eGeneration financial analysis: revenue down 31.7% in FY2025, 53% of assets in capitalised development (Oct 2026)

Investment considerations: FY2025 revenue BDT 438.3m (-31.7%), capitalised development 53% of assets, ITES tax exemption to June 2027

eGeneration PLC was incorporated on 22 November 2003 as a private limited company, converted to a public limited company on 5 July 2017 and listed its shares on the Dhaka and Chittagong stock exchanges in 2021 [1 p.15]. The notes describe it as 'one of the leading system integration and software solution companies in Bangladesh', partnered with 'Microsoft, SAP, Dell, UiPath', selling to 'businesses and government' [1 p.15]. Revenue is printed in ten product lines, from 'Solutions Developed in Microsoft Platform' and 'Data Center Solution' to ERP software, cyber security and a hospital management system [1 p.32]. The company states that 'No segmental reporting is applicable' [1 p.22]. It has no subsidiaries in the statements read, and every figure here is on a single-company basis.

The latest audited accounts are for the year to 30 June 2025, approved and signed by the auditor on October 29, 2025 [1 p.10] [1 p.11]. The document in the corpus holds the auditor's report, the statements, the notes and two annexures; the directors' report, governance report and board list for FY2025 are not in it. The board met on 28 October 2026 to consider the FY2026 accounts and DSE posted the per-share results on 29 October 2026 [15]; the FY2026 annual report is not in the corpus at 1-Nov-2026. Line items in this note therefore run to the nine months ended 31 March 2026 [2 p.3], and FY2026 appears as the DSE per-share figures.

Revenue grew in 6 of the 7 years from FY2018 to FY2025 and peaked at BDT 641.4m in FY2024; FY2025 revenue was BDT 438.3m [5 p.46] [3 p.11] [1 p.12] [30]. Gross margin fell in 7 of the 7 year-on-year steps, from 46.6% in FY2018 to 27.4% in FY2025, and profit after tax moved from BDT 104.9m to BDT 56.2m [30]. Restated EPS was BDT 1.61 in FY2018, BDT 1.44 in FY2024 and BDT 0.75 in FY2025 [5 p.46] [1 p.35]. In its Q3 FY2025 post the company attributed lower EPS and revenue to 'unstable macroeconomic conditions both globally and locally' and a 'slowdown in economic activity across multiple sectors, which has directly impacted IT investment, customer spending, and project pipelines' [15].

At 30 June 2025 intangible assets were BDT 146.1m, 'Investment' in seven technology development projects BDT 264.1m and work in progress BDT 695.8m, together BDT 1,106.0m of total assets of BDT 2,088.3m [1 p.11] [1 p.25]. Trade and other receivables were BDT 334.3m and advances, deposits and prepayments BDT 350.2m; cash was BDT 6.4m [1 p.11]. Equity was BDT 1,753.3m and borrowings BDT 130.6m [1 p.11] [30].

FY2026 result: EPS BDT 0.77, NOCFPS BDT 0.44, 1.00% cash dividend; derived April-June EPS BDT 0.20

For the year to 30 June 2026 the board recommended a 1.00% cash dividend and DSE posted EPS of BDT 0.77, NAV per share of BDT 23.92 and NOCFPS of BDT 0.44, against BDT 0.75, BDT 23.38 and BDT 1.20 for FY2025; the record date is 01.12.2026 and the AGM is on 29.12.2026 at 10:00 AM on a hybrid system at Club Notredemian Bangladesh Ltd, Banani [15]. The FY2026 line items are not yet in the corpus.

FY2026 quarterly EPS posts were were BDT 0.14 (July-September), BDT 0.23 (October-December) and BDT 0.20 (January-March); the derived April-June quarter is BDT 0.20; the same derivation gives BDT 0.16 for FY2025 and BDT 0.22 for FY2024 [15] [30]. Nine-month profit after tax was BDT 42.6m in FY2026 against BDT 43.9m, on revenue of BDT 290.5m against BDT 328.8m [2 p.3]. NOCFPS for the nine months was BDT 0.58 against BDT 1.00; the company's Q3 post says 'cash payments to suppliers and operating expenses increased more than the cash received from customers' [15].

The January-March 2026 quarter showed revenue of BDT 106.5m against BDT 102.9m and profit after tax of BDT 15.2m against BDT 13.4m [2 p.3]. Directors' remuneration was nil in the nine months to March 2026 against BDT 4.75m a year earlier [2 p.16]; the Q3 related-party note lists board meeting fees of BDT 242,782 and an opening balance of BDT 48,667 for Shameem Ahsan, 'Director' [2 p.19].

