According to financial statements published by 14 of the 20 listed state-owned companies, six reported profit growth, two posted lower profits, and six incurred net losses during the fiscal year.
Illustration: Shakib Ahmed/TBS
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Illustration: Shakib Ahmed/TBS
State-owned enterprises (SOEs) listed on the stock market posted mixed financial performances in FY26, with several energy and technology companies reporting strong profit recoveries, while financial institutions and sugar mills continued to struggle with mounting operational losses and long-standing liquidity constraints.
According to financial statements published by 14 of the 20 listed state-owned companies, six reported profit growth, two posted lower profits, and six incurred net losses during the fiscal year.
The combined market capitalisation of the 20 listed SOEs stood at Tk23,211 crore, accounting for 3.46% of the Dhaka Stock Exchange’s (DSE) total equity market capitalisation.
Amid the mixed earnings performance, six companies recommended higher cash dividends for FY26, while one reduced its payout and two maintained their previous dividend levels. The remaining five skipped dividend distributions.
The continued absence of dividends also pushed the Investment Corporation of Bangladesh (ICB) into the ‘Z’ category from its previous ‘B’ category after the state-owned financial institution failed to declare dividends for two consecutive years, in line with regulatory requirements.
Among the top performers, Bangladesh Submarine Cable PLC recorded a 37% surge in profit to Tk283 crore in FY26 from Tk206 crore in FY25, lifting its cash dividend recommendation to 47.50% from 40% previously.
The company attributed its top-line growth to increased demand across core business segments, including International Private Leased Circuit (IPLC) rent, IP transit services, and co-location services, supported by targeted management initiatives and favorable government policies.
Similarly, Padma Oil Company posted a 21% profit increase to Tk682 crore, declaring a 170% cash dividend, while sister concern Meghna Petroleum saw a 3% profit rise to Tk685 crore, recommending a 210% cash dividend.
Eastern Lubricants also registered a 31% profit increase to Tk9 crore, proposing a 115% cash dividend.
Conversely, state-run petroleum distributor Jamuna Oil Company experienced a 34% drop in net profit to Tk425 crore in FY26 down from Tk648 crore in FY25, leading its board to reduce its cash dividend to 120% from 180%.
Bangladesh Shipping Corporation (BSC) reported a 5% profit decline to Tk291 crore, though it maintained its cash dividend at 25%. Corporation officials explained that FY25 earnings had benefited from one-off capital gains realised from the sale of two vessels, MT Banglar Jyoti and MT Banglar Sourabh.
A severe structural divide remained visible among utility, financial, and manufacturing enterprises, many of which continued to struggle with heavy debt burdens, foreign currency liabilities, and liquidity traps.
Dhaka Electric Supply Company (Desco) managed to break a three-year streak of losses by posting a net profit of Tk40 crore in FY26 compared to a net loss of Tk125 crore in FY25, driven by higher sales yields, interest income, and a positive swing in foreign exchange operations away from previous currency depreciation shocks.
Power Grid Company of Bangladesh similarly returned to profitability with Tk353 crore against a Tk500 crore loss in FY25, while Titas Gas narrowed its net loss to Tk595 crore from Tk772 crore.
However, state-backed financial institution ICB continued to face severe capital pressures, posting a massive net loss of Tk652 crore, though down from a loss of Tk1,214 crore in the previous fiscal year.
Traditional manufacturing and agricultural units also remained entrenched in the red. Renwick Jajneswar and Co reported an expanded net loss of Tk2.12 crore, while Shyampur Sugar Mills, Usmania Glass Sheet Factory, and Zeal Bangla Sugar Mills continued to log operational losses of Tk21.47 crore, Tk8.33 crore, and Tk43.39 crore respectively, with all four entities skipping dividend payouts alongside 11 total state-run firms currently traded in the ‘Z’ category.
Market experts say the wide gap in earnings and dividend performance points to the need for stronger financial discipline, better operational efficiency and improved investment decisions at state-owned enterprises. Persistent losses, weak recovery of investments and dependence on government support can undermine shareholder returns and investor confidence, making reforms and more accountable management increasingly important.
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