Genex Infosys financial analysis: FY26 EPS BDT 2.03, finance cost 56% of EBIT, BDT 1.8bn CWIP (Oct 2026)

Investment considerations: a growing contact-centre franchise whose profits are now set by its debt and an unfinished equipment build-out

Genex Infosys PLC runs contact centres, back-office processing and software services for Bangladeshi companies. Its principal activities are listed as data entry, data processing, business process outsourcing, IT support and software maintenance, digital content, call-centre service, website development and the marketing and support of software products, for domestic and international clients [2 p.16]. The chairman's statement describes it as Bangladesh's largest contact-centre service provider, handling over 200 million customer interactions a year with more than 130 technology partners [1 p.49], and the company had 3,988 employees at June 2025 [2 p.42].

The company listed in February 2019 after a public offering of 20 million shares [2 p.16]. Since then revenue has more than doubled, but the way it is financed has changed: from FY2023 the company began paying large sums for machinery and equipment that it carries as capital work in progress, and borrowed short-term from banks to do so. The result is visible in every ratio below. Operating margins held, but finance costs, not operations, now decide how much profit reaches shareholders.

Business: call centres earn 55% of revenue, software is the fastest-growing line, and the subsidiary shrank

Genex was incorporated in May 2012, began operations in July 2012 and became a public company in 2016 [2 p.16]. It sells labour-intensive services: agents on phones and chat for telecom operators, banks and other consumer businesses; data entry and processing; and software, website and digital-content work. The filings do not name clients, but the FY2021 auditor's report flagged that about 55% of net revenue came from only five customers, an average of 11% each, and that losing one could hurt revenue, profit and cash flow [5 p.86]. Later reports we read do not repeat the concentration figure, so it is a question for the FY2026 annual report.

Call-centre service is the core. It earned BDT 1,007.2m in FY2025, 55.5% of standalone revenue, up 7.5% from BDT 936.6m [2 p.38] [17]. Software development (BDT 216.3m), digital content development and management (BDT 151.4m) and business process outsourcing (BDT 142.7m) are the next three lines. In FY2025 data entry, call centre, software and website development grew, while business process outsourcing (-14%), robotics process outsourcing (-39%), IT support (-14%), system integration (-21%) and cloud service (-5%) declined [1 p.112].

There is one subsidiary, Loginex Limited, 57.61% owned, a logistics IT and courier business incorporated in June 2021 [2 p.26]. Its revenue fell from BDT 157.3m to BDT 99.0m in FY2025 [2 p.38], so consolidated revenue grew only 3.2% while the listed company's own revenue grew 7.0%. Genex also holds 25% of Genex Infrastructure Limited (BDT 0.75m at cost) and 5.36% of Green & Red Technologies (BDT 37.3m) [2 p.27], and a listed-share portfolio carried at BDT 332.8m [2 p.26]. That portfolio matters: it produced a realised loss of BDT 162.1m in FY2025 and a cumulative fair-value reserve of minus BDT 346.1m in equity [2 p.40] [2 p.6].

Bangladesh's IT-enabled services market is served by many private call-centre and BPO firms; on the DSE the listed IT companies include IT Consultants (card and ATM switching), eGeneration (software and IT services) and several ISPs. The company's own MD&A says domestic clients favour cost-saving projects; its chairman lists 'liquidity pressure, limited banking support, and high interest rates' as constraints that 'restricted certain growth initiatives' in FY2025 [1 p.49].

Line items: revenue and gross profit kept growing, but financial expenses rose five-fold from FY2021 and share-portfolio losses added volatility

Revenue grew in six of seven years from FY2018. The two big steps were FY2022-FY2024, when revenue rose from BDT 1,022.6m to BDT 1,853.5m, and FY2019 (+14.6%), the IPO year [17]. FY2021 was flat (-1.3%) through the pandemic. The directors attribute the growth to 'business expansion and price adjustments amid inflationary pressures' [1 p.119]. FY2025 slowed to +3.2%, and the first nine months of FY2026 fell 8.6% to BDT 1,455.3m [3 p.4] [17].

Cost of sales is mostly people and equipment. In FY2025 standalone cost of sales of BDT 961.6m comprised salaries of BDT 474.1m (26.1% of revenue), depreciation of BDT 270.5m, amortisation of BDT 95.2m, right-of-use depreciation of BDT 56.3m, electricity of BDT 28.0m and internet of BDT 18.2m [2 p.38]. Depreciation and amortisation in cost of sales rose from BDT 346.2m to BDT 422.0m, or 23.3% of revenue, as BDT 332.0m of CWIP was moved into fixed assets [2 p.25] [17]. Salaries rose only 3.8% while revenue rose 7.0%, which is why gross profit grew faster than revenue.