Revenue: Microsoft Platform from BDT 406.2m (FY2023) to BDT 131.5m (FY2025); ERP BDT 70.3m in 9M FY2026

Revenue is recognised under IFRS 15 from 'the sale of ERP Software, Solutions Developed in Microsoft Platform, Database Solutions, Data Analytics, AI & Natural Language Processing, Data center solution, Digital Platform Development' [1 p.19]. The auditor's revenue matter describes 'several types of customer contracts', including 'sale of software and service sales', and the assessment of whether obligations are satisfied 'at a point in time or over time' [1 p.3]. Customer names, contract counts and government share are not printed in the documents read.

'Solutions Developed in Microsoft Platform' was BDT 406.2m, 69.5% of FY2023 revenue, then BDT 246.5m in FY2024 and BDT 131.5m in FY2025 [3 p.31] [1 p.32] [30]. 'Data Center Solution' was BDT 67.3m in FY2023, BDT 221.0m in FY2024 and BDT 152.8m in FY2025. The two lines together were 81.0%, 72.9% and 64.8% of revenue in those three years [30]. In the nine months to March 2026 Microsoft Platform revenue was BDT 40.2m (-53.9%) and Data Center Solution BDT 96.1m (-39.3%) [2 p.16] [30].

ERP Software revenue was BDT 70.3m in 9M FY2026 against BDT 12.8m, 24.2% of the period's revenue; Cyber Security Solutions was BDT 54.6m against BDT 32.7m; the Hospital Management Information System line returned at BDT 7.8m after nil in 9M FY2025 [2 p.16] [30]. Data Analytics revenue fell from BDT 20.1m in FY2023 to BDT 2.4m in FY2025 and nil in 9M FY2026; AI & Natural Language Processing was BDT 12.1m in FY2024 and BDT 0.4m in FY2025 [3 p.31] [1 p.32] [2 p.16].

The company's explanations are in its DSE posts: Q2 FY2025 revenue 'decreased due to operational disruptions caused by political unrest during the first quarter', and Q2 FY2026 NOCFPS 'declined primarily due to lower customer cash collections combined with higher supplier payments' [15]. The filings read give no order book, backlog or customer concentration figure.

One footing gap appears in the Q3 note: the 9M FY2025 product column adds to BDT 326.4m against the printed total of BDT 328.8m, a gap of BDT 2.4m; the column has no Data Analytics row, and the FY2025 full-year note prints Data Analytics at BDT 2,400,000 [2 p.16] [1 p.32]. The exhibit below shows the rows as printed.

Cost drivers: 9M FY2026 gross margin 34.6%; financial expenses inside operating expenses; ITES tax exemption

Cost of service and sales has two printed parts. 'Cost of Service' holds salaries, festival bonus, amortisation of intangibles and depreciation; 'Cost of Sales' holds product purchases by line [1 p.32]. Cost of sales fell from BDT 325.6m in FY2024 to BDT 184.6m in FY2025 and was BDT 85.1m in 9M FY2026; cost of service was BDT 123.6m, BDT 133.6m and BDT 104.9m [1 p.32] [2 p.16]. Salary and allowance in cost of service rose from BDT 64.2m in FY2024 to BDT 79.3m in FY2025, and was BDT 71.2m in 9M FY2026 against BDT 50.7m [1 p.32] [2 p.16].

Product margins before cost of service differ by line. Microsoft Platform revenue less its cost of sales was 59.5% of its revenue in FY2024 and 60.4% in FY2025; Data Center was 36.4% and 33.3%, and 72.6% in 9M FY2026 [1 p.32] [2 p.16] [30]. Cost of sales was 43.4% of revenue in 9M FY2025 and 29.3% in 9M FY2026, and cost of service 27.1% and 36.1% [30]. Gross margin was 34.6% in 9M FY2026 against 29.5%.

Amortisation of intangibles and depreciation sit in cost of service at 90% of the depreciation charge [1 p.37]. Together they were BDT 46.4m in FY2025, 10.6% of revenue [1 p.32] [30]. Both are charged on the reducing-balance method, at 10% to 20% for intangibles and 2% to 30% for property, plant and equipment [1 p.18] [1 p.38].

