Indo-Bangla Pharmaceuticals financial analysis: qualified FY2025 audit; FY2025 revenue 21.3% of FY2020 (Oct 2026)

Investment considerations: no long-term debt and positive operating cash flow; FY2025 revenue at BDT 184.2m, a qualified audit and a going-concern paragraph

Indo-Bangla Pharmaceuticals PLC (IBP) makes and sells human-health medicines, excluding antibiotics, from a single factory at College Road, Barishal [1 p.90] [1 p.11]. The business traces to Indo-Pak Pharmaceutical Works, founded in 1954; it was privatised in 1982, incorporated as a private limited company on 18-Jun-2014, converted to a public company on 21-Oct-2014 and listed on the Dhaka and Chittagong stock exchanges in 2018 [1 p.10]. The company reports one business and one geographic segment [1 p.94].

In FY2025 (the year to 30-Jun-2025) IBP reported net sales revenue of BDT 184.2m, gross profit of BDT 21.0m, a loss from operations of BDT 25.9m and a net loss of BDT 36.8m, or BDT (0.32) a share [1 p.87]. Its auditor, Shafiq Basak & Co., gave a qualified opinion, three emphasis-of-matter paragraphs and a paragraph headed 'Material uncertainty related to going concern' [1 p.82] [1 p.83]. In the nine months to 31-Mar-2026 revenue was BDT 134.8m and net profit BDT 2.8m [2 p.2]. Total assets at 30-Jun-2025 were BDT 1,724.1m, of which property, plant and equipment was BDT 1,264.6m at cost less depreciation [1 p.86] [1 p.91].

Filing status: FY2025 is the latest audited year; the FY2026 board meeting is notified for 7-Nov-2026

The latest audited accounts cover the year from 1-Jul-2024 to 30-Jun-2025: the statement of financial position is headed 'As at 30 June, 2025', the statement of profit or loss 'For the year ended 30th June, 2025', and note 2.04 states that the statements cover 'one year from July 01, 2024 to June 30, 2025' [1 p.86] [1 p.87] [1 p.90]. The statements and the audit report are dated 8-Dec-2025 [1 p.86] [1 p.85]; note 2.22 states that the board authorised them on 15-Nov-2025 [1 p.94], and the DSE results post is dated 16-Nov-2025 [15]. The DSE post on the auditor's qualified opinion, emphasis of matter and going-concern paragraphs is dated 8-Jan-2026 [15].

For FY2026 (the year to 30-Jun-2026), the company notified a board meeting under Listing Regulation 19(1) for 28-Oct-2026 to consider the audited accounts (DSE post 25-Oct-2026), and on 29-Oct-2026 posted a new date of 7-Nov-2026 [15]. The FY2025 board meeting was held on 15-Nov-2025 after a reschedule from 12-Nov-2025, and the FY2024 meeting on 12-Nov-2024 [15]. FY2026 accounts are not in the corpus at 1-Nov-2026. The latest interim statements cover the nine months to 31-Mar-2026, signed 30-Apr-2026 [2 p.1].

Business: a single Barishal plant making tablets and capsules, 36 products in production, and a Gazipur site at planning stage

Note 1.03 describes the business as 'manufacturing and selling of all kinds of medicine (excluding Antibiotic), medical preparations drugs & chemicals (Human Health) with due approval of Drug Administration Authority', and adds that 'The company applied for permission for production and selling of veterinary medicine also' [1 p.90]. The product page lists more than 90 approved products, of which 36 were in commercial production, and states that the company 'has additionally applied for 02 new brands' [1 p.29]; the directors' report refers to 'The submission for approval of three new products during the year' [1 p.34]. The two counts (two and three) are both printed in the same report.

The factory sits on 37.40 decimals of land in Barishal and has units for tablets and capsules and 'a specialized bulk paracetamol production unit' [1 p.29]. Named molecules include omeprazole, esomeprazole, dexamethasone, domperidone, metronidazole, montelukast, paracetamol and sildenafil citrate [1 p.29]. The ISO certificate scope covers 'MANUFACTURING, MARKETING AND SALES OF PHARMACEUTICAL PRODUCTS (TABLETS, DRY POWDER, SYRUP, CAPSULE ETC.)', valid to 15-Feb-2027 [1 p.3]. Note 34 states that the company had no foreign-exchange earnings from exports in FY2025 or FY2024 [1 p.106].

The directors' report states that the company 'has purchased 5.0614 acres of land at Fulbaria, Kaliakoir, Gazipur' for a new production facility, that 'The project is currently at the planning and conceptual design stage, and land development has commenced, while civil construction work has not yet started' [1 p.37]. Advances at 30-Jun-2025 include BDT 35.94m for 'Land (Gazipur)' and BDT 30.64m for 'Land (BSCIC Barisal)', the same amounts as a year earlier [1 p.97]. The FY2019 cash flow statement shows BDT 100.0m 'Paid for Land (Gazipur)' [7 p.71]. The report gives no budget or completion date for the Kaliakoir facility, and the 24-month DSE news sweep (1-Nov-2024 to 1-Nov-2026) contains no board approval for it [1 p.37] [15].

