Corporate Performance     

Published: May 15, 2026
Updated: May 15, 2026

National Peroxide

Riding hydrogen peroxide demand wave

Over 70 years old, National Peroxide (NPL) is a fully integrated manufacturer of hydrogen peroxide (H2O2) belonging to the Nusli Wadia group. Its factory at Kalyan, near Mumbai, earlier had a production capacity of 95,000 mtpa. Over the last few years, the capacity has been upgraded to 1,50,000 mtpa using a stateof-the-art auto-oxidation process.

Its other major products include peracetic acid (PAA), a biocide derived from H2O2 and used for food processing, waste water treatment and sanitation. PAA’s effectiveness against a broad range of microorganisms, combined with its biodegradable nature, makes it a popular choice for sanitation and sterilization applications. NPL also has a presence in compressed hydrogen gas which is used in diverse industrial applications. Sodium perborate, which the company produces, works as a bleaching agent in detergents. The industries that use NPL’s products include textiles & paper, healthcare & hygiene, the food industry, pollution control and electronics.

Interestingly, the higher price realisation of H2O2 has helped the company improve its EBITDA margin impressively during Q4, when it reported Rs 7.93 crore PAT on operational revenue of Rs 87.06 crore vis-à-vis Rs 6.49 crore net loss and Rs 73.70 crore respectively in the same period of the previous year.

EARNINGS BOOST

For the full financial year ended March 2026, NPL reported Rs 289.71 crore operational revenue and PAT of Rs 11.04 crore against Rs 286.87 crore and Rs 2.25 crore net loss in the previous FY25. EPS is Rs 19.20 (Rs 3.91 negative in FY25) on a tiny equity capital of Rs 5.75 crore and shareholders’ reserves of Rs 356.27 crore translates into a book value of Rs 630 per share of Rs 10 face value. It’s worth noting that vis-à-vis the full year, nearly 72% of PAT has been contributed by the fourth and last quarter alone of FY26. Thus, if the improved price of H2O2 sustains, one can safely expect an equally good performance during Q1 (April-June) of the current FY27.

As of March, the promoter group holds 70.76 % whereas the public shareholding of 29.24% represents 15,461 shareholders; surprisingly, none of them holds 1% or more. Banks, insurance companies, mutual funds, foreign portfolio investors, etc. do not have any notable presence in the list. Financially, the company is quite strong. At year-end, its long-term borrowing is zero whereas a small amount of Rs 3.52 crore is reflected towards working capital requirement. The bank balance of Rs 27.59 crore reflects the company’s sound financials and endorses its cash-surplus status.

Initially, domestic prices of H2O2 jumped from roughly Rs 22/kg in March 2025 to Rs 26.50/kg by late May 2025. The trend continued through the year with total annual prices rising by around 11%. In early 2026, prices moved from roughly Rs 38.63/kg (spot) in January to over Rs 39.35/kg by March. Again, some reports indicate that in April, average prices reached Rs 35/kg.

H2O2 DEMAND

The H2O2 market is currently characterized by a supply-demand imbalance, with demand consistently outstripping local production. Supply tightness has been driven by raw material shortage, mainly hydrogen and natural gas. India still relies on imports for 18-22% of its demand, primarily from South Korea, Thailand and Taiwan.

The pulp & paper sector and the textile industry consume almost 60% by volume of H2O2. Water treatment and expansion of the beauty and healthcare sectors are newer drivers. Though the new manufacturing facilities, such as DCM Shriram’s 52 mtpa H2O2 plant in Gujarat, are helping reduce import reliance, persistent demand growth in the packaging and textiles sectors are expected to keep the market narrowly balanced. Importantly, environmental regulations favouring eco-friendly bleaching agents (over chlorine) are likely to sustain long-term demand for hydrogen peroxide. According to a report by the IMARC group, the Indian hydrogen peroxide market reached $ 189.4 million in 2024 and is projected to grow to $ 300 million by 2033 at a CAGR of 4.98%.

The Indian peracetic acid (PAA) market is undergoing a significant transition from traditional chlorine-based disinfection to sustainable residue-free alternatives. Demand is surging from all user industries and is projected to grow at a CAGR of 11.4% (2025-2035), significantly outpacing the global average of 7-8%. Implementation of stricter wastewater discharge limits and pathogen-control mandates is forcing a shift away from chlorine. is preferred for its environmental profile, breaking down into harmless oxygen, water and acetic acid, which simplifies regulatory compliance for exporters in the food sector.

As such, H2O2 does not directly produce green hydrogen, but it acts as a critical liquid energy carrier, storage medium, and alternative solar fuel within the broader green hydrogen economy. Instead of acting as a feedstock to generate hydrogen gas, H2O2 solves key infrastructure hurdles associated with green hydrogen (H2). This news does indicate that H2O2 may find demand from green hydrogen producers but currently it's too early to quantify the requirement.

WEAK ON SHARING

On the flip side, historical data suggests that NPL’s management, the Wadia group, has not been that liberal in distributing profits to shareholders. Of course, dividends are being distributed regularly (FY26—70%) but the management’s track record in issuing bonus shares is not that good. The last bonus issue was in the ratio of 3:2 in 2006.

Currently, the stock with a Rs 630 book value is traded at Rs 670. The PE is nearly 35, with a yearly high-low of Rs 770 and Rs 350 respectively and an attractive market capitalisation of Rs 385 crore. Immediately after the announcement of the FY26 annual results, the stock price has risen sharply. The stock is certainly worth following on account of the company’s sound fundamentals and promising business outlook, supported by a small equity base and a higher promoter group stake.