The printed 'Operating Expenses' line includes financial expenses [1 p.12]. 'Profit from Operation' is printed after that line [1 p.12]. General and administrative expenses were BDT 40.1m in FY2025 and selling and distribution BDT 6.5m [1 p.33] [1 p.34]. Financial expenses were BDT 20.0m in FY2025 (interest on overdraft and term loans BDT 18.2m) and BDT 29.3m in FY2024, which included an 'SBLC Renewal Charge' of BDT 3.8m [1 p.34]. In 9M FY2026 financial expenses were BDT 17.2m, 5.9% of revenue [2 p.17] [30]. Profit before financial expenses covered financial expenses 3.67x in FY2025 and 3.37x in 9M FY2026 [30].

The notes state that 'Income from Information Technology Enabled Services (ITES) for the period from the first day of July, 2024 to the thirtieth day of June, 2027 will be excluded from Tax', that 'the income of the Company is exempted from income tax' and that 'Deferred Tax is not applicable' [1 p.20] [1 p.34]. The tax charge is 20% of non-operating income: BDT 1,424,138 on BDT 7,120,692 in FY2025 [1 p.31]. FY2024 tax of BDT 2,412,806 included a final tax of BDT 1,180,478 for 2021-2022 [1 p.31]. Non-operating income, mainly interest on the FDR security deposit for Microsoft, was 12.4% of profit before tax in FY2025 [1 p.34] [30]. WPPF is 5/105 of profit before WPPF [1 p.34].

Ratios: gross margin 46.6% (FY2018) to 27.4% (FY2025); ROE 3.2% in FY2025

The five-year tables and the statements give eight years of ratios. Gross margin moved from 46.6% (FY2018) to 34.8% (FY2022) and 27.4% (FY2025); profit from operation over revenue from 35.7% to 12.2%; net margin from 34.0% to 12.8% [30]. ROE on average equity was 9.2% in FY2019, 6.3% in FY2024 and 3.2% in FY2025; asset turnover was 0.32x in FY2024 and 0.21x in FY2025 [30].

Equity stayed between 82.9% and 97.6% of total assets over the eight years [30]. NOCFPS was above EPS in 5 of the 8 years; the other years are FY2020, FY2021, FY2023 (NOCFPS BDT 1.35, BDT 0.03 and BDT 1.42 against EPS BDT 1.43, BDT 1.40 and BDT 1.45) [5 p.46] [3 p.11] [3 p.13]. The FY2018-FY2022 figures come from the company's five-year table; EPS there is restated to 75,000,000 shares, and NAV per share is on the shares outstanding in each year [5 p.46].

Two years are printed twice. FY2023 profit after tax is BDT 108,949,772 in the FY2023 statements and BDT 108,804,393 in the restated FY2023 column of the FY2024 statements; FY2023 total assets are BDT 2,027,837,242 and BDT 2,036,294,920 [4 p.10] [4 p.9] [3 p.11] [3 p.10]. FY2022 profit after tax is BDT 107,412,559 in the five-year table and BDT 107,449,067 in the FY2023 comparatives [5 p.46] [4 p.10]. The model uses the later printing for FY2023 and the five-year table for FY2018-FY2022.

Development cost: BDT 1,106.0m, 53.0% of assets; FY2024 WIP additions do not add to the printed total

Three asset lines carry capitalised technology spend. Intangible assets are 'purchased software license, system implementation and integration and development costs', amortised by product [1 p.5] [1 p.38]. Their cost has been BDT 462.2m since FY2021, with no additions in FY2024 or FY2025, and accumulated amortisation reached 68.4% of cost at 30 June 2025 [1 p.24] [1 p.38] [30]. 'Investment' is BDT 264.1m in seven development projects, with no addition in FY2025 and no amortisation charge [1 p.24] [1 p.25]. Work in progress 'represents the cost incurred for acquisition and/or development of assets that were not ready for use' and is stated at cost [1 p.18].

Work in progress rose from BDT 530.2m at 30 June 2023 to BDT 695.8m at 30 June 2025 and BDT 699.2m at 31 March 2026 [3 p.10] [1 p.11] [2 p.2]. FY2025 additions were BDT 39.9m: hospital management information system BDT 21.9m, database solutions BDT 10.4m, learning management system BDT 4.7m and digital platform development BDT 2.9m [1 p.25]. The FY2024 column prints additions of BDT 9.9m, nil, BDT 9.5m and BDT 53.8m, which add to BDT 73.1m, against a printed total of BDT 125.7m; the same BDT 125,699,604 appears as the FY2024 addition in the roll-forward and the cash flow statement [1 p.25] [1 p.14]. The BDT 52.6m difference is not explained in the notes read. No transfer from work in progress to intangibles is printed for FY2024 or FY2025.

