Bashundhara Paper Mills financial analysis: revenue down 54%, finance costs 10x gross profit and NAV down to BDT 7.09 (Oct 2026)

Investment considerations: FY2025 revenue of BDT 6.0bn against finance costs of BDT 3.8bn, and a FY2026 loss of BDT 42.74 per share

Bashundhara Paper Mills PLC makes and sells paper, tissue, hygiene products, paper sacks and other consumer items from three industrial units: units 1 and 2 at Meghnaghat, Sonargaon, Narayanganj, and unit 3 at Gazaria, Munshiganj [1 p.124]. It was incorporated in 1993 and listed on the Dhaka and Chittagong stock exchanges on 19-Jun-2018 [1 p.124]. East West Property Development (Pvt.) Ltd holds 58.14% of the 173.79m shares, seven individuals hold another 19.39%, and general public and institutions hold 22.47% [2 p.7]. The fiscal year ends in June.

For seven years the company earned a gross margin between 17.7% and 22.0% on revenue of BDT 8.5bn to 13.2bn, and finance costs took 65%-86% of operating profit before finance costs: interest cover (operating profit before finance costs over finance costs) ranged from 1.16x to 1.53x over FY2018-FY2024 [17]. In FY2025 revenue fell by 54% to BDT 6,038m, gross profit fell to BDT 369m, finance costs more than doubled to BDT 3,786m and the year closed with a loss of BDT 3,299m [1 p.121]. The nine months to March 2026 added a loss of BDT 4,217m, and on 29-Oct-2026 the company announced an FY2026 EPS of BDT -42.74 and a NAV per share of BDT 7.09 [2 p.4] [13]. This note sets out what the filings show about each of those lines.

Solvency: BDT 29.9bn of borrowings at March 2026, BDT 8.1bn due within 12 months, and FY2025 interest cover of -0.08x

Borrowings. Total borrowings (long-term, current portion and short-term) rose every year from BDT 16,079m at June 2020 to BDT 28,390m at June 2025 and BDT 29,906m at March 2026 [17]. At March 2026 they were 5.00x equity, against 1.90x at June 2024 [17]. Long-term borrowings at June 2025 comprised "Long term borrowings" of BDT 19,136m and BDT 752m of "Other Finance", which the note describes as "loan from related parties and others" [1 p.146]. Term-loan limits total BDT 1,724.39 crore and the project loan BDT 55.15 crore; short-term limits are BDT 1,250 crore of time, demand, forced, UPAS, LC and ABP loans, BDT 135 crore of overdraft and BDT 70 crore of LTR [1 p.146] [1 p.148]. Security includes 1,477.99 decimals of plant land at Sonargaon, 2,904.19 decimals at Bashundhara Baridhara, 1,195.69 decimals at Bashundhara Riverview, 148,556.27 sq ft of floor space at Bashundhara City Development Ltd and the plant and machinery [1 p.146].

What is due. Short-term borrowings plus the current portion of long-term loans were BDT 10,788m at June 2025 (38% of the total) and BDT 8,145m at March 2026 (27%) [17]. Between June 2025 and March 2026 short-term borrowings fell by BDT 2,644m and long-term borrowings rose by BDT 4,160m, according to the nine-month cash-flow statement [2 p.6]. The interim notes do not say whether this was a rescheduling or new term lending. "Provision for expenses" rose from BDT 38.7m at June 2025 to BDT 1,352.8m at March 2026 [2 p.3]; at June 2025 that line included BDT 30.0m of accrued finance costs [1 p.150], and the interim statements do not break the March figure down.

Interest. Interest on bank overdrafts and loans was BDT 1,675m in FY2024 and BDT 3,783m in FY2025 [1 p.154]. Divided by average borrowings, that is 7.2% in FY2024 and 14.0% in FY2025 [17]. The company's deviation note cites "a rise in bank interest rates from 9% to 14.50%" among the external factors [1 p.162]. The finance-cost note shows nothing capitalised into qualifying assets in either year [1 p.154]. Interest paid in cash matched the charge: BDT 3,783m in FY2025 and BDT 3,009m in the nine months to March 2026 [1 p.123] [2 p.6]. Operating cash flow covered interest paid 0.45x in FY2024, 0.25x in FY2025 and 0.52x in the nine months, against 2.32x in FY2023 [17].

