The Dhaka Stock Exchange (DSE) has downgraded Agricultural Marketing Company Limited (AMCL), widely known as PRAN, to the "Z" category, despite the company's claim that it disbursed its entire declared dividend within the stipulated timeframe, sparking confusion among investors.

According to a DSE notification, PRAN was moved from the "A" category to the "Z" category with effect from tomorrow (5 February), citing failure to comply with dividend disbursement rules set by the Bangladesh Securities and Exchange Commission (BSEC).

Under a BSEC directive, any listed company that fails to distribute at least 80% of its approved dividend within the prescribed period is subject to downgrading.

PRAN, however, strongly challenged the decision, arguing that the downgrade stemmed from a misunderstanding rather than any violation of regulatory requirements.

Touhiduzzaman, deputy general manager at Pran-RFL Group, told The Business Standard that the company had fully disbursed the dividend declared for the 2024-25 fiscal year in line with existing rules and long-standing market practices.

He explained that as an oldest company, around 23% of PRAN's shares are still paper-based, while the remaining 77% have been converted into electronic form.

"Dividends for electronic shareholders were paid through the banking channel, while dividends for paper-based shareholders were disbursed through bank cheques, a method the company has followed for years," he said.

According to Touhiduzzaman, also head of public relations at the group, the DSE, while assessing compliance, considered only dividends paid to electronic shareholders—77% of the total—and concluded that PRAN failed to meet the BSEC's 80% requirement, resulting in the downgrade.

He said the company later engaged with the relevant DSE officials and clarified that dividend payments to paper-based shareholders should also be factored into the calculation, as they form a legitimate component of the total disbursement.

"After reviewing the disbursement process, the DSE officials agreed that there had been a misunderstanding," he said.

Touhiduzzaman added that the issue has been resolved through discussions, and the DSE has assured the company that the categorisation will be corrected in the coming working days.

RAK Ceramics (Bangladesh) Limited has reported a loss of Tk39.59 crore for 2025, even as its revenue grew by 10.56%, mainly due to higher manufacturing costs, prolonged disruption in gas supply until June, and rising finance expenses.

According to its price-sensitive information (PSI) filed with the Dhaka Stock Exchange (DSE), the multinational ceramic manufacturer's sales rose to Tk737.33 crore in 2025 from the previous year, driven largely by increased production following uninterrupted LNG supply from July onward, which helped boost market sales.

Despite the revenue growth, the company's gross profit margin declined sharply to 13.19% from 17.19% a year earlier.

RAK Ceramics attributed the margin erosion to increased throughput costs, unabsorbed fixed costs incurred during the gas supply disruption up to June 2025, higher finance expenses arising from additional working capital borrowings, and increased provisions and write-offs of aged inventory.

With the latest loss, the company has posted back-to-back losses for the second consecutive year. In 2024, RAK Ceramics incurred a loss of Tk2.73 crore, although it also paid a 10% cash dividend that year.

Despite the widening losses, the board of directors has unanimously recommended a 10% cash dividend for general shareholders for 2025, amounting to Tk11.95 crore.

According to DSE data, sponsor-directors hold a majority 72.08% stake in the company and will not be entitled to the recommended dividend. The remaining 27.92% shares held by institutional investors, foreign investors, and general shareholders will receive the dividend payout.

The company also reported improvements in its operating performance, citing better trade receivable collections supported by a strengthened credit control framework, as well as successful renegotiation and extension of payment terms with vendors.

As a result, net operating cash flow per share rose significantly to Tk1 at the end of 2025, from Tk0.49 a year earlier.

RAK Ceramics has scheduled its annual general meeting (AGM) for 31 March through a digital platform. The record date for determining dividend entitlement has been set for 25 February.

Norway's sovereign wealth fund (SWF), the world's largest investment fund, has reduced its exposure to Bangladesh's capital market by 17% in 2025, continuing a gradual pullback that has been underway for several years amid economic and market uncertainties.

According to disclosures by Norges Bank Investment Management, the fund has also exited several prominent listed companies, including Beximco Pharmaceuticals, Walton, MJL Bangladesh, Renata, Olympic Industries and Singer Bangladesh.

Data shows the fund's total investment in Bangladesh fell to $117.12 million in 2025, down from $141.93 million in 2024. This marks a steady decline from a peak of $248.35 million in 2020. Over the past six years, the fund's exposure has tapered off consistently, reflecting caution toward the local equity market despite Bangladesh's long-term growth potential.

Although overall holdings have declined, Norway's SWF continues to retain stakes in a select group of major companies. Its largest investment remains in BRAC Bank, with a 4.42% stake valued at $45.45 million.

Other key holdings include Square Pharmaceuticals (1.93%, $27.81 million), Grameenphone (0.71%, $20.35 million), City Bank (3.55%, $10.73 million), Prime Bank (3%, $8.16 million) and Marico Bangladesh (0.67%, $4.59 million). Ownership levels in most of these companies, however, declined compared to 2024, indicating partial sell-offs rather than new investments.

Market analysts say the reduction in exposure is driven less by company-specific weaknesses and more by macroeconomic and structural challenges.

A senior analyst at Brummer & Partners Bangladesh, speaking on condition of anonymity, said the slowdown in investments since 2020 stems from multiple factors, including the Covid-19 pandemic, the prolonged floor price mechanism in the stock market, taxation concerns, foreign exchange volatility, and heightened economic and political uncertainty.

"The fund usually invests in equities for the long term, but depending on business outlook and risk assessment, it withdraws or reduces exposure from time to time," the analyst said, adding that investments could rise again if macroeconomic indicators show sustained improvement.

The analyst noted that Norway's SWF continues to hold shares in fundamentally strong and well-governed companies such as BRAC Bank, City Bank, Grameenphone and Square Pharmaceuticals, reflecting its long-term investment philosophy and preference for market leaders with relatively stable earnings prospects.

