JMI Hospital Requisite financial analysis: EPS down to BDT 0.71, hospital losses and BDT 745m group loans (Oct 2026)

Investment considerations: a device maker with steady gross margins, falling sales, a loss-making hospital and large group loans

JMI Hospital Requisite Manufacturing Ltd. (JHRML) makes and sells single-use medical devices in Bangladesh: infusion sets, needles, IV cannulas, urine bags, catheters, sutures, renal and non-renal items, and a long list of smaller products [1 p.40]. It reports two businesses in its own accounts, 'production' (devices made in its factory) and 'trading' (devices it imports and resells), and since FY2024 it has consolidated a 65%-owned hospital, JMI Specialized Hospital Limited (JSHL) [1 p.87] [1 p.88] [1 p.100]. The company belongs to the JMI Group, whose chairman Md. Abdur Razzaq owns 22.87% of JHRML [1 p.51] and is also managing director of the listed JMI Syringes & Medical Devices Ltd. (JMISMDL) [7 p.7].

The numbers in this note run from FY2017 to FY2025 from the annual reports, plus the nine months to March 2026 from the third-quarter filing and the FY2026 results that the company announced on DSE on 28-Oct-2026 [6 p.47] [1 p.50] [2 p.3] [9]. The FY2026 annual report is not yet in our filing corpus, so FY2026 is shown only as DSE-announced EPS, NAV and operating cash flow per share, and labelled as such.

Business: half made, half imported, sold largely through the group and Nipro JMI

JHRML started in the JMI Group's medical-device cluster and lists its corporate milestones from 2008 [1 p.12]. The products are disposables that every hospital and clinic uses in volume. In FY2025 infusion sets were the largest line at BDT 505m (205m units), followed by 'other medical devices' at BDT 342m, bulk needles at BDT 307m (304m units), non-renal items at BDT 221m, syringes at BDT 77m, sutures at BDT 67m and urine bags at BDT 41m [1 p.40]. Prices per unit range from about BDT 0.41 for an IV cannula and BDT 1.01 for a bulk needle to BDT 175 for a suture and BDT 189 for a renal item [13].

About half the revenue is made in the factory and half is imported and resold. In FY2025 production revenue was BDT 875m and trading revenue BDT 796m [1 p.87] [1 p.88]. The two earn similar gross margins (32.5% and 29.4%), but trading carries almost all of the selling cost: BDT 48.7m of the BDT 54.6m selling and distribution expense sat in the trading statement [1 p.117]. So the trading statement carries the sales force; the filings do not say how much factory output moves through it.

The customer list is concentrated in the group. At June 2025 JHRML was owed BDT 224.4m by JMI Syringes & Medical Devices, BDT 183.6m by Nipro JMI Medical, BDT 111.7m by Nipro JMI Company and BDT 2.4m by Nipro JMI Dialysis Center, all shown as 'sundry debtors (product sales)' [1 p.118]. That is BDT 522m, 66% of total receivables. The company's own peer table ranks JMISMDL first, Nipro JMI Company second and JHRML third among local device makers [1 p.40].

Three events shaped the last five years. First, the IPO: BSEC consented on 25-Nov-2021 and the company raised BDT 750m, of which BDT 250m repaid loans and BDT 358m was earmarked for plant and machinery including a vacuum blood-collection tube line and a cannula grinding line [1 p.43]; shares rose from 90m to 125.29m [5 p.69]. Second, growth stopped: revenue rose at 10-17% a year from FY2018 to FY2021, then by 4.1%, 2.8% and 1.0% in FY2022-FY2024 and fell 10.7% in FY2025 [13]. Third, the hospital: JSHL was set up in FY2024, opened on 23-Aug-2025 as a licensed facility of Apollo Health and Lifestyle Limited of India (Apollo Clinic), and was 65% owned [9].