Going concern. The FY2025 statements were prepared on a going-concern basis that "assumes that the Company will be able to meet the mandatory repayment terms of the banking facilities" [1 p.164]. In the same note management "acknowledges that uncertainty remains over the Company's ability to meet its funding requirements and to refinance or repay its banking facilities as they fall due" [1 p.164]. The auditor's opinion is unmodified, with an emphasis of matter on revenue and cost of sales; the opinion page does not contain a separate material-uncertainty paragraph on going concern [1 p.114].

Business and history: three units, 98,289 MT of paper and tissue capacity, and revenue of BDT 8.5bn-13.2bn a year until FY2025

Eight years in outline. Revenue was BDT 10,821m in FY2018 and BDT 11,039m in FY2019, fell to BDT 8,544m in FY2020, and rose to BDT 13,188m in FY2023 and BDT 13,159m in FY2024 [9 p.86] [8 p.80] [5 p.10]. Profit after tax was BDT 694m in FY2018, including BDT 323m of deferred tax income from a tax-rate cut, and between BDT 191m and BDT 508m in FY2019-FY2024 [9 p.86] [17]. EPS on the unchanged 173.79m shares went from BDT 3.99 (FY2018) to BDT 1.10 (FY2024), then to BDT -18.98 (FY2025) [9 p.86] [5 p.10] [1 p.121].

Assets. Property, plant and equipment grew from BDT 8,978m at June 2018 to BDT 26,498m at June 2024 [17]. Part of the rise in FY2022 was a revaluation: the revaluation reserve went from BDT 2,307m to BDT 6,699m that year [7 p.8]. Investing outflows were BDT 4,771m in FY2019, BDT 3,016m in FY2023 and BDT 3,749m in FY2024, and BDT 282m in FY2025 [17]. The only financial investment is BDT 265m of unquoted shares in Bashundhara Industrial Complex Ltd, "which is the owner of 6.63% shares of the company" [1 p.140].

Capacity. Paper and tissue machine-installed capacity was 87,480 MT in FY2022 and 98,289 MT in FY2023-FY2025, with a further 52,740 MT of converting capacity [7 p.53] [6 p.49] [1 p.161]. Production was 67,561 MT (FY2022), 61,828 MT (FY2023) and 73,532 MT (FY2024) [7 p.53] [6 p.49] [5 p.50]. For FY2025 the note prints 34,387 MT and 23% in a cell spanning the paper-and-tissue and converting rows, read from the page image [1 p.161]; the "performance at a glance" page gives 33% utilisation for FY2025 against 54% for FY2024 [1 p.39]. The two pages use different bases, which the report does not reconcile. Hygiene products ran at 10% of 11.87m kg capacity in FY2025 against 38% in FY2024 [1 p.161] [5 p.50].

What changed in FY2025. The auditor's emphasis of matter says revenue "has been significantly decreased during the year due to shortage of raw materials as the entity did not able to open import letter of credit (LCs) in due time due to dollar crisis nationally which resulted cancellation of production schedule" [1 p.114]. The CEO's statement says that "to sustain operations, BPMPLC entered into a contract manufacturing agreement with other sister concerns within the group" [1 p.49], and the directors' report names Bashundhara Fine Paper Mills PLC as a counterparty [1 p.63]. Neither page gives volumes or terms.