Salim Afzal Shawon, head of research at BRAC EPL Stock Brokerage, said 2025 saw a broader trend of foreign portfolio investors trimming holdings in Bangladesh. "Many foreign investors chose to liquidate or partially exit positions as foreign exchange conditions eased, allowing smoother repatriation of funds," he said.

Shawon added that growing caution ahead of the upcoming national election prompted investors to limit exposure until there is greater clarity on political stability and policy direction. "If the political transition brings confidence and predictability, foreign investors are likely to return. Bangladesh still offers attractive long-term opportunities given its large domestic market and growth-oriented industries," he said.

Norway's sovereign wealth fund began investing in Bangladesh in 2015 and has since become the country's largest foreign portfolio investor, with cumulative investments estimated at around Tk1,800 crore. Globally, the fund manages assets worth approximately $2.11 trillion across 68 countries.

Grameenphone, country's largest mobile telecom operator, has declared a 105% cash dividend as final to its shareholders for the year of 2025 ended on 31 December.

Earlier, it had paid a 110% cash dividend as interim, after calculating interim the total dividend is 215% for the last year, which represents 98.16% of its total profit.

According to the price sensitive statement published on its website, its earnings per share dropped by 19% year-on-year to Tk21.90 during the last year.

To approve the dividend and the audited financial statement, Grameenphone has scheduled the annual general meeting for 20 April and the record date is set for 3 March.

The country's stock market staged a strong comeback yesterday, as a broad-based rally led by banking stocks pushed the benchmark index to its highest level in nearly four months and lifted total market capitalisation above Tk7 lakh crore for the first time in three months.

The DSEX, the prime index of the Dhaka Stock Exchange (DSE), jumped 54 points, or 1.04%, to close at 5,247, marking its strongest single-day gain in recent weeks.

The blue-chip DS30 index also moved firmly into positive territory, rising 20 points, or 1.03%, to settle at 2,017, reflecting renewed investor confidence in large-cap stocks.

Market participation improved notably, with 215 issues advancing against 107 decliners, while 68 stocks remained unchanged. Turnover surged by 19% to Tk746 crore, crossing the Tk700 crore mark for the first time in four months.

The rise in trading activity signalled a return of buying interest after a prolonged period of cautious sentiment, as investors selectively accumulated fundamentally strong stocks, particularly in the banking sector.

Market analysts believe the banking-led rally could continue in the near term if turnover remains strong and macroeconomic signals stay supportive.

However, they cautioned that sustained gains would depend on clear improvements in liquidity conditions, earnings visibility and policy clarity. For now, yesterday's session provided a significant psychological boost, as the DSEX reclaimed key levels and overall market capitalisation once again crossed the Tk7 lakh crore mark.

According to EBL Securities, the capital market extended its upward momentum for a second consecutive session, with heightened participation and sustained buying in banking shares propelling the benchmark index to a near four-month peak.

From the start of the session, the market maintained a positive tone, driven largely by large-cap banking stocks amid expectations of improved economic activity and a potential revival of private-sector investment following upcoming electoral developments, according to the review.

This upbeat sentiment gradually spread across other key sectors, resulting in broad-based gains throughout the trading session.

EBL Securities noted that investors appeared more willing to take positions in beaten-down stocks, encouraged by relatively attractive valuations and hopes of policy stability in the coming months.

Banking stocks lead gains

Banking stocks emerged as the clear market leaders, posting the highest sectoral gain of 2.57% for the day. Strong buying interest was observed in several major lenders, with Islami Bank, Al-Arafah Islami Bank, Midland Bank and AB Bank featuring prominently among the top gainers.

Islami Bank surged nearly 10%, while Al-Arafah Islami Bank rose close to the upper circuit limit, underscoring the renewed appetite for banking shares.

Other large-cap sectors also contributed to the rally, although to a lesser extent. Non-bank financial institutions advanced by more than 2%, while food and allied, telecommunication and pharmaceutical sectors closed in positive territory.

Market observers said the banking rally played a pivotal role in restoring overall confidence, as the sector is often seen as a proxy for broader economic health.

Turnover data further highlighted the dominance of banking stocks in yesterday's rally.

BRAC Bank, City Bank and Islami Bank ranked among the most actively traded shares, reflecting strong participation from both institutional and retail investors. Insurance and manufacturing stocks such as Pragati Life Insurance and Simtex Industries also featured among the turnover leaders.

Despite the broadly positive session, some stocks faced selling pressure. Meghna Pet, DBH First Mutual Fund and New Line Clothings were among the notable laggards, while power and tannery stocks also saw mild corrections.

Analysts said such movements were expected amid profit-taking in select counters after recent gains.

The upbeat trend was mirrored at the Chittagong Stock Exchange, where both major indices closed higher. The CSCX advanced 72 points to 9,106, while the CASPI rose 111 points to finish at 14,691, although turnover at the port city bourse remained modest at Tk8.71 crore.

Masudur Rahman, who has been investing in stock for nearly 20 years, was hopeful that at least a few state-run firms would be listed on the stock market soon, as the interim government directed authorities to do so. To his dismay, no new state-run companies were listed.

On May 11 last year, Chief Adviser Prof Muhammad Yunus gave five directives to revitalise the capital market. His directives included offloading shares of well-performing state-owned companies and listing them on the stock market, offering shares in multinational firms to the public, and offering incentives to non-listed companies that perform well, encouraging them to go public.

Around nine months have lapsed, yet the directive to list well-performing state-owned companies was not fulfilled.

Similar attempts to list state-run companies were taken by finance ministers working for the previous government, but they also could not make much headway.

“I thought the interim government would keep the bureaucrats under pressure this time, and they would be compelled to follow the directives,” Rahman said.

As per the Dhaka Stock Exchange (DSE) data, Bangladesh Submarine Cables PLC (BSCPLC) was listed on the stock market back in 2012. Since then, no other state-owned companies entered the capital market.

During the last decade, many junk or low-performing companies entered, causing the share market to become highly volatile. The chief adviser at a meeting gave the five directives to officials, including the finance adviser, the finance secretary and the Bangladesh Securities and Exchange Commission (BSEC) chairman, to bring dynamism into the stock market.

