Malek Spinning Mills financial analysis: garments earn 79% of group profit as the yarn spread narrows (Oct 2026)

Investment considerations: a garment group wrapped in a spinning company, with modest debt and a sponsor-waived dividend

Malek Spinning Mills PLC (MSM) was incorporated in November 1989, started producing yarn in January 1991 and listed on the Dhaka and Chittagong exchanges in August 2010 [1 p.10]. The listed company is a 100% export-oriented spinner of combed and carded cotton yarn, with 59,964 spindles and installed capacity of 12.4m kg a year at Shafipur, Kaliakoir, Gazipur [1 p.9] [1 p.12]. But the parent mill is the smaller part of the group. MSM owns 99.998% of J.M. Fabrics Ltd, a knitting, dyeing and garment factory at Mirzapur, Gazipur with capacity of 55.33m pieces a year; 97.93% of Salek Textile Ltd, which runs a rotor (open-end) yarn unit and a denim fabric unit; and 99.29% of Newasia Synthetics Ltd, a polyester fibre project shelved for lack of a gas connection [1 p.12] [1 p.15]. The consolidated accounts that drive the reported EPS are therefore mostly a garment business.

Three facts in the filings stand out. First, the earnings come from the garment subsidiary: J.M. Fabrics made a profit after tax of BDT 1,140m in FY2025, against consolidated profit of BDT 1,439m, while the parent spinning mill reported BDT 233m, of which BDT 120m was a dividend from J.M. Fabrics itself [1 p.15] [1 p.16] [1 p.13]. Second, the spinning margin is thin and moves with the cotton price: the parent's average realised yarn price fell from BDT 401.89 a kg in FY2022 to BDT 361.40 in FY2025 while cotton cost per kg produced stayed near BDT 290-300, so the spread over cotton fell from about BDT 119 to about BDT 69 [3 p.12] [1 p.12] [14]. Third, bank debt was 0.83x equity at June 2025 and 0.70x at March 2026, and operating profit covered finance cost about three times in FY2024 and FY2025 [1 p.42] [2 p.1] [14]. Against that, the sponsors have waived their dividend for three years running and lent the company money, which the company links to 'desirable level of liquidity and debt servicing' [1 p.11].

Business: a 12.4m kg spinning mill that owns a 55m-piece garment factory

How the group makes money. The parent buys raw cotton abroad (BDT 2,856m, or USD 23.9m, of cotton imports in FY2025) and spins it into knit yarn for export-oriented garment makers [1 p.76]. All of its sales are export sales under letters of credit, so the yarn is priced in US dollars even when the buyer is a Bangladeshi factory [1 p.10] [1 p.13]. Nearly half of those sales stay inside the group or go to companies with common directors: J.M. Fabrics bought BDT 1,070m of yarn, Salek Textile BDT 341m and Knit Asia Ltd BDT 771m in FY2025 [1 p.75]. J.M. Fabrics then knits, dyes and sews T-shirts, intimate wear and seamless garments for export, and Salek Textile makes open-end yarn (capacity 12.07m kg) and denim fabric (18m yards) [1 p.12] [1 p.15]. Group sales of the three operating companies were BDT 24,277m in FY2025 before BDT 1,410m of inter-company sales were eliminated, leaving consolidated sales of BDT 22,867m [1 p.54].

Capacity and utilisation. The parent's installed capacity was 12.6m kg a year with 63,624 spindles through FY2023 and 12,425,000 kg with 59,964 spindles in FY2025 [3 p.12] [1 p.12]. Utilisation (actual output over installed kg) was 81.5% in FY2020, 87.9% in FY2022, 74.6% in FY2023 and 75.7% in FY2024, then rose to 85.3% in FY2025 [4 p.12] [3 p.12] [1 p.12]. The chairman attributes the FY2025 gain to the replacement of old machinery and generators, which cost BDT 915m in FY2024 (BDT 602m of plant and BDT 221m of generators); a further BDT 70m in FY2025 went on replacing worn-out machinery under a price-sensitive disclosure of 3-Apr-2023 [1 p.11] [1 p.14]. The reports do not give the count mix, so output in kg is not adjusted for finer or coarser yarn. In the subsidiaries, J.M. Fabrics produced 34.1m pieces against capacity of 55.33m (61.6%), and Salek produced 8.64m kg of rotor yarn against 12.07m kg (71.5%) [1 p.12] [1 p.15] [14].

