Esquire Knit Composite financial analysis: finance cost at 6.4% of sales and a FY2026 loss of BDT 2.68 a share (Oct 2026)

Investment considerations: BDT 10.1bn of exports, a 14.6% gross margin, interest cover of 1.25x and a FY2026 loss

Esquire Knit Composite PLC exports knit garments from a composite plant. Its directors' report lists the production chain as knitting, fabric dyeing, yarn dyeing, printing, embroidery, industrial laundry and washing, and garment making, and states that the company has no separate reportable operating segments under IFRS 8 [1 p.88]. The head office is at Esquire Tower in Tejgaon; the DSE company page lists two factories, at Kanchpur in Narayanganj and at Jamirdia, Valuka, in Mymensingh [14]. The company listed on the DSE in 2019 and has 134,895,833 shares [14]. It owns 99.01% of L'Esquire Limited, which the directors describe as operating "production units for lingerie, activewear, sportswear, and general knitwear" [1 p.91]. We use the knit-composite sector format (F12).

Five facts from the filings frame the company for an investor. First, revenue is volume times a dollar price per piece. The company-only sales note prints 45,643,706 pieces and USD 83.96m for FY2025, which is USD 1.84 a piece; the same note prints 32,463,146 pieces and USD 68.05m for FY2024 [1 p.245] [18]. Second, the gross margin has fallen: 20.7% in FY2017, 21.9% in FY2020 and 14.6% in FY2025 [8 p.17] [7 p.76] [1 p.220] [18]. Third, borrowings and interest rose while profit fell. Company-only borrowings were BDT 2,264m at June 2019 and BDT 6,461m at June 2025, and financial expenses rose from BDT 224m to BDT 649m over the same years [7 p.75] [1 p.219] [18]. Fourth, a large part of the asset base was a building under construction at Valuka: BDT 2,770m of company capital work-in-progress at June 2024 and June 2025, against a total cost of BDT 2,900m in the annexure [1 p.164] [1 p.195]. Fifth, FY2026 was a loss year. The consolidated EPS announced on 29-Oct-2026 was BDT (2.68), against BDT 0.44 for FY2025 [11].

The audited FY2026 annual report was not in the AnalystBro filings corpus on 31-Oct-2026. The FY2026 figures in this note are the nine-month statements to 31-Mar-2026 and the consolidated EPS, NAV and NOCFPS that the company posted on the DSE on 29-Oct-2026, labelled as such [2 p.3] [11]. The model is updated in place when the annual report is filed.

Business: revenue more than doubled from FY2017 to FY2025 and profit after tax fell to BDT 77m

How the company makes money. Esquire buys yarn, dyes and chemicals and finishing materials, and sells finished garments abroad on letters of credit. In FY2025 yarn consumption was BDT 3,032m, dyes BDT 225m, chemicals BDT 398m and finishing materials BDT 1,292m [1 p.245]. All of the company's sales are export sales, invoiced in US dollars and translated into taka [1 p.245] [1 p.149]. The directors' report puts the FY2025 workforce at 5,485 workers and 1,150 officers and staff, 6,635 people in total [1 p.91]. The subsidiary L'Esquire Limited added BDT 1,024m of export sales in FY2025, against BDT 329m in FY2024 [1 p.297].

The nine-year record, company only. Revenue was BDT 4,454m in FY2017, BDT 5,920m in FY2019, the year of the public offering, BDT 10,014m in FY2022, BDT 7,515m in FY2023 and BDT 10,071m in FY2025 [8 p.17] [5 p.206] [3 p.222] [1 p.220]. Profit after tax moved the other way over the period: BDT 312m in FY2017, BDT 384m in FY2019, BDT 327m in FY2022 and BDT 77m in FY2025 [8 p.17] [5 p.206] [1 p.220]. Share capital rose from BDT 1,000m to BDT 1,349m with the IPO in 2018-19, and there has been no bonus or rights issue in the DSE record [8 p.17] [14].

What changed. Three things in the filings separate FY2017-FY2019 from FY2023-FY2025. The gross margin moved from a 20.7%-21.4% range to 14.6%-18.0% [18]. Financial expenses rose from 2.7%-3.8% of revenue to 4.8%-6.4% [18]. And the tax line rose from 13.5%-18.5% of pre-tax profit to 35.1%-56.6% [18]. Net margin fell from 7.0% in FY2017 to 0.8% in FY2025 [18]. The workers' profit participation fund provision also changed scale: BDT 17m-23m a year in FY2017-FY2020 and BDT 1.6m-2.9m a year in FY2021-FY2025 [8 p.17] [7 p.76] [5 p.206] [1 p.220]. The filings read do not explain the change in the WPPF amount.