Attempts were made by the authorities to complete the directives, but progress was stalled at some point, and none of the five goals were reached.

Shortly after the May meeting, the finance ministry ordered all relevant ministries to prepare their state-owned enterprises for listing.

Abul Kalam, spokesperson of the BSEC, said that to ensure offloading shares of state-run companies and multinational companies, a potential list has been made, and the Financial Institutions Division (FID) ordered firmly that concerned ministries bring them to the market.

“The BSEC has done all they could. The next steps will have to be taken by the concerned ministries. But that’s where the progress stalled,” he said.

Another of the CA’s directives was to offer incentives to bring well-performing local companies into the market. No such incentive was also seen from the National Board of Revenue or any other authorities.

The BSEC has done its part in amending IPO rules so that good companies can get a fair price from investors.

Another order was to include foreign experts in the market reform activities. No such steps were taken.

Authorities were directed to take measures to encourage large borrowers to raise capital from the stock market by issuing equity and bonds. No progress was seen there either.

Following the CA’s directive, the BSEC has taken several strict punitive measures against those involved in corruption and market manipulation.

Saiful Islam, president of the Dhaka Stock Exchange (DSE) Brokers Association of Bangladesh, said that in realistic terms, no decision has been implemented in the last nine months despite the order coming from the head of the government, especially regarding the listing of state-run companies and multinational companies.

“It is extremely frustrating for us.”

He noted that the lack of implementation of those directives was a regulatory failure.

“The caretaker government’s tenure was a golden opportunity to implement these decisions on the listing of state-run firms for the betterment of the capital market. During any political government, such measures are difficult to implement, mainly due to non-cooperation from the bureaucracy,” he said.

“Adding at least 4-5 state-run companies within this period would have been a boost for the market,” he added.

Abul Kalam said the BSEC, Financial Institution Division and Anisuzzaman Chowdhury, a special assistant to the chief adviser, tried their best to implement the directives. A joint committee was formed, and it submitted a report to the government, outlining the necessary measures to be taken to incentivise the well-performing local companies. The Bangladesh Bank (BB) governor has said in a meeting that the government will push forward those measures.

The BB and BSEC are taking steps to make the bond market vibrant, the BSEC spokesperson added. However, such measures cannot be completed overnight, and a guideline to implement the measures was made.

Regarding the matter of appointing a foreign expert, he said, “A directive came from the higher-ups that the inclusion of a foreign expert would be time-consuming.”

In light of the situation, the responsibility was given to an academician who has foreign expertise as well as local experience.

“What else can the BSEC do?” the spokesperson said, stressing that the BSEC and the FID have taken all possible necessary steps.

While the BSEC has been diligent in following its part of the directives, the completion of the measures halted due to bureaucracy in the concerned ministries, causing stock investors to lose hope in any further progress.

The Capital Market Stabilization Fund (CMSF) will now have to keep all its funds in a bank account and manage them in a risk-free manner, according to a draft of the Capital Market Stabilisation Fund Ordinance published yesterday on the Financial Institutions Division website.

Established by the Bangladesh Securities and Exchange Commission (BSEC) in 2021, the CMSF holds undistributed cash and stock dividends, non-refunded public subscription money, and unallotted rights shares of listed securities.

These assets are intended to be returned to shareholders or investors based on verified claims at any time. Until then, they are to be used to maintain stability in the capital market.

The new draft ordinance specifies that all funds must remain in a bank, while all shares must be held with the fund’s own depository participant. Any costs will be covered from the fund’s profits, keeping both the funds and shares intact.

The fund will be overseen by a seven-member board of governors, with the BSEC chairman serving as the board’s chair
The draft ordinance also protects the government, government officials, the BSEC chairman, commissioners and officials, and the fund’s board of governors and staff from any legal action if losses occur while implementing the rules in good faith.

The fund will be overseen by a seven-member board of governors, with the BSEC chairman serving as the board’s chair. Other members will include a BSEC commissioner, an additional secretary from the Financial Institutions Division, the president of The Institute of Chartered Accountants of Bangladesh, the president of the Bangladesh Association of Publicly Listed Companies, and a managing director of a stock exchange. The fund’s chief executive officer will act as the member secretary.

The fund will act as a custodian for investors, returning money upon proper claims. It will also support financial literacy initiatives and conduct research to raise awareness among investors.

Its financial statements must follow International Financial Reporting Standards, and audits must be completed within 90 days after the end of each financial year.

Under the draft ordinance, any cash dividend announced by a company but unclaimed for more than three years must be transferred to the CMSF.

Bangladesh’s capital market saw a major boost on Monday as the turnover at the Dhaka Stock Exchange (DSE) crossed Tk 7.0 billion for the first time this year, alongside a broad-based rally in share prices.

The total turnover on the DSE stood at Tk 7.46 billion worth of shares and units during the session. The previous highest turnover in 2026 was Tk 6.93 billion, recorded on January 27.

Before that, the turnover last crossed the Tk 7.0 billion mark on October 7, 2025, when transactions amounted to Tk 7.87 billion, making Monday’s performance the strongest in nearly four months.

The benchmark DSEX index jumped 54 points during the day. The Shariah-based DSES advanced 12 points, while the blue-chip DS30 gained 20 points. All three indices rose by more than 1 per cent in a single session.

Most stocks ended higher, with prices rising for 215 companies against declines for 107, while 68 issues remained unchanged.

In the block market, shares of 23 companies worth Tk 130 million were traded, with Fine Foods Limited topping the list at Tk 60 million.

Islami Bank Bangladesh PLC emerged as the top gainer on the DSE, surging nearly 10 per cent, while Meghna PET Industries Limited was the worst performer, shedding around 8 per cent.

The rally also extended to the Chittagong Stock Exchange (CSE), where the benchmark CASPI index rose by 111 points.

On the CSE, prices increased for 98 companies, declined for 60, and remained unchanged for 25 issues.

