KDS Accessories financial analysis: affiliate interest is 47% of pre-tax profit (Oct 2026)

Investment considerations: EPS of BDT 2.09-2.33 for ten years, with affiliate interest at 47% of FY2025 pre-tax profit

KDS Accessories Limited (KDSALTD) makes packaging and trims for Bangladesh's garment exporters. Its products are "standard cartons, display cartons, woven labels, smart labels, offset, silk screen, web thermal printing, button, cold peel, hot peel, puff, glitter, hanger, image and sublimation transfers" [1 p.92]. It was incorporated in 1991 as KDS Packaging Industries, took its present name in 2010, opened a second unit at Mirzapur, Gazipur in 2009 and has been listed since 15 October 2015 [1 p.92]. The factory is on Baizid Bostami Road in Chattogram [1 p.92]. All revenue is booked as export sales [1 p.111]. This note uses the garment-trims format (F12) and covers FY2016 to FY2025 from the company's annual reports, the nine months to March 2026 from the quarterly statements, and FY2026 from the DSE announcement of 27 October 2026.

Four facts frame the company. First, earnings per share have stayed in a narrow band. Printed EPS was between BDT 2.09 and BDT 2.33 in every year from FY2016 to FY2025, and the FY2026 figure announced on 27-Oct-2026 is BDT 2.20 [5 p.79] [1 p.67] [8]. Second, revenue has not grown in a straight line: BDT 1,609.8m in FY2016, a peak of BDT 3,199.7m in FY2022, BDT 2,530.7m in FY2024 and BDT 2,888.2m in FY2025 [5 p.79] [1 p.67]. Third, a growing share of pre-tax profit comes from interest on money lent to two group companies, KDS Thread Limited and KDS Poly Industries Limited: BDT 91.5m in FY2025, against profit before tax of BDT 192.8m [1 p.113] [1 p.89]. Fourth, that loan balance, BDT 995.5m at June 2025 and BDT 988.7m at March 2026, is close to half of shareholders' equity [1 p.105] [2 p.2] [13].

The rest of the balance sheet is dominated by working capital. Trade receivables were BDT 1,698.8m and trade and other payables BDT 1,863.6m at June 2025, against bank borrowings of BDT 385.8m [1 p.88] [13]. Operating cash flow was BDT 810.0m in FY2024, BDT 163.3m in FY2025 and BDT -72.0m in the nine months to March 2026 [1 p.91] [2 p.5]. For FY2026 the board announced NOCF per share of BDT -2.52 [8].

Dividends have been paid in cash every year in the DSE list from 2016 to 2025, with bonus shares in six of those years; the board recommended 10% cash for FY2026 [9] [8]. On 1-Nov-2026 the shares closed at BDT 40.6, which is 18.45x FY2026 EPS and 1.40x the June 2026 NAV per share of BDT 28.91 [12] [8]. These multiples are set against the company's own history and two listed thread makers in the share-price and peer sections.

Business and capacity: cartons were 82% of FY2025 sales, and the carton line ran at 77% of 31.75m pieces

How the company makes money. KDS Accessories buys raw materials, much of them imported, converts them into cartons and trims, and sells them to garment factories that export. The revenue note lists every sale as "Export sales" [1 p.111]. The FY2023 report states it "Pays 12% tax on Business Income for being export oriented company" and 20% on other income [3 p.121]. Purchases in FY2025 were BDT 2,085.3m and raw materials consumed were BDT 1,908.4m, which is 66.1% of revenue (derived) [1 p.111]. Most of the liability for these purchases is to foreign suppliers: BDT 1,621.3m of the BDT 1,648.9m of trade payables at June 2025 is "Liability for imported goods" [1 p.109].

Products. Cartons dominate. In FY2025 they produced BDT 2,369.7m of the BDT 2,888.2m of revenue, or 82.05%. Buttons were 6.01%, elastics and narrow fabrics 5.24%, offset printing 2.27%, labels 2.24%, gum tape 1.82% and heat-transfer printing 0.37%; hangers, 0.25% of FY2024 sales, had no sales in FY2025 [1 p.111]. The management discussion groups the business into packaging products and trims and states that "packaging products contribut[ed] the majority of revenue growth" [1 p.64]. The carton share was 77.25% in FY2020 and has been between 80.7% and 82.1% since FY2021 [4 p.136] [3 p.52] [1 p.111] [13].