Volume and price: 45.6m pieces at USD 1.84 in FY2025 against 32.5m at USD 2.10 in FY2024

Revenue = pieces x dollar price per piece x the taka rate. Each sales note under Schedule XI of the Companies Act prints the export quantity in pieces and the FOB value in US dollars [1 p.245]. On the printed figures, pieces exported were 21.5m in FY2019, 54.3m in FY2021, 46.1m in FY2022, 26.7m in FY2023, 32.5m in FY2024 and 45.6m in FY2025 [7 p.96] [5 p.233] [4 p.263] [1 p.245]. Dollar revenue peaked at USD 115.3m in FY2022 and was USD 84.0m in FY2025 [4 p.263] [1 p.245]. The dollar price per piece computed from these figures was USD 2.50 in FY2022, USD 2.84 in FY2023 and USD 1.84 in FY2025 [18].

Two points about the volume series. First, the printed FY2024 export quantity (32,463,146 pieces in the FY2025 report's comparative) does not match the finished-goods note in the same report, which shows 27,211,139 pieces delivered and 26,562,033 pieces produced in FY2024 [1 p.245] [1 p.247]. For FY2025 the two notes agree closely: 45,643,706 pieces exported and 45,643,706 delivered, out of 45,653,185 produced [1 p.245] [1 p.247]. Second, dividing taka revenue by dollar revenue gives an implied rate of BDT 83.9 per USD in FY2019 and BDT 119.9 in FY2025 [18]. From FY2024 to FY2025, revenue rose 32.4%, pieces rose 40.6%, dollar price per piece fell 12.2% and the implied rate rose 7.3% [18]. As a history-based sensitivity, BDT 1 per USD on FY2025's USD 84.0m of shipments was BDT 84.0m of revenue, more than the year's company profit after tax of BDT 77.1m [1 p.245] [1 p.220].

Buyers and product mix. The filings read do not give a buyer list with shares, a split between FOB and CMT orders, or a product mix. The company buys its own yarn and finishing materials, which is the FOB model in our sector format [1 p.245]. The annual report names international buyers in the context of its testing laboratories, "accredited by major international buyers (e.g., Michael Kors, Celio, Mascot, Tee Jays, Riachuelo, Gloria Jeans, O'stin, Lc Waikiki" [1 p.33]; this is a list of accreditations, not a sales breakdown. Buyer concentration and the US/EU split therefore cannot be measured from the filings.

Cost lines: materials 49.1% and direct labour 27.7% of FY2025 revenue; gross margin 14.6%

Cost of goods sold has three parts in the notes: materials consumed, direct labour, and factory overheads, adjusted for work-in-process and finished-goods stock [1 p.245]. In FY2025 materials were BDT 4,947m (49.1% of revenue), direct labour BDT 2,786m (27.7%), and factory overheads BDT 828m (8.2%) [1 p.245] [18]. Yarn alone was BDT 3,032m, 30.1% of revenue [1 p.245] [18].

Materials. Materials ran between 41.7% and 52.2% of revenue in FY2019-FY2025 [18]. The FY2025 jump in finishing materials consumed, BDT 1,292m against BDT 442m in FY2024, is the largest single change inside the line [1 p.245]. The filings read do not explain it. Yarn inventory at June 2025 was 1,966,397 kg valued at BDT 1,072m, against 2,100,338 kg at BDT 649m a year earlier [1 p.165]; the value per kilogram on these figures was BDT 545 against BDT 309 [18].

Labour. Direct labour was BDT 2,207m in FY2024 and BDT 2,786m in FY2025, a rise of 26.2% [1 p.247]. Inside it, workers' wages rose from BDT 1,433m to BDT 1,771m and workers' overtime from BDT 263m to BDT 425m [1 p.247]. Direct labour per employee was about BDT 35.0k a month in FY2025 against BDT 21.5k in FY2021, on the year-end headcount in the five-year table [18]. That table prints 6,635 employees for both June 2024 and June 2025, with 1,150 officers and staff and 5,487 workers at June 2025, which add to 6,637, not 6,635 [1 p.118]. The figure includes salaries and festival bonus and is not comparable with a statutory minimum wage [1 p.247]. As a history-based sensitivity, each 1% of FY2025 direct labour was BDT 27.9m, about 36% of FY2025 company profit after tax [18].