Line items: materials consumed fell to BDT 2.7bn in FY2025 while factory depreciation rose to BDT 1.0bn and gross margin was 6.1%

Revenue by product. Gross sales including exports were BDT 14,147m in FY2024 and BDT 6,472m in FY2025 [17]. Local paper sales fell from BDT 5,395m to BDT 3,010m, local tissue from BDT 5,787m to BDT 2,200m and hygiene products from BDT 1,911m to BDT 254m; toiletries rose from BDT 163m to BDT 300m [5 p.41] [1 p.151]. Hygiene's share of gross sales went from 13.5% to 3.9% [17]. Export sales fell less, from BDT 870m (US$7.82m) to BDT 702m (US$5.79m), so exports rose to 11.6% of net revenue [1 p.151] [17]. The unit columns of the FY2025 segment table do not add to its total (BDT 4,472m against BDT 6,472m), so this note uses the product rows only [1 p.151].

Price and volume. Sales tonnes are not disclosed. Revenue per tonne of paper and tissue produced, a proxy, was BDT 213,305 in FY2023, BDT 178,956 in FY2024 and BDT 175,584 in FY2025 [17]. The directors' report says "the pricing of key paper products has experienced a decline, while demand for tissue and hygiene products remains comparatively strong" [1 p.64]. Printed paper and tissue production fell by 53% (the FY2025 figure may also cover converting, as its 23% equals 34,387 / (98,289 + 52,740), so the fall and the FY2025 per-tonne figures are indicative) and net revenue by 54% [17].

Cost of sales. Materials consumed were BDT 7,566m in FY2023, BDT 7,504m in FY2024 and BDT 2,704m in FY2025, on 111,635 MT, 104,488 MT and 55,395 MT of raw materials and chemicals [5 p.42] [1 p.152]. Purchases of materials in FY2025 were BDT 443m against BDT 7,398m, and raw-material stock fell from BDT 3,360m to BDT 1,098m [1 p.151]. Materials per tonne produced fell from BDT 102,056 to BDT 78,634, while gas per tonne rose from BDT 18,784 to BDT 21,087 and factory depreciation per tonne from BDT 10,874 to BDT 29,147 [17]. The gas bill was BDT 1,381m in FY2024 and BDT 725m in FY2025; factory depreciation rose from BDT 800m to BDT 1,002m and factory salaries fell from BDT 646m to BDT 380m [1 p.152]. The auditor's second emphasis paragraph attributes the rise in cost of sales to "lower utilization of machines, fixed overhead costs, increase in raw material cost due to high foreign currency inflation and high leverage" [1 p.114].

Gross margin. Gross margin was 6.1% in FY2025, the lowest of FY2018-FY2025, against a range of 17.7%-22.0% in the seven years before [17]. In FY2026 cost of sales exceeded revenue: the nine-month gross loss was BDT 1,974m on revenue of BDT 2,232m [2 p.4]. Factory depreciation alone was 16.6% of FY2025 revenue against 6.1% in FY2024 [17]. The auditor's emphasis of matter refers to "lower utilization of machines, fixed overhead costs" [1 p.114].

Operating expenses. Administrative expenses rose from BDT 367m to BDT 478m in FY2025, of which depreciation and amortisation was BDT 188.7m against BDT 49.3m [1 p.154]. Selling and distribution expenses fell from BDT 230m to BDT 202m, and to BDT 11.3m in the nine months to March 2026 against BDT 128.6m [1 p.154] [2 p.4]. Admin plus selling was 11.3% of FY2025 revenue against 4.5% in FY2024 [17].

Finance costs, other income and tax. Finance costs are almost all interest (BDT 3,783m of BDT 3,786m in FY2025; bank charges BDT 2.8m) [1 p.154]. Other income was BDT 51.3m, of which BDT 43.8m was the export cash incentive, against other income of BDT 91.9m, including a BDT 82.0m cash incentive, in FY2024 [1 p.154]. The FY2025 tax line was income of BDT 746.9m: current (minimum) tax of BDT 63.5m and deferred tax income of BDT 810.3m [1 p.121]. The deferred tax note recognises a deferred tax asset of BDT 1,157.6m on unused tax losses at June 2025 [1 p.147], and the nine-month FY2026 statements add deferred tax income of BDT 1,046.8m, which turned the deferred tax balance into a net asset of BDT 838.8m [2 p.3] [2 p.8]. The tax note's own computed liability for June 2025 (BDT 376.8m) differs from the balance sheet figure (BDT 208.0m) [1 p.147].