Line items: sales down in both halves, hospital costs in admin, and finance cost shown net of group interest

Revenue. The FY2025 fall of BDT 199m was shared by both halves: production revenue fell 10.1% (BDT 973m to 875m) and trading 11.3% (BDT 897m to 796m) [1 p.87] [1 p.88]. In 9M FY2026 production fell another 15.5% (BDT 679m to 574m) and trading 13.9% (BDT 615m to 529m) [2 p.8] [2 p.9]; only the hospital's BDT 112m kept consolidated revenue down 6.1% rather than about 15% [13]. The company's explanation for Q1 FY2026 was 'a reduction in sales' with operating costs that did not fall in proportion [9]. The filings do not split volume from price, so the reader cannot tell how much of the fall is lost units and how much lower selling prices.

Cost of goods sold. COGS was 69.0% of revenue in FY2025, the same as FY2024 [1 p.41]. Inside the production COGS of BDT 313.5m of factory overhead, depreciation was BDT 121.4m and electricity BDT 40.7m (BDT 35.5m a year earlier) [1 p.116]. In its Q2 FY2025, Q2 FY2026 and Q3 FY2026 announcements the company gave the same reason for lower EPS: 'imported raw materials purchases are at high prices compared with sales in the local market' [9]. Even so the consolidated gross margin was 31.4% in 9M FY2026 against 31.1% a year earlier [2 p.3] [13]; production gross margin slipped from 31.5% to 30.7%, trading from 30.8% to 28.1%, and the hospital's revenue carries its own cost line [13].

Operating expenses. Administration and selling cost BDT 135.5m in FY2025, 8.1% of revenue against 6.4% in FY2021 [13]. The increase came from a shrinking revenue base rather than rising spending: the two lines together were almost flat at BDT 136.9m and 135.5m in FY2024 and FY2025 [1 p.82]. In 9M FY2026 administrative expenses tripled to BDT 187.7m (BDT 61.3m) and selling expenses rose to BDT 52.0m (BDT 42.5m) [2 p.3]; trading administration costs were BDT 28.6m against BDT 28.9m a year earlier [2 p.9], so the increase sits outside the trading business, and the hospital opened in the period. Operating margin fell from 23.1% to 11.7% [13].

Financial expense. The reported line looks small and falling: BDT 112.7m in FY2021, 70.7m in FY2024 and 55.3m in FY2025 [5 p.70] [1 p.82]. It is a net figure. In FY2025 JHRML paid BDT 96.1m of interest to Pubali Bank and Uttara Bank on overdrafts and short-term loans and charged BDT 94.2m of interest to five sister concerns, and only the difference of BDT 1.9m appears as 'interest on short-term and OD loan' [1 p.117] [1 p.118]. Before that netting, financial expense would have been BDT 150m, not BDT 55m [13]. Term-loan interest was BDT 33.0m and interest on import liabilities BDT 19.5m [1 p.117].

Other income, WPPF and tax. Other income was BDT 5.9m in FY2025, mostly FDR interest and BDT 2.4m rent from a Nipro JMI company [1 p.118]. The effective tax rate was 26.6% in FY2025 and 43.1% in 9M FY2026, when the hospital's loss gave no tax relief at group level [13]. FY2022's 4.6% rate reflected a BDT 61.0m deferred-tax credit [5 p.70]; without it FY2022 EPS would have been about BDT 2.11 on year-end shares [13].

The hospital: opened August 2025, lost about BDT 81m in nine months, and is to be cut to an associate

JSHL is the biggest change in the company. JHRML subscribed for 21,000,000 shares of BDT 10 (65%) and paid a further BDT 89.9m as share money deposit, so its investment stood at BDT 299.9m at June 2025 [1 p.100]. The hospital offers internal medicine, neurology, diabetes, endocrinology and nephrology services, with diagnostics and a pharmacy [1 p.100]. It was inaugurated on 23-Aug-2025 [9]. On 13-Oct-2025 the board approved another BDT 11.5 crore to finish the project, buy machinery and fund working capital; on 2-Dec-2025 it approved converting JSHL into a public limited company, said the total investment had reached BDT 316.07m, and decided to invest no more and to cut its holding below 50%, making JSHL an associate [9].

