Higher sales, improved production and operational efficiency, better raw material procurement management and lower financing costs helped several listed pharmaceutical companies increase their profits in FY2025-26. However, rising production and operating expenses, along with business disruptions, weighed on the earnings of some companies, while two reported wider losses.
An analysis of the financial results of 15 pharmaceutical and chemical companies listed on the country’s stock market shows that nine recorded year-on-year profit growth in FY26, while profits declined at three companies. Two companies reported higher losses, while one managed to narrow its loss.
According to the financial statements and price-sensitive information disclosed to the Dhaka Stock Exchange (DSE), Asiatic Laboratories and Beacon Pharmaceuticals led profit growth, with both companies more than doubling their earnings from the previous fiscal year. Renata, Navana Pharmaceuticals and Beximco Pharmaceuticals also posted notable growth.
However, the performance was not uniform across the sector. While leading company Square Pharmaceuticals increased its profit, ACI and Silva Pharmaceuticals reported wider losses. Profits also declined at Advent Pharma, Silco Pharmaceuticals and Techno Drugs.
Asiatic, Beacon more than double profits
Asiatic Laboratories recorded the highest profit growth among the 15 companies, with earnings rising 123.9% to Tk57.28 crore in FY26, from Tk25.58 crore in the previous fiscal year.
Beacon Pharmaceuticals ranked second, posting a 104.2% increase in profit to Tk194 crore from Tk95 crore a year earlier. The company said higher sales during the fiscal year contributed to the increase in earnings.
Renata’s profit rose 64% to Tk364 crore in FY26, from Tk222 crore in the previous year. Its revenue also increased 7.7% to Tk4,620 crore.
According to the company’s financial statements, higher sales, improved procurement management, operational efficiency and lower financing costs contributed to the profit growth. The company also reduced interest expenses by shifting from short-term borrowing to comparatively lower-cost long-term financing. Growth in domestic pharmaceutical sales also supported earnings.
Navana Pharmaceuticals posted a 30.8% increase in profit to Tk63.70 crore, compared with Tk48.70 crore in FY25.
Beximco Pharmaceuticals’ consolidated net profit rose 30.9% to Tk916.08 crore in FY26, from Tk699.89 crore in the previous fiscal year. Earnings per share (EPS) also increased to Tk20.17 from Tk15.56.
The company’s financial results for the first nine months of FY26 showed that net sales increased 13.1% year-on-year. Domestic sales grew 14.4%, although export sales declined 1.2%. Growth in the domestic market therefore appears to have been an important contributor to the company’s improved earnings.
The IBN SINA Pharmaceutical Industry recorded a 25.5% increase in profit to Tk79.45 crore. Square Pharmaceuticals’ profit rose 15.5% to Tk2,769 crore, while The ACME Laboratories posted a 10.3% increase to Tk268 crore. ACI Formulations recorded a modest 1.4% growth in profit to Tk37.61 crore.
According to Square Pharmaceuticals’ financial disclosures, higher export revenue and investment income, along with lower financing costs, supported its profit growth. The company’s pharmaceutical export revenue increased to $27 million in FY26 from $18 million a year earlier. Financing costs declined by 55.29% during the period.
ACI, Silva report wider losses
Among the 15 companies, ACI and Silva Pharmaceuticals reported higher losses in FY26.
ACI’s consolidated loss widened 16.1% to Tk75.46 crore, from Tk65 crore in the previous fiscal year. Silva Pharmaceuticals’ loss increased 22.3% to Tk16.27 crore, compared with Tk13.30 crore a year earlier.
According to ACI’s financial statements, the company recorded growth in revenue and gross profit. However, higher operating expenses, business expansion costs and borrowing-related expenses contributed to the wider net loss.
Silva Pharmaceuticals said changes in its sales workforce led to a decline in sales volume. Disruptions in electricity supply, supply-chain difficulties and higher operating expenses also affected its business performance.
Meanwhile, Techno Drugs’ profit declined 13% to Tk20 crore. Silco Pharmaceuticals’ profit fell 19.7% to Tk3.42 crore, while Advent Pharma’s earnings dropped 41.7% to Tk3.91 crore.
In contrast, Central Pharmaceuticals managed to reduce its loss by 7.4% to Tk2 crore, from Tk2.16 crore in the previous year.
Import dependence remains a major challenge
Despite the mixed financial performance of listed companies, Bangladesh’s pharmaceutical industry has significant potential in both domestic and export markets.
According to the Bangladesh Investment Development Authority (Bida), local pharmaceutical manufacturers meet around 98% of domestic demand and export medicines to more than 150 countries.
However, the industry’s dependence on imported active pharmaceutical ingredients (APIs), the key raw materials used in medicine production, remains a major challenge. More than 85% of the APIs required by the country’s pharmaceutical industry are imported.
As a result, fluctuations in the exchange rate, international raw material prices, transportation costs and supply-chain conditions can affect production expenses.
Uncertainty over energy supplies, high interest rates and limitations on adjusting medicine prices also pose challenges for pharmaceutical companies. Since API imports require foreign currency, a depreciation of the taka can further increase production costs.
Improving production efficiency, developing alternative sources of raw materials and investing in higher-value pharmaceutical products will be important for companies seeking to remain competitive in the sector.
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