Descon Oxychem takes a hit as imports flood the market

In the quiet language of quarterly accounts, reversals often announce themselves without fanfare. For Descon Oxychem Limited (DOL), Pakistan’s sole dedicated producer of hydrogen peroxide, the first quarter of fiscal year 2026 did precisely that. What had been a slow, uneasy trudge through FY25 now appears to be turning into a retreat.

Revenue for Q1 FY26 fell seventeen percent year-on-year to PKR 1.25 billion, down from PKR 1.50 billion during the same period last year — a stark reversal for a company whose full-year FY25 revenue had at least managed nominal growth of four percent despite an inflationary environment that made such growth effectively contractionary in real terms. The firm’s latest briefing to investors lays out the contrast bluntly: operating profit for the first quarter fell forty-seven percent, while profit after tax slid thirty-eight percent to PKR 109 million. Earnings per share declined from PKR 1.00 to PKR 0.62.