FY2026: gross losses in all three reported quarters and a full-year EPS of BDT -42.74, as announced on 29-Oct-2026

FY2026 so far. Revenue was BDT 314m in the September 2025 quarter, BDT 816m in the December quarter and BDT 1,102m in the March 2026 quarter [17]. Cost of sales was above revenue in each of the three: the gross loss was BDT 320m, BDT 573m and BDT 1,081m [17]. Finance costs were about BDT 1.0bn a quarter (BDT 1,019m, 1,021m and 970m) [17]. Quarterly EPS was BDT -6.60, -7.74 and -9.92 [17]; the March-quarter EPS was first published as BDT -8.33 on 03-May-2026 and revised to BDT -9.92 on 20-May-2026 [13].

The full year. The board met on 28-Oct-2026 and the DSE published the results on 29-Oct-2026: EPS of BDT -42.74 against BDT -18.98, NAV per share of BDT 7.09 against BDT 57.82, and NOCFPS of BDT 7.18 against BDT 5.43, with no dividend [13]. On 173.79m shares that is a loss of about BDT 7,428m and year-end NAV of about BDT 1,232m [17]. Subtracting the nine-month figures, the June 2026 quarter carried a loss of about BDT 3,210m (EPS about BDT -18.47), and operating cash flow in that quarter was about BDT -307m [17]. The annual report is not yet in the corpus, so the composition of the fourth-quarter loss is not known.

The reasons given. In each FY2026 quarterly announcement the company gave the same explanation for the EPS decline: "unavailability of raw materials, increased utility costs, a sharp rise in raw material prices, and higher borrowing costs resulting from an increase in interest rates" [13]. It attributed the higher NOCFPS to a "decrease in payments made to suppliers and other operating creditors" [13].

Ratios: interest cover below 1.6x in every year from FY2018, finance costs 63% of FY2025 revenue, and free cash flow after interest negative in six of seven years

Margins and returns. Operating margin before finance costs stayed between 12.3% and 15.5% from FY2018 to FY2024 and was -5.2% in FY2025 [17]. Net margin was 1.5%-6.4% in FY2018-FY2024 and -54.6% in FY2025 [17]. ROE on average equity was between 1.4% and 5.1% in FY2019-FY2024 and -27.8% in FY2025; on equity excluding the revaluation reserve it was 2.9%-8.2% and -67.0% [17].

Leverage and coverage. Finance costs were 8.0%-12.8% of revenue in FY2018-FY2024 and 62.7% in FY2025, the highest of the eight years [17]. Interest cover was below 1.6x in every year of the series; FY2024's 1.16x was the lowest of FY2018-FY2024, and FY2025's was negative [17]. Borrowings were 1.48x-2.78x equity at the eight June year-ends and 5.00x at March 2026 [17].

Working capital. Inventory days on cost of sales were 288 at June 2018, 409 at June 2020, 236 at June 2023 and 295 at June 2025; at March 2026, on twelve-month cost of sales, they were 174, the lowest in the series [17]. Receivable days rose from 39 (June 2023) to 200 (June 2025) and 397 on twelve-month revenue at March 2026 [17]. Other receivables (outside trade receivables) were BDT 2,136m at June 2025 against BDT 1,096m a year earlier, and the note does not describe them further [1 p.141]. Store and spare parts, shown as "other current asset", were BDT 2,622m [1 p.144]. Asset turnover fell from 0.31x to 0.15x [17].