The turnover improved to Tk 80 million, up from Tk 60 million in the previous session.

People’s Leasing and Financial Services Limited topped the CSE gainers’ chart with a 10 per cent rise, while FAS Finance and Investment Limited ended at the bottom, losing 10 per cent.

Bashundhara Paper Mills, a listed company on the stock exchanges, incurred a Tk249 crore loss in the first half of the current fiscal year due to raw material shortages and price hikes, as well as rising utility and borrowing costs.

In last fiscal year, it faced a blow with incurring loss of Tk330 crore.

During the July to December, Bashundhara Paper Mills reported a loss per share of Tk14.34, which was Tk5.84 at the same time of the previous fiscal year.

In H1 of FY25, it incurred a loss of Tk101 crore.

Explaining the sharp fall in earnings per share (EPS), the company said operating profitability declined due to raw material shortages, higher utility expenses, a steep increase in raw material prices, and rising borrowing costs following interest rate hikes.

"As a consequence, the company's EPS decreased significantly," it said.

According to its half-yearly financial statements, the company's revenue plunged by 72% to Tk113 crore in the first half (H1) of FY26, down from Tk410.47 crore in the same period of the previous fiscal year—a decline of about Tk297 crore.

The report showed that its finance cost soared by 31% to Tk204 crore. As of December, long-term loans of Bashundhara Paper Mills stood at Tk2,118 crore, and short-term borrowings Tk581.85 crore.

In the second quarter, its revenue plunged to Tk81 crore, and incurred a loss of Tk134.59 crore, which was Tk143.22 crore and Tk70 crore respectively.

The net operating cash flow per share increased to Tk6.90 during the July to December against Tk5.41 at the same time of the previous fiscal year while its net asset value per share declined to Tk43.52, which was Tk57.82 as of 30 June 2025, its report showed.

The company said cash flow improved primarily due to a decrease in payments made to suppliers and other operating creditors, which positively impacted the company's overall operating cash position.

The main reason for restoring the lottery system in primary share allocation is to boost turnover in the secondary market against the backdrop of a persistent investor exodus.

The IPO lottery system was removed in April 2021 after it was repeatedly accused of depriving retail investors of IPO shares. The Bangladesh Securities and Exchange Commission (BSEC) replaced it with the pro-rata allotment system, which enabled share allocation to every valid applicant in proportion to the quantities applied for.

"We have observed that IPO shares were mostly exhausted by high net worth individuals [under the pro-rata system]. They have more money. They applied for more shares and they got more," said BSEC spokesperson Abul Kalam.

According to the market watchdog, the very objective behind removing the lottery system could not be achieved. Instead, enthusiasm surrounding new listings faded as retail investors received only nominal numbers of shares.

The BSEC brought back the lottery system even though the taskforce assigned to suggest capital market reforms made no recommendation on IPO share distribution.

"Out of 200 public opinions that we received [on the revised rules], 171 voted for the lottery system," said Kalam.

"We did not recommend bringing back the lottery system in IPO," said Md Moniruzzaman, managing director and CEO of Prime Bank Securities Ltd, adding that IPO hunters might have pushed for the return of the system.

"They might have given votes in the public opinion. It is true the lottery system encouraged participation with the hope for higher profits," said Moniruzzaman, who was in a focus group responsible for assisting the taskforce.

Under the pro-rata system, the IPO share pool was divided into different investor categories with predefined quotas for each.

The main categories were general investors (including retail and local individuals), non-resident Bangladeshis (NRBs), and eligible investors (institutional or qualified investors). The total number of shares allocated to each category was fixed as a proportion of the IPO size.

That meant if the eligible or institutional portion was oversubscribed, each applicant in this segment received shares in proportion to the amount applied for.

"The pro-rata system prefers big investors," said Kalam.

Another reason for removing the lottery system earlier was to curb investors' speculative behaviour.

The lottery-based IPO process encouraged short-term speculation, with investors applying mainly to gain quick listing profits rather than long-term investment returns.

However, the BSEC took into consideration the steep decline in the number of BO accounts since the repeal of the lottery system.

"There were nearly 3 million BO accounts in the market when the lottery system was in place. Now it has fallen to 1.6 million. Market turnover has also declined. We believe the reintroduction of the lottery system will bring back the festive mood [around listings] and increase turnover," said the BSEC spokesperson.

When retail investors make profits from IPO shares, they reinvest a portion of those profits in the secondary market, Kalam added.

Lottery-driven IPOs used to witness excessive oversubscription-sometimes hundreds of times the required amount-creating operational and settlement pressure in the IPO process.

According to Kalam, this will not happen now as BO account opening has become more tightly regulated. Investors must have a bank account and a bank certificate in their own name before opening a BO account. Opening a bank account requires a national ID card.

"Fake accounts can no longer be used to apply for IPO shares," said the BSEC spokesperson.

The regulator has also eliminated, under the revised IPO rules, the minimum requirement of Tk 50,000 investment in the secondary market for each BO account.

"We have brought back the lottery system to ensure more shares for general investors. We believe this will increase investor participation in the market," Kalam added.

Despite political and economic uncertainty, most listed pharmaceutical companies reported strong revenue and profit growth in the October–December quarter and the first half of the fiscal year.

Analysts said higher sales, lower costs, easing finance expenses, efficient working capital management, stable demand, steady exchange rates, and operational efficiency drove the improved performance.

Renata PLC, one of the country's leading drug manufacturers, reported 25% year-on-year profit growth in the first half of the fiscal year. Consolidated profit rose to Tk156.26 crore in July–December from Tk125.08 crore a year earlier, while EPS increased to Tk13.58 from Tk10.83. Consolidated revenue grew 6.56% to Tk2,223.84 crore.

Pharmaceutical product revenue, accounting for 80.7% of total revenue, rose 10% year-on-year, driven entirely by higher sales volumes, while the animal health segment remained flat. Export revenue, including subsidiary income, declined 10.1%, and contract manufacturing revenue fell 28.4%.