The decade. Consolidated EPS was between BDT 0.76 and 1.52 in FY2016-FY2019, a loss of BDT 1.68 in FY2020 (the company cites COVID-19), BDT 3.36 and 3.72 in FY2021-FY2022, a loss of BDT 1.14 in FY2023, and BDT 7.38 and 7.41 in FY2024-FY2025 [5 p.10] [1 p.10] [5 p.16]. Consolidated sales rose from BDT 9,765m in FY2020 to BDT 22,867m in FY2025, 2.3 times, while the parent's own turnover rose from BDT 2,584m to BDT 4,638m [4 p.44] [1 p.43] [1 p.10]. The gap between consolidated and standalone EPS, which measures what the subsidiaries add, widened from about BDT 0.63 in FY2016 to BDT 6.20 in FY2025 [14]. Two restructuring steps sit in between: Salek Textile listed an RMG unit among three units in FY2021 but only two units in FY2023, and the FY2022 accounts show a BDT 142m loss from a discontinued operation [4 p.12] [3 p.12], and J.M. Fabrics' seamless garment line, set up in FY2019, began commercial operation in FY2020 [3 p.43] [5 p.12].

Line items: the yarn spread narrowed to about BDT 69 a kg, gas per kg rose 92% in FY2023, and garments set the group margin

Revenue: kilos and the yarn price at the parent, pieces at J.M. Fabrics. At the parent, kilos sold were 10.6m in FY2020, 10.7m in FY2021, 10.1m in FY2022, 10.5m in FY2023, 9.7m in FY2024 and 12.8m in FY2025 [4 p.12] [3 p.12] [1 p.12]. The FY2025 volume jump of 32.4% came partly from stock: the parent sold 12.83m kg but produced 10.60m kg, and its finished-goods stock fell from BDT 1,321m to BDT 1,169m [1 p.12] [1 p.72]. Average realised price per kg was BDT 243.64 in FY2020, BDT 401.89 at the FY2022 peak and BDT 361.40 in FY2025 [4 p.12] [3 p.12] [1 p.12]. The directors explain that cost of goods sold rose to 87.19% of parent sales in FY2025 from 83.64% because of the 'decrease of sales price' [1 p.13]. At J.M. Fabrics, pieces produced rose 1.6% to 34.1m but sales fell 2.9% to BDT 14,737m, so revenue per piece fell [1 p.15]. Consolidated sales grew only 2.9% in FY2025, which the company attributes to higher sales quantity [1 p.60].

Cotton and the yarn spread. Raw material (cotton) consumed was 66.9% of parent sales in FY2025 and 92.3% in FY2023 [14]. Dividing raw material consumed by kilos produced gives a cotton cost of BDT 197 a kg in FY2020, BDT 283 in FY2022, BDT 378 in FY2023 and BDT 293 in FY2025 [4 p.71] [3 p.73] [1 p.72] [14]. The spread (price per kg sold less cotton per kg produced) was BDT 46 in FY2020, BDT 89 in FY2021, BDT 119 in FY2022, about BDT -13 in FY2023, BDT 87 in FY2024 and BDT 69 in FY2025 [14]. FY2023 shows the risk in the model: cotton cost per kg rose 33% while the yarn price fell 9%, and the parent made a gross loss of BDT 273m [3 p.10] [3 p.12]. The measure is approximate because the reports give cotton cost in taka without kilos consumed, and kilos sold differ from kilos produced when stock moves. The parent held 4.2 months of cotton at June 2025 (BDT 1,090m), against 5.6 months a year earlier [1 p.72] [14], so a price fall first passes through a stock that was bought dearer.

Gas and power. The parent runs on gas: gas charges were BDT 180m in FY2020 and BDT 183m in FY2022, then BDT 298m in FY2023 and BDT 301m in FY2024, while electricity bought from the grid was only BDT 7m in FY2025 [4 p.71] [3 p.73] [1 p.72]. Per kg produced, gas rose from about BDT 16.6 in FY2022 to BDT 31.8 in FY2023 and then fell to BDT 24.8 in FY2025 [14]. The FY2023 jump matches the tariff change reported by The Business Standard, which said the gas price for captive power rose to Tk 30 a cubic metre from Tk 16, effective 1-Feb-2023 [10]. The FY2025 fall per kg coincides with the new generators installed in FY2024 and higher output [1 p.14]. For the group, gas cost BDT 770m in FY2025 (BDT 819m in FY2024), electricity BDT 118m, CNG BDT 21m (none in FY2024) and fuel oil BDT 142m; energy in total was 4.6% of consolidated sales [1 p.55] [14]. Newasia Synthetics shows the other side of the gas question: its polyester project has been shelved since the 2010 AGM because Titas Gas did not provide a connection [1 p.15] [7].