Factory overheads. Gas and electricity was BDT 448m in FY2025 against BDT 372m in FY2024; depreciation in overheads was BDT 231m and spare parts BDT 115m [1 p.247]. Overheads were 10.5% of revenue in FY2024 and 8.2% in FY2025 [18].

Below gross profit: financial expenses 6.4% of revenue and tax 56.6% of pre-tax profit in FY2025

Operating expenses. Company operating expenses were BDT 656m in FY2025, 6.5% of revenue, against 8.6% in FY2024 [1 p.247] [18]. Selling and distribution was BDT 399m, of which "Bank charges on export proceeds" were BDT 204m and freight on export BDT 63m [1 p.248]. Administrative expenses were BDT 257m, including director remuneration of BDT 6.0m (BDT 10.0m in FY2024) [1 p.248].

Finance cost. Financial expenses were BDT 439m in FY2024 and BDT 649m in FY2025: interest on short-term loans BDT 340m and on long-term loans BDT 309m [1 p.248]. They were 2.7% of revenue in FY2017 and 6.4% in FY2025, the highest share in the nine years [18]. Interest cover, gross operating profit over financial expenses, fell in every year after FY2021 and was 1.25x in FY2025 [18]. Interest paid in the FY2025 cash-flow statement was BDT 628m [1 p.222]. As a history-based sensitivity, each 1 percentage point on FY2025 year-end company borrowings of BDT 6,461m is about BDT 65m a year [18].

Tax. Income tax expense was BDT 100.5m on pre-tax profit of BDT 177.6m in FY2025, 56.6% [1 p.220] [18]. Current tax was BDT 108.9m and deferred tax a credit of BDT 8.4m [1 p.220]. The advance income tax note lists tax deducted at source on export proceeds of BDT 101.4m in FY2025 [1 p.167]. The tax line was 18.5% of pre-tax profit in FY2017 [18]. Consolidated tax was 64.0% of FY2025 pre-tax profit and BDT 92.3m in the nine months to March 2026, when the group made a pre-tax loss of BDT 36.8m [1 p.155] [2 p.3].

Non-operating income was BDT 16.5m in FY2025: FDR interest BDT 9.1m and rental income BDT 7.4m [1 p.248]. Other receivables at June 2025 included a cash incentive receivable of BDT 33.4m [1 p.167].

FY2026: a nine-month loss of BDT 129m and a full-year EPS of BDT (2.68), with a 2% dividend to general shareholders

FY2026 so far, consolidated. In the nine months to 31-Mar-2026 revenue was BDT 8,975m against BDT 8,484m a year earlier, gross profit BDT 1,021m against BDT 1,158m, and profit after tax BDT (129.1)m against BDT 66.2m [2 p.3]. Gross margin was 11.4% against 13.7% [18]. Financial expenses were BDT 517m, close to the prior nine months' BDT 521m [2 p.3]. The third quarter alone was profitable: revenue BDT 3,261m and profit after tax BDT 157.7m, EPS BDT 1.17 [2 p.3].

The full year. On 29-Oct-2026 the company posted to the DSE consolidated EPS of BDT (2.68), NAV per share of BDT 61.91 with revaluation reserve and BDT 34.19 without, and NOCFPS of BDT (8.81) for the year to 30-Jun-2026 [11]. Multiplied by the share count, these imply a loss after tax of about BDT 362m and operating cash outflow of about BDT 1,188m (derived) [18]. Subtracting the nine-month EPS of BDT (0.96) from the full year gives a fourth-quarter EPS of BDT -1.72 (derived) [18]. The company's own explanations, in its DSE quarterly posts, were "higher operating expenses and net loss" for the first quarter and "reduction in revenue collection" for the nine-month cash flow [11].

Dividend. With the FY2026 results the board recommended a 2% cash dividend, BDT 0.20 a share, for the 71,539,863 shares held by general shareholders; the sponsors and directors "voluntarily waived their dividend entitlements for their 63,355,970 shares" [11]. The total payout is BDT 14,307,972.60, "to be funded entirely from the Company's accumulated Retained Earnings" [11]. For FY2025 the board had recommended 10% cash to general shareholders only, BDT 71,539,863 in total [11].