Cash conversion and payout. Operating cash flow exceeded profit after tax in every profitable year from FY2019 to FY2024, at 3.9x to 15.1x [17]. The company presents interest paid under financing; free cash flow after interest paid was negative in six of the seven years FY2019-FY2025 [17]. Cash dividends were 12% (FY2021), 10% (FY2022) and 11% (FY2023), and none was declared for FY2024, FY2025 or FY2026 [1 p.87] [13].

Balance sheet: equity of BDT 6.0bn at March 2026 below the BDT 6.9bn revaluation reserve, with BDT 756m of receivables over six months

Equity. Equity was BDT 13,540m at June 2024, BDT 10,195m at June 2025 and BDT 5,978m at March 2026 [17]. Share capital (BDT 1,738m) and share premium (BDT 1,740m) have not changed since FY2018 [9 p.85] [2 p.3]. The revaluation reserve of BDT 6,927m was 116% of equity at March 2026, so equity excluding it was minus BDT 949m [17]. On the announced June 2026 NAV of about BDT 1,232m, the reserve would be 5.6 times NAV if it was unchanged; the FY2026 balance sheet is not yet available to confirm [13] [17].

Receivables. Trade receivables were BDT 1,007m at June 2025: paper BDT 628m, tissue BDT 249m, export BDT 103m [1 p.140]. BDT 756m was more than six months past due, up from BDT 265m, and the ageing table is headed "past due but not impaired" [1 p.141]. Cash incentive receivable was BDT 167.7m [1 p.141]. The auditor listed trade and other receivables as a key audit matter and tested recoverability on a sample basis [1 p.116].

Related parties. At June 2025 the related-party loan note shows net balances owed to group companies of BDT 1,583.7m: East West Property Development (Pvt.) Ltd BDT 1,071.1m, Bashundhara Multi-Paper Industries Ltd BDT 706.3m and Bashundhara Industrial Complex Ltd BDT 245.7m, offset by BDT 171.1m from East West Media Group Ltd, BDT 3.3m from Bashundhara Infrastructure Development Ltd and the BDT 265.0m Bashundhara Industrial Complex Ltd line [1 p.158]. The net figure was BDT 1,544.1m at March 2026 [2 p.10]. Trade balances with related parties were BDT 147.6m, including BDT 87.3m with East West Property Development Ltd and BDT 55.7m with East West Media Group Ltd [1 p.159]. The FY2025 note records no remuneration to directors [1 p.159].

Contingent items and cash. Contingent liabilities were BDT 228.1m at June 2025 against BDT 1,096.8m: LCs of BDT 42.0m (BDT 907.7m a year earlier), bank guarantees of BDT 165.4m and a VAT claim of BDT 20.8m before the Supreme Court [1 p.156]. Cash and bank balances were BDT 64.3m at June 2025 and BDT 53.6m at March 2026, the lowest year-end or quarter-end figure in this note's series [17].

Peers: in FY2025 finance cost was 63% of revenue at Bashundhara against 3.6%-14.8% at three other listed paper makers

The comparison uses each company's audited FY2025 statements for the year to 30-Jun-2025, standalone, with finance cost as printed and gross of any interest income [1 p.121] [10 p.64] [11 p.10] [12 p.9]. Because Bashundhara's own "Profit from operation" is struck after finance costs, operating profit here is gross profit less administrative and selling expenses for all four. Profit before tax for Sonali, Hakkani and Monospool is after WPPF; Bashundhara booked no WPPF in FY2025 [1 p.121].

Within these four, Bashundhara had the highest revenue (BDT 6,038m) and the only negative operating margin (-5.2%); Monospool's was 24.3%, Sonali's 13.7% and Hakkani's 8.0% [17]. Finance cost was 62.7% of revenue at Bashundhara, against 14.8% at Monospool, 6.5% at Hakkani and 3.6% at Sonali [17]. Loans were 2.78x equity at Bashundhara and 3.19x at Monospool, against 1.80x at Hakkani and 0.19x at Sonali [17]. Revaluation reserves were 68% of equity at Bashundhara, 89% at Sonali, 51% at Hakkani and 17% at Monospool [17]. Bashundhara's asset turnover of 0.15x was the lowest of the four [17].