Labour. The group is labour-heavy because of the garment factory: consolidated direct labour was BDT 3,246m in FY2025, 14.2% of sales, up 6.4% [1 p.54] [14]. The parent itself employs 181 executives and staff and 981 workers, and its direct labour per kg rose from BDT 11.5 in FY2020 to BDT 17.8 in FY2025 [1 p.10] [14].

Finance cost. Consolidated financial expenses were BDT 548m in FY2020, fell to BDT 346m in FY2022, then rose to BDT 774m in FY2024 and BDT 804m in FY2025 [4 p.44] [3 p.43] [1 p.43]. As a share of sales that is 2.1% in FY2022 and 3.5% in FY2025 [14]. The rise follows bank rates and debt: financial expenses divided by average bank debt including acceptances went from 3.0% in FY2022 to 5.9% in FY2024 and 5.7% in FY2025 [14]. The largest single items are long-term loan interest to Trust Bank (BDT 213m) and Dhaka Bank (BDT 100m) [1 p.56]. In the nine months to March 2026 financial expenses fell 3.6% to BDT 580m [2 p.2].

Other income and tax. Other income was BDT 160m in FY2025 and BDT 188m in FY2024, 9.3% of profit before tax [1 p.43] [14]. In FY2023 it was BDT 206m, larger than the year's profit before tax of BDT 26m [3 p.43]. The notes give the company tax rate as 15% for the textile sector and 12% for garments [1 p.52]; the effective rate was 16.3% in FY2025, and in FY2023 the tax charge of BDT 254m was larger than profit before tax of BDT 26m, which turned a small pre-tax profit into a BDT 228m loss [3 p.43] [14].

A history-based sensitivity. The parent sold 12.83m kg in FY2025 [1 p.12], so each BDT 1 a kg change in the spread moved its gross profit by about BDT 13m, or BDT 0.07 a share, in that year [14]. Each 1pp change in consolidated gross margin on FY2025 sales of BDT 22,867m was worth about BDT 229m, or BDT 1.18 a share [1 p.43] [14]. The second number is six times the first under these FY2025 figures, which is the arithmetic reason the garment margin matters more to consolidated EPS than the yarn spread.

FY2026: Q3 EPS of BDT 0.50, implied Q4 of BDT 2.89, and full-year EPS of BDT 6.93

FY2026 by quarter. Consolidated EPS was BDT 1.89 in Q1 (1.73 a year earlier), BDT 1.65 in Q2 (2.62) and BDT 0.50 in Q3 (1.43) [7] [2 p.2]. Nine-month sales were flat at BDT 18,036m but gross margin fell to 9.1% from 11.5%; the company says cost of goods sold rose to 90.87% of sales 'due to decrease of sales price comparatively more than decrease of raw material price and increase of factory overhead' [2 p.27]. Nine-month profit was BDT 782m, down 30.1% [2 p.2] [14]. Nine-month operating cash flow was BDT 8.96 a share against BDT 2.79, which the company ties to lower payments to suppliers [7].

The full year. On 27-Oct-2026 the company announced consolidated EPS of BDT 6.93, NAV per share of BDT 67.03 and operating cash flow of BDT 11.61 a share for the year to 30-Jun-2026, against BDT 7.41, 60.63 and 8.38 [7]. That implies Q4 EPS of BDT 2.89, above the BDT 1.63 of Q4 FY2025 [14]. MISSING FILING: the FY2026 annual report is not in our corpus, so we cannot yet say whether Q4 came from margin, volume, other income or tax; the model will be updated in place when it is filed. The board recommended a 10% cash dividend for general shareholders only, record date 17-Nov-2026, AGM 21-Dec-2026 on a digital platform [7].

Subsidiaries: J.M. Fabrics made 79% of FY2025 profit, and 47% of the parent's yarn went to related parties

J.M. Fabrics carries the group. Its profit after tax was BDT 1,177m in FY2024 and BDT 1,140m in FY2025, 82% and 79% of consolidated profit [1 p.15] [14]. Its gross margin was 9.2% and its net margin 7.7%, which implies small finance and tax costs for a BDT 14.7bn garment business [1 p.15] [14]. It declared a 30% interim cash dividend for FY2025 (BDT 120m to MSM) and a 60% interim dividend on its nine-month FY2026 results, worth BDT 240m to MSM, announced on 30-Apr-2026 [1 p.15] [7]. These dividends are eliminated on consolidation, but they are how cash reaches the listed parent, whose own retained earnings were BDT 295m at June 2025 [1 p.62].