Ratios: ROE of 0.9% in FY2025, a 190-day cash cycle and borrowings at 0.72x equity

Returns. ROE on average equity was 3.9% in FY2020, 3.7% in FY2022 and 0.9% in FY2025 [18]. Equity includes a revaluation surplus of BDT 3,739m from FY2021 [1 p.219]; excluding it, ROE was 1.5% in FY2025 and 6.6% in FY2022 [18]. Asset turnover was 0.60x in FY2025 against 0.57x in FY2019 [18].

Working capital. Inventory days on cost of goods sold were between 162 and 290 in FY2019-FY2025, and 166 in FY2025 [18]. Receivable days were 58 and payable days 34, giving a cash cycle of 190 days [18]. Payable days fell from 71 in FY2019 to 30 in FY2024 [18]. The auditor noted that inventory was 64.55% of total current assets at the consolidated level [1 p.151].

Payout. The company paid 15% cash dividends for FY2019-FY2021 and 10% for FY2022-FY2025, the latter to general shareholders only, BDT 71.5m a year [14] [6 p.32] [1 p.36]. Cash dividends were 60.7% of company profit after tax in FY2023 and 92.8% in FY2025 [18].

Balance sheet: borrowings of BDT 6,461m, BDT 2.77bn of Valuka work-in-progress, and BDT 10m of company cash at June 2025

Borrowings. Company borrowings, long-term, current portion, short-term and leases, rose from BDT 2,264m at June 2019 to BDT 7,133m at June 2024 in the FY2024 report as published, and were BDT 6,461m at June 2025 [7 p.75] [3 p.221] [1 p.219] [18]. Consolidated borrowings were BDT 6,787m at June 2025 and BDT 6,979m at March 2026 [1 p.154] [2 p.2] [18]. Net debt was 7.8x gross operating profit in FY2025 against 2.0x in FY2019 [18]. The DSE company page records a short-term loan of BDT 3,318.71m at 30-Jun-2025, the consolidated figure [14] [1 p.154].

The Valuka project. Company capital work-in-progress rose from BDT 691m at June 2019 to BDT 2,770m at June 2024 and stayed at BDT 2,770m at June 2025 [7 p.75] [1 p.164]. The annexure lists one item, "Valuka Building construction", with a total cost of BDT 2,900,000,000 and cost incurred of BDT 2,770,129,271 [1 p.195]. The directors' report states that the company "did not make any capital expenditure under capital work in progress in the 2024-2025 financial year, compared to 243.86 million in the 2023-2024 financial year" [1 p.88]. At consolidated level capital work-in-progress was BDT 4,425m at both year ends, including BDT 1,655m of L'Esquire Limited [1 p.164], 25.8% of consolidated total assets [18]. In the nine months to March 2026 the company transferred BDT 2,569,424,756 from capital work-in-progress to property, plant and equipment, and consolidated capital work-in-progress fell to BDT 1,855m [2 p.7].

Cash flow. Company operating cash flow was negative in FY2021, FY2023 and FY2024, including BDT (1,085)m in FY2024, and BDT 325m in FY2025 [5 p.208] [3 p.224] [1 p.222]. Capital spending, including advances for the Valuka project, was BDT 1,607m in FY2019, BDT 1,278m in FY2021 and BDT 1,092m in FY2022 [7 p.78] [5 p.208] [18]. Operating cash flow less capital spending and dividends paid summed to BDT -6,439m over FY2019-FY2025 [18]. Cash at the company level was BDT 10.0m at June 2025 [1 p.219].

Receivables, advances and contingencies. Trade receivables were BDT 1,597m at June 2025, all in the 0-90 days band, and the company makes no provision "because of the fact that sales/export are being made on 100% confirmed L/C basis with fixed maturity dates" [1 p.166] [1 p.167]. Current FDRs of BDT 137.7m "have been liened with above Banks and Financial Institutions" [1 p.169]. The advance note includes "Payment to L'esquire for Valuka project" of BDT 2,093,504,124, netted out on consolidation [1 p.167].

Audit: an unmodified FY2025 opinion with six key audit matters, and presentation errors in the consolidated statements

Audit opinion, FY2025. Pinaki & Company, Chartered Accountants (Pinaki Das, FCA, Senior Partner), signed the report on 29 October 2025 [1 p.154]. The opinion paragraph on the consolidated statements reads, word for word: "In our opinion, the accompanying financial statements of the Company give a true and fair view of the financial position of the Company as at 30 June 2025, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the Companies Act 1994, the Securities and Exchange Rules 1987, and other applicable laws and regulations." [1 p.148] The report on the separate statements carries the same sentence [1 p.213]. The pages read contain no emphasis-of-matter paragraph and no other-matter paragraph [1 p.148] [1 p.152].