Administrative and selling expenses roughly doubled in FY2024, from BDT 73.0m to BDT 129.5m, and stayed at BDT 132.4m in FY2025 [4 p.9] [2 p.8]. The standalone administrative note shows salaries of BDT 51.7m and depreciation and amortisation within administration [2 p.39]. Selling costs are negligible (BDT 0.8m).

Financial expenses are the line that changed the story. They were BDT 84.5-121.6m from FY2018 to FY2022, then rose to BDT 165.9m (FY2023), BDT 264.7m (FY2024) and BDT 410.5m (FY2025) [17]. The FY2025 standalone note splits BDT 389.5m of bank interest into BDT 108.8m on long-term and BDT 280.6m on short-term loans, plus BDT 20.9m of lease interest [2 p.40]. In 9M FY2026 financial expenses rose again to BDT 364.0m from BDT 295.6m [3 p.4]. The company's own explanation for the FY2025 EPS fall is 'an increase in financial expenses during the year' [2 p.41]. History-based sensitivity: in FY2025 each 1 percentage point of interest on the June 2025 bank loans of BDT 3,493m equals about BDT 35m a year, or about 13% of FY2025 profit before tax [17].

Other income has become a source of swings. It was close to zero before FY2022, then BDT 66.2m in FY2022, minus BDT 76.7m in FY2024 and minus BDT 38.4m in FY2025 after including the provision line for the share portfolio [17]. In FY2025 the realised loss on shares was BDT 162.1m, partly offset by a foreign-exchange gain of BDT 22.8m and dividend income of BDT 21.9m [2 p.40]. In 9M FY2026 the reverse happened: a BDT 69.9m gain on saleable shares lifted profit before tax [3 p.4].

Tax is small. Income tax was BDT 0.1m or less in FY2019-FY2021 and BDT 2.1-8.6m since, against profit before tax of BDT 265-389m [17]. The FY2025 charge of BDT 4.3m (standalone) includes shortfalls for FY2020-21 and FY2022-23 [2 p.40]. The filings we read do not state when the ITES income-tax treatment ends; any change would show up directly in this line.

Ratios: margins before finance cost held at 37-43% from FY2020, but interest cover fell from 4.9x to 1.8x and ROE from 21% to 10%

The ratio history splits into two periods. From FY2020 to FY2022 the company earned a 41.8-48.3% gross margin, a 31-33% net margin and an average-equity ROE of about 19-21%, with interest cover above 4x [17]. From FY2023 margins before finance cost stayed in the same range, but net margin fell to 13.7% and ROE to 10.2% by FY2025, because interest cover fell from 4.9x (FY2021) to 1.8x [17]. The company's own five-year table shows the same: net profit ratio 32.51% (FY2021) to 13.65% (FY2025) and return on equity 18.87% to 9.81% [1 p.42].

Against its own history, FY2025 sits at the bottom of the range on every return measure and at the top on leverage: net debt to equity was 1.28x against a FY2019-FY2022 range of 0.32-0.50x, and the FY2025 interest cover of 1.8x is the lowest in the eight years [17]. The median net margin over FY2018-FY2025 is 23.7%; FY2025's 13.7% is below it [17].

Receivables days are long and rising. Trade and other receivables were BDT 882.1m in June 2025, 168 days of revenue, against 123-125 days in FY2022-FY2023 [17]. In March 2026 they reached BDT 1,007.8m while nine-month revenue fell [3 p.2]. The ageing schedule on the receivables note is not legible in our copy of the page [2 p.27].

Cash conversion has been good in most years: operating cash flow exceeded net profit in seven of the eight years, and over FY2018-FY2025 it totalled BDT 3,712m against net profit of BDT 2,317m [17]. FY2024 was the exception (0.70x), when payments to suppliers rose to BDT 847.0m [2 p.14]. The direct-method cash flow uses 'paid for finance expenses', so interest is inside operating cash flow; in 9M FY2026 cash interest paid was BDT 206.9m against BDT 364.0m charged, and 'liabilities for expenses' rose from BDT 108.4m to BDT 261.6m [3 p.10] [3 p.2].