Export income rose 8.2% in the first quarter of FY26 but dropped 23.4% in the second quarter after export-bound inventory was damaged in a fire at Dhaka airport on October 19, 2025, leading to deferred orders. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) increased 20.6% due to operational efficiency, while financing costs fell 7.3% following capital restructuring.

Square Pharmaceuticals, the country's largest drug maker, also posted strong growth. In the first half of the fiscal year, consolidated revenue rose 15% year-on-year to Tk4,338 crore, while net profit increased 16% to Tk1,467 crore, with EPS reaching Tk16.56. In the October–December quarter alone, revenue grew 9% to Tk2,179 crore and net profit rose 10% to Tk727 crore, reflecting sustained domestic demand despite rising sector-wide costs.

The results include contributions from foreign subsidiary Square Pharmaceuticals Kenya EPZ Ltd, local subsidiary Square Lifesciences Ltd, and associate companies Square Textiles, Square Fashions, and Square Hospitals, underscoring the group's diversified operations.

Advanced Chemical Industries (ACI) reported an 18% year-on-year increase in consolidated revenue to Tk7,794 crore in the first half of the fiscal year, up from Tk6,619 crore a year earlier. The company posted a consolidated net profit of Tk30 crore, reversing a net loss of Tk64 crore in the same period last year.

ACI said gross profit growth outpaced operating expenses due to strong performance across key segments, though borrowing costs rose amid higher interest rates and increased funding needs for working capital and strategic investments.

Navana Pharmaceuticals recorded a sharp turnaround in the October-December quarter, driven by higher sales, improved margins, lower finance costs, and stronger operating cash flows. Diluted EPS rose 65% year-on-year to Tk1.65 from Tk1.

The ACME Laboratories posted 15.75% year-on-year revenue growth in the October–December quarter, with EPS rising to Tk3.10 from Tk2.86. For the July-December period, EPS increased to Tk6.11 from Tk5.47.

Beacon Pharmaceuticals reported a 29.32% increase in earnings in the October–December quarter, while six-month EPS rose to Tk4.73 from Tk3.47 a year earlier.

Bangladesh's leading textile companies reported a noticeable slowdown in business during the October–December quarter of FY26, as falling yarn prices, weak global demand and rising production costs combined to erode both revenue and profitability across the sector.

Financial statements show that most giant spinners and textile manufacturers posted year-on-year declines in revenue during the quarter. Malek Spinning's revenue fell 6% to Tk673 crore, while Square Textiles saw a sharper 14% drop to Tk580 crore. Envoy Textiles' turnover declined by 10% to Tk412 crore, Shasha Denims' revenue slipped 4% to Tk328 crore, Matin Spinning recorded a 2% fall to Tk215 crore, and Fareast Knitting's revenue dropped 7% to Tk201 crore.

The pressure on the top line was reflected more severely in profits, highlighting how declining yarn prices compressed margins yarn. Malek Spinning's profit dropped 37% to Tk31.85 crore, while Square Textiles suffered one of the steepest falls, with profit plunging 93% to Tk2.77 crore. Shasha Denims' profit declined 65% to Tk3.95 crore, Matin Spinning's fell 36% to Tk9.91 crore, and Fareast Knitting saw profit collapse by 99% to just Tk0.10 crore. Envoy Textiles stood out as an exception, posting a marginal 1% increase in profit to Tk35 crore despite lower revenue.

Company disclosures indicate that the sharp fall in yarn prices was a key driver behind the weaker performance. Square Textiles said its net profit declined significantly due to a notable drop in yarn prices alongside higher finance costs. With selling prices falling faster than input costs, mills struggled to protect their margins even when production volumes remained stable.

Malek Spinning also cited margin pressure in its quarterly statement, noting that the cost of goods sold rose in the second quarter as sales prices declined compared to raw material prices, while factory overheads increased. The company added that export demand weakened during the period, contributing to lower sales and gross profit, which ultimately dragged down net earnings.

Envoy Textiles painted a mixed picture. While its fabric exports increased by 12% during the quarter, cotton yarn exports plunged by 65%, weighing on overall revenue. Speaking to The Business Standard, company secretary Saiful Islam Chowdhury said the firm has gradually shifted away from exporting yarn as more output is consumed internally. Yarn exports, which once accounted for around 40% of total production, have now fallen to about 20%, reflecting changes in business strategy amid volatile prices.

Shasha Denims attributed its profit decline mainly to a sharp rise in the cost of goods sold combined with lower selling prices, which significantly compressed gross margins. The company said earnings were partially supported by consistent profit contributions from associate companies, preventing an even steeper fall in net profit.

Matin Spinning's results also underscored the impact of weaker yarn prices. The company said revenue declined despite higher sales volume because the average selling price per kilogram dropped from $3.68 to $3.47. Although cost efficiencies helped improve its gross profit margin, the lower price environment still weighed on overall performance.

Industry insiders say the challenges facing textile mills go beyond price fluctuations. Production costs have risen by around 30% over the past two years due to higher gas prices, wage hikes and irregular gas supply, making it difficult for mills to compete with imported yarn. According to data from the National Board of Revenue, cotton yarn imports surged 39% in 2024 to $2.28 billion, while fabric imports by knitwear factories jumped 38% to $2.59 billion, intensifying competition for local producers.

Mill owners also point to reduced government incentives for using local yarn, with cash incentives cut sharply and long delays in disbursement further discouraging garment exporters from sourcing domestically. At the same time, higher gas tariffs, stricter bank loan conditions and allegations of illegal yarn imports have added to the sector's woes.

While the government is considering higher tariffs on yarn imports to protect local spinners, industry leaders warn that without addressing structural cost pressures and restoring competitiveness, falling yarn prices will continue to squeeze revenues and profits in the months ahead.

Seven state-owned listed companies have bucked the prevailing market trend, delivering a collective profit of Tk1,544 crore in the first half of the current fiscal year despite a broader downturn that has left 56% of all listed firms in the red.