Key audit matters. The report lists six, quoted as printed. "Property, plant and Equipment": "The carrying value of the PPE amounted to Tk. 6,165,211,537 as at 30 June, 2025" [1 p.149]. "Revenue Recognition": "The Company has reported sales revenue of Tk. 11,094,464,674 ... Its products primarily comprise sale of Denim Fabric. Revenue is recognized at the point of generating invoice" [1 p.149]. "Valuation of Receivables": "The Company has accounts receivable of Tk. 1,805,961,079 as at 30 June 2025" [1 p.150]. "Capital Work in Progress": "The Company's assets held under capital work in progress as on the closing date are amounted to BDT 4,424,872,569 equivalent to 41.74 % of total non-current assets. Due to the high value of transactions, utilization of IPO proceeds, terms and valuation of these assets, it was significant to our audit." [1 p.150]. "Valuation of Inventories": "The amount of inventory is Tk. 4,234,947,563 as at 30 June, 2025 which amounted to 64.55% of the total current assets" [1 p.151]. "Bank Loan": "Any non-compliance with those stipulated terms and conditions might result in subsequent withdrawal and pose a threat to ongoing operation of the company" [1 p.151].

Presentation points in the statements, stated as found. (1) The FY2025 consolidated profit and loss shows profit after tax of BDT 59,731,704 but "Owners of the Company 84,294,752" and "Non-controlling Interest (334,756)", totalling BDT 83,959,996 [1 p.155]. The three attribution figures, BDT 84,294,752, (334,756) and 83,959,996, are identical to those printed for FY2023 in the FY2023 report, where BDT 84,294,752 was that year's consolidated profit after tax [4 p.167]. The non-controlling interest note shows a share of loss of BDT (175,351), and the retained-earnings note adds BDT 59,907,056 [1 p.171]. Consolidated EPS of BDT 0.44 equals profit after tax divided by the share count [1 p.155] [18]. (2) The consolidated cash-flow statement prints "Dividend & TDS paid" as a positive BDT 71,650,816 [1 p.157]. (3) The FY2024 comparative balance sheet in the FY2025 report differs from the FY2024 report as published in short-term loan, long-term loan, cash and investment, with total assets unchanged [1 p.219] [3 p.221]; the pages read do not explain the change. (4) The five-year table on p.36 prints FY2022 operating profit as BDT 337.11m; the FY2022 statement and the p.118 table show BDT 377.11m [1 p.36] [1 p.118] [5 p.206].

Corrections posted to the DSE, three in the 24 months. On 6-Nov-2024 the company posted that "some mistakes occurred in their consolidated audited financial statements" for FY2024 and revised consolidated EPS from BDT 0.39 to BDT 0.41, NAV per share from BDT 65.17 to BDT 65.19 (with revaluation reserve) and from BDT 37.45 to BDT 37.47 (without), and NOCFPS from BDT (9.46) to BDT (9.67) [11]. On 5-Feb-2025 the company changed second-quarter FY2025 EPS from BDT 0.28 to BDT 0.47, and on 11-Nov-2025 it posted that "unintentionally some mistakes occurred in their consolidated audited financial statements" and revised FY2025 consolidated NOCFPS from BDT 1.45 to BDT 1.72 [11]. The consolidated cash-flow statement in the annual report prints NOCFPS of BDT 1.72 [1 p.157].

Related parties: BDT 2.09bn receivable from L'Esquire Ltd and BDT 227m of testing fees to a common-management company in FY2025

Related parties, FY2025, company statements. The related-party note lists six parties with their transactions as printed [1 p.250]. Esquire Accessories Limited ("Common Management", purchase): opening BDT 72,755,797, purchases BDT 258,944,440, payments BDT 252,876,236, payable at 30-Jun-2025 BDT 78,824,000. Esquire Dyeing Industries Limited ("Common Management", dyeing): opening BDT 77,390,022, purchases BDT 99,071,138, payments BDT 146,516,472, payable BDT 29,944,688. Esquire Testing Services (BD) Limited ("Common Management", fabric testing fees): BDT 227,157,109 charged and paid, nil outstanding. L'Esquire Ltd: opening BDT (1,923,920,470), payment BDT 169,583,654, receivable BDT (2,093,504,125). "Esquire Plasitc Ltd" (as printed; purchase): BDT 424,953 charged and paid. Esquire Electronics Limited: nil. The net total is printed as BDT (1,984,735,437) [1 p.250]. The company's FY2025 cash-flow statement has no line for a Valuka or L'Esquire advance [1 p.222].

