Descon Oxychem Limited
By PSX Investors Zone · Updated October 22, 2026
Descon Oxychem Limited (PSX: DOL) is a Pakistani chemical manufacturer incorporated in 2004 and commercially operational since March 2009. Its principal business is the manufacture, procurement and sale of hydrogen peroxide and allied products used in industries such as textiles, pulp and paper, water treatment, mining, food processing and sugar. In FY2026, the company reported sales of approximately Rs.4.99 billion and profit after tax of Rs.303.34 million, compared with sales of Rs.5.92 billion and profit of Rs.790.16 million in FY2025. This indicates lower revenue and profitability year over year. DOL was classified as Shariah-compliant in the PSX-KMI All Share Islamic Index screening published in May 2026. However, PSX displays a Risk Warning Alert concerning possible suspension or delisting, which investors should review separately from financial performance and Shariah screening.
Company Overview
Descon Oxychem Limited (PSX: DOL) is a Pakistan Stock Exchange-listed chemical manufacturer. The company was incorporated on November 12, 2004, converted into a public limited company on February 28, 2008, and commenced commercial production on March 1, 2009.
Its principal business is manufacturing, procuring and selling hydrogen peroxide and allied products. The company operates from Lahore, Pakistan, and has a wholly owned subsidiary, Descon Oxychem FZE, based in the Hamriyah Free Zone, Sharjah, United Arab Emirates, which trades in chemicals and related products.
Official website: https://desconoxychem.com/
Official PSX profile: https://dps.psx.com.pk/company/DOL
Business Activities
Descon Oxychem manufactures hydrogen peroxide in different grades and concentrations. Hydrogen peroxide is used in several industrial applications, including:
- Textiles: Bleaching and processing textile materials.
- Pulp and paper: Bleaching and related production processes.
- Water treatment: Treatment and purification applications.
- Mining: Selected industrial processing applications.
- Sugar and food processing: Cleaning, bleaching and other approved industrial applications.
- Other industries: Applications in poultry, cosmetics and chemical processing, depending on product specifications and relevant standards.
The company's performance can be influenced by industrial demand, production capacity, plant utilization, energy costs, raw-material availability, exchange rates, selling prices and competition from local and imported chemicals.
Source: https://www.descon.com/dol/company-information/company-profile/
Financial Performance
According to the financial summary displayed on the PSX company profile, Descon Oxychem reported the following annual results:
| Financial indicator | FY2026 | FY2025 |
|---|---|---|
| Sales | Rs. 4.993 billion | Rs. 5.916 billion |
| Profit after taxation | Rs. 303.344 million | Rs. 790.159 million |
| Earnings per share (EPS) | Rs. 1.73 | Rs. 4.51 |
| Gross profit margin | 17.31% | 28.81% |
| Net profit margin | 6.08% | 13.36% |
Source: PSX financial summary. Figures are shown in rupees; standardized PSX data may differ from the issuer's original financial statements.
Sales declined by approximately 15.6% in FY2026, while profit after taxation decreased by approximately 61.6%. The gross and net profit margins also fell compared with FY2025. These changes indicate that investors should examine both demand and cost pressures rather than focusing on sales alone.
For a more complete assessment, review the audited annual report for production volumes, cost of sales, finance costs, cash flow, capital expenditure, subsidiary performance and any exceptional items.
Financial source: https://dps.psx.com.pk/company/DOL
Official financial reports: https://www.descon.com/dol/company-information/company-profile/
Shariah Compliance Status
Descon Oxychem Limited was classified as Shariah-compliant in the PSX-KMI All Share Islamic Index screening published on May 29, 2026, based on financial accounts up to December 31, 2025.
The published screening reported the following ratios:
| Screening measure | Reported ratio |
|---|---|
| Debt to total assets | 18.55% |
| Non-compliant investments to total assets | 15.95% |
| Non-compliant income to total revenue | 0.42% |
| Illiquid assets to total assets | 69.36% |
| Net liquid assets ratio | -2.24 |
The screening's final status was compliant, with a provisional purification rate of 0.42% shown by a third-party summary of the review. Investors should refer to the official screening notice and any subsequent Shariah guidance to confirm the applicable purification calculation.
These ratios reflect the specified screening period; they do not guarantee permanent compliance. Shariah status can change as financial information, screening criteria or index reviews are updated.
Official PSX screening notice: https://dps.psx.com.pk/download/attachment/277899-1.pdf
Important Risk Warning Alert (RWA)
The official PSX company profile displays a Risk Warning Alert for Descon Oxychem Limited. The alert states that the company is in continuous violation of Clauses 5.11.1 or 5.11.2 and carries a risk of trading suspension or delisting from the Exchange, subject to the Exchange's terms and conditions.
This is a material regulatory disclosure and should remain visible to readers. The alert should not be interpreted as confirmation that the company has already been suspended or delisted. Investors should review the latest PSX notices to establish the current status of the cited violations and any corrective measures.
Official PSX profile: https://dps.psx.com.pk/company/DOL
Dividends and Corporate Actions
Descon Oxychem has issued cash-dividend announcements in the past. PSX's announcements include a credit-of-interim-cash-dividend notice dated March 19, 2026.
For the amount, entitlement date, payment status and any later distributions, consult the official PSX payout history and the underlying announcement. Do not treat a dividend announcement as proof that a future dividend is guaranteed.
Official source: https://dps.psx.com.pk/company/DOL
What Investors Should Monitor
Investors researching DOL may wish to assess:
- Revenue trends: Whether demand and sales recover following the FY2026 decline.
- Profit margins: Changes in raw-material, energy, manufacturing and distribution costs.
- Production and utilization: The company's ability to operate efficiently and maintain supply reliability.
- Industrial demand: Activity in textiles, paper, water treatment, mining and other customer industries.
- Cash flow and capital expenditure: Whether operating cash generation supports maintenance and investment requirements.
- Subsidiary performance: The contribution and financial position of Descon Oxychem FZE.
- Dividends: Confirmed declarations, entitlement dates and payment records.
- Regulatory status: Updates concerning the PSX Risk Warning Alert.
- Shariah screening: The latest official PSX-KMI All Share Islamic Index review and applicable purification guidance.
Frequently Asked Questions
What is Descon Oxychem Limited's PSX symbol?
Its trading symbol is DOL.
What does Descon Oxychem manufacture?
Its principal product is hydrogen peroxide, supplied in different grades and concentrations for industrial applications, along with allied products.
Is Descon Oxychem Shariah-compliant?
It was classified as compliant in the PSX-KMI All Share Islamic Index screening published May 29, 2026, based on accounts to December 31, 2025. Investors should check the latest official screening before relying on that status.
Did Descon Oxychem's profit increase in FY2026?
No. PSX reports profit after taxation of approximately Rs.303.34 million for FY2026, down from Rs.790.16 million in FY2025.
What does the PSX Risk Warning Alert mean?
The official PSX profile warns of continuing violations of specified listing regulations and possible suspension or delisting. Readers should check current official disclosures for the latest status.
Does Shariah-compliant status mean DOL is a low-risk investment?
No. Shariah screening addresses specified business and financial criteria. It does not guarantee profits, dividends, share-price stability or freedom from regulatory and operational risks.
Investor Note
This profile is for educational and research purposes. Financial performance, corporate actions, regulatory status and Shariah screening can change. Consult the latest official PSX announcements, audited financial statements and screening notices before making an investment decision.
This profile is for educational purposes and is not a recommendation to buy or sell any security.