This combined profit represents a significant 47.57% increase over the Tk1,046.65 crore recorded by the same firms during the July-December period of the previous fiscal year.

While these seven leaders flourished, the government's overall portfolio remained mixed, as nine other state-linked firms posted a combined loss of Tk761 crore, though this was a slight improvement from the Tk867 crore loss recorded previously.

Power Grid top profit maker

Power Grid Bangladesh PLC, a state-owned power transmission firm, witnessed a staggering 236% growth in profit in the first half of 2025-26 fiscal year as its total income surged and decreased expenses.

According to its statements, in H1 of FY26, it made a profit of Tk476.63 crore, which was Tk141.68 crore in H1 of FY25.

Its profit in the second quarter during the October to December, however, declined 71.60% to Tk113.09 crore.

Its report showed that its revenue in H1 increased by 9.52% to Tk1,671 crore.

Due to foreign currency volatility for its foreign loans, Power Grid witnessed a significant blow in its profitability.

In the last three fiscal years, it had incurred a loss of Tk1,294 crore, and in the last two fiscals, it failed to declare any dividends for its shareholders.

Regarding its profit growth, Power Grid states its profit surged due to an increase in total income by Tk167.86 crore and a decline in total expenses by Tk167.07 crore.

Oil suppliers sees growth

Of the three listed fuel suppliers, Padma Oil and Meghna Petroleum posted growth in their profit, but Jamuna Oil saw declines in profit by 18% due to not accruing interest in the four merged banks into Sammilito Islami Bank.

Padma Oil's profit surged by 20% to Tk299 crore and Meghna Petroleum by 3% to Tk309.44 crore riding on their non-operating income mostly came from the income of fixed deposits receipts (FRDs).

Jamuna Oil posted a profit of Tk216.81 crore, which was Tk264.11 crore in the same time of the previous fiscal year.

Jamuna Oil said its profit decreased as interest on bank deposits with Sammilito Islami Bank for the period of second quarter of FY26 has not been accrued."

It also said interest accrued for the first quarter of FY26 earlier has been written back; because it is presumed that interest from bank deposits with Sammilito Islami Bank could not be realised.

According to the auditor, Jamuna Oil Company has a total investment of Tk1,541.08 crore in six banks.

Jamuna Oil has investments in FDRs of Tk326.11 crore and Tk393.84 crore in SND accounts at First Security Islami Bank, Tk432 crore in Global Islami Bank, Tk289.49 crore in Union Bank, and Tk18.64 crore in Social Islami Bank.

Besides, it has investments of Tk74 crore in Bangladesh Commerce Bank and Tk7 crore in National Bank, and some institutions that have also faced challenges.

Submarine Cable posts 59% growth

Bangladesh Submarine Cable Company posted a 59% year-on-year growth in its profit in the July to December of FY26.

Its net profit grew to Tk146.66 crore, which was Tk92.21 crore in H1 of FY25, its financial report showed. Its revenue also grew by 29% to Tk251.58 crore.

Regarding growth, Bangladesh Submarine Cable said revenue increased primarily due to a significant rise in IPLC rent, IP Transit service, and co-location service, as well as the substantial efforts of the company's management and supportive government policies.

The company added that the increase in EPS is the result of higher revenue and other income from ordinary business activities, leading to a positive impact on EPS. It also noted that there were no significant extraordinary transactions during this period.

Desco returns to profit

Dhaka Electric Supply Company (Desco) also returned to profit, reporting Tk90.49 crore in earnings compared with a Tk6.07 crore loss a year earlier. Its revenue rose 6% to Tk4,105 crore, as electricity sales increased both in volume and value, driven by growth in customer numbers and industrial and commercial consumption.

Titas's loss narrows

Titas Gas Transmission and Distribution PLC narrowed its loss to Tk390.32 crore in the first half, down from Tk711 crore in the same period last year. The company cited higher operational income and a reduced tax deduction rate as key factors behind the improvement.

ICB hits lower capital gain, interest burdens

The Investment Corporation of Bangladesh (ICB) remained under pressure, posting a Tk311 crore loss in H1, wider than the Tk117 crore loss recorded a year earlier. The institution had absorbed a Tk1,214 crore loss in the previous fiscal year.

Although it earned Tk74 crore in interest income, ICB paid Tk550 crore against deposits and borrowings. Dividend income fell 8% to Tk197 crore, capital gains plunged 81% to Tk33.62 crore, and fees and commission income dropped 29% to Tk59.46 crore. Officials attributed the weak performance to capital market volatility and limited share sales.

Sugar mills loss widens

Losses widened at two listed sugar mills. Zeal Bangla Sugar Mills posted a Tk29 crore loss, up from Tk22.17 crore a year earlier, while Shyampur Sugar Mills reported a Tk12.53 crore loss. Shyampur has remained closed for several years following a government decision amid sustained losses.

Other loss-making companies include Eastern Cables, Usmania Glass Sheet Factory, Atlas Bangladesh and Renwick Jajneswar. National Tubes and Eastern Cables, which were profitable in the same period last year, slipped into losses of Tk4.28 crore and Tk5.65 crore respectively in the first half of FY26.

Navana Pharmaceuticals has posted a year-on-year significant improvement in its financial performance for the first six months of the current 2025-26 fiscal year, driven by higher sales, improved profitability, and stronger operating cash flows.

According to the unaudited financial statements for July to December, the net profit of the company stood at Tk36.27 crore, which is 50.22% higher than Tk24.14 crore compared to the same period of the previous year.

On Thursday, the share price of the company increased by 2.67% to Tk57.60 on the Dhaka Stock Exchange.

In the July to December period, the company's diluted earnings per share (EPS) rose to Tk3.35, which was Tk2.25 in the previous period of FY25.

In October to December quarter, the company's diluted earnings per share (EPS) rose to Tk1.65 for the October-December 2025 quarter, compared to Tk1.00 in the same quarter of the previous year. This represents a year-on-year growth of 65%, reflecting improved operational efficiency and cost management.