The first nine months of operation show the cost. Consolidated revenue less the production and trading statements leaves about BDT 112m of hospital revenue in 9M FY2026, and consolidated profit after tax of BDT 55.9m against BDT 137.3m for production plus trading implies a hospital loss (after consolidation entries) of about BDT 81m [2 p.3] [2 p.8] [2 p.9] [13]. The non-controlling interest absorbed BDT 28.5m, which is 35% of a loss of about BDT 81m [2 p.3]. The balance sheet at March 2026 also shows an intangible 'Apollo Licence' of BDT 16.8m and right-of-use assets up from BDT 2.6m to BDT 26.7m [2 p.2].

The auditor's qualification is about this subsidiary. JSHL capitalised BDT 88.2m of start-up costs in capital work in progress that 'do not meet the definition of directly attributable cost' under IAS 16, and certain rental expenses were not recognised under IFRS 16; because the amount is material, the group opinion is qualified [1 p.77]. Had these costs been expensed, FY2025 consolidated profit would have been lower; the auditor does not give the after-tax amount. If the stake falls below 50% as planned, JHRML would stop consolidating JSHL's revenue and costs and would instead book its share of the hospital's result as one line; no date for the share sale has been disclosed [9].

Ratios: ROE down from 8-10% to 5.2%, receivable days 173, net debt rising since the IPO

Growth. Revenue compounded at about 14% a year from FY2017 to FY2021 (BDT 1,011m to 1,731m) and has fallen since FY2024; FY2025 revenue is below FY2021 [6 p.47] [1 p.50]. Equity grew faster than earnings because of the IPO and retained profits, so returns diluted.

Margins. Gross margin was 38-40% in FY2017-FY2020, 35.9% in FY2021 and about 31% from FY2022 [6 p.47] [1 p.50]. The step down coincides with the post-2021 rise in freight and the taka's depreciation; the company names import prices as the reason [9]. Net margin was 14.0% in FY2025, inside its 13-18% range, because the fall in reported finance cost offset part of the operating decline [13].

Returns. ROE on average equity was 9.6% in FY2018, 9.7% in FY2022 and 5.2% in FY2025 [13]. On the DSE-announced FY2026 EPS of BDT 0.71 and NAV of BDT 35.51, ROE falls to about 2% [9]. Asset turnover was 0.28x in FY2025 against 0.36x in FY2021: every taka of assets produced 28 paisa of sales [13].

Efficiency. Receivable days rose from 131 (FY2021) to 173 (FY2025) and about 193 at March 2026 on annualised nine-month sales; inventory days on COGS rose from 209 to 237 and about 295 [13]. Finished goods were BDT 426.8m of the BDT 748.2m inventory at June 2025 [1 p.100]. Inventory, receivables, inter-company loans and advances together were 52% of total assets in FY2025 [13].

Leverage and cover. Net debt fell from BDT 1,477m (Jun-2021) to BDT 641m after the IPO and has risen every year since, to BDT 980m at March 2026 (0.22x owners' equity) [13]. Interest cover on the reported net finance cost was 6.9x in FY2025; on the gross figure of BDT 149.5m it would have been 2.6x [13].

Cash conversion and payout. CFO exceeded profit after tax in FY2021-FY2025, but free cash flow after capex was BDT -98m in FY2025 as BDT 348m went into capital work in progress, of which BDT 226.7m was added at the hospital [1 p.84] [1 p.100] [13]. NOCFPS fell to BDT 0.35 in FY2026 from 2.33, half of the BDT 0.71 EPS [9]. Dividends paid were 34% of FY2025 profit [13].

Balance sheet: BDT 745m lent to the group, BDT 522m owed by related buyers, and a qualified audit

The largest single financial asset is lending to the group. At June 2025 inter-company loans were BDT 745.2m: JMI Vaccine Ltd. BDT 447.3m, JMI Export-Import BDT 124.5m, JMI Industrial Gas BDT 87.3m, JMI Printing & Packaging BDT 76.7m and JMI LPG & Petroleum BDT 9.5m [1 p.100]. The note says the balances are unsecured, 'considered good' and bear interest at the commercial-bank rate, and that they were approved by the board on 26-Oct-2025 subject to the AGM [1 p.100]. The loans have been large for years: BDT 689.5m in June 2021, 601.1m in June 2023 and 827.6m in March 2026 [5 p.69] [3 p.76] [2 p.2].