On 9-Jul-2025 the company posted that its board had approved, on 8-Jul-2025, a memorandum of understanding with Salar Yousafzai Pharma Ltd. of Afghanistan for the export of medicines: exclusive agency in Afghanistan, a tenure of 15 years 'from 2025 to 2040', a minimum order value of USD 1.5 lac per shipment, 40% advance and 60% pre-shipment, FOB Chittagong [15]. The directors' report describes the same MoU as the company's 'first step into international export operations' [1 p.35]. No export revenue appears in the FY2025 notes [1 p.106].

On 8-Oct-2026, replying to a DSE query about an online news item titled 'Workers protest factory closure in Barishal' (24-Sep-2026), the company stated that 'on September 13, 2026, the factory operations were temporarily disrupted following an incident involving alleged verbal harassment of an officer of the Company by some workers', and that 'since September 27, 2026, the factory operations have been continuing peacefully and normally' [15].

History: revenue of BDT 866.1m in FY2020 and BDT 184.2m in FY2025; net losses in FY2024 and FY2025

Net sales revenue was BDT 660.0m in FY2018, BDT 740.7m in FY2019 and BDT 866.1m in FY2020 [7 p.69] [6 p.79]. It was BDT 782.2m in FY2021, BDT 484.7m in FY2022, BDT 374.5m in FY2023, BDT 176.6m in FY2024 and BDT 184.2m in FY2025 [6 p.79] [5 p.87] [1 p.87]. FY2025 revenue was 21.3% of FY2020 revenue [31]. Net profit was BDT 98.5m, 155.2m, 156.2m and 134.7m in FY2018-FY2021, BDT 25.2m in FY2022 and BDT 8.4m in FY2023, and net losses of BDT 41.0m and BDT 36.8m followed in FY2024 and FY2025 [7 p.69] [6 p.79] [5 p.87] [1 p.87].

Year-on-year revenue growth, from the printed figures, was 12.2%, 16.9%, -9.7%, -38.0%, -22.7%, -52.8%, 4.3% for FY2019 to FY2025 [31]. Gross margin was 39.5%, 40.0%, 40.0%, 40.0%, 30.3%, 25.8%, 11.2%, 11.4% for FY2018 to FY2025 [31].

The five-year table in the FY2025 report heads its columns '2020-21' to '2024-25' left to right and prints the FY2025 figures in the first column and the FY2021 figures in the last [1 p.32]; the same table on page 49 is headed '2024-2025' to '2020-2021' [1 p.49]. Both tables print FY2022 gross profit and operating expenses as BDT 82,451,523 each [1 p.32] [1 p.49]; the FY2023 report prints FY2022 gross profit of BDT 146,927,934 and operating expenses of BDT 114,424,523 [5 p.87]. This note uses the statement figures.

Line items: FY2025 gross sales of BDT 211.8m, raw-material imports of BDT 6.6m, and tax of BDT 11.0m on a pre-tax loss

Revenue. Gross sales were BDT 211.8m in FY2025 and BDT 203.1m in FY2024; VAT, labelled 'VAT @ 15%', was BDT 27.6m and BDT 26.5m, or 13.0% of gross sales in both years [1 p.100] [31]. The company does not split revenue by product, therapy or channel in the FY2025 notes [1 p.94] [1 p.100]. On the FY2025 operating year, the directors' report states that 'the Company's operational performance was temporarily affected by severe liquidity constraints in its principal banking partner, which restricted LC openings and disrupted raw material procurement' [1 p.34]. The Q1 FY2025 DSE post states that sales revenue fell 67.49% to BDT 27,732,408 'due to limitation for opening L/C to import raw materials which troubled our production and sales' [15]. These are the company's explanations.

April-June 2025 quarter (derived). The 9M FY2025 statements show revenue of BDT 76.9m [2 p.2]; FY2025 revenue was BDT 184.2m [1 p.87], so the derived April-June 2025 quarter was BDT 107.3m, 58.2% of the year [31]. The derived April-June 2025 net loss was BDT 17.2m (FY2025 loss of 36.8m less 9M loss of 19.7m) [31].

Cost of sales. Raw material consumed was BDT 87.5m in FY2025 and BDT 86.4m in FY2024; manufacturing overhead BDT 42.2m and BDT 44.4m, of which factory depreciation BDT 24.7m and BDT 24.5m; direct expenses, mostly packing materials, BDT 28.7m and BDT 20.4m [1 p.100] [1 p.101]. Raw material purchases were BDT 41.2m in FY2025 and BDT 92.3m in FY2024, of which imports were BDT 6.6m and BDT 22.4m [1 p.100]. Note 34 converts FY2025 raw-material imports to USD 45,600 on a CIF basis [1 p.105]. Raw materials of BDT 11.4m were destroyed after expiry in FY2024 and none in FY2025 [1 p.100]. Note 34(c) prints FY2024 total raw material consumption of BDT 97,815,434 [1 p.106]; note 19.01 prints BDT 86,398,087 after deducting the BDT 11,420,347 of destroyed materials [1 p.100].