On the page image, note 7 prints Digital Platform Development at BDT 56,239,956 and Microsoft Platform at BDT 50,442,893; the seven sub-notes add to the printed BDT 264,138,062 [1 p.25] [30]. The auditor reported both balances as key audit matters, writing for the investment that 'Future economic benefits are to come to the company in future' and that the investments 'are hard to value because uncertainties are involved in relation to the future economic benefits to be received' [1 p.7]. The impairment policy note states that all assets 'are in physical existence and valued no more than their recoverable amount' [1 p.21]; no impairment charge appears in FY2024 or FY2025.

Balance sheet and cash: receivables 278 days, advances BDT 395.3m, cash BDT 2.2m at 31-Mar-2026

Trade and other receivables were BDT 334.3m at 30 June 2025, 278 days of FY2025 revenue, against 144 days at 30 June 2024 [1 p.11] [30]. The receivables roll-forward shows additions equal to revenue, BDT 438,297,521, and realisations of BDT 356,992,541 [1 p.26]. The provision for bad debt was BDT 249,383; the stated policy is to 'keep provision for bad debt @1% of gross accounts receivable' [1 p.21] [1 p.26]; no ageing table is printed. The auditor's receivables matter says 'The increasing challenges over the economy and operating environment ... have increased the risks of default on receivables' [1 p.6].

Advances, deposits and prepayments were BDT 350.2m at 30 June 2025 and BDT 395.3m at 31 March 2026; 'Advance Against Work/Project' was BDT 290.6m and BDT 326.0m [1 p.26] [2 p.11]. The counterparties of these advances are not named. Security deposits (FDR) for Microsoft and the overdraft were BDT 56.3m at 30 June 2025 and BDT 63.2m at 31 March 2026 [1 p.27] [2 p.11]. Tender security and margin fell from BDT 87.6m at 30 June 2023 to BDT 20.1m at 31 March 2026 [3 p.10] [2 p.2].

Cash received from customers was BDT 656.0m in FY2024 and BDT 357.0m in FY2025, 102.3% and 81.4% of revenue [1 p.14] [30]. Operating cash flow less capitalised spend on property, investment and work in progress was BDT 80.9m in FY2024 and BDT 46.9m in FY2025; after dividends and financial expenses paid, BDT 5.1m and BDT (16.0)m [30]. In 9M FY2026 work-in-progress additions were BDT 3.4m against BDT 29.6m a year earlier [2 p.10] [2 p.5].

Borrowings were BDT 130.6m at 30 June 2025 and BDT 116.7m at 31 March 2026: overdrafts from Dutch-Bangla Bank, United Finance, Brac Bank and Meghna Bank of BDT 104.3m and term loans of BDT 12.4m, all current [2 p.2] [2 p.14]. Brac Bank was 49.3% of all borrowings at 31 March 2026 [30]. The auditor's loan matter states 'The company may face difficulties due to unfavorable movement in interest rate & monetary policy that may result in short-term and cash flow crisis' [1 p.7]. The accounting-policy note says there is 'no contingent liability or asset as on 31 December, 2022' [1 p.19].

Audit opinion: unmodified for FY2025, eight key audit matters including development cost and work in progress

M. Z. Islam & Co. (Mohammad Fakhrul Alam Patwary FCA, Managing Partner) signed the FY2025 report on October 29, 2025 [1 p.10]. The opinion reads: 'In our opinion, the accompanying financial statements gives a true & fair view, in all material respects, the financial position of the Company as at June 30, 2025, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) and other applicable laws and regulations.' [1 p.2] There is no emphasis-of-matter or other-matter paragraph. FAMES & R audited FY2023 [4 p.9].

The report lists eight key audit matters, each with the balance printed in the risk column [1 p.3] [1 p.4] [1 p.5] [1 p.6] [1 p.7] [1 p.8]. The work-in-progress matter reads: 'The work-in-progress as at June 30, 2025 was of BDT 695,825,891 /- which we considered key audit matter to the financial statements due to its nature.' [1 p.8] The investment matter reads: 'The valuation of the investment portfolio involves judgment and continues to be an area of inherent risk.' [1 p.7] The inventory matter refers to 'a sample of, factory production house, warehouse' [1 p.4]; inventories were BDT 2,863,319.

The Basis for Opinion paragraph reads: 'We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.' [1 p.2] The full risk-column text of each of the eight key audit matters is reproduced below word for word from the page images, with the auditor's spelling and punctuation; the right-hand columns describe audit procedures [1 p.3] [1 p.8].