Salek Textile. Sales were BDT 4,902m in FY2025 (+6.1%) with a gross margin of 14.6% and profit after tax of BDT 161m; it paid no dividend 'in order to strengthen the financial position of the company' [1 p.15]. Its rotor-yarn output fell to 8.64m kg from 9.75m kg and fabric output to 12.43m yards from 13.06m [1 p.15]. The auditor's emphasis of matter on Salek's VAT returns, BDT 422 crore of sales against BDT 490 crore of LC sales, is explained as non-issuance of VAT challans for inter-unit sales; the opinion is not qualified [1 p.38]. Salek also has a BDT 43.9m cash-incentive claim with Bangladesh Bank, shown as a contingent asset [1 p.60].

Newasia Synthetics. The polyester project has been shelved since the 2010 AGM. On 24-Jun-2026 MSM's board approved NSL raising its paid-up capital from BDT 660m to BDT 900m, with MSM subscribing BDT 238.3m from internal funds, for 'purchase of additional strategic lands, ancillary investments, other purposes and obligations of NSL' [7]. NSL already had NAV per share of BDT 298.65 and added BDT 17.7m of land in FY2025 [1 p.15]. This is cash leaving the listed company for land in a non-operating subsidiary.

Related parties. The share of the parent's sales going to related parties rose from 33.6% in FY2020 and 38.1% in FY2021 to 50.8% in FY2024 and 47.3% in FY2025 [4 p.71] [1 p.72] [14]. In FY2025, 30.4% went to the two subsidiaries and 16.9% to Knit Asia Ltd and Aurum Sweaters Ltd, which share directors with MSM [1 p.75] [14]. Sales to Knit Asia and J.M. Fabrics each exceeded 10% of the prior year's revenue and were put to shareholders for approval, excluding connected votes; the directors state the yarn is priced at the 'market price of yarn in the Bangladesh export-oriented market' [1 p.17]. Related-party receivables were BDT 304m at June 2025, of which Knit Asia owed BDT 66m (BDT 3m a year earlier) [1 p.75]. The parent also rents its head office from Hejaz Publication Ltd, a common-director company, for BDT 10.6m a year [1 p.75].

Ratios: ROE of 15%-13% in the last two audited years, cash conversion now above 1x

Margins. Consolidated gross margin was 5.3% in FY2020, 9.8% in FY2022, 3.3% in FY2023 and 12.0%-11.7% in FY2024-FY2025, then 9.1% in the nine months to March 2026 [14]. Net margin peaked at 6.3% in FY2025 [14]. The FY2024 step-up coincided with J.M. Fabrics' sales of BDT 15.2bn, which the FY2025 report gives as the comparative [1 p.15]; the FY2023 report does not split subsidiary results in the same way, so the step cannot be fully allocated between garments and yarn from the filings we read.

Returns. ROE on average consolidated equity was 7.5% in FY2021, 7.8% in FY2022, -2.4% in FY2023, 14.7% in FY2024 and 13.0% in FY2025 [14]. Equity includes a revaluation surplus of BDT 3,233m from a July 2012 revaluation, 27.5% of equity at June 2025 [1 p.42] [1 p.38]; on equity excluding that surplus, FY2025 ROE would be about 18.4% [14]. The parent alone has never earned more than about 5% on its equity in the ten years shown [14].

Working capital. Receivable days on consolidated sales fell from 97 at June 2020 to 75 at June 2024 and 53 at June 2025, and were 54 at March 2026 on annualised sales [14]. Receivables are secured against confirmed export LCs with a 120-day deferral [1 p.50]. Inventory days were 139 at June 2025 and 117 in March 2026 [14]. The June 2025 inventory of BDT 7,700m included BDT 3,089m of raw materials, BDT 1,146m in transit and BDT 2,286m of finished goods [1 p.50].

Cash conversion. Operating cash flow was only BDT 19m in FY2022 against profit of BDT 721m, and BDT 380m in FY2023 despite a loss [3 p.45]. It reached BDT 1,531m in FY2024 and BDT 1,623m in FY2025, 1.13x profit [1 p.45] [14], and the DSE-announced BDT 11.61 a share for FY2026 is about BDT 2,248m [7] [14]. Free cash flow after capex was negative in every year FY2020-FY2025, because capex of BDT 2.5bn a year in FY2024-FY2025 exceeded operating cash flow [14].