Capacity on the filing's own basis. The capacity note gives an installed capacity and actual production for each product. Carton capacity is 31,750,000 pieces a year; the company made 24,323,902 cartons in FY2025, 76.61%, against 21,184,985 (66.72%) in FY2024 [1 p.116]. The other lines run well below their stated capacity: labels at 33.57%, offset printing at 22.30%, gum tape at 16.49%, heat-transfer printing at 9.43%; buttons ran at 61.88% and elastics at 57.74% [1 p.116]. The hanger line, with 45,000,000 pieces of capacity, produced nothing in FY2025 [1 p.116].

Carton utilisation over six years. The carton line has moved with garment demand. It ran at 70.63% in FY2020 and 64.57% in FY2021 on 30m pieces of capacity, reached 95.41% in FY2022 after capacity was put at 31.75m, then fell to 68.01% in FY2023 and 66.72% in FY2024 before recovering to 76.61% in FY2025 [4 p.54] [3 p.52] [1 p.116]. FY2022, the year of peak utilisation, is also the year of peak revenue in the ten-year series [1 p.67]. Carton revenue divided by cartons produced, a rough price proxy that ignores carton size and stock changes, was BDT 86 in FY2022 and BDT 97 in FY2025 (derived) [13].

Plant and people. Fixed assets are mostly older: property, plant and equipment fell from BDT 1,086.8m to BDT 1,009.3m in FY2025 as depreciation of about BDT 91m exceeded additions of BDT 13.7m [1 p.88] [1 p.113] [1 p.91]. Additions to fixed assets and capital work in progress were BDT 87.1m in FY2022 and BDT 12.3m to BDT 15.4m in each of FY2023-FY2025 [1 p.40]. The chief executive's letter reports a 1,150 kW solar plant installed at Gazipur in addition to 362 kW at Chattogram, and rainwater harvesting at both sites [1 p.29]. Factory salaries, wages and others were BDT 243.3m in FY2025 against BDT 232.2m, administrative salaries BDT 102.4m and selling salaries BDT 27.9m [1 p.112] [1 p.113]; together these are 12.9% of FY2025 revenue (derived). The filings we read do not give a headcount.

Ten-year record: revenue peaked at BDT 3.2bn in FY2022; profit after tax stayed between BDT 122m and BDT 166m

The ten-year record. Revenue was BDT 1,609.8m in FY2016 and BDT 1,585.9m in FY2017, rose to BDT 2,302.2m in FY2019, dipped to BDT 1,922.3m in FY2020, and reached BDT 3,199.7m in FY2022, the highest of FY2016-FY2025 [5 p.79] [1 p.67]. It then fell two years running, to BDT 2,794.6m and BDT 2,530.7m, before rising 14.1% to BDT 2,888.2m in FY2025 [1 p.67] [13]. Over the nine years revenue grew at 6.7% a year (derived) [13].

Profit grew more slowly than revenue. Profit after tax was BDT 122.3m in FY2016 and BDT 163.7m in FY2025; the highest was BDT 165.7m in FY2022 [5 p.79] [1 p.67]. Gross margin ranged from 15.5% (FY2022) to 22.3% (FY2016) and was 17.2% in FY2025 [13]. Operating margin fell from 14.0% in FY2016 to 7.5% in FY2025, the lowest in the series [13]. Net margin held between 5.2% and 7.9%; over FY2020-FY2025 finance income from the affiliates more than doubled while operating profit was BDT 213.8m in FY2021 and BDT 217.4m in FY2025 [13] [1 p.113] [1 p.67].

Share count. Bonus issues of 10% for 2016, 5% for each of 2017-2019, 7.5% for 2020 and 5% for 2024 took the share count from 52.0m (paid-up capital BDT 520.0m in FY2016) to 74,741,479 [9] [5 p.79] [1 p.88]. Printed EPS is on each year's share count, so it understates the growth in total profit: BDT 2.14 in FY2016 and BDT 2.19 in FY2025 while profit after tax rose by a third [5 p.79] [1 p.67]. The FY2024 EPS of BDT 2.16 was restated to BDT 2.06 in the FY2025 report for the bonus [1 p.89].