For JMI Vaccine, JMI Export-Import and JMI LPG, the FY2025 'net transaction' on the loan equals the interest charged (BDT 53.9m, 15.0m and 1.1m) [1 p.118]. In other words, the interest was added to the balance rather than paid in cash. That income is in profit (inside the net finance line) but not in cash, while the company itself pays its banks cash interest on BDT 817m of overdrafts and revolving loans [1 p.111] [1 p.117]. JMI Vaccine Ltd. is also a shareholder of JHRML with 3.56% and a nominee seat on the board [1 p.44] [1 p.51].

Receivables tell a similar story: BDT 522m of the BDT 790.2m is owed by JMISMDL and Nipro JMI companies [1 p.118]. Advances, deposits and prepayments were another BDT 807.0m, of which BDT 224.3m sat in the hospital [1 p.100]. Cash was only BDT 166.2m at June 2025 and BDT 144.8m at March 2026, against BDT 862.4m of working-capital loans and BDT 245.3m of term loans [2 p.2].

Other items. Land and buildings are carried at a 2014 revaluation, with a BDT 185.8m revaluation reserve that cannot be distributed [1 p.106]. The tax-holiday reserve is BDT 124.2m [1 p.106]. Of the IPO money, BDT 1.73m was unspent at 30-Sep-2025 [1 p.43]; shareholders extended the deadline for the remaining utilisation to 31-Dec-2026 at the AGM of 22-Jan-2026 [9]. Capital work in progress was BDT 713.6m at March 2026 [2 p.2].

Peers: twice JMISMDL's gross margin, but a much larger finance cost

The only other listed device maker is JMI Syringes & Medical Devices, which shares the chairman-sponsor and the auditor (G. Kibria & Co.) [7 p.7] [1 p.85]. JMISMDL sold more in FY2025 (BDT 1,884m) but earned a gross margin of 15.6% against JHRML's 31.0%, and a net margin of 2.4% after BDT 84.2m of tax on BDT 129.1m of pre-tax profit [7 p.7] [13]. JHRML's finance cost is much higher (BDT 55.3m net against BDT 8.1m) [1 p.82] [7 p.7]. On 29-Oct-2026 prices JMISMDL traded at 86x FY2025 EPS and 1.47x June 2025 NAV of BDT 87.23 [8 p.1] [12]; JHRML at 20.7x FY2025 EPS, 54.2x FY2026 EPS and 1.08x June 2026 NAV [12] [9]. These are statements of fact, not a view on either price.

Governance: sponsors 32%, dividends to general shareholders only, 'B' category and a qualified audit

Ownership at 30-Jun-2025: sponsors and directors 32.30% (Md. Abdur Razzaq 22.87%, Hoi Kwan Kim 3.69%, JMI Vaccine Ltd. 3.56%, managing director Suriya Akther Rina 2.08%), institutions 43.82% including ICB with 17.96%, and the general public 23.89% [1 p.51]. Note 11 of the same report gives institutions 43.32% and public 24.39%, a small inconsistency within the filing [1 p.105]. The directors' report describes a board of six (three shareholder directors, one nominee of JMI Vaccine and two independent directors), while its attendance table lists three independent directors; nine board meetings were held in FY2025 [1 p.38] [1 p.44]. A director, Md. Mohiuddin Ahmed, completed the sale of his entire 100,000 shares by 4-Mar-2025 [9].

Dividends. JHRML paid 12.5% cash for FY2022 and 5% for FY2023 to all shareholders [4 p.81] [1 p.83]. From FY2024 the sponsors and directors (40.46m shares) were excluded: 10% for FY2024, 5% for FY2025 and 2.5% for FY2026, all to general shareholders only [1 p.83] [9]. The FY2026 payout is BDT 21.2m, about 24% of profit implied by the announced EPS [9] [13]. After the 5% FY2025 dividend was approved, DSE moved the shares from 'A' to 'B' category from 25-Jan-2026 [9].