Balance sheet: bank debt 0.70x equity, BDT 2.7bn of unexplained work-in-progress

Debt. Bank debt (long-term, short-term, current portion and the director's loan, excluding acceptances) was BDT 5,902m at June 2020, BDT 9,927m at June 2024, BDT 9,742m at June 2025 and BDT 8,635m at March 2026 [4 p.43] [1 p.42] [2 p.1] [14]. Against equity that is 0.71x, 0.95x, 0.83x and 0.70x [14]. Acceptance liabilities for raw-material LCs add another BDT 3,955m at June 2025 and BDT 4,314m at March 2026; including them, debt was 1.17x and 1.04x equity [1 p.53] [2 p.1] [14]. Cash was BDT 1,123m at June 2025 and BDT 961m at March 2026. The short-term loan fell by BDT 1,369m in the nine months, which is where the improved operating cash flow went [2 p.1].

Who lends. Term loans of BDT 4,813m at June 2025 came mainly from Trust Bank (BDT 1,385m), Prime Bank (BDT 1,278m) and Dhaka Bank (BDT 789m); import and working-capital loans of BDT 3,235m were led by City Bank (BDT 1,335m) and UCB (BDT 745m) [1 p.52] [1 p.53]. 63.8% of total borrowing including acceptances is short-dated [14]. The director's BDT 140m loan is interest-free and short-term [1 p.53].

Capex and the open project. Consolidated capex (fixed assets plus capital work-in-progress) was BDT 2,511m in FY2024 and BDT 2,529m in FY2025, against BDT 660m-907m a year in FY2020-FY2023 [1 p.45] [3 p.45] [4 p.46]. Capital work-in-progress rose from BDT 288m at June 2023 to BDT 2,674m at June 2025, with BDT 1,836m added in FY2025 and BDT 340m transferred to assets [1 p.50]. The note does not say which company or project the BDT 2.7bn is for, and the parent's own CWIP was only BDT 42m [1 p.62], so it sits in the subsidiaries. When and what it commissions is the main open question on the balance sheet. In FY2025 the group also received BDT 459m from the disposal of fixed assets, the same amount shown as 'other receivable' at June 2024 [1 p.45] [1 p.42].

Auditor. Zoha Zaman Kabir Rashid & Co. gave an unqualified opinion on the FY2025 consolidated statements with three emphasis-of-matter paragraphs: the land, buildings, plant and generators were revalued on 4-Jul-2012 and not since, contrary to the IAS 16 requirement for regular revaluation; IFRS 16 is not applied to leased office space; and the Salek VAT-return gap [1 p.38]. DSE published the emphasis-of-matter notice on 10-Nov-2025 [7]. The FY2023 accounts were audited by Malek Siddiqui Wali [3 p.42].

Governance: a family-led board, a sponsor-waived dividend and a director loan

Ownership and board. Sponsors and directors own 47.34%, institutions 14.48% and the general public 38.18% (30-Sep-2026); institutions rose from 11.15% at June 2025 [6]. The shares trade in the A category [6]. The managing director is A. Matin Chowdhury, re-appointed for five years from 1-Jan-2026 subject to shareholder approval [1 p.17]; Dr. Shamim Matin Chowdhury became chairman from 13-May-2026, succeeding A.F.M. Zubair, chairman in the FY2025 report [7] [1 p.9]. The board includes Saima Matin Chowdhury, Azizur Rahim Chowdhury, a nominee of Paragon Poultry Ltd and three independent directors appointed in 2025 [1 p.9] [1 p.17]. Directors drew no remuneration in FY2025 [1 p.13].

Dividends. MSM declared 12% cash for FY2015, 10% cash for each of FY2016-FY2019, FY2021-FY2022 and FY2024-FY2026, and nothing for FY2020 and FY2023, the two loss years [6] [7]. Stock dividends of 10% were paid for 2011 and 2012 [6]. From FY2024 the dividend has been paid only to the 101,955,200 shares held by general shareholders; sponsors and directors, with 91,644,800 shares, opted to forgo it 'to ensure desirable level of liquidity and debt servicing' [1 p.11] [1 p.16]. The cash cost is BDT 102m a year, 7.1% of FY2025 consolidated profit [14]. Sponsors and directors forgo about BDT 91.6m a year (91,644,800 shares x BDT 1.00) [1 p.16]. The dividend policy says the board weighs earnings, free cash flow, growth needs and loan covenants [1 p.37].