The company attributed the earnings growth to a combination of increased net sales, improved gross profit margins, and a reduction in finance costs. Higher revenue generation, supported by better market demand and efficient production planning, played a key role in boosting profitability during the reporting period.

At the same time, lower borrowing costs and prudent financial management helped ease pressure on expenses, further supporting the bottom line.

In addition to earnings growth, the company also recorded a substantial improvement in its operating cash flow position. Net operating cash flow per share increased sharply to Tk8.11 for the July-December 2025 period, compared to Tk3.16 in the same period last year.

The rise in operating cash flow was primarily driven by higher cash receipts from customers, which exceeded cash payments made to vendors and other operating expenses during the period.

Meanwhile, the company's net asset value (NAV) per share also showed steady growth. NAV per share stood at Tk48.32 as of 31 December 2025, compared to Tk45.29 as of 30 June 2025.

The company stated that it remains focused on maintaining operational efficiency, managing costs prudently, and strengthening its financial position amid evolving market conditions.

Incorporated in 1986 in Bangladesh, Navana Pharma produces both human and animal drugs.

The veterinary division manufactures and markets more than 123 high-quality medicines and feed supplements for different segments, including poultry, dairy, and aqua products.

On the other hand, the human health division produces more than 277 drugs – tablets, capsules, oral liquids, ampoules, dry powder vials, powder for suspension, eye drops, creams, ointments, etc.

Navana Pharma sells these products in the domestic and international markets. It exports products to 15 countries.

Singer Bangladesh Limited, a subsidiary of Beko – the flagship brand of Türkiye's Koç Holding – posted a hefty loss of Tk225 crore in 2025, prompting the company to skip dividend payouts for the first time in its history.

Despite recording a 14.3% year-on-year increase in revenue, the company slipped deeper into the red mainly due to a sharp rise in finance costs, which surged 124.7% amid higher interest rates, financing of stretched working capital, lower-than-expected demand realisation, and foreign exchange losses.

Operating and sales expenses also grew faster than revenue, further weighing on profitability, Singer said in its annual corporate declaration.

The company will hold its annual general meeting (AGM) digitally on 20 April, while the record date has been set for 26 February.

Loss widens sharply

Singer Bangladesh, a leading consumer electronics and home appliances maker, reported that its losses widened by Tk175.97 crore, or 359%, in 2025. Loss per share stood at Tk22.56.

Revenue rose to Tk2,132.61 crore in 2025 from Tk1,865.8 crore a year earlier. In 2024, the company incurred a loss of Tk48.93 crore, with a loss per share of Tk4.91, yet paid a 10% cash dividend to shareholders.

Singer attributed its 2024 losses to macroeconomic challenges, despite a 9% growth in revenue that year. In its 2024 annual report, the company had expressed optimism, citing a stabilising external environment and the commissioning of a new plant as factors that could support a turnaround in the current financial year.

In a price-sensitive information (PSI) disclosure, Singer said that although turnover increased in 2025, gross profit margin declined by 2.3 percentage points compared to 2024. Selling prices could not be adjusted to offset higher product costs due to intense market competition, resulting in margin erosion.

Interest expenses soars 138%

Interest expenses jumped 138.3% year-on-year, driven mainly by interest on long-term loans— including IC foreign and syndicated loans—after the commencement of commercial production at the new factory in March 2025. Short-term borrowings also rose alongside higher interest rates, while an 8% depreciation of the euro against the taka since March 2025 added to finance costs through exchange losses.

Net asset value plunges

Singer's net asset value (NAV) dropped sharply to Tk16.8 crore in 2025 from Tk257.4 crore a year earlier. The company attributed the decline to a substantial increase in both long- and short-term debt, including Tk651.3 crore in long-term loans for new manufacturing facilities in an economic zone and Tk1,394 crore in short-term borrowings to meet working capital needs.

Built in 2022 with an investment of $78 million (around Tk800 crore), the factory—spread over 135,000 square metres—aims to localise production by manufacturing about 90% of Singer's products domestically.

This marked the first investment in Bangladesh by Arçelik, the flagship company of the Turkey-based Koç Group, which acquired Singer Bangladesh in 2019.

Steel manufacturer GPH Ispat has reported an 86% year-on-year decline in profit in the first half of Fiscal Year (FY) 2026, citing a sharp fall in revenue alongside persistent operating and finance costs.

According to the company's financial statements, earnings per share (EPS) fell to Tk0.09 in the July–December period, down from Tk0.65 in the same period of the previous FY, blaming the lower sales volumes, which, combined with fixed operating and financing expenses.

In the second quarter alone (October–December), EPS dropped 92% year-on-year to Tk0.04, compared to Tk0.51 in the corresponding quarter of FY25.

The weak half-year performance follows GPH Ispat's first-ever annual loss since its stock market debut in 2012.

In FY25, which ended in June, the Chattogram-based steelmaker posted a loss of Tk24.68 crore, reversing a profit of Tk85.77 crore recorded in FY24. Rising production costs and escalating finance expenses were key factors behind the loss.

Despite the setback, GPH declared a 5% cash dividend for general shareholders for FY25, its lowest payout since listing. The company had paid a 10% cash dividend in FY24, while its highest dividend was 20% in FY21.

In October 2024, GPH sought approval to issue Tk500 crore in preference shares to reduce high-cost debt, but the Bangladesh Securities and Exchange Commission (BSEC) rejected the proposal.

Earlier, the regulator also turned down the company's plan to raise Tk242 crore through a rights issue aimed at capacity expansion.

Renata PLC, one of the country's leading drug makers, posted double-digit profit growth of 25% year on year in the first half of the current fiscal year, driven by revenue growth, lower cost of goods sold and sharply reduced financing costs.

According to its financial statements, consolidated profit rose to Tk156.26 crore in July-December, with earnings per share of Tk13.58, up from Tk125.08 crore and Tk10.83 in the same period of the previous fiscal year. Consolidated revenue increased by 6.56% to Tk2,223.84 crore during the period.