The peer comparison below quotes each company's own labels from its FY2025 audited statements. IT Consultants (ITC) prints 'Revenue', 'Profit before Finance Costs' and 'Finance costs'; eGeneration prints 'Revenue' and puts 'Financial Expenses' inside operating expenses; Genex prints 'Net revenue', 'Profit/(loss) before finance cost' and 'Financial expenses' [7 p.115] [8 p.12] [2 p.10]. All three are standalone figures (Genex's separate statements). On that basis Genex's finance cost was 22.6% of revenue against 5.2% at ITC and 4.6% at eGeneration, a gap of 17.5pp to ITC. Its gross margin of 47.0% was 5.5pp below ITC's and 19.6pp above eGeneration's [17].

Balance sheet: BDT 3.7bn paid into equipment not yet installed, funded by short-term loans that reached BDT 2.6bn

The balance sheet grew from BDT 2,776m in June 2021 to BDT 6,607m in June 2025 and BDT 6,956m in March 2026 [5 p.89] [2 p.6] [3 p.2]. Almost all of the increase came from three lines: capital work in progress, advances, and fixed assets transferred out of CWIP. Cash paid for CWIP was BDT 1,120.2m in FY2023, BDT 1,834.1m in FY2024 and BDT 793.3m in FY2025, BDT 3,748m in three years, and a further BDT 365.4m in 9M FY2026 [4 p.15] [2 p.14] [3 p.10]. Of the FY2024 and FY2025 additions, BDT 872.9m and BDT 332.0m were transferred to property, plant and equipment, leaving CWIP of BDT 1,543.1m in June 2025 and BDT 1,817.9m in March 2026 [2 p.25] [3 p.2].

The CWIP note says the balance 'represents the amount paid against purchase of machineries and equipment which were not installed as on reporting date' and will be transferred 'when available for use as per management's intention' [2 p.25]. The filings do not say what the equipment is, what it will produce, or when it will be installed. The auditor made non-current assets a key audit matter: PPE, intangibles and CWIP of BDT 4,055.7m were 62.83% of the company's total assets, and the procedures included 'checking the Capital-Work-in-Progress (CWIP) and its transfer' and 'identifying if there is any impairment indicator' [2 p.2]. Our sweep of 24 months of DSE news (criteria=3) found no board approval, budget or completion date announced for this spending [9].

The spending was funded with bank loans. Short-term loans rose from BDT 765.4m (June 2022) to BDT 1,405.5m (June 2023), BDT 2,457.9m (June 2024) and BDT 2,579.8m (June 2025), then eased to BDT 2,459.6m in March 2026 [4 p.7] [2 p.6] [3 p.2]. Long-term loans net of current maturity were BDT 726.6m in June 2025 (audited note 17; BDT 684.8m in June 2024) and BDT 861.3m in March 2026; the long-term loan schedule lists facilities from United Commercial Bank PLC [2 p.31] [2 p.33] [3 p.2]. Current liabilities of BDT 3,028m exceeded current assets of BDT 1,920m, a current ratio of 0.63 [1 p.42].

Advances, deposits and prepayments jumped from BDT 88.7m (June 2022) to BDT 998.5m (June 2023) in the same year that CWIP payments began, and were BDT 814.1m in March 2026 [4 p.7] [3 p.2]. Their breakdown is in note 13, which we did not read in full; whether part of it is advances for equipment is a gap. The cash-flow statement for FY2024 shows a separate BDT 34.8m 'advance payment for capital equipments' at the subsidiary [2 p.14].

Equity quality: consolidated NAV includes a negative fair-value reserve of BDT 346.1m on listed shares and BDT 45.9m of non-controlling interest, which the company includes in its NAV per share [2 p.6] [2 p.41]. Excluding the minority, equity attributable at June 2025 was BDT 2,617.4m. In 9M FY2026 Loginex issued preference shares and share premium rose to BDT 57.3m [3 p.2].

Audit: the FY2025 opinion by FAMES & R is unmodified, with key audit matters on non-current assets, inventory of BDT 75.0m (standalone) and revenue recognition [2 p.2] [2 p.3]. For FY2024 the auditor added emphasis-of-matter paragraphs, which DSE published on 27-Nov-2024 [9]. The FY2021 auditor drew attention to gratuity [5 p.85].

Recent results: FY2026 EPS fell to BDT 2.03 and the June quarter was a loss; nine-month revenue was down 8.6%

FY2026 (July 2025 to June 2026) figures are only available from the DSE announcement of 29-Oct-2026, because the FY2026 annual report is not yet in our corpus: consolidated EPS BDT 2.03, NAV per share BDT 24.05 and NOCFPS BDT 6.36, against BDT 2.17, 22.11 and 6.87 for FY2025 [9]. The model will be updated in place when the annual report is filed.