Governance and capital: new chairman and MD in FY2025, sponsors 37.77% at 30-Jun-2022, B category since 30-Dec-2025

The FY2025 related-party note names the board roles for the year: SM Ashraful Islam, 'Chairman (Retired)'; Mohammad Shahjalal, 'Chairman (Appointed)'; Shameem Ahsan, 'Managing Director (Retired)', remuneration BDT 5,250,000; and, under merged 'Independent' / 'Director' and 'Board Meeting Fees' cells, Shah Imraul Kaeesh, Dr. Rabeya Sultana and Dr. Mohammad Shafiul Alam Khan, BDT 140,558 each [1 p.36]. DSE posted the appointment of Abdullah Al Emran as Managing Director from April 25, 2025 and of Ahsan H. Aminur as Acting Company Secretary from May 01, 2025 [15]. No FY2025 or FY2026 board list with attendance is in the corpus; the FY2022 lists follow.

At 30 June 2022 sponsors and directors held 37.77%: Shameem Ahsan 17,033,683 shares (22.71%), Syeda Kamrun Nahar Ahmed 6,003,283 (8.00%), eGeneration Sourcing Limited 4,014,082 (5.35%), S M Ashraful Islam (nominated by eGeneration Sourcing Limited) 282,080 (0.38%) and Rashed Mahmud 994,675 (1.33%) [5 p.57]. The total line prints '613,133,962' shares beside 37.77%; the five rows add to 28,327,803. Syeda Kamrun Nahar Ahmed is printed as the spouse of the Managing Director [5 p.57]. Since then DSE posted Rashed Mahmud's sale of his entire 994,675 shares (confirmed 26-Feb-2025), Syeda Kamrun Nahar Ahmed's gift of 5,003,283 shares to her spouse Shameem Ahsan (confirmed 24-Apr-2025), and an intimation by eGeneration Solutions Ltd., 'a placement shareholder', of a sale of 10,00,000 shares (25-Jan-2026; passed, outcome unknown); the post states that Mr. Shameem Ahsan 'is the Director of eGeneration Limited and he is also the Director of eGeneration Solutions Limited' [15]. The FY2022 report lists eGeneration Solutions Limited as a related party holding 5,467,594 shares (7.29%) at 30 June 2022 [5 p.38].

The company raised BDT 150,000,000 in its IPO, 15,000,000 shares at BDT 10, with net proceeds of BDT 132,389,000 after BDT 17,611,000 of expenses [6 p.27]; no later utilisation statement was read. Cash dividends have gone to public shareholders, with sponsors and directors excluded in FY2022: '10% Cash Dividend for the public shareholders other than Sponsors and Directors', 46,672,197 shares [5 p.5]. Dividends charged to equity were BDT 46,672,197 for FY2022, BDT 46,672,197 for FY2023 and BDT 51,454,277 for FY2024 [3 p.12] [1 p.13]. For FY2025 the board recommended 2.25% cash, BDT 16,875,000 charged in 9M FY2026 [15] [2 p.13]; for FY2026, 1.00% cash [15]. DSE moved the shares from 'A' to 'B' category from 30-Dec-2025 'as the Company has approved 2.25% Cash Dividend' [15]. Unclaimed dividend was BDT 9.6m at 30 June 2025 and BDT 12.5m at 31 March 2026 [1 p.31] [2 p.15].

The latest governance report in the corpus is for FY2022 (year to 30 June 2022). Its directors' profile, attendance and committee pages list a seven-member board: S M Ashraful Islam, Chairman (nominated by eGeneration Sourcing Ltd.); Shameem Ahsan, Managing Director; Syeda Kamrun Nahar Ahmed, Director; and four independent directors, Ariful Hasan, Md. Eshaque Ali Khondakar FCA, Dr. Mohammed Shafiul Alam Khan and Dr. Md. Musfiqur Rahman FCMA [5 p.55] [5 p.38]. The compliance report remark reads 'Total numbers of directors on the board is 07 (Seven) includes with four independent directors' [5 p.61]. Attendance 'As on June 30, 2022' shows 5 meetings for each director, all attended except Syeda Kamrun Nahar Ahmed (4 of 5), with net remuneration of BDT 10,000 per meeting [5 p.55]; Annexure-2 of the directors' report states that 'total 09 (nine) Board meetings were held' in FY2022 and that 'The Chief Financial Officer, Company Secretary and Head of Internal Audit and Compliance were present in all the Board Meetings' [5 p.37]. The two printings differ (5 and 9). The same annexure refers to attendance 'during the year 2020-2021' [5 p.37], a printing slip in the FY2022 report.