Auditors and ratings. G. Kibria & Co. audited FY2022 and FY2025 and Pinaki & Company FY2024 [5 p.69] [3 p.76] [1 p.85]; the board proposed G. Kibria again for FY2026 at a fee of BDT 350,000 [1 p.39]. Alpha Credit Rating kept the long-term rating at A+ (ST-2, stable) in its surveillance published on 1-Jan-2026 [9].

What's next: dividend record date in November, AGM in January, and the hospital stake sale

The items below are already disclosed. Each says which line it moves and in which direction; none is a forecast. FY2026 results were announced on 28-Oct-2026 (passed); the annual report with the full statements has not yet reached our corpus [9]. One item is pending with no date: the board decided on 2-Dec-2025 to sell JSHL shares to take the stake below 50% [9]; when that happens, hospital revenue and costs leave the consolidated lines and JHRML's share of the hospital's result moves to one line.

Risks: group loans and receivables, hospital losses and falling device sales matter most

Each risk is tied to the line it moves. The scale to keep in mind: FY2025 profit before tax was BDT 317.7m, and the announced FY2026 EPS implies profit to owners of about BDT 89m [1 p.82] [9] [13].

Key questions: group loans, device volumes and the hospital exit decide shareholder returns

JHRML at BDT 38.5 trades at 54.2x FY2026 EPS of BDT 0.71 and 1.08x June 2026 NAV of BDT 35.51 [12] [9]; on FY2025 EPS of BDT 1.86 the multiple was 20.7x [13]. In FY2025 the shares traded between BDT 44.10 and 77.50 [1 p.39]. These are facts about the price, not a view on it.

FAQ

What does JMI Hospital Requisite Manufacturing make?

Single-use medical devices such as infusion sets, needles, IV cannulas, urine bags, catheters and sutures; about half its revenue is imported products it resells [1 p.40] [1 p.88].

What was JHRML's EPS for FY2026?

BDT 0.71 (consolidated), against BDT 1.86 for FY2025, as announced on DSE on 28-Oct-2026 [9].

What dividend did JHRML declare for FY2026?

2.5% cash for general shareholders only; sponsors and directors excluded; record date 26-Nov-2026 [9].

Why was the FY2025 audit opinion qualified?

The hospital subsidiary capitalised BDT 88.2m of start-up costs that the auditor says do not qualify under IAS 16, and some rent was not recognised under IFRS 16 [1 p.77].

How much has JHRML lent to sister companies?

BDT 745.2m at June 2025 (BDT 447.3m to JMI Vaccine) and BDT 827.6m at March 2026 [1 p.100] [2 p.2].

Which results does this note use?

Annual reports FY2017-FY2025, the nine-month statements to March 2026 and the FY2026 figures announced on DSE; the FY2026 annual report is not yet in our corpus.

Sources

1. JMI Hospital Requisite Manufacturing Ltd. Annual Report 2024-25 (year to 30-Jun-2025) · link · accessed 2026-10-31
2. JMI Hospital Requisite Manufacturing Ltd. un-audited financial statements, nine months to 31-Mar-2026 · link · accessed 2026-10-31
3. JMI Hospital Requisite Manufacturing Ltd. Annual Report 2023-24 · link · accessed 2026-10-31
4. JMI Hospital Requisite Manufacturing Ltd. Annual Report 2022-23 · link · accessed 2026-10-31
5. JMI Hospital Requisite Manufacturing Ltd. Annual Report 2021-22 · link · accessed 2026-10-31
6. JMI Hospital Requisite Manufacturing Ltd. Annual Report 2020-21 (five-year data FY2017-FY2021) · link · accessed 2026-10-31
7. JMI Syringes & Medical Devices Ltd. audited financial statements, year to 30-Jun-2025 · link · accessed 2026-10-31
8. JMI Syringes & Medical Devices Ltd. price-sensitive information, FY2025 results · link · accessed 2026-10-31
9. Dhaka Stock Exchange news archive, JHRML (company announcements Nov-2024 to Oct-2026) · link · accessed 2026-10-31
10. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-10-31
11. The Business Standard, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-10-31
12. AnalystBro price data (TradingView feed): DSE:JHRML and DSE:JMISMDL daily bars to 29-Oct-2026 · link · accessed 2026-10-31
13. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-10-31