Board. The FY2025 corporate governance report lists the board at 30-Jun-2025 as printed: Mrs. Piara Hossain, "Non-Executive Directive Director", Chairman; Mr. Md. Ehsanul Habib, Managing Director; Mr. Arifur Rahman, Non-Executive Director; Mr. Md. Muddasar Hossain, Non-Executive Director; Mr. A. K. M. Shamsul Areefin, Independent & Non-Executive Director; and Mr. Md. Mozammel Hossain, FCA, Independent & Non-Executive Director [1 p.103]. The directors' report states that Mr. Md. Mozammel Hossain, FCA "has been relieved of his position and duties with effect from July 1, 2025" by the 151st board meeting "held on June 28, 2025"; the board-meeting table on p.103 dates the 151st meeting "Monday, January 28, 2025" [1 p.94] [1 p.103]. The board approved the appointment of "Mr. K.M. Shamsul Areefin, Additional Secretary (Retired), and Ms. Masuda Sultana ACA, FCS, as new independent directors" in its 155th and 152nd meetings, held on 14-Jan-2026 and 21-Sep-2025, and re-appointed Mr. Md. Ehsanul Habib as Managing Director for five years from 11-Feb-2026; both were put to the 25th AGM [1 p.94]. The 25th AGM was held on 25-Jan-2026 (passed); the outcome is not in the filings read [11].

Ownership. The DSE company page shows sponsors and directors at 46.95% at 30-Sep-2026, institutions 40.39% and the public 12.66%, with no government or foreign holding [14]. The dividend notice of 29-Oct-2026 puts the sponsors' and directors' holding at 63,355,970 shares [11]. The FY2025 five-year table shows sponsors with 63.36m shares, institutions 55.68m and the general public 15.86m at 30-Jun-2025 [1 p.118]. The share-capital note in the same report prints a different list, with named holders including Md. Mofazzal Hossain (21.34%), Esquire Dyeing Industries Ltd. (21.93%) and Md. Ehsanul Habib (11.14%), and "General Public and Institution" at 25.87% [1 p.171]; the two tables do not agree. The managing director lists 27 entities in which he has interests, including Esquire Dyeing Industries Limited, Esquire Accessories Limited and L'Esquire Ltd [1 p.250].

Auditor rotation. The directors' report states that the tenure of Pinaki & Company "will expire during the 25th Annual General Meeting" and that "no Auditor can perform the designated responsibilities more than 3 times at a stretch" [1 p.91]. The DSE news read does not name the FY2026 auditor [11]. Mahfel Huq & Co. signed the FY2020 and FY2022 statements [7 p.76] [5 p.206]. Credit rating: CRAB assigned "AA3" long term and "ST-3" short term with a stable outlook, posted on 14-Nov-2024 and again on 27-Nov-2025 [11].

Peers: the highest gross margin of the three knit composites, and the highest finance cost and lowest net margin

Peers, same period and basis. The two listed knit composites with published AnalystBro notes are Apex Spinning & Knitting Mills and Far East Knitting and Dyeing Industries. All three have a 30 June year end, and the table uses each company's own FY2025 statements: ESQUIRENIT consolidated, APEXSPINN and FEKDIL single-entity statements as printed [1 p.155] [9 p.44] [10 p.66]. Finance cost is each company's printed line, all gross of interest income: Esquire "Financial expenses", Apex "Financial Expenses", Far East "Finance Cost" [1 p.155] [9 p.44] [10 p.66]. Esquire and Apex show a WPPF provision on the face (BDT 2.8m and BDT 1.6m); Far East's statement shows no WPPF line [1 p.155] [9 p.44] [10 p.66]. Far East's profit includes BDT 5.6m from an associate and BDT 209.1m of "Other Income/(Expenses)" [10 p.66].