Committees (FY2022): the Board Audit Committee is 'Mr. Md. Eshaque Ali Khondakar FCA', Chairman, with Ariful Hasan and Dr. Md. Musfiqur Rahman FCMA, and 'A total of four (4) BAC meetings were held during 2021-2022' [5 p.74]; the Nomination and Remuneration Committee is Ariful Hasan, Chairman, with Md. Eshaque Ali Khondakar FCA and Dr. Mohammed Shafiul Alam Khan, which 'met twice', each member attending 2/2 [5 p.76] [5 p.78]. Key management at 30 June 2022: Shameem Ahsan, Managing Director; Md. Mazharul Islam, Chief Financial Officer; Abdullah Al-Amin ACS, Company Secretary; Anwar Hossain, Head of Internal Audit & Compliance; the CFO, CS and head of internal audit are printed with nil shares [5 p.57]. Executives listed include Md. Abdullah Al Emran, 'Director, Operations & Sales', with 100,000 shares [5 p.38]; DSE later posted his appointment as Managing Director [15].

Profiles and ties (FY2022): Shameem Ahsan, appointed 08 November 2004, is printed as 'a General Partner of Pegasus Tech Ventures', President of the Venture Capital & Private Equity Association of Bangladesh and a past President of BASIS [5 p.25]. Syeda Kamrun Nahar Ahmed, appointed 18 May 2017, is printed as the spouse of the Managing Director and as a former Director of 'Benchmark e-Generation Ltd' [5 p.57] [5 p.26]. S M Ashraful Islam is a retired Additional Secretary and former Executive Director of Bangladesh Computer Council [5 p.24]. Md. Eshaque Ali Khondakar FCA is printed as CFO of Matam Fibre Mills Ltd. [5 p.28]; Dr. Mohammed Shafiul Alam Khan as Director and Professor of the Institute of Information Technology, University of Dhaka [5 p.29]; Dr. Md. Musfiqur Rahman FCMA as a Professor of Accounting and Information Systems, University of Dhaka [5 p.30]; Ariful Hasan as CEO of e-Soft & Doctorsbd.com [5 p.27]. Related shareholders at 30 June 2022 were eGeneration Solutions Limited (5,467,594 shares, 7.29%) and eGeneration B2B Limited (279,102, 0.37%) [5 p.38].

The FY2022 Corporate Governance Compliance Report (pages 59-71 of the report) was read from the page images: no condition carries a tick in the 'Not complied' column [5 p.61] [5 p.73]. Remarks printed beside compliance ticks or 'N/A' include, for 1(2)(c), 'Independent Directors has been appointed by the Board of Directors and placed to the shareholders for approval in the next AGM' [5 p.62]; for 1(5)(vii), the 'statement of the utilization of proceeds raised through public issues', 'No such issue arose' [5 p.64]; and for 1(5)(x), 'Independent Directors had not received any remuneration Except meting attendance fee' [5 p.64]. The compliance auditor, Ashraf Uddin & Co. (dated October 23, 2022), reported that 'eGeneration Limited has complied with the conditions of the Corporate Governance Code' and that 'The Governance of the company is highly satisfactory' [5 p.60]. The FY2022 report also states 'We confirm that all Sponsors and Directors, other than Independent Directors, of eGeneration Limited, hold more than 2% (two present) shares of the paid-up capital of the company'; the same page prints S M Ashraful Islam at 0.38% and Rashed Mahmud at 1.33% [5 p.57].

The 24-month DSE sweep (criteria=3, 40 posts from 6-Nov-2024 to 29-Oct-2026) found no board approval of capital expenditure, borrowing, acquisition or expansion, and no correction notice [15]. It holds two ECRL ratings of 'A+' / 'ST-2' with Stable outlook (24-Nov-2024 and 24-Nov-2025) and one DSE query response (8-Sep-2025) stating there was 'no undisclosed price sensitive information' [15].