Governance: East West Property Development holds 58.1%, the shares moved to Z on 29-Oct-2025, and no capex decision appears in 24 months of DSE news

Ownership. At 31-Mar-2026 East West Property Development (Pvt.) Ltd, represented by Md. Nazmul Alam Bhuiyan, held 101.05m shares (58.14%); Sadat Sobhan and Safwan Sobhan held 4.72% each, Afroza Begum 3.39%, Ahmed Akbar Sobhan 2.30%, Md. Imrul Hassan 2.30%, Sayem Sobhan 1.84% and Shafiat Sobhan 0.12%; general public and institutions held 22.47% [2 p.7]. The number of shareholders fell from 13,630 at June 2025 to 12,709 at March 2026 [2 p.8]. The corporate directory in the annual report gives a different split at 30-Jun-2025 (board 66.21%, institutions 8.30%, general public 25.49%) [1 p.26]; the two tables are not reconciled in the filings.

Board and audit. The board listed in the FY2025 annual report has four members: Ahmed Akbar Sobhan (Chairman), Md. Imrul Hassan, Md. Nazmul Alam Bhuiyan (nominated) and Mostafa Azad Mohiuddin (independent director, who chairs the audit committee); the CEO is Md. Mustafizur Rahman FCA [1 p.26] [1 p.27]. The auditor, K. M. Alam & Co., signed the FY2025 report on 28-Oct-2025 with an unmodified opinion and two emphasis-of-matter paragraphs, on revenue (note 26) and cost of sales (note 27) [1 p.114] [1 p.119]. Key audit matters were PPE valuation, inventory valuation, revenue recognition, tax and deferred tax, and trade receivables [1 p.115] [1 p.116].

Regulatory actions and ratings, 24 months of DSE news. The shares were moved from A to Z on 29-Oct-2025 under BSEC directive BSEC/CMRRCD/2009-193/77 for not declaring a dividend for two consecutive years, and on the same day brokers and merchant bankers were told to stop lending against them [13]. CRAB's surveillance rating was "AA1" / "ST-2" (19-Dec-2024) and "A1(Lr), B1 (Lr)" / "ST-4, ST-5" (12-Mar-2026), both with a stable outlook [13]. The DSE queried an unusual price rise on 27-Feb-2025 and the company replied that there was no undisclosed price-sensitive information [13]. The registered office moved to Tower-1, Plot-844, Bashundhara R/A on 18-Sep-2025 [13].

Capital actions. A sweep of the DSE company-news archive from 31-Oct-2024 to 31-Oct-2026 found board meetings for quarterly and annual results, dividend decisions, rating results and the items above; it found no board decision on capital expenditure, new capacity, a rights issue, a merger or asset sales [13]. The FY2025 directors' report mentions "reducing capital expenditure where necessary" among the board's measures [1 p.64]. Investing cash outflow was BDT 73m in the nine months to March 2026 [2 p.6].

What's next: record date 19-Nov-2026, AGM 22-Dec-2026, and Q1 FY2027 results in mid-November (inferred)

Announced dates. The record date for the FY2026 AGM is 19-Nov-2026 and the AGM is on 22-Dec-2026 at 11:00, on a hybrid platform with a physical venue at Centrum Hall, Bashundhara R/A [13]. The FY2026 annual report, with the audit opinion, the going-concern note and the composition of the June-quarter loss, is due to shareholders before the AGM; last year the report in the corpus was signed on 28-Oct-2025 for an AGM on 23-Dec-2025 [1 p.121] [13].

Inferred dates. No board meeting date for Q1 FY2027 had been notified by 31-Oct-2026 [13]. The two precedents are board meetings on 14-Nov-2024 and 14-Nov-2025, so mid-November 2026 is inferred; the half-year precedents are 30-Jan-2025 and 31-Jan-2026, and the third-quarter precedents 30-Apr-2025 and 30-Apr-2026 [13]. CRAB published surveillance ratings on 19-Dec-2024 and 12-Mar-2026; no date for the next one is notified [13]. The FY2025 annual statements were signed on 28-Oct-2025 and the FY2026 board meeting was held on 28-Oct-2026, in line with that precedent [1 p.121] [13].