The nine-month statements show what happened before the June quarter. Revenue fell 8.6% to BDT 1,455.3m and profit before finance cost fell 9.4% to BDT 561.0m, while financial expenses rose 23.2% (consolidated; 23.1% standalone) to BDT 364.0m [3 p.4] [17]. Profit after tax was flat at BDT 255.4m only because the share portfolio swung from a BDT 61.1m loss in other income to a BDT 1.6m gain, and a BDT 69.9m gain on saleable shares was booked [3 p.4]. Excluding those two lines, attributable profit per share fell from about BDT 2.56 to BDT 1.53 (before their tax and WPPF effects) [17]. Q3 alone (January-March 2026) had revenue of BDT 485.6m against BDT 557.0m a year earlier [3 p.4].

Quarterly EPS, from DSE announcements, is shown below. Q1-Q3 are the reported quarter figures; Q4 is the annual EPS less the nine-month EPS. Where a quarter can also be worked out by subtraction of cumulative figures, it matches the reported figure: Q2 FY2026 = 1.46 - 0.81 = 0.65, Q3 FY2025 = 2.10 - 1.25 = 0.85. Two quarters differ by BDT 0.01 from simple subtraction of rounded EPS (Q2 FY2025 reported 0.57 vs 0.56; Q3 FY2026 reported 0.67 vs 0.66); from the taka figures, Q3 FY2026 attributable profit of BDT 80.2m is BDT 0.67 a share, so the reported figure is right [9] [3 p.4]. For the June 2026 quarter, annual EPS of BDT 2.03 less nine-month EPS of BDT 2.12 gives minus BDT 0.09: a loss quarter. DSE did not publish a separate Q4 figure; the loss is derived, and it compares with Q4 EPS of BDT 0.07 in FY2025 and BDT 0.08 in FY2024 [9] [17].

Governance and payout: sponsors hold 26%, the board has been fined twice by BSEC, and the dividend is 1% for non-sponsors

Ownership: sponsors and directors held 26.07% at 30-Sep-2026, institutions 21.80%, the public 52.09% and foreigners 0.04% [10]. The sponsor stake was 30.05% at June 2025 [10]. The fall matches DSE-approved transfers outside the trading system: 3,000,000 shares from director Nilofar Imam to City Bank PLC (approved with effect from 3-Feb-2026), and 807,853 shares from director Chowdhury Fazle Imam and 992,147 shares from corporate director Oracle Services Limited to Dhaka Bank PLC (with effect from 15-Jan-2026), 4.8m shares in all [9]. The FY2026 dividend notice counts sponsors and directors at 31,395,732 shares against 36,195,732 a year earlier [9].

Board changes: TIM Nurul Kabir was appointed chairman from 24-Nov-2024, and Hassan Shahid Sarwar FCA became acting chairman from 9-Oct-2025; a new company secretary, Riaz Uddin Bhuiya, took office on 1-Oct-2025 [9]. The FY2025 statements are signed by an acting managing director and CEO [2 p.7].

Regulatory actions: in a press release of 17-Sep-2025 the Bangladesh Securities and Exchange Commission announced it had fined each of Genex's nine directors Tk1.03 crore, Tk9.27 crore in all, over trading in the shares of Sonali Paper & Board Mills between 1 and 30 December 2021, and fined Genex Infrastructure Tk2.55 crore; the release was reported by The Business Standard [11]. The company's annual report confirms the BSEC press release of 17 September 2025 and says five of the nine directors named were not on the board at the time and that the trading was done through a discretionary account managed by a brokerage house [1 p.119]. According to a BSEC press release of 21-May-2026, reported by The Daily Star [12], BSEC fined the then chairman, acting managing director, directors, corporate director Oracle Services, the then CFO and company secretary Tk1 lakh each for not paying the FY2024 dividend on time (The Financial Express carried the same release a day later [13]).

Dividend record: cash dividends were 10% in FY2020 and FY2021, 11% in FY2022, 6% in FY2023, 3% in FY2024 and 1% in FY2025, with stock dividends up to FY2023 [10]. From FY2024 the cash dividend has excluded sponsors and directors. The FY2024 dividend was not paid in time: DSE moved the shares from A to B on 1-Jan-2025, to Z on 11-Feb-2025 'regarding non-disbursement of the approved dividend', and back to B on 29-Sep-2025 after the company reported payment [9]. Unclaimed dividend rose to BDT 24.8m in June 2025 and fell to BDT 2.1m by March 2026 [2 p.6] [3 p.2]. For FY2026 the board recommended 1% to general shareholders, BDT 8.9m in total [9].