Operating expenses. Administrative expenses were BDT 29.9m in FY2025 and BDT 35.8m in FY2024; the FY2024 figure includes the BDT 11.4m of expired raw materials [1 p.101]. Selling and distributing expenses were BDT 15.2m in FY2025 and BDT 7.8m in FY2024, and the FY2025 figure includes an 'Incentive Bonus' of BDT 7.85m (FY2024: BDT 0.10m) and 'Gift & Presentation' of BDT 1.04m [1 p.102]. Selling and distributing expenses were BDT 89.0m in FY2021 [6 p.79]. As a share of revenue, selling and distributing was 11.7%, 11.0%, 10.1%, 11.4%, 12.0%, 7.8%, 4.4%, 8.3% for FY2018-FY2025 and administrative 4.6%, 4.9%, 4.2%, 5.4%, 10.6%, 10.0%, 20.3%, 16.2% [31].

Finance cost. Financial expenses were BDT 1.87m in FY2025, all 'Interest On Bai Murabaha (Hypo)', against BDT 4.40m in FY2024 [1 p.101]. The FY2018 and FY2019 statements print no financial expense line, and the FY2020 column prints '-' [7 p.69] [6 p.79]. Accrued 'Interest on Short Term Loan' was BDT 1.74m at 30-Jun-2025 [1 p.99].

Tax. IBP booked tax of BDT 11.0m in FY2025 on a loss before tax of BDT 25.8m: current tax of BDT 1.86m and deferred tax of BDT 9.14m [1 p.87]. Note 24 states the current tax as 1% minimum tax on turnover (BDT 1,841,775) plus 20% on non-operating income (BDT 19,980) [1 p.102]. Note 12 measures the deferred tax liability at 20% of the BDT 751.2m difference between the carrying value of fixed assets (BDT 1,264.6m) and their tax base (BDT 513.4m) [1 p.98]. For FY2024, the statement prints current tax of BDT 1,110,617 and note 24 prints BDT 1,581,980 [1 p.87] [1 p.102]; the FY2024 report printed BDT 1,110,616 [4 p.85].

Depreciation. Machinery and equipment, BDT 987.2m at cost, is depreciated on the reducing-balance method at 2% in FY2025 against 3% in FY2024, as printed in the rate table [1 p.92] [1 p.108]. The FY2025 charge was BDT 28.4m against BDT 28.5m [1 p.108].

FY2026 interim: nine-month revenue of BDT 134.8m and net profit of BDT 2.8m; cash of BDT 1.6m at 31-Mar-2026

For the nine months to 31-Mar-2026, revenue was BDT 134.8m (9M FY2025: BDT 76.9m), cost of sales BDT 100.0m, gross profit BDT 34.9m, operating expenses BDT 25.3m, WPPF BDT 0.45m, tax BDT 6.3m and net profit BDT 2.8m, EPS BDT 0.02 [2 p.2]. The January-March 2026 quarter showed revenue of BDT 42.8m (January-March 2025: BDT 21.9m) and net profit of BDT 0.59m (loss of BDT 10.7m) [2 p.2]. The July-September 2025 quarter showed revenue of BDT 41.6m (BDT 27.7m) [3 p.4]. The derived October-December 2025 quarter revenue was BDT 50.5m [31].

Nine-month operating cash flow was BDT 1.27m (9M FY2025: BDT 2.33m) and cash and cash equivalents were BDT 1.58m at 31-Mar-2026 [2 p.4] [2 p.1]. Trade and other receivables were BDT 241.0m at 31-Mar-2026 against BDT 196.2m at 30-Jun-2025 [2 p.1]. The Q3 DSE post gives the company's reasons: 'EPS improved due to higher revenue, improved gross profit, and better control over operating expenses during the period' and 'NOCFPS decreased due to higher working capital requirements' [15].

NAV per share. The FY2025 statements print BDT 12.53 at 30-Jun-2025 [1 p.86]. The Q1 FY2026 statement of financial position prints BDT 13.58 for 30-Jun-2025 beside equity of BDT 1,456,282,611 [3 p.3], and the Q1 FY2026 DSE post repeats 'Tk. 13.58 as on June 30, 2025' [15]. The Q2 and Q3 posts give 12.53 [15]. Equity divided by 116,205,178 shares is BDT 12.53 [31]. NAV per share was BDT 12.54 at 30-Sep-2025, 12.55 at 31-Dec-2025 and 12.56 at 31-Mar-2026 as posted [15].

Ratios: gross margin of about 40% in FY2018-FY2021 and 11.4% in FY2025; receivable days of 389 at 30-Jun-2025

Margins. Gross margin was 39.5%-40.0% in FY2018-FY2021, 30.3% in FY2022, 25.8% in FY2023, 11.2% in FY2024 and 11.4% in FY2025, and 25.8% in 9M FY2026 [31]. Operating margin on IBP's definition (after financial expenses) was 25.7% in FY2020 and -14.1% in FY2025 [31].

Returns. Return on average equity was 12.9%, 10.8%, 8.6%, 1.5%, 0.5%, -2.6%, -2.4% for FY2019-FY2025 [31]; the five-year table prints ROE of 8.57%, 1.55%, 0.52%, -2.59% and -2.53% for FY2021-FY2025 on its own basis [1 p.49]. Revenue per taka of PPE was 0.82 in FY2020 and 0.15 in FY2025 [31].

Working capital. Receivable days were 104, 89, 95, 115, 165, 218, 418, 389 for 30-Jun-2018 to 30-Jun-2025, and inventory days 152, 167, 134, 157, 196, 235, 376, 232 [31]. Receipts from customers were 1.03 times revenue in FY2025 and 1.12 in FY2024 [31].

