GQ Ball Pen Industries, the maker of the once-popular Econo ballpoint pen, has returned to profitability after nine consecutive years of losses, posting a net profit of Tk1.31 crore in FY26 as it cuts operating costs and earns rental income from its commercial property.
The company last reported a profit of Tk1.55 crore in 2016. Its earnings per share (EPS) stood at Tk0.12 in FY26, while its net asset value (NAV) per share was Tk143.60 and net operating cash flow per share Tk0.58, according to the company’s disclosure.
Following the earnings disclosure and dividend announcement, the company’s share price rose 6.65% to Tk609.30 on the Dhaka Stock Exchange (DSE). Its market capitalisation stood at around Tk510 crore.
Uzzal Kumar Saha, managing director of GQ Ball Pen, told The Business Standard that the company had scaled down operations because of ageing machinery, helping reduce operating costs.
“As our machinery is too old, we are cutting down operations following shareholder approval at the last annual general meeting, which has helped us reduce operating costs,” he said.
The company has also benefited from rental income generated by its multi storey commercial building in Uttara, which has provided a steady revenue stream alongside income from investments, he added.
GQ Ball Pen has recommended a 12.5% cash dividend for FY26, up from the 10% cash dividend paid to general shareholders for FY25. The company’s annual general meeting is scheduled for 30 November, with 4 November set as the record date.
Despite returning to profitability, the company faces the longer-term challenge of reviving its core pen-manufacturing business, which has lost ground amid intensifying competition and changing consumer preferences.
At its last AGM for FY25, shareholders approved a plan to modernise and replace ageing machinery through a balancing, modernisation, rehabilitation and expansion (BMRE) programme. However, the company plans to finance the initiative from its own resources rather than taking on additional bank loans.
“Currently, bank loans have become costly, with interest rates reaching 15-16%. So, we will implement the BMRE using our own funds, which will take time,” Uzzal said.
Once the modernisation programme is completed, the company plans to rebrand its flagship Econo pen to restore its former popularity, he added.
Founded in 1981, GQ Ball Pen Industries once transformed the local writing-instrument market with its Econo brand. The company enjoyed strong growth for nearly three decades, but its business began losing momentum around 2012 as large conglomerates entered the ballpoint pen market with new designs, greater financial resources and stronger marketing capabilities.
In its FY25 annual report, the company acknowledged that competition from large conglomerates had weakened its business and that regaining market share would require substantial investment in new machinery, moulds and marketing.
The company also disclosed that shareholders had advised management at several annual general meetings to invest surplus funds in new industrial ventures. It said it had invested a total of Tk28.17 crore in land, fixed deposit receipts and private and publicly listed companies rather than concentrating its investments in a single sector.
The company acknowledged that returns on investments were not guaranteed and said it would seek to recover investments or minimise losses. It also said it would segregate investments and make provisions where necessary.
Meanwhile, rental income from its 14-storey commercial building in Uttara has emerged as an important source of support for the business. The company said its investment income remained unaffected despite difficulties in its core operations.
According to the company’s September shareholding data, sponsors and directors held 37.77% of its shares, institutions 1.47%, foreign investors 0.05% and the general public 60.71%. Listed on the stock market in 1986, the company has paid-up capital of Tk8.92 crore.
A company insider said GQ Ball Pen was established by Qazi Saleemul Huq Kamal and Salma Huq.
Quazi Saleemul Huq, popularly known as Econo Kamal, was a former BNP lawmaker from Magura. In 2018, he was sentenced to 10 years in prison in a corruption case. Following the fall of the previous regime, the Supreme Court acquitted him in the case.
About The Author