Line items: raw materials rose to 66% of FY2025 revenue, and affiliate interest of BDT 91.5m equalled 47% of pre-tax profit

Revenue. FY2025 revenue rose by BDT 357.5m, of which cartons were BDT 327.1m [1 p.111] [13]. Carton output rose 14.8% (24.32m against 21.18m pieces) [1 p.116]. The chief executive's letter credits "disciplined execution, efficiency in production, and close coordination between management teams and our valued clients" [1 p.29]. The nine months to March 2026 reversed the gain: revenue fell from BDT 2,239.0m to BDT 1,971.7m [2 p.3]. The company's DSE explanation for the lower nine-month EPS refers to "lower revenue and operating profit" [8]. Quarter by quarter, January-March 2026 revenue was BDT 651.2m against BDT 738.2m a year earlier [2 p.3].

Cost of goods sold. Raw materials consumed rose from BDT 1,605.5m to BDT 1,908.4m in FY2025, from 63.4% to 66.1% of revenue (derived) [1 p.111]. Factory overhead rose 6.2% to BDT 491.4m; its largest lines were salaries and wages (BDT 243.3m), depreciation (BDT 73.0m), gas (BDT 45.7m) and stores and spares (BDT 44.0m) [1 p.112]. Gross margin fell from 18.1% to 17.2% [13]. In the nine months to March 2026 gross margin was 17.3%, up from 16.5% on lower revenue [2 p.3] [13].

Operating expenses. Administrative expenses were BDT 203.1m in FY2025 and selling and distribution BDT 76.0m [1 p.89]. Within selling, "Sales promotion and commission expenses" more than doubled from BDT 10.9m to BDT 23.1m and carriage outward rose to BDT 23.4m [1 p.113]. Administrative costs include directors' remuneration of BDT 6.1m, gratuity of BDT 16.8m and interest on the workers' fund of BDT 6.1m [1 p.112]. Operating profit was BDT 217.4m, 7.5% of revenue [1 p.89] [13].

Finance cost. The printed finance cost has three parts: interest on bank loans, bank charges, and exchange losses. In FY2025 these were BDT 61.5m, BDT 13.2m and BDT 36.1m, a total of BDT 110.8m [1 p.113]. The exchange line is the volatile one: BDT 45.2m in FY2022, BDT 103.5m in FY2023, BDT 8.2m in FY2024 and BDT 36.1m in FY2025 [3 p.137] [1 p.113]. The printed interest cover was 1.72x in FY2023, against 10.30x to 11.79x in FY2021, FY2024 and FY2025 [1 p.67]. The FY2025 trade payables include a foreign-currency translation loss of BDT 45.2m on imported-goods liabilities (BDT 95.9m a year earlier) [1 p.109]. In the nine months to March 2026 finance cost fell to BDT 61.2m from BDT 93.2m [2 p.3].

Finance income. It was BDT 92.1m in FY2025, almost all of it (BDT 91.5m) "Interest income from inter-company receivable" [1 p.113]. The same line was BDT 41.8m in FY2020, BDT 42.2m in FY2021, BDT 49.6m in FY2022, BDT 62.4m in FY2023 and BDT 76.5m in FY2024 [4 p.138] [3 p.137] [1 p.113]. As a share of profit before tax it rose from 24.2% in FY2020 to 47.5% in FY2025 [13]. Profit before tax without it was BDT 130.6m in FY2020, BDT 139.0m in FY2022 and BDT 101.3m in FY2025 (derived) [13]. In the nine months to March 2026 finance income was BDT 70.7m, 49.4% of profit before tax [2 p.3] [13].

Tax and the workers' fund. The workers' profit participation and welfare fund takes 5% of profit before it: BDT 10.1m in FY2025 [1 p.89]. The tax charge was BDT 29.0m, an effective rate of 15.07%; the reconciliation starts from a 20% rate and deducts 12.55 points for the export rebate [1 p.110]. In the nine months to March 2026 the tax charge was 20.6% of profit before tax [2 p.3] [13].

Quarterly earnings. The DSE posts show quarterly EPS of BDT 0.55, 0.45 and 0.52 for the first three quarters of FY2026, against BDT 0.56, 0.49 and 0.51 a year earlier [8]. With full-year EPS of BDT 2.20, the fourth quarter (April-June 2026) works out at BDT 0.68, against BDT 0.63 for April-June 2025 (derived) [8] [1 p.89] [13]. FY2026 profit after tax on 74.74m shares is about BDT 164.4m (derived from the announced EPS; the audited statements are not in our corpus) [13].