What the table shows, within these three companies. Esquire had the highest gross margin (14.1%, against 7.3% and 9.1%) and the highest finance cost as a share of revenue (6.3%, against 1.3% and 0.9%) [18]. Its net margin of 0.54% was the lowest of the three; Apex's was 0.56% and Far East's 3.44% [18]. Borrowings were 0.77x equity at Esquire, 0.03x at Apex and 0.16x at Far East [18]. At the 29-Oct-2026 closes, price to June 2025 book was 0.30x, 4.99x and 0.91x [17] [18].

Peer audit opinions, from each peer's own filing. Apex's auditor, Malek Siddiqui Wali, wrote: "In our opinion, the accompanying financial statements give true and fair view, in all material respects, of the financial position of the Company as at June 30, 2025, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the company act 1994, the Security and Exchange Rules 2020 and other applicable law and regulations." [9 p.39] Its key audit matters were revenue recognition, valuation of inventory, and measurement and recognition of deferred tax [9 p.39] [9 p.40]. Far East's auditor, Ahsan Manzur & Co., wrote: "In our opinion, the accompanying financial statements give true and fair view, in all material respects, of the financial position of the Company as at June 30, 2025, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the Companies Act, 1994, the Security and Exchange Rules, 1987 and other applicable law and regulations." [10 p.59] Its key audit matters were property, plant and equipment, inventories, revenue, long-term and short-term loans, measurement of deferred tax liability, related party transaction, and legal and regulatory matters [10 p.59] [10 p.60] [10 p.61] [10 p.62]. Both opinions are unmodified. The DSE news archives for APEXSPINN and FEKDIL for 31-Oct-2024 to 31-Oct-2026 contain no notice of a qualified opinion or emphasis of matter on either company (searched for "qualified", "emphasis" and "auditor") [12] [13].

Share price: BDT 19.7 on 29-Oct-2026, 0.32x NAV with revaluation and 0.58x without

The share closed at BDT 19.7 on 29-Oct-2026, against BDT 21.7 on 28-Oct-2026 and BDT 25.0 on 30-Jun-2026 [17]. The 52-week closing range was BDT 18.3 (1-Feb-2026) to BDT 27.4 (9-Jul-2026) [17]. Market capitalisation at BDT 19.7 is BDT 2,657m [18]. On the FY2026 NAV per share posted on the DSE, the price is 0.32x NAV with revaluation reserve and 0.58x without [11] [17]. There is no P/E on FY2026 because EPS was negative. The FY2026 dividend of BDT 0.20 a share applies only to shares held by general shareholders and is 1.02% of the 29-Oct-2026 price [11]. These are stated as facts; we draw no conclusion from them.

What's next: Q1 FY2027 board on 11-Nov-2026, record date 2-Dec-2026, AGM 25-Jan-2027

Three events have dates notified by the company: the first-quarter FY2027 board meeting on 11-Nov-2026, the record date on 2-Dec-2026 and the AGM on 25-Jan-2027 [11]. Other rows are inferred from earlier board-meeting dates and are labelled; no board date for those has been notified. The FY2026 audited accounts were considered at the board meeting of 28-Oct-2026, two days later in the calendar than the 26-Oct-2025 meeting on the FY2025 accounts; both results were posted on the DSE the following day [11] [1 p.94].

Already announced, and therefore not in the table: FY2026 consolidated EPS of BDT (2.68), NAV per share of BDT 61.91 (BDT 34.19 without revaluation reserve) and NOCFPS of BDT (8.81), and the 2% dividend, all posted on 29-Oct-2026 [11]. Past items whose outcome the filings read do not report: the 25th AGM of 25-Jan-2026 votes on the two independent directors, the managing director's re-appointment and the statutory auditor (passed), outcome unknown [1 p.94] [1 p.91] [11]. On LDC graduation, the UN General Assembly adopted on 29-Oct-2026 the move of Bangladesh's graduation date from 24-Nov-2026 to 24-Nov-2029 [15] [16].

Until the FY2026 annual report is filed, the following are not available: the FY2026 export quantity and dollar revenue, the FY2026 cost notes, the year-end balance sheet and borrowing notes, the FY2026 auditor's opinion and key audit matters, the status of the Valuka building after the transfer to property, plant and equipment, and the related-party note [11] [2 p.7].

Risks: financial expenses of BDT 649m and USD 84.0m of shipments against a BDT 77m profit after tax

Each risk below is tied to the line it moves, with FY2025 history for scale. Sensitivities are arithmetic on FY2025 company figures, not forecasts.