In a press release, Renata said revenue from pharmaceutical products, which account for 80.7% of total revenue, grew by 10%, driven entirely by volume growth, while its animal health business remained flat year on year.

Export revenue, including subsidiary income, declined by 10.1%, while revenue from contract manufacturing fell by 28.4%.

The company said export revenue rose by 8.2% in the first quarter of FY26 but dropped by 23.4% in the second quarter, mainly due to deferred orders after inventory meant for exports was damaged in a fire at Dhaka airport on 19 October 2025.

Renata said the damaged inventory has been reordered and export order fulfilment will resume in subsequent quarters.

The decline in contract manufacturing revenue was attributed to reduced government procurement following the mass uprising of July-August 2024, which the company expects to improve after the elections.

Renata said operational efficiency was reflected in a 20.6% rise in earnings before interest, tax, depreciation and amortisation for the six months to December, as material costs rose by only 3.9% against revenue growth of 6.6%.

Lower raw material costs resulted from strong supplier negotiations and access to US dollar-denominated funding from the IFC, which reduced foreign exchange volatility amid a relatively stable exchange rate environment.

The company also reported a 7.3% reduction in financing costs following the completion of its capital restructuring, including full drawdown of low-cost IFC funding and full subscription of Tk325 crore in preference shares.

Renata said continued efforts to reduce working capital led to a Tk390 crore reduction in debt during the second quarter.

The Dacca Dyeing and Manufacturing Company Limited posted a massive loss of Tk372.20 crore in the first half of the current fiscal year, highlighting a sharp deterioration in its financial position.

The plunge comes amid falling turnover and a major accounting adjustment related to bank interest.

According to the company's price-sensitive disclosure, turnover fell 41% year-on-year to just Tk8 crore in July–December FY26. During the same period, the company reported a loss of Tk372.20 crore, compared to Tk18.20 crore a year earlier. Loss per share ballooned to Tk42.71.

The situation worsened in the second quarter alone. From October to December, revenue dropped 40% to Tk3.64 crore, while the company incurred a loss of Tk359 crore, indicating that the bulk of the half-yearly loss was recognised in this period.

Reflecting the sharp erosion of shareholder value, the company's net asset value (NAV) per share turned negative. At the end of the first half of FY26, NAV per share stood at minus Tk16.99, a stark reversal from a positive Tk25.71 in the same period last year.

Dacca Dyeing attributed the massive loss primarily to a reassessment of bank interest liabilities. The company said it had previously recognised bank interest based on estimated rates. However, following negotiations with the banks and instructions from the Bangladesh Bank policy support committee, the final interest payable was significantly higher than previously recorded.

The company explained that since the revised interest amount was uncertain over the past thirteen years, the shortfall represents a change in accounting. This led to the substantial one-time charge during the reporting period.

Shares of Dacca Dyeing fell 2.99% today (29 January) to close at Tk16.20 on the Dhaka Stock Exchange.

According to the company's annual report for FY25, it has outstanding loans from Sonali Bank, Agrani Bank, and Dutch-Bangla Bank.

Launched in 1963, the company is currently operated under the QC Group. Its board of directors includes Gias Uddin Quader Chowdhury, Samir Quader Chowdhury, Samiha Quader Chowdhury, and Sajia Quader Chowdhury, relatives of former BNP leader Salahuddin Quader Chowdhury, who was executed for crimes against humanity in 1971.

The company came under the current sponsors' ownership in 1996–97, after being managed under a state-owned bank. It also has a representative from Bangladesh Development Bank on its board, which holds a 12.44% stake in the company.

Summit Power Limited, the country's largest independent power producer, reported a sharp decline in revenue in the first half of the current fiscal year as several of its power plants remained shut or operated below capacity.

According to the company's disclosure, consolidated revenue fell by 30% year-on-year to Tk1,709 crore in the July-December period of the 2025-56 fiscal year, down from Tk2,446 crore in the same period of the previous fiscal year.

Its consolidated net profit also declined, albeit at a slower pace, dropping 10% to Tk102 crore. The company's earnings per share stood at Tk0.96, compared to Tk1.07 a year earlier.

In the second quarter alone, covering October to December, Summit Power posted consolidated revenue of Tk764 crore. However, its profitability weakened further during the quarter, with consolidated net profit falling 32% to Tk36.19 crore. The company's earnings per share for the quarter declined to Tk0.34 from Tk0.50 in the corresponding period last year.

The company attributed the significant fall in revenue mainly to the shutdown of a large portion of its generation assets. Summit Power said seven of its 15 power plants, with a combined capacity of 234 megawatts, remained shut during the period. The company's total installed generation capacity is 930.55 megawatts. The reduced operational footprint substantially lowered capacity payments and energy sales.

The disclosure also noted that following the expiry of power purchase agreements, four power plants operated only partially under a "no electricity, no payment" arrangement, while three plants remained completely non-operational throughout the year. As a result of these developments, the company recognised an impairment loss of Tk152 crore in FY25, reflecting the diminished recoverable value of certain assets.

Despite the challenging operating environment, Summit Power continued to maintain a profit, supported by plants that remained under active contracts. However, the overall financial performance highlights the growing pressure on private power producers amid changes in the power sector, contract expiries and shifting demand dynamics, according to the market insiders.

Summit Power's shares closed at Tk12.30 on the Dhaka Stock Exchange yesterday.

Advanced Chemical Industries (ACI) PLC posted strong growth in revenue in the first half of the current fiscal year, reflecting steady domestic demand and continued expansion of its operations.

According to the company's financial disclosure, consolidated revenue rose by 18% year-on-year to Tk7,794 crore in the July–December period, compared to Tk6,619 crore in the same period a year earlier.

It posted a consolidated net profit of Tk30 crore during the half-year, which was a net loss of Tk64 crore in the same time a year ago.

ACI PLC is one of the country's leading conglomerates, with a presence in pharmaceuticals, consumer brands, logistics and retail.