drop in revenue, leading to a pre-tax loss of ₹200.64 lakh. Key expense components included employee benefit expenses of ₹56.73 lakh, financial costs of ₹46.03 lakh, and depreciation & amortisation of ₹54.56 lakh. Power and fuel costs remained significant at ₹91.37 lakh, while other expenditure stood at ₹150.74 lakh.

Operational Impact

The financial performance was heavily influenced by strategic operational decisions. Note 5 of the financial results states that the company stopped liquid plant operations at its Pondicherry unit effective April 6, 2026. This decision was taken due to severe competition and a steep hike in various operating expenses, including power costs, maintenance, and transportation. Consequently, the company now operates only one reportable primary business segment: Industrial Gases.

What the Numbers Show

The divergence between the revenue decline (-59.85%) and the expense reduction (-44.32%) highlights the fixed-cost burden remaining after the Pondicherry plant shutdown. While variable costs associated with the liquid plant have ceased, significant overheads such as employee benefits, financial costs, and depreciation persist. The widening net loss indicates that the cost savings from the shutdown have not yet fully materialized into improved margins, or that the revenue lost from the unit outweighs the saved operational costs in the short term. Investors should monitor whether the streamlined operations lead to margin stabilization in subsequent quarters.