Peers: AGNISYSL, BDCOM, AAMRANET and ADNTEL nine-month figures on their own printed bases

The peers are four listed IT and internet companies with published AnalystBro notes [23] [24] [25] [26], shown on their own printed company bases for the nine months to 31 March 2026 and not ranked. Agni Systems PLC. reports units 'Unit-1 ISP', 'Unit-2 ICX', 'Unit-3 IPTSP' and 'Unit-4 ITES' [16]. BDCOM Online Ltd. reports 'Unit-1 ISP', 'Unit-2 SDP' and 'Unit-3 IPTSP', with depreciation below gross profit [18]. aamra networks limited reports revenue and a single operating expenses line [20]. ADN Telecom Limited's separate statement is used [21]. eGeneration reports ten software and system-integration product lines [2 p.16].

Opinion headings on the FY2025 auditor's reports: Agni Systems 'Opinion' [17]; BDCOM 'Opinion' [19]; ADN Telecom 'Opinion' on the consolidated and separate statements [22]; aamra networks 'Qualified Opinion', as given in its published note [25]; eGeneration 'Opinion' [1 p.2]. The finance-cost lines are printed as 'Financial Expenses' (eGeneration), 'Financial expenses' (Agni, aamra), 'Financial Charges' (BDCOM) and 'Finance (expense)/income' (ADN, a net figure); WPPF is charged below these lines at each company [2 p.3] [16] [18] [20] [21].

What's next: record date 1-Dec-2026, AGM 29-Dec-2026, ITES exemption period ends 30-Jun-2027

Dated items after the note date (31-Oct-2026) follow. No board date for the Q1 FY2027 accounts is notified on DSE at 1-Nov-2026 [15]. Q1 precedents: Q1 FY2022 8-Nov-2021 (statement date) [7]; Q1 FY2023 3-Nov-2022 (statement date) [8]; Q1 FY2024 14-Nov-2023 (statement date) [9]; Q1 FY2025 12-Nov-2024 (statement date and board date) [10]; Q1 FY2026 11-Nov-2025 (board date (DSE)) [15], giving 3-12 Nov 2026 (inferred, 5 years), DSE business days (Sunday-Thursday) (6-Nov-2026, 7-Nov-2026, 13-Nov-2026, 14-Nov-2026 fall on a Friday or Saturday). Q2 precedents: Q2 FY2021 27-Jan-2021 (statement date) [11]; Q2 FY2022 26-Jan-2022 (statement date) [12]; Q2 FY2023 30-Jan-2023 (statement date) [13]; Q2 FY2024 30-Jan-2024 (board date (PSI)) [14]; Q2 FY2025 29-Jan-2025 (board date (DSE)) [15]; Q2 FY2026 28-Jan-2026 (board date (DSE)) [15], giving 26-28 Jan 2027 (inferred, 6 years) (29-Jan-2027, 30-Jan-2027 excluded as Friday/Saturday). The FY2026 accounts were approved on 28-Oct-2026, within the precedent of 29-Oct-2025 [15].

The ITES exemption in the notes runs to 30 June 2027 [1 p.20]; the notes give no statement on the period after that date. Bangladesh's LDC graduation date is 24-Nov-2029 [27] [28]; the filings read do not link it to any line item.

Risks: capitalised development BDT 1,106.0m, receivables 278 days, ITES exemption to June 2027

Each risk below is a fact from the filings with the line item it sits in; no probability or size of future effect is given.

Key questions: transfer of WIP, the FY2024 footing gap, advances; P/E 25.1x and P/B 0.81x at BDT 19.30

Questions the filings leave open, with the document that would answer each: when work in progress of BDT 699.2m is transferred to intangible assets and starts to amortise (FY2026 notes); what the BDT 52.6m footing gap in the FY2024 work-in-progress additions represents (FY2026 notes or a company statement); who the counterparties of the BDT 326.0m advance against work and projects are (FY2026 notes); the ageing of receivables (FY2026 notes); the board, committees and attendance after the FY2025 changes in chairman and managing director (FY2026 annual report); and the April-June 2026 revenue by product line (FY2026 annual report). None of these is in the corpus at 1-Nov-2026.

At the 29-Oct-2026 close of BDT 19.30, market capitalisation was BDT 1,447.5m; the price was 25.1x FY2026 EPS of BDT 0.77 and 0.81x the 30-Jun-2026 NAV per share of BDT 23.92 posted on DSE, and the FY2026 cash dividend of BDT 0.10 per share was 0.5% of the close [29] [15] [30]. The close was 31.3% below the 52-week closing high of BDT 28.10 (9-Jul-2026) and 12.9% above the closing low of BDT 17.10 (13-Nov-2025) [29].

FAQ

What does eGeneration do?

It sells system-integration and software solutions, including Microsoft-platform solutions, data centre solutions, ERP, database, cyber security and hospital management systems, to businesses and government [1 p.15] [1 p.32].