What's next: the FY2026 annual report by 30-Dec-2026 is due to show what the BDT 1.8bn of CWIP is and how the short-term loans will be carried

What will move the lines next, as of 31 October 2026 (direction only, no forecast). Our 24-month sweep of DSE news (criteria=3) shows no board decision on new capital expenditure, no completion date for the equipment in CWIP and no fund-raising [9]; those are the missing pieces.

Events already passed whose outcome is not yet in the filings: the Q4 FY2026 loss (passed, outcome known only at EPS level), the use of BDT 365.4m paid into CWIP in 9M FY2026 (passed, outcome unknown), and the transfer of 4.8m directors' shares to two banks in January-February 2026 (passed, purpose not stated) [3 p.10] [9]. Bangladesh's graduation from LDC status was moved from 24 November 2026 to 24 November 2029 by the UN General Assembly on 29 October 2026 [14] [15].

GENEXIL at BDT 27.9 trades at 13.7x FY2026 EPS of BDT 2.03 and 1.16x announced NAV of BDT 24.05 [16] [9]. On FY2025 audited figures the multiples were 12.9x EPS and 1.26x NAV. The FY2026 cash dividend is BDT 0.10 a share for general shareholders, 0.36% of the price.

FAQ

What does Genex Infosys do?

It provides contact-centre, business process outsourcing, data entry, software, website and digital-content services; call-centre service was 55.5% of FY2025 standalone revenue [2 p.38].

What were FY2026 results?

Consolidated EPS BDT 2.03, NAV per share BDT 24.05 and NOCFPS BDT 6.36, announced on 29-Oct-2026; the board recommended a 1% cash dividend excluding sponsors and directors [9].

Why have profits fallen since FY2023?

Financial expenses rose from BDT 107.4m in FY2022 to BDT 410.5m in FY2025 as bank loans grew to fund equipment purchases, and the share portfolio produced losses [4 p.9] [2 p.8] [2 p.40].

How much debt does Genex have?

Bank loans were BDT 3,493m at 30-Jun-2025 and BDT 3,497m at 31-Mar-2026, of which short-term loans were BDT 2,460m [2 p.6] [3 p.2].

Why was GENEXIL in the Z category?

DSE moved it to Z on 11-Feb-2025 for not paying the approved FY2024 dividend on time, and back to B on 29-Sep-2025 after payment [9].

Which results does this report use?

Audited consolidated statements FY2018-FY2025, the FY2025 annual report and the unaudited nine months to March 2026; FY2026 figures are the DSE-announced EPS, NAV and NOCFPS, as the FY2026 annual report is not yet in our corpus.

Sources

1. Genex Infosys PLC Annual Report 2024-25 (year to 30-Jun-2025) · link · accessed 2026-10-31
2. Genex Infosys PLC audited consolidated and separate financial statements, year to 30-Jun-2025 (FAMES & R) · link · accessed 2026-10-31
3. Genex Infosys PLC un-audited consolidated and separate financial statements, nine months to 31-Mar-2026 · link · accessed 2026-10-31
4. Genex Infosys Limited audited financial statements, year to 30-Jun-2023 (MM Rahman & Co.) · link · accessed 2026-10-31
5. Genex Infosys Limited Annual Report 2020-21 (year to 30-Jun-2021) · link · accessed 2026-10-31
6. Genex Infosys Limited Annual Report 2018-19 (year to 30-Jun-2019) · link · accessed 2026-10-31
7. IT Consultants PLC Annual Report 2024-25 (year to 30-Jun-2025) · link · accessed 2026-10-31
8. eGeneration PLC audited financial statements, year to 30-Jun-2025 · link · accessed 2026-10-31
9. Dhaka Stock Exchange news archive, GENEXIL (Oct-2024 to Oct-2026), incl. FY2026 results and dividend of 29-Oct-2026 · link · accessed 2026-10-31
10. Dhaka Stock Exchange company page, GENEXIL (category, shareholding at 30-Sep-2026, dividend history, 52-week range) · link · accessed 2026-10-31
11. The Business Standard, 'BSEC fines Genex Infosys board Tk9.27cr over Sonali Paper share manipulation' (17-Sep-2025) · link · accessed 2026-10-31
12. The Daily Star, 'Directors of two firms fined Tk 1.5 crore for breaching securities rules' (21-May-2026) · link · accessed 2026-10-31
13. The Financial Express, 'Regulator fines Khan Brothers, Genex Infosys over data mismatches, unpaid dividends' (22-May-2026) · 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 for LDC graduation' (30-Oct-2026) · link · accessed 2026-10-31
16. AnalystBro price data (TradingView feed): DSE:GENEXIL daily bars to 29-Oct-2026 · link · accessed 2026-10-31
17. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-10-31