Ratios: ROE of 8-9% for a decade; FY2025 operating margin of 7.5% was the lowest in ten years

Returns. ROE on average equity, computed from the printed profit and equity, was between 8.1% (FY2024) and 9.3% (FY2022) in FY2017-FY2025, and 8.2% in FY2025 [13]. The company's own ratio on closing equity was 7.91% in FY2024 and FY2025, down from 9.27% in FY2016 [1 p.67] [5 p.79]. Equity includes a revaluation reserve of BDT 214.4m on land; without it, June 2025 NAV per share would be BDT 24.84 instead of BDT 27.71 [1 p.88] [13].

Efficiency. The printed asset turnover was 0.66x in FY2025 and has stayed between 0.57x and 0.76x since FY2016 [5 p.79] [1 p.67]. Inventory turnover was 3.57x in FY2025 against 2.72x in FY2023 [1 p.67]. On our working-capital basis, receivable days were 215 at June 2025 and 243 at March 2026 (on annualised nine-month revenue), inventory days rose from 101 to 161, and payable days, which include trade and other payables, were 284 and 307 [13]. The cash cycle was 47 days at June 2024 and June 2025, and 97 days at March 2026 [13].

Leverage and coverage. Bank borrowings were BDT 334.4m at June 2024, BDT 385.8m at June 2025 and BDT 557.2m at March 2026, or 0.17x, 0.19x and 0.26x equity [13]. The company's printed "Debt Equity Ratio" is a different measure, 1.25x in FY2025, which equals total liabilities divided by equity (derived); we quote it as printed [1 p.67]. Short-term bank loans at June 2025 were with Bank Asia (BDT 163.2m in overdraft and demand loans), Standard Chartered (BDT 85.6m), NRB Bank (BDT 72.7m) and Southeast Bank (BDT 0.5m) [1 p.110].

Cash conversion. Operating cash flow was 5.27x profit after tax in FY2024 and 1.00x in FY2025, and negative in the nine months to March 2026 [13]. The printed NOCF per share has swung from BDT -8.97 (FY2023) to BDT 11.38 (FY2024) [1 p.67]. In FY2025, after capital spending of BDT 13.7m and BDT 177.1m of new lending to the affiliates, the residual was BDT -27.5m [1 p.91] [13]. The company classifies the affiliate lending under financing activities [1 p.91].

Balance sheet: BDT 995m due from two group companies with no repayment schedule, and 65% of trade receivables over three months

The affiliate loans. Note 13 shows BDT 995.5m "Due from affiliated companies" at June 2025: BDT 944.6m from KDS Thread Limited and BDT 50.8m from KDS Poly Industries Limited, against BDT 772.0m and BDT 46.3m a year earlier [1 p.105]. The note states: "The above amounts represent transactions with KDS Poly Industries Limited and KDS Thread Limited during the period and all the transactions were made through banking channel" [1 p.105]. The credit-risk note adds: "The carrying amount represents amount paid to two of the inter companies to meet its operational finance from time to time. The outstanding balance is redeemable including 9.5% (30 June 2024: 9-9.5%) interest per annum and has no prescribed repayment schedule" [1 p.116]. The related-party annexure lists both companies under "Common Directorship" [1 p.68].

How the balance built up. The amount due was BDT 273.7m at June 2019 and BDT 273.8m at June 2020; at June 2020 KDS Thread owed BDT 268.1m, up from BDT 28.3m a year before [5 p.141] [5 p.82]. It was BDT 514.5m at June 2022, BDT 862.9m at June 2023 (KDS Thread BDT 794.8m, KDS Poly BDT 68.1m), BDT 818.4m at June 2024 and BDT 995.5m at June 2025 [3 p.141] [3 p.82] [1 p.105]. At March 2026 it was BDT 988.7m [2 p.2]. The implied yield on the average balance was 10.1% in FY2025 (derived), against the 9.5% rate in the note [13] [1 p.116].