In FY2025 the company's profit after tax was BDT 77m; financial expenses were BDT 649m and the shipments USD 84.0m [1 p.220] [1 p.245]. The FY2026 loss was posted on 29-Oct-2026; the FY2026 annual report with its notes was not in the corpus on 31-Oct-2026 [11].

Key questions: the FY2026 loss, the Valuka building, borrowings and the statement corrections

In one line: the filings describe a large knit-garment exporter whose margins after interest and tax fell to 0.8% of revenue in FY2025, with borrowings of BDT 6,461m, a Valuka building moved into property, plant and equipment in 2025-26, and a FY2026 loss [1 p.220] [2 p.7] [11].

FAQ

What does Esquire Knit Composite make?

Knit garments, made in a composite plant that runs knitting, dyeing, printing, embroidery, washing and sewing [1 p.88].

When does Esquire Knit's financial year end?

On 30 June. FY2025 ended on 30-Jun-2025 [1 p.219].

What was Esquire Knit's EPS for FY2026?

Consolidated EPS of BDT (2.68), posted on the DSE on 29-Oct-2026, against BDT 0.44 for FY2025 [11].

What dividend did Esquire Knit declare for FY2026?

2% cash, BDT 0.20 a share, on the 71,539,863 shares held by general shareholders; sponsors and directors waived theirs. Record date 2-Dec-2026, AGM 25-Jan-2027 [11].

How much does Esquire Knit borrow?

Consolidated borrowings were BDT 6,979m at 31-Mar-2026 [2 p.2] [18].

What is the Valuka project?

A building at Valuka recorded in capital work-in-progress at BDT 2,770m against a total cost of BDT 2,900m; BDT 2,569m was transferred to property, plant and equipment in the nine months to March 2026 [1 p.195] [2 p.7].

Who audits Esquire Knit?

Pinaki & Company audited FY2025 and gave an unmodified opinion with six key audit matters [1 p.148] [1 p.154].

Who owns Esquire Knit?

Sponsors and directors held 46.95%, institutions 40.39% and the public 12.66% at 30-Sep-2026 [14].

Sources

1. Esquire Knit Composite PLC Annual Report 2024-25 (year to 30-Jun-2025; consolidated and separate statements) · link · accessed 2026-10-31
2. Esquire Knit Composite PLC un-audited third quarter and nine months financial statements to 31-Mar-2026 (consolidated and separate) · link · accessed 2026-10-31
3. Esquire Knit Composite PLC Annual Report 2023-24 · link · accessed 2026-10-31
4. Esquire Knit Composite PLC Annual Report 2022-23 · link · accessed 2026-10-31
5. Esquire Knit Composite Limited Annual Report 2021-22 · link · accessed 2026-10-31
6. Esquire Knit Composite Limited Annual Report 2020-21 · link · accessed 2026-10-31
7. Esquire Knit Composite Limited Annual Report 2019-20 · link · accessed 2026-10-31
8. Esquire Knit Composite Limited Annual Report 2018-19 (five-year operational results) · link · accessed 2026-10-31
9. Apex Spinning & Knitting Mills Limited Annual Report 2024-2025 (year to 30-Jun-2025) · link · accessed 2026-10-31
10. Far East Knitting And Dyeing Industries PLC Annual Report 2024-2025 (year to 30-Jun-2025) · link · accessed 2026-10-31
11. Dhaka Stock Exchange news archive for ESQUIRENIT, 31-Oct-2024 to 1-Nov-2026 (results, dividends, board meetings, credit rating, corrections) · link · accessed 2026-11-01
12. Dhaka Stock Exchange news archive for APEXSPINN, 31-Oct-2024 to 31-Oct-2026 (41 items; searched for audit-opinion notices) · link · accessed 2026-10-31
13. Dhaka Stock Exchange news archive for FEKDIL, 31-Oct-2024 to 31-Oct-2026 (40 items; searched for audit-opinion notices) · link · accessed 2026-10-31
14. Dhaka Stock Exchange company page for ESQUIRENIT (shareholding to 30-Sep-2026, dividend history, loan status), accessed 31-Oct-2026 · link · accessed 2026-10-31
15. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-10-31
16. The Business Standard, 'Bangladesh gets 3 more years before LDC graduation' (30-Oct-2026) · link · accessed 2026-10-31
17. AnalystBro price data (TradingView feed): DSE:ESQUIRENIT, DSE:APEXSPINN, DSE:FEKDIL daily bars to 29-Oct-2026 · link · accessed 2026-10-31
18. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-10-31