Twenty-three listed companies have so far decided not to recommend any dividends for the FY2025–26, with several reporting substantial losses and facing significant operational challenges.
Among them, Zeal Bangla Sugar Mills, Meghna Cement, Shyampur Sugar Mills and Bashundhara Paper Mills have recorded particularly high losses per share.
According to the Dhaka Stock Exchange (DSE), more than 100 listed companies have announced their dividend decisions over the past two weeks. Of them, 82 companies have recommended cash dividends, stock dividends or both. In contrast, 23 companies have decided not to distribute any dividends.
According to DSE data, 213 listed companies paid cash dividends in 2025, while 33 companies declared stock or bonus dividends. In contrast, 51 companies did not declare any dividends that year, indicating that a significant number of listed firms failed to distribute profits among shareholders.
The 23 companies that have so far announced no dividends for FY26 are Aziz Pipes, Zeal Bangla Sugar Mills, Shyampur Sugar Mills, Usmania Glass, Bangladesh Building Systems (BBS), Information Services Network (ISN), Investment Corporation of Bangladesh (ICB), Rahima Food Corporation, Stylecraft, Zaheen Spinning, The Peninsula Chittagong, Safko Spinning, Apex Weaving, Deshbandhu Polymer, Bashundhara Paper Mills, Meghna Cement, Renwick Jajneswar, Shepherd Industries, Munno Agro, Jute Spinners, Mir Akhter, Central Pharmaceuticals and Miracle Industries.
Why firms are failing to pay dividends
Market insiders say financial weakness and operational difficulties are the main reasons behind the companies’ decisions not to declare dividends. Accumulated losses have increased at many firms, forcing them to retain earnings to offset previous losses and strengthen their financial positions. Acute cash shortages, high debt burdens and pressure from interest payments have also weakened their ability to distribute profits among shareholders.
They also point out that several companies are unable to utilise their full production capacity. While some have experienced declining sales and revenues, others are struggling with rising production costs and intense market competition. These factors have put pressure on earnings and cash flows.
As a result, instead of distributing profits among shareholders, companies are prioritising day-to-day operations, debt repayment and efforts to rebuild their financial positions.
Several companies report heavy losses
According to financial disclosures published on the DSE, Zeal Bangla Sugar Mills reported a loss of Tk72.32 per share in FY26. Meghna Cement posted a loss of Tk63.68 per share, followed by Shyampur Sugar Mills at Tk42.94 and Bashundhara Paper Mills at Tk42.74.
Jute Spinners’ loss per share increased to Tk40.20 from Tk36.32 in the previous financial year. Renwick Jajneswar also reported a higher loss of Tk10.63 per share in FY26, compared with Tk7.76 a year earlier, while the losses at Usmania Glass and Aziz Pipes stood at Tk4.79 and Tk3.77, respectively.
The Investment Corporation of Bangladesh (ICB) reported a consolidated loss of Tk7.52 per share, compared with Tk14 in the previous financial year. Its consolidated net asset value (NAV) per share also declined to Tk30.26 from Tk37.45.
Bangladesh Building Systems’ loss per share widened to Tk0.91 from Tk0.59 a year earlier. Its NAV per share fell to Tk10.69. Information Services Network reported a loss of Tk0.51 per share, up from Tk0.43 in the previous year, while its NAV per share declined to Tk1.91.
Rahima Food Corporation also moved from profit to loss, reporting a loss of Tk0.25 per share against earnings of Tk0.56 in the previous financial year. Shepherd Industries posted a loss of Tk1.60 per share, compared with a profit of Tk0.04 a year earlier.
However, not all companies on the no-dividend list reported losses. Deshbandhu Polymer posted earnings of Tk3.15 per share, while Munno Agro reported earnings of Tk0.04 per share. Despite remaining profitable, neither company declared a dividend.
Four companies downgraded to Z category
Four companies have been downgraded from the ‘B’ category to the ‘Z’ category following their failure to declare dividends. They are Bangladesh Building Systems (BBS), Information Services Network (ISN), Investment Corporation of Bangladesh (ICB) and Deshbandhu Polymer.
Among them, BBS and ISN were moved to the ‘Z’ category on 28 October, while ICB was downgraded effective 29 October for failing to declare dividends for two consecutive years. Under DSE rules, margin loan facilities are not available for purchasing shares of BBS and ISN. The same restriction has applied to ICB since 29 October. Currently, 17 companies are trading in the ‘Z’ category on the DSE.
Market participants say heavy financial losses, accumulated deficits, cash shortages, high debt burdens and weak business performance are among the key factors preventing companies from paying dividends. These challenges have raised concerns over their financial health and the returns investors can expect from their investments.
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