Trade receivables. They were BDT 1,698.8m at June 2025, up 22.9% while revenue rose 14.1% [1 p.88] [13]. BDT 323.2m of them was due from four group garment makers: KDS Fashion BDT 139.2m, KDS IDR BDT 135.7m, KDS Garment Industries BDT 44.3m and KDS Apparels BDT 3.9m [1 p.105]. The ageing note shows BDT 1,106.0m "Dues over 3 Months" and BDT 592.8m within three months, and the company states that "management believes that the amounts are collectible in full" [1 p.116]. No provision for doubtful debts is shown; the classification table puts nothing in "Receivable considered doubtful or bad debt" [1 p.105]. The share due over three months was 53.2% at June 2019 and 65.1% at June 2025 [5 p.141] [1 p.116] [13].

Other items. The company holds an investment of BDT 30.4m in SKYS Securities Limited at cost, unchanged in FY2025 and at March 2026 [1 p.88] [2 p.2]. Inventories rose from BDT 571.6m to BDT 769.1m at June 2025 and to BDT 959.7m at March 2026 [1 p.88] [2 p.2]; inventory was a key audit matter [1 p.84]. The defined-benefit gratuity obligation was BDT 161.8m at June 2025 and BDT 180.6m at March 2026 [1 p.88] [2 p.2]. The workers' fund provision of BDT 91.4m at June 2025 carries interest that the company credits to it (BDT 6.1m in FY2025) [1 p.111].

Audit. Hussain Farhad & Co. gave an unmodified opinion on the FY2025 statements, signed in Chattogram on 21 October 2025: "In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at 30 June 2025 and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) and comply with the Companies Act, 1994, the Securities and Exchange Rules, 2020 and other applicable laws and regulations." [1 p.84] [1 p.88]. There is no emphasis of matter in the report pages read. The third key audit matter is "Identification and completeness of disclosure of related party transactions", chosen "due to high volume of business transactions with related parties during the year ended 30 June 2025"; the auditor's procedures included obtaining "balance confirmation from the related parties" [1 p.85].

Peers: KDS had the highest FY2025 net margin of three trims makers and the lowest gross margin

Peers. The trims sub-group of DSE-listed textile companies includes two sewing-thread makers with June year-ends and FY2025 annual reports in our corpus: Simtex Industries PLC and VFS Thread Dyeing Limited. Simtex's auditor gave an unmodified opinion [6 p.95]. VFS Thread Dyeing's auditor gave a qualified opinion, because "unclaimed dividend shown in the financial statement amount Tk. 18,429,632/- but closing balance found in dividend bank account amount Tk. 43,477/-. Therefore, there is shortage of fund amount Tk. 18,386,155/- in the dividend bank account", and added an emphasis of matter on its workers' fund [7 p.70]. We include VFS's figures with that footnote. Neither peer makes cartons, so the comparison covers margins, financing and multiples, not products.

What the comparison shows. Of the three, KDS had the largest revenue, BDT 2,888.2m against BDT 1,997.9m at Simtex and BDT 270.3m at VFS, and the highest net margin, 5.7% [1 p.89] [6 p.101] [7 p.77] [13]. Its gross margin of 17.2% was the lowest of the three (Simtex 17.7%, VFS 20.7%) [13]. Finance income is shown only by KDS: it booked BDT 92.1m, and neither peer prints a finance-income line [1 p.89] [6 p.101] [7 p.77]. Gross finance cost was 3.8% of revenue at both KDS and Simtex and 10.6% at VFS [13]. KDS had the second-lowest bank borrowings to equity of the three: 0.19x against 0.37x at Simtex and 0.10x at VFS [13].

Governance: sponsors hold 63.97%; cash dividends in every year of the DSE list, 10% for FY2026

Ownership. At June 2025 the sponsors and directors held 63.97%: chairman Khalilur Rahman 42.99%, managing director Salim Rahman 14.09%, director Tahsina Rahman 3.84%, KDS Garment Industries Limited 2.01% and Tahmina Rahman 0.001%; institutions held 14.80% [1 p.68]. The DSE page shows the sponsor holding unchanged at 63.97% on 30-Sep-2026, with institutions at 12.50% and the public at 23.53% [9]. KDS Garment Industries, the group company on the board, is represented by Kamrul Hasan Siddiqui FCA [1 p.68].

Board and pay. The directors' report states that directors receive no remuneration "except the Managing Director for his direct participation to Company's day to day operations"; the managing director's pay was BDT 6.1m [1 p.40]. Professor Sarwar Jahan is listed as independent director [1 p.40]. The chief executive officer is Debasis Daspal [1 p.29]. The directors' report says there were "no materially significant related party transactions" other than those in note 37 and Annexure G [1 p.40].