Leverage and liquidity. The short-term loan less cash was BDT 15.7m at 30-Jun-2025 and BDT 16.6m at 31-Mar-2026 [31]. The current ratio was 3.62 at 30-Jun-2025 [31]; the five-year table prints 3.62 [1 p.49].

Cash conversion. Operating cash flow was BDT 58.4m in FY2025 against a net loss of BDT 36.8m, and BDT 33.8m in FY2024 against a net loss of BDT 41.0m [31]. Operating plus investing cash flow was negative in FY2018-FY2021 (net investing outflows of BDT 112.6m, 282.0m, 309.0m and 200.4m) and positive in FY2022-FY2025 [7 p.71] [6 p.81] [31].

Balance sheet: cash of BDT 4.3m at 30-Jun-2025, receivables of BDT 196.2m, and an unexplained BDT 86.57m prior-year adjustment

At 30-Jun-2025 IBP held PPE of BDT 1,264.6m, capital work in progress of BDT 33.2m, inventories of BDT 103.6m, trade receivables of BDT 196.2m, advances of BDT 121.7m and cash of BDT 4.3m [1 p.86]. Liabilities were BDT 267.8m: deferred tax BDT 150.2m, provision for taxes BDT 51.8m, short-term loan BDT 20.0m, trade payables BDT 18.5m, unclaimed dividend BDT 14.8m and liabilities for expenses BDT 12.5m [1 p.86]. Cash at 30-Jun-2025 was BDT 2.67m in hand, BDT 1.65m at bank and BDT 0.02m in dividend accounts [1 p.97]. The auditor's basis paragraph prints cash of Tk. 4,353,276 [1 p.82]; the statement of financial position prints BDT 4,342,975 [1 p.86].

Receivables. Note 7 shows trade receivables of BDT 196.2m at 30-Jun-2025, of which BDT 39.2m was more than six months old and BDT 157.0m less than six months [1 p.96]. Note 2.12 states that 'Management considered the entire bills receivable as good and is collectable and therefore, no amount has been provided for as bad debt' [1 p.92]. Note 36 states that 'As at 30th June 2022 substantial part of the receivables are those from its related company' [1 p.107]; note 7 prints receivables due from companies under the same management as nil [1 p.96]. Both statements are printed in the FY2025 report.

Advances. Advances of BDT 121.7m at 30-Jun-2025 comprise advance income tax of BDT 45.8m, advances to employees of BDT 0.06m and 'Advance to others' of BDT 75.9m; the last is land advances of BDT 66.6m (Gazipur and BSCIC Barisal), L/C margin of BDT 8.9m and smaller items [1 p.96] [1 p.97].

Retained earnings roll-forward, FY2025. Opening retained earnings of BDT 418,791,168, less the net loss of BDT 36,831,741, less 'Adjustment' of BDT 86,566,545, less the cash dividend of BDT 1,162,052, equal closing retained earnings of BDT 294,230,830 [1 p.98] [31]. The statement of changes in equity labels the BDT 86,566,545 'Prior year adjustment' [1 p.88], and the MD&A states that the NAV decline 'was primarily due to the net loss of Tk. 36.83 million and prior year adjustment of Tk. 86.57 million' [1 p.48]. Note 2.23 'Re-Statement' refers to the year ended 30-Jun-2023 and lists no item [1 p.94], and the FY2024 comparatives are not labelled restated [1 p.86]. No note in pages 90-108 states what the adjustment relates to.

Cash flow items. The FY2025 cash flow statement shows BDT 56,706,868 'Paid for other financing activities' [1 p.89], and the reconciliation in note 31 includes 'Less: adjustment' of BDT 35,805,006 before reaching the printed BDT 58,448,929 [1 p.103]. No note describes the two lines.

Restated June 2022 comparatives. The FY2023 report prints two columns for 30-Jun-2022: cash and cash equivalents of BDT 33,691,519 and BDT 28,691,519 '(Re-Stated)', and trade and other receivables of BDT 213,933,121 and BDT 218,933,121 [5 p.86]. In the cash flow statement, FY2022 receipts from customers are BDT 516,498,737 and BDT 511,498,737, operating cash flow BDT 92,284,538 and BDT 87,284,538, and NOCFPS 0.79 and 0.75 [5 p.89]. Each pair differs by BDT 5,000,000; total assets are BDT 1,893,794,713 in both columns [5 p.86] [31].

Audit: a qualified FY2025 opinion on four bases, three emphasis items and a going-concern paragraph; a new auditor recommended for FY2026

The auditor's report is signed by Md. Ashraful Haque FCA, partner, Shafiq Basak & Co., dated 8-Dec-2025 [1 p.85]. The opinion paragraph reads, as printed: “In our opinion, except for the effects of the matters describe in the basis of qualified opinion section of our report the accompanying financial statements of the Company present fairly 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 company act 1994 and security exchange rules 2020 and other applicable laws and regulations.” [1 p.82]

Basis 1, as printed: “Note: 5.00 Capital Work in Progress: Taka 33,221,547.00 No verifiable proof or supporting documentation was provided to confirm the existence of the Capital Work in Progress (CWIP) amounting to Taka 33,221,547.00 as well as transferred to Fixed Assets to the amount Taka 6,059,503.00. Accordingly, we could not obtain reasonable assurance regarding the existence and valuation of the CWIP reported in the financial statements.” [1 p.82]

