National Oxygen Limited Reports Profit Despite Revenue Decline in Q2 FY2026
National Oxygen Limited, an industrial gases manufacturer, reported a net profit of Rs. 704.10 lakhs for Q2 FY2026, compared to a loss of Rs. 118.68 lakhs in Q2 FY2025. The profit was primarily due to the sale of 6.60 acres of commercial land in Mathur for Rs. 8.00 crores, resulting in a Rs. 412.26 lakhs profit. However, revenue from operations decreased to Rs. 637.29 lakhs from Rs. 1,061.22 lakhs in the same quarter last year. The company closed its Perundurai plant on May 13, 2025, citing severe competition and rising operational expenses. Proceeds from the land sale were used to settle term loans, reducing financial liabilities and interest costs.
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National Oxygen Limited , a manufacturer of industrial gases, has reported a significant turnaround in its financial performance for the quarter ended September 30, 2025. The company's strategic decision to sell commercial land has resulted in a profit, despite a decline in operational revenue.
Financial Highlights
| Particulars (in Rs. Lakhs) | Q2 FY2026 | Q1 FY2026 | Q2 FY2025 |
|---|---|---|---|
| Revenue from Operations | 637.29 | 758.45 | 1,061.22 |
| Net Profit/(Loss) | 704.10 | (187.02) | (118.68) |
| Earnings Per Share (Rs.) | 1.39 | (3.71) | (2.35) |
Land Sale Boosts Profitability
National Oxygen Limited has reported a net profit of Rs. 704.10 lakhs for the quarter, compared to a loss of Rs. 118.68 lakhs in the corresponding quarter of the previous year. This significant improvement in profitability is primarily attributed to the sale of 6.60 acres of commercial land in Mathur for Rs. 8.00 crores. The company recognized a profit of Rs. 412.26 lakhs from this sale, which has been reported as an exceptional item.
Revenue Decline and Operational Challenges
Despite the profit, the company faced a decline in its core business operations. Revenue from operations decreased to Rs. 637.29 lakhs, down from Rs. 758.45 lakhs in the previous quarter and Rs. 1,061.22 lakhs in the same quarter last year. This decline may be attributed to the closure of the Perundurai plant operations, which the company ceased on May 13, 2025, citing severe competition and rising operational expenses.
Strategic Financial Management
The proceeds from the land sale have been strategically utilized to settle term loans, resulting in a significant reduction in financial liabilities and interest costs. This move is expected to improve the company's financial health and reduce its debt burden in the coming quarters.
Operational Changes
National Oxygen Limited has made some significant operational changes:
Closure of Perundurai Plant: The company stopped operations at its Perundurai plant effective May 13, 2025, due to severe competition and steep increases in various operating expenses, including power costs, maintenance, and transportation.
Focus on Core Business: The company continues to operate in the industrial gases segment as its primary business, despite the challenges faced in the market.
Looking Ahead
While the land sale has provided a temporary boost to the company's financials, the declining operational revenue and plant closure indicate ongoing challenges in the industrial gases market. National Oxygen Limited may need to focus on cost optimization and exploring new growth opportunities to sustain its profitability in the coming quarters.
Investors and stakeholders will be watching closely to see how the company navigates these challenges and leverages its improved financial position to drive sustainable growth in its core business operations.
Historical Stock Returns for National Oxygen
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | -2.66% | +6.41% | +5.64% | -4.96% | +216.22% |
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