Group links. Six group companies appear in the related-party annexure, all through "Common Directorship": four as customers (KDS Fashion, KDS Garment Industries, KDS IDR, KDS Apparels) with balances "Receivable Against Sales", and two (KDS Poly Industries, KDS Thread) with "Short Term Loan" balances [1 p.68] [1 p.105]. The related-party annexure is badly reproduced in the text layer; we use the note 10 and note 13 figures on p.105, which tie to the balance sheet [1 p.105] [1 p.88]. The annexure does not give FY2025 sales to each group customer in a form we could read; this is listed as a gap.

DSE news, 24 months. The archive from 31-Oct-2024 to 1-Nov-2026 contains results posts, board-meeting notices, the FY2024 and FY2025 dividend disbursements, two CRISL ratings and the FY2026 declaration [8]. It contains no board approval of capital spending, new plant, a rights issue or a change in the affiliate loans in that period [8]. The FY2024 dividend was 5% cash and 5% bonus; the DSE posts show the bonus shares credited on 12-Jan-2025 and the cash disbursed on 19-Jan-2025 [9] [8].

Dividends. Cash dividends in the DSE list were 5% for 2016, 10% for 2017-2019, 7.5% for 2020, 15% for 2021, 16% for 2022, 10% for 2023, 5% for 2024 and 10% for 2025 [9]. The FY2026 recommendation is 10% cash, BDT 74.7m on 74,741,479 shares (derived), with record date 18-Nov-2026 and the AGM on 14-Dec-2026 [8] [13]. The cash payout of printed EPS was 45.7% in FY2025 and 45.5% on the FY2026 figures [13].

Share price: BDT 40.6 on 1-Nov-2026, 18.5x FY2026 EPS and 1.40x NAV

Share price. The shares closed at BDT 40.6 on 1-Nov-2026; the 52-week range on the DSE page was BDT 35.90-55.90 [12] [9]. The month-end close was BDT 39.5 at June 2025 and BDT 53.2 at June 2026 [12]. The DSE page gives a market capitalisation of BDT 3,079.3m and a free-float market capitalisation of BDT 1,109.6m [9].

Multiples as facts. On FY2026 EPS of BDT 2.20 the P/E is 18.45x; the DSE page shows 18.45x on 1-Nov-2026 [8] [9]. P/B on the June 2026 NAV of BDT 28.91 is 1.40x and the cash yield on the recommended BDT 1.00 is 2.46% [8] [13]. The annual reports print the year-end P/E for each year: between 17.55x (FY2024) and 35.76x (FY2023) over FY2016-FY2025 [5 p.79] [1 p.67]. Against the two peers on FY2025 figures, the P/E was 18.5x for KDS, 23.5x for Simtex and 125.6x for VFS [13].

What's next: Q1 FY2027 results (inferred 12-Nov-2026), record date 18-Nov-2026, AGM 14-Dec-2026

Two dates are notified by the company. The others are inferred from earlier board-meeting dates and labelled; as of 1-Nov-2026 no board meeting date for the first quarter of FY2027 had been posted in the DSE news [8]. The FY2026 annual report, with the audited statements, had not reached our corpus by that date.

What each item moves. The Q1 FY2027 statements will show revenue after the 11.9% nine-month fall to March 2026, the affiliate balance and the interest it earns, and short-term bank loans, which were BDT 515.8m at March 2026 [2 p.2] [2 p.3]. The record date and AGM settle a dividend of about BDT 74.7m [8] [13]. LDC graduation is now dated 24-Nov-2029, after the UN General Assembly adopted the extension on 29-Oct-2026 in New York [10] [11]; the company's customers are garment exporters, and the FY2025 report gives no estimate of the effect [1 p.64].

Already announced, and therefore not in the table: FY2026 EPS of BDT 2.20, NAV per share of BDT 28.91, NOCF per share of BDT -2.52 and the 10% dividend, all on 27-Oct-2026 [8]. The chief executive listed FY2026 priorities of "Increasing automation and data-driven efficiency in production" and "Expanding the range of sustainable packaging solutions" [1 p.29]; we found no board approval, budget or date for either in the DSE news [8].