Basis 2, as printed: “Note No. 6.00 Inventories: Tk. 103,569,933.00 i. The Finished Goods Register has not been properly maintained. Certain entries were omitted, such as the item ‘Calfresh – M Tablet’ (Quantity: 37,050 units; Value: Taka 7,780,500) for the year ended 30 June 2025. ii. The Work-in-Process (WIP) records were found to be maintained only in an Excel worksheet. No formal WIP register for the year ended 30 June 2025 was available for verification. iii. Costing of raw materials, finished goods, work in process have not been provided to us. So, we could not conform the compliance of IAS-2.” [1 p.82]

Basis 3, as printed: “Note No. 9.00 Cash and Cash equivalents: Tk. 4,353,276.00 The bank book/ registers have not been provided to us for verification. Consequently, we were unable to obtain sufficient and appropriate audit evidence regarding bank transactions and balances, and could not verify the same reported in the financial statements.” [1 p.82]

Basis 4, as printed: “Note No. 18.00 Sales Revenue: Tk. 184,177,513.00”, followed by a table of gross sales 211,804,140.00, less VAT 27,626,627.00, net sales revenue 184,177,513.00 [1 p.82], and: “a) Gross Sales for the year were reported at Taka 211,804,140, while total bank deposits recorded amounted to Taka 151,135,367. A material difference of Taka 60,668,773 exists between the total sales and bank deposits, and clarification for this variance was not provided. b) Additionally, VAT returns against sales and VAT deposits to the government treasury were not provided.” [1 p.83]

Emphasis of matter, as printed: “a) The books of accounts and ledgers related to the financial statements should be maintained in a proper manner. Instead, they are being maintained through Excel worksheets, which may not ensure adequate accounting control or accurate reflection of transactions in the financial statements. b) Note No. 3.00 Property, Plant & Equipment: Tk. 1,264,563,706.00 Fixed Register has been prepared during the year 2024-2025. it was noted that supporting evidence relating to land development costs was not preserved by the company. c) Note No. 14.00 Unclaimed Dividend: Tk. 14,8000,807.00 The above amount includes Taka 14,813,593.00 relating to the years 2018–2019 to 2021–2022. This represents a significant issue, as the Company is required, under the directives of the Bangladesh Securities and Exchange Commission, to transfer any funds that remain unpaid, unclaimed, or unsettled for a period of three years.” [1 p.83] The unclaimed dividend is printed as 'Tk. 14,8000,807.00' in the audit report and BDT 14,800,807 in note 14 [1 p.98].

Going concern, as printed: “The Company has incurred losses of Taka 36,831,741.00 for the year 2024–2025 and Taka 40,979,225.00 for the year 2023–2024. In addition, we have observed inadequacies in internal control and record-keeping. Furthermore, the Company’s financial stability and liquidity are insufficient to withstand unforeseen crises. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern in the foreseeable future.” [1 p.83]

Key audit matters, as printed: “Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.” [1 p.83] No key audit matter is listed under the heading, and the responsibilities section states: “We have not come across any other key audit issue for the year under audit, and as such nothing is reportable.” [1 p.84] The report has no paragraph headed 'Other Matter'. Under 'Other Information' the auditor states: “We have not been provided the Director's port and other information contained within the annual report except the financial statements to the date of our auditor's report.” [1 p.83]

The company's explanation. The directors' report contains a section headed 'Auditors’ Qualified Opinion and Board’s Response', which ends: “The Board has taken note of these observations and initiated corrective steps, including strengthening documentation, formalizing inventory and costing systems, ensuring proper maintenance of bank and cash records, updating sales and VAT reconciliations, and arranging the required transfer of unclaimed dividends. The Board remains committed to improving internal controls, compliance, and financial transparency.” [1 p.38] Note 2.02 states: “The company has adequate resources to continue its operation for the foreseeable future.” [1 p.90] The directors' statement on financial reports states 'There is no significant doubt about the Company’s ability to continue as a going concern' and 'Proper books of accounts of the company as required prevailing Law have been maintained' [1 p.57].

Prior year and next auditor. The FY2024 audit, by the same firm, also carried a qualified opinion, emphasis of matter and material uncertainty on going concern, as posted on DSE on 5-Dec-2024 [15]. The directors' report states that Shafiq Basak & Co. 'has completed the maximum allowable tenure and is therefore ineligible for reappointment', and that the board, on 15-Nov-2025, recommended Habib Sarwar Bhuiyan & Co. as statutory auditor for FY2025-26, subject to shareholder approval [1 p.43].

Governance: an eight-member board with three children of the late founder, MD pay of BDT 3.0m, and 24.43% sponsor holding

Board. The FY2025 report lists eight directors: Mrs. Aysha Siddika (Chairman), Mr. A.F.M. Anowarul Huq (Managing Director), Mrs. Aziza Yeasmin (Director), Mrs. Hafiza Yeasmin (Director), Mr. Md. Shariqul Anam (Director, nominated by Investment Corporation of Bangladesh), and Mr. A K M Haruner Rashid, FCS, Mr. Md. Nazrul Islam, FCS and Mrs. Israt Jahan Rimi, FCS (Independent Directors) [1 p.17] [1 p.14]. Mrs. Aysha Siddika was appointed director and chairman on 3-Dec-2024; Mr. Nazrul Islam and Ms. Israt Jahan Rimi were appointed on 29-Sep-2025, after the year end, with BSEC consent dated 21-Sep-2025 [1 p.57] [1 p.42] [1 p.43].