Policy dates. The UN General Assembly adopted the deferral of Bangladesh's graduation from LDC status from 24-Nov-2026 to 24-Nov-2029 on 29-Oct-2026 in New York (30-Oct in Dhaka) [14] [15]. Bashundhara's FY2025 other income included a BDT 43.8m export cash incentive and BDT 167.7m of cash incentive receivable [1 p.154] [1 p.141]; The Daily Star reports that "Bangladesh now has three more years to provide export subsidies under LDC flexibilities" [14]; the filings do not say how graduation would affect the incentive.

Risks: refinancing, raw-material imports, fixed costs at low volume and receivable recovery, each tied to the line it moves

Each risk below is tied to the line it moves and to the filing evidence. Sensitivities are history-based: in FY2025 each 1pp on the average cost of borrowings was about BDT 270m of finance costs, and each 1% on the gas bill BDT 7.3m [17].

The auditor's emphasis of matter attributes the FY2025 rise in cost of sales to "lower utilization of machines, fixed overhead costs, increase in raw material cost due to high foreign currency inflation and high leverage in terms of the current revenue" [1 p.114].

Shareholder returns: volume, the cost of debt and cash after interest

What drives returns to shareholders. Three items connect the accounts to shareholder returns. First, volume: the mill produced 73,532 MT of paper and tissue in FY2024 and 34,387 MT in FY2025, and factory depreciation per tonne rose from BDT 10,874 to BDT 29,147 (indicative, as the FY2025 production basis is unclear) [5 p.50] [1 p.161] [17]. Second, the cost of debt: finance costs were 0.66x gross profit in FY2024 and 10.3x in FY2025 [17]. Third, cash: no dividend has been declared since FY2023, and free cash flow after interest has been negative in six of the last seven years [1 p.87] [17].

Earnings quality checklist. The FY2025 loss after tax of BDT 3,299m was after BDT 810m of deferred tax income, so the pre-tax loss was BDT 4,046m [1 p.121]. Other income was BDT 51m, of which BDT 43.8m was the export incentive [1 p.154]. Operating cash flow was positive while the company reported losses because inventories and supplier payments fell; in FY2025 inventories released BDT 2,969m and trade payables absorbed BDT 1,480m [1 p.162].

Where the price sits, as facts. BPML closed at BDT 25.0 on 29-Oct-2026 [16]. Market capitalisation was BDT 4.34bn and borrowings at March 2026 were BDT 29.9bn [17]. On the announced June 2026 NAV of BDT 7.09 the price is 3.53x book; on the June 2025 NAV of BDT 57.82 it was 0.43x [13] [17]. EPS has been negative for two years, so there is no P/E. The 12-month closing range was BDT 22.3 (16-Nov-2025) to BDT 30.9 (16-Feb-2026) [16].

Key questions and the signposts that answer them. How did the FY2026 loss reach BDT 7,428m, and what is in the June-quarter loss of about BDT 3,210m? The FY2026 annual report. Did the auditor add a going-concern paragraph or modify the opinion? The FY2026 audit report. Was the shift from short-term to long-term borrowing a rescheduling? The FY2026 borrowings note. Is volume coming back? Quarterly revenue, which rose from BDT 314m to BDT 1,102m across the first three quarters of FY2026, and the Q1 FY2027 statements. What are the contract-manufacturing terms with Bashundhara Fine Paper Mills PLC? The related-party note of the FY2026 report.

FAQ

What does Bashundhara Paper Mills make?

Paper, tissue, hygiene products, feeding bottles, facial masks, paper sacks and other consumer items, from two units at Meghnaghat, Sonargaon and one at Gazaria, Munshiganj [1 p.124].