What were eGeneration's FY2026 results?

DSE posted EPS of BDT 0.77, NAV per share of BDT 23.92 and NOCFPS of BDT 0.44 on 29-Oct-2026, with a 1.00% cash dividend [15].

What did the company say about FY2025 revenue?

Revenue was BDT 438.3m in FY2025 and BDT 641.4m in FY2024; Microsoft Platform revenue fell from BDT 246.5m to BDT 131.5m and Data Center from BDT 221.0m to BDT 152.8m [1 p.32]. The company cited unstable macroeconomic conditions and a slowdown in IT investment in its Q3 FY2025 post [15].

Does eGeneration pay income tax?

Its ITES income is excluded from tax to 30 June 2027; tax is charged at 20% on non-operating income, BDT 1,424,138 in FY2025 [1 p.20] [1 p.31].

What is the BDT 695.8m work in progress?

Cost of assets under development not ready for use, stated at cost; FY2025 additions were mainly the hospital management information system and database solutions [1 p.18] [1 p.25].

What was the FY2025 audit opinion?

M. Z. Islam & Co. gave an unmodified opinion on FY2025 with eight key audit matters [1 p.2].

Which accounts does this note use?

Audited statements FY2023-FY2025, the FY2022 annual report's five-year table, the un-audited nine-month statements to 31-Mar-2026 and the DSE-announced FY2026 per-share figures; the FY2026 annual report is not in the corpus at 1-Nov-2026.

Sources

1. eGeneration PLC, Auditor's Report and Audited Financial Statements for the year ended June 30, 2025 (M. Z. Islam & Co., dated October 29, 2025; 38 corpus pages; corpus page = printed page + 2) · link · accessed 2026-11-01
2. eGeneration PLC, 3rd Quarter Financial Statements (Un-Audited) for the period ended 31 March 2026 (dated 27 April 2026) · link · accessed 2026-11-01
3. eGeneration PLC, audited financial statements for the year ended 30 June 2024 (M. Z. Islam & Co.; FY2023 comparatives restated) · link · accessed 2026-11-01
4. eGeneration Limited, audited financial statements for the year ended 30 June 2023 (FAMES & R, dated September 26, 2023) · link · accessed 2026-11-01
5. eGeneration Limited, Annual Report 2021-2022 (full report: five-year analysis, shareholding, AGM notice) · link · accessed 2026-11-01
6. eGeneration Limited, Annual Report 2019-2020 (utilization of proceeds from public issues) · link · accessed 2026-11-01
7. eGeneration Limited, Statement of Financial Position (Un-Audited) as on 30 September 2021 ('Dated: 08 November 2021') · link · accessed 2026-11-01
8. eGeneration Limited, Statement of Changes in Equity (Un-Audited) for the period ended 30 September 2022 ('Dated: 03 November 2022') · link · accessed 2026-11-01
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12. eGeneration Limited, Statement of Changes in Equity (Un-audited) for the period ended 31 December 2021 ('Dated: 26 January 2022') · link · accessed 2026-11-01
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14. eGeneration Limited, price-sensitive information on half-year results to 31 December 2023 (dated 30 January 2024) · link · accessed 2026-11-01
15. Dhaka Stock Exchange news archive for EGEN, 31-Oct-2024 to 1-Nov-2026 (40 posts, 6-Nov-2024 to 29-Oct-2026) · link · accessed 2026-11-01
16. Agni Systems PLC., Statement of Profit or Loss and Other Comprehensive Income (Un-Audited) for the period ended March 31, 2026 (page image, corpus p.2) · link · accessed 2026-11-01
17. Agni Systems PLC., Annual Report 2024-25, independent auditor's report (page image, corpus p.73) · link · accessed 2026-11-01
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19. BDCOM Online Ltd., Annual Report 2024-2025, independent auditor's report (page image, corpus p.91) · link · accessed 2026-11-01
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21. ADN Telecom Limited, separate Statement of profit or loss and other comprehensive income (Un-Audited), period ended March 31, 2026 (page image, corpus p.7) · link · accessed 2026-11-01
22. ADN Telecom Limited, Annual Report 2025, independent auditor's report on the consolidated and separate statements (page image, corpus p.102) · link · accessed 2026-11-01
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27. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
28. The Business Standard, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
29. AnalystBro chart_bars (TradingView feed), DSE:EGEN daily bars to 1-Nov-2026 · link · accessed 2026-11-01
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