Family relationships as printed. Mr. A.F.M. Anowarul Huq 'is the son of the late Azizul Huq, the esteemed founder of Indo-Bangla Pharmaceuticals Works' [1 p.13]; Mrs. Aziza Yeasmin 'is the daughter of Late Alhaj Azizul Huq' [1 p.12]; Mrs. Hafiza Yeasmin 'is the daughter of the late Azizul Huq' [1 p.15]. The shareholding annexure lists Mr. Khandakar Mustafizur Rahman as 'H/O. Mrs. Aziza Yeasmin' and Mr. Md. Monirujjaman as 'H/O. Mrs. Hafiza Yeasmin' [1 p.60]. The legal advisors' list includes 'Mr. Md. Monirujjaman, Advocate' [1 p.17]; the name is the same, and the report does not say whether they are the same person. Mrs. Aysha Siddika is described as 'a founding sponsor' who 'served as the first Chairman of the Company'; she resigned from the board on 28-Jul-2016, was reappointed 16-Aug-2020 to 28-Oct-2021, and was appointed again on 3-Dec-2024 [1 p.12]. Mrs. Hafiza Yeasmin 'served as the Chairman of the Board from 28 October 2021 to 28 October 2023' [1 p.15]. No family relationship is printed for Mrs. Aysha Siddika.

Committees. The corporate directory lists the audit committee as Mr. A K M Haruner Rashid, FCS (Chairman), Mr. Md. Shariqul Anam and Mr. Md. Nazrul Islam, FCS, with Mr. Md. Mohi Uddin as secretary [1 p.17]. The audit committee report lists the FY2025 members as Mr. Haruner Rashid (4 of 4 meetings), Mr. Shariqul Anam (4 of 4), Mrs. Hafiza Yeasmin (3 of 4) and Mr. Md. Mohi Uddin, member-secretary (4 of 4) [1 p.62]. The directory lists the nomination and remuneration committee as Mr. Haruner Rashid (Chairman), Mr. Shariqul Anam and 'Mr. Israt Jahan Rimi, FCS' [1 p.17]; the directors' report gives FY2025 NRC attendance as Mr. Haruner Rashid 2 of 2, Mr. Shariqul Anam 1 of 2, Mrs. Hafiza Yeasmin 2 of 2 and Mr. Md. Mohi Uddin 2 of 2 [1 p.45]. The two lists differ in each committee.

Key management. The directory lists Mr. Syed Md. Nazmus Shakib (Chief Financial Officer), Mr. Md. Mohi Uddin (Company Secretary) and Mr. Md. Abubakar Siddique (Head of Internal Audit & Compliance), and a management team of Mr. A.F.M. Anowarul Huq (Managing Director), Mr. Md. Abdullah Al Mamun (Plant Manager), Mr. Md. Al-Amin Hawlader (Head of Production), Mr. Md. Mizanur Rahman (Factory-in Charge), Mr. Md. Wahidul Islam (Head of Marketing) and Mr. Pijush Lal Guha (Head of Quality Assurance) [1 p.17]. The shareholding annexure prints Mr. Md. Mizanur Rahman as 'Head of Admininistration.' [1 p.60]. On 19-Oct-2026 the company posted the appointment of Mr. Md. Shazzad Hossain as Company Secretary [15].

Related parties and pay. Note 32 lists one remuneration line: Mr. A.F.M Anowarul Huq, Managing Director, BDT 3,000,000 in FY2025 and BDT 3,900,000 in FY2024 [1 p.104]. Board meeting fees in FY2025 were: Mrs. Aysha Siddika BDT 20,000; Mr. A.F.M Anowarul Huq BDT 60,000; Mrs. Aziza Yeasmin BDT 60,000; Mrs. Hafiza Yeasmin BDT 100,000; Md. Shariqul Anam BDT 110,000; A K M Haruner Rashid, FCS BDT 120,000 [1 p.104]. In FY2024 they were: Mr. A.F.M Anowarul Huq BDT 70,000; Mrs. Aziza Yeasmin BDT 40,000; Mrs. Hafiza Yeasmin BDT 100,000; A K M Haruner Rashid BDT 130,000; Fatima Parvin (Director) BDT 60,000; Md. Golam Rabbani (Director, Representative of ICB) BDT 140,000; Iftikhar-Uz-Zaman (Independent Director) BDT 30,000 [1 p.104]. The named fees sum to BDT 470,000 and BDT 570,000, equal to the 'Board Meeting Fee' line in administrative expenses [1 p.101] [31]. The directors' report prints a second fee table (columns headed '2023-2024' and '2022-2023') with the same FY2025 amounts and, for the prior year, Mr. Md. Shariqul Anam BDT 10,000 (note 32: nil) and Ms. Fatima Parvin BDT 30,000 (note 32: BDT 60,000); it omits Md. Golam Rabbani and Iftikhar-Uz-Zaman [1 p.41] [1 p.104]. On directors' pay the report makes three statements: 'There is no remuneration for Independent Directors' and remuneration 'is shown in the note no. 32 (i)' [1 p.43], and 'Remuneration of Directors including Independent Director have been shown in Note No. 32(b)' [1 p.57]; note 32(b) shows meeting fees to independent directors [1 p.104]. Page 41 also states 96 approved products at 30-Jun-2025 [1 p.41]. Liabilities for expenses at 30-Jun-2025 include 'Directors Remuneration' of BDT 4,500,000 (BDT 250,000 a year earlier) [1 p.99]. Note 32 prints all other related-party items as nil [1 p.104].