Why did revenue fall in FY2025?

The auditor's emphasis of matter attributes it to a shortage of raw materials after the company could not open import LCs in time; revenue fell from BDT 13,159m to BDT 6,038m [1 p.114] [1 p.121].

What were the FY2026 results?

The DSE announcement of 29-Oct-2026 gives EPS of BDT -42.74, NAV per share of BDT 7.09 and NOCFPS of BDT 7.18, with no dividend [13].

How much does the company owe?

Total borrowings were BDT 29,906m at 31-Mar-2026, of which BDT 8,145m was due within 12 months [2 p.3] [17].

Is there a going-concern issue?

The FY2025 going-concern note says the loss and accumulated deficit "may raise significant doubt about the Company's ability to continue as a going concern"; the auditor's opinion is unmodified, with an emphasis of matter on revenue and cost of sales [1 p.164] [1 p.114].

Why is BPML in the Z category?

The DSE moved it from A to Z on 29-Oct-2025 because it did not declare a dividend for two consecutive years [13].

When are the record date and AGM?

Record date 19-Nov-2026; AGM 22-Dec-2026 [13].

Which reports does this note use?

Audited statements FY2018-FY2025, the Q1, H1 and nine-month FY2026 statements, the DSE announcement of FY2026 results, and the FY2025 statements of Sonali Paper, Monospool and Hakkani Pulp & Paper.

Sources

1. Bashundhara Paper Mills PLC Annual Report 2025 (year to 30-Jun-2025, audited; K. M. Alam & Co.) · link · accessed 2026-10-31
2. Bashundhara Paper Mills PLC unaudited statements, nine months to 31-Mar-2026 (Q3 FY2026, revised EPS version) · link · accessed 2026-10-31
3. Bashundhara Paper Mills PLC unaudited statements, six months to 31-Dec-2025 (H1 FY2026; corpus key says 2025) · link · accessed 2026-10-31
4. Bashundhara Paper Mills PLC unaudited statements, three months to 30-Sep-2025 (Q1 FY2026; corpus key says 2025) · link · accessed 2026-10-31
5. Bashundhara Paper Mills PLC audited financial statements, year to 30-Jun-2024 (corpus key BPML_ANNUAL_2024, dated 2023 in the corpus) · link · accessed 2026-10-31
6. Bashundhara Paper Mills PLC audited financial statements, year to 30-Jun-2023 (corpus key BPML_ANNUAL_2023, dated 2022 in the corpus) · link · accessed 2026-10-31
7. Bashundhara Paper Mills PLC audited financial statements, year to 30-Jun-2022 (corpus key BPML_ANNUAL_2022, dated 2021 in the corpus) · link · accessed 2026-10-31
8. Bashundhara Paper Mills Ltd Annual Report 2020 (year to 30-Jun-2020) · link · accessed 2026-10-31
9. Bashundhara Paper Mills Ltd Annual Report 2019 (year to 30-Jun-2019, with FY2018 comparatives and a five-year table) · link · accessed 2026-10-31
10. Sonali Paper & Board Mills Limited Annual Report 2024-2025 (year to 30-Jun-2025, audited) · link · accessed 2026-10-31
11. Monospool Bangladesh PLC audited financial statements, year to 30-Jun-2025 · link · accessed 2026-10-31
12. Hakkani Pulp & Paper Mills PLC audited financial statements, year to 30-Jun-2025 · link · accessed 2026-10-31
13. Dhaka Stock Exchange news archive for BPML, 31-Oct-2024 to 31-Oct-2026 (company news, criteria=3) · link · accessed 2026-10-31
14. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-10-31
15. The Business Standard, 'Bangladesh gets 3 more years before LDC graduation' (30-Oct-2026) · link · accessed 2026-10-31
16. AnalystBro price data (TradingView feed): DSE:BPML daily and monthly bars to 29-Oct-2026 · link · accessed 2026-10-31
17. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-10-31