Risks: the BDT 995m affiliate balance, carton demand and exchange losses move profit the most

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

The affiliate balance is the largest single item. Its BDT 995.5m at June 2025 equals 48.1% of equity, and the interest it earned was 47.5% of profit before tax [1 p.105] [1 p.113] [13]. The filings give no financial statements for KDS Thread or KDS Poly, so their ability to pay cannot be read from the pages we have. Each percentage point of interest on that balance is about BDT 10.0m a year (derived) [13]. Raw materials are the largest cost: each percentage point of FY2025 revenue is BDT 28.9m, against operating profit of BDT 217.4m [1 p.89] [1 p.111] [13]. Exchange losses in finance cost have ranged from BDT 8.2m to BDT 103.5m in FY2022-FY2025 [3 p.137] [1 p.113].

Key questions: the affiliate balance, FY2026 margins and receivable ageing

In one line: the filings describe a carton and trims maker with ten years of EPS between BDT 2.09 and BDT 2.33, where interest on BDT 995m lent to two group companies grew to 47% of pre-tax profit by FY2025 [1 p.67] [1 p.113] [1 p.105].

FAQ

What does KDS Accessories make?

Cartons, woven and smart labels, printed transfers, buttons, elastics, gum tape and hangers for garment exporters; cartons were 82.05% of FY2025 revenue [1 p.92] [1 p.111].

When does the financial year end?

On 30 June. FY2026 ended on 30-Jun-2026 [8].

What was KDSALTD's EPS for FY2026?

BDT 2.20, against BDT 2.19 for FY2025, as announced on 27-Oct-2026 [8].

What dividend did the company declare for FY2026?

10% cash, BDT 1.00 a share; record date 18-Nov-2026 and AGM 14-Dec-2026 [8].

How much does KDS Accessories lend to group companies?

BDT 995.5m was due from KDS Thread and KDS Poly at June 2025 and BDT 988.7m at March 2026, at 9.5% interest with no prescribed repayment schedule [1 p.105] [1 p.116] [2 p.2].

How much of profit comes from that interest?

BDT 91.5m in FY2025, equal to 47.5% of profit before tax of BDT 192.8m [1 p.113] [1 p.89] [13].

Who owns the company?

Sponsors and directors held 63.97% at 30-Sep-2026; chairman Khalilur Rahman held 42.99% at June 2025 [9] [1 p.68].

Who audits KDS Accessories?

Hussain Farhad & Co., Chartered Accountants, which gave an unmodified opinion on FY2025 [1 p.84].

Sources

1. KDS Accessories Limited Annual Report 2024-2025 (year to 30-Jun-2025; PDF page numbers, printed page = PDF page - 2) · link · accessed 2026-11-01
2. KDS Accessories Limited un-audited financial statements, nine months to 31-Mar-2026 · link · accessed 2026-11-01
3. KDS Accessories Limited Annual Report 2022-2023 · link · accessed 2026-11-01
4. KDS Accessories Limited Annual Report 2020-2021 · link · accessed 2026-11-01
5. KDS Accessories Limited Annual Report 2019-2020 (five-year data FY2016-FY2020) · link · accessed 2026-11-01
6. Simtex Industries PLC Annual Report 2024-2025 (peer; unmodified opinion, p.95) · link · accessed 2026-11-01
7. VFS Thread Dyeing Limited Annual Report 2024-2025 (peer; qualified opinion, p.70) · link · accessed 2026-11-01
8. Dhaka Stock Exchange news archive for KDSALTD, 31-Oct-2024 to 1-Nov-2026 (results, dividends, board meetings, credit ratings) · link · accessed 2026-11-01
9. Dhaka Stock Exchange company page for KDSALTD (shareholding to 30-Sep-2026, dividend history, market data), accessed 1-Nov-2026 · link · accessed 2026-11-01
10. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
11. The Business Standard, 'Bangladesh gets 3 more years before LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
12. AnalystBro price data (TradingView feed): DSE:KDSALTD monthly bars Nov-2024 to 1-Nov-2026; DSE:SIMTEX and DSE:VFSTDL closes 1-Nov-2026 · link · accessed 2026-11-01
13. AnalystBro history and ratio model for KDSALTD (model.xlsx, the workbook below) · link · accessed 2026-11-01