Ownership. At 30-Jun-2025 the directors and ICB held 28,388,490 shares, 24.43% of 116,205,178, and the annexure lists one holder of 10% or more, Mr. A.F.M. Anowarul Huq, with 16.05% [1 p.60] [31]. The DSE page gives sponsor/director holdings of 24.43% at 30-Jun-2025, 31-Aug-2026 and 30-Sep-2026; institutions held 22.74%, 17.90% and 16.96%, foreign investors 0.00%, 0.08% and 0.08%, and the public 52.83%, 57.59% and 58.53% [16]. The annual report's pie chart prints 24.43, 22.74 and 52.43 for 30-Jun-2025 [1 p.60].

Capital actions: cash dividends of 0.10% and 0.15% for FY2024 and FY2025, a move from Z to B category, and no correction posts in 24 months

Dividends. The DSE page lists cash dividends of 2% for 2019, 4.5% for 2020, 4% for 2021, 1% for 2022, 0.1% for 2024 and 0.15% for 2025, and bonus shares of 10% for 2018, 9% for 2019, 2% for 2020 and '3% 2021 (GP & ICB Only)' [16]. No dividend is listed for 2023 [16], and the five-year table prints 0% for 2022-23 [1 p.49]. The FY2025 dividend of 0.15% was recommended on 15-Nov-2025, the AGM was held on 30-Dec-2025, and the dividend was reported as disbursed on 10-Feb-2026 [15] [16]. The five-year table prints a FY2025 payout of BDT 1,743,078 [1 p.49]. Share capital rose from BDT 730.0m (73.0m shares) through a 20.0m-share IPO in 2018 and bonus issues in 2018-2021 to BDT 1,162.1m [1 p.98].

Category. On 3-Mar-2025 DSE posted that the company would move to the 'B' category from 'Z' from 4-Mar-2025 'as the Company has reported disbursement of 0.10% Cash Dividend for the year ended June 30, 2024' [15]. The DSE page shows category B [16].

Credit rating. On 1-Jan-2025 DSE posted that Emerging Credit Rating Limited affirmed a surveillance rating of 'BBB' long term and 'ST-3' short term with a stable outlook, based on accounts to 30-Jun-2024 and Q1 FY2025 [15]. No later rating post appears in the 24-month sweep [15].

News sweep. The DSE archive for 1-Nov-2024 to 1-Nov-2026 contains 38 distinct posts (48 rows including continuation rows), dated 10-Nov-2024 to 29-Oct-2026 [15] [31]. None is titled as a correction; three are reschedules of LR 19(1) board meetings (10-Nov-2024, 12-Nov-2025 and 29-Oct-2026) [15]. On 8-Jul-2025 the company replied to a DSE query that there was 'no undisclosed price sensitive information' behind an unusual price rise [15].

Peers: three DSE pharma-sector companies with different businesses; FY2025 figures and audit wording from their own filings

The peers below are DSE-listed companies in the pharmaceutical sector with published AnalystBro notes [25] [26] [27]. Their businesses differ from IBP's, so the table states facts per company and ranks nothing. Pharma Aids describes itself as 'a manufacturer and supplier of USP Type-I Neutral Glass Ampoules. These Ampoules are used by the pharmaceutical companies for filling liquid injections' [19]. Orion Infusion's auditor describes its primary activities as 'manufacturing, marketing, selling and distributing different kinds of Parenteral drug and other live saving injectable products' [20]. Asiatic Laboratories states that its principal activities are 'manufacturing, selling and distributing pharmaceutical products (Human Drugs)', with tablets, capsules, oral liquids, powder for suspension, ophthalmic and injectable products [22]. Asiatic Laboratories lists Haruner Rashid & Associates as its compliance professional [22]; IBP's independent director Mr. A.K.M. Haruner Rashid is described as CEO & Lead Consultant of Haruner Rashid & Associates [1 p.15].

Audit opinions as printed for FY2025. IBP: qualified, with a material uncertainty on going concern [1 p.82]. Pharma Aids: the opinion reads 'except for the effects of the matter described in the Basis for Opinion section of our report', and the Basis for Opinion section printed on the same page describes no matter [17]. Orion Infusion: 'the accompanying financial statements give true and fair view', with three emphasis-of-matter items and 'Our report is not modified in respect of these matters' [20]. Asiatic Laboratories: 'the accompanying Financial Statements give a true and fair view' [23].

Market data: BDT 13.10 close, a 52-week closing range of BDT 10.2-20.8, and 1.04 times March 2026 NAV

IBP closed at BDT 13.10 on 29-Oct-2026, the last DSE trading day before this note's date [30] [16]. On DSE trading-day closes from 30-Oct-2025 to 29-Oct-2026 (unadjusted feed closes; the corporate action in the window was the 0.15% cash dividend, record date 7-Dec-2025), the low was BDT 10.2 on 13-Nov-2025 and the high BDT 20.8 on 30-Jul-2026 and again on 2-Aug-2026 [30] [15]. The DSE page prints a 52-week moving range of 10.00-21.40, which uses intraday prices [16].

At BDT 13.10 the market capitalisation was BDT 1,522.3m [31]; the DSE page prints BDT 1,522.288m [16]. The price was 1.04 times the 31-Mar-2026 NAV of BDT 12.56 and 1.05 times the 30-Jun-2025 NAV of BDT 12.53 [31]. Trailing twelve-month net profit to 31-Mar-2026, derived as FY2025 loss less 9M FY2025 loss plus 9M FY2026 profit, was a loss of BDT 14.4m, and no trailing P/E is calculated here [31]. The DSE page's 'Current P/E' of 491.25 on 29-Oct-2026 equals the close divided by the 9M FY2026 EPS of BDT 0.02 annualised (0.02 x 4/3) [16].

What's next: the FY2026 board meeting on 7-Nov-2026, and inferred record-date, AGM and Q1 ranges

Dates below are notified on DSE or inferred from printed precedents. Board or statement dates: 28-Oct-2019, 28-Oct-2021, 28-Oct-2023, 12-Nov-2024 and 15-Nov-2025 [7 p.68] [6 p.78] [5 p.86] [15]. Record dates: 21-Nov-2019, 21-Nov-2021, 3-Dec-2024 and 7-Dec-2025, i.e. 21-24 days after the board date (4 years; no record date is printed for FY2023, which had no dividend) [7 p.9] [6 p.7] [4 p.8] [1 p.11] [1 p.7]. AGMs: 12-Dec-2019, 23-Dec-2021, 28-Dec-2023, 26-Dec-2024 and 30-Dec-2025, i.e. 44-61 days after the board date (5 years) [7 p.9] [6 p.7] [5 p.9] [4 p.8] [1 p.7]. FY2020 and FY2022 AGMs (24-Dec-2020, 22-Dec-2022; record dates 23-Nov-2020, 28-Nov-2022) are printed [9 p.8] [8 p.9] but their board dates were not read, so they are not used for the gaps. Q1 statements were signed 14-Nov-2019, 12-Nov-2020, 14-Nov-2021, 30-Nov-2022, 14-Nov-2023, 22-Dec-2024 and 15-Jan-2026 (7 years) [10 p.1] [11 p.1] [12 p.3] [13 p.3] [14 p.2] [15]. Inferred ranges count from the notified 7-Nov-2026 and are moved to DSE business days (Sunday-Thursday) [31]. No AGM or record date for FY2026 is notified on DSE at 1-Nov-2026 [15].

LDC graduation. The FY2025 directors' report refers to 'Bangladesh's expected graduation from the Least Developed Country (LDC) category in 2026' [1 p.36]. Bangladesh's LDC graduation date is 24-Nov-2029 [28] [29]. The filings do not link the graduation date to any IBP line item.

Risks: the four audit qualifications, the going-concern paragraph, and unexplained equity and cash-flow adjustments

The risk section of the directors' report lists regulatory and trade risks, raw-material and production constraints, infrastructure limits, competition, reliance on medical promotion officers and financial risks from exchange rates and raw-material prices [1 p.37]. The FY2025 statements show the company's printed exposures for two of them: raw-material imports of BDT 6.6m (USD 45,600 CIF) and Bai Murabaha borrowing of BDT 20.0m [1 p.105] [1 p.98].

Key questions: the FY2026 audit opinion, the prior-year adjustment and full-year FY2026 revenue

IBP's equity at 31-Mar-2026 was BDT 1,459.1m, NAV per share BDT 12.56, cash BDT 1.6m and short-term loan BDT 18.1m [2 p.1]. Revenue for 9M FY2026 was BDT 134.8m [2 p.2].

FAQ

What does Indo-Bangla Pharmaceuticals make?

Human-health medicines excluding antibiotics, mainly tablets and capsules, at one factory in Barishal; 36 of more than 90 approved products were in commercial production [1 p.90] [1 p.29].

What were the FY2025 results?

Net sales revenue BDT 184.2m, net loss BDT 36.8m, EPS BDT (0.32), NAV per share BDT 12.53 [1 p.86] [1 p.87].

What did the auditor say about FY2025?

A qualified opinion on capital work in progress, inventories, cash and sales revenue, three emphasis-of-matter paragraphs and a material uncertainty related to going concern [1 p.82] [1 p.83].

How did the first nine months of FY2026 go?

Revenue BDT 134.8m against BDT 76.9m a year earlier, and net profit BDT 2.8m against a loss of BDT 19.7m [2 p.2].

Who controls IBP?

Directors and ICB held 24.43% at 30-Jun-2025; the managing director held 16.05% [1 p.60]. DSE gives the same 24.43% at 30-Sep-2026 [16].

Does IBP have debt?

Short-term Bai Murabaha borrowing of BDT 20.0m at 30-Jun-2025 and BDT 18.1m at 31-Mar-2026; no long-term loan is shown [1 p.98] [2 p.1].

When are the FY2026 accounts due?

The board meeting to consider them is notified for 7-Nov-2026, rescheduled from 28-Oct-2026 [15].

Sources

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