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

The comparison uses each company's own FY2025 annual report: MSM and Square Textiles consolidated, Matin Spinning on its standalone statements. The groups are not alike: about 61% of MSM's pre-elimination sales come from garments at J.M. Fabrics [14], while Square Textiles and Matin are mainly spinners. On FY2025 figures, MSM had the lowest gross margin (11.7% against 13.3% and 15.0%) but the highest net margin (6.3%), because its finance cost was the lowest share of revenue (3.5%) [1 p.43] [8 p.75] [9 p.152] [14]. Interest cover (gross profit less operating expenses over finance cost) was 2.97x for MSM, 2.19x for Square Textiles and 2.53x for Matin [14]. On the spinning spread, Square Textiles reported BDT 371.33 a kg realised and BDT 241.46 of raw material a kg in FY2025, a gap of BDT 129.87, against about BDT 69 at MSM's parent mill on our calculation [8 p.23] [14]; the two are not on an identical basis, since Square's figures are per kg produced and MSM's price is per kg sold.

As facts, not a view on the price: on 29-Oct-2026 MSM traded at 5.9x FY2025 EPS and 6.3x FY2026 EPS, and at 0.65x the June 2026 NAV of BDT 67.03 [13] [7] [14]. Excluding the revaluation surplus, the March 2026 NAV was BDT 47.58 [14]. A general shareholder's BDT 1.00 dividend is 2.3% of the price [14].

What's next: record date 17-Nov-2026, AGM 21-Dec-2026, and LDC graduation now 24-Nov-2029

What will move the lines next, in date order. The items below are sourced and dated; no forecast numbers are given.

LDC graduation. The Daily Star reports that the UN General Assembly granted Bangladesh three more years, moving graduation from 24-Nov-2026 to 24-Nov-2029, and that nearly 75% of exports depend on LDC-specific duty-free access [11]. The Business Standard reports the same new date and that LDC-related trade preferences remain available during the extension, subject to each partner's rules [12]. For MSM this matters mainly through J.M. Fabrics, a garment exporter that made 79% of FY2025 profit [14]; the direction is that the deferral keeps current tariff treatment of its exports in place for longer. The chairman's FY2025 message also names an extra 20% US trade tariff, a fragile banking sector and higher power and gas costs as current challenges [1 p.11].

Newasia land. MSM's BDT 238.3m subscription in Newasia Synthetics, approved on 24-Jun-2026, moves cash from the parent into land in a non-operating subsidiary [7]. It does not change consolidated assets. It is paid from parent cash; the parent's own cash flow from operations was BDT 218.5m in FY2025 [1 p.75]. The subscription amount equals about 2.3 years of the current general-shareholder dividend [14].

Risks: garment concentration, the spinning spread and governance signals

Three risks are largest in the FY2025 figures. The first is concentration: one garment subsidiary makes about four-fifths of profit, so the listed company's EPS is effectively a garment exporter's EPS, exposed to buyer prices, US tariffs and wage rounds [1 p.11] [1 p.15]. The second is the spinning spread, which went negative in FY2023 and narrowed again in FY2025 and in the nine months of FY2026, when the company said yarn prices fell more than cotton prices [3 p.10] [2 p.27]. The third is governance signals the sector specification flags: sponsors forgoing dividends alongside a director loan, a related-party share of parent sales above 30%, a VAT-return gap at a subsidiary and a revaluation that is 13 years old [1 p.16] [1 p.53] [1 p.38] [14]. None of these is a qualified audit; each is disclosed in the filings.

Mitigants in the filings. Debt fell in the nine months to March 2026 and operating cash flow rose to BDT 11.61 a share for FY2026 [2 p.1] [7]. Receivable days are down to about 53 [14]. The CRISL AA rating, announced in December 2025, was based on audited figures to June 2025 and unaudited figures to September 2025 [7].

Key questions: the Q4 jump, the CWIP project and the sponsors' dividend

The shareholder-return question in one line: the listed company's earnings are a garment factory's earnings, distributed to general shareholders at BDT 1.00 a share while the sponsors take none [1 p.15] [7]. Whether that changes depends on J.M. Fabrics' margin, the parent's spread and what the BDT 2.7bn of work-in-progress becomes.

FAQ

When does Malek Spinning Mills' financial year end?

On 30 June. FY2025 ended 30-Jun-2025 and FY2026 on 30-Jun-2026 [1 p.42] [6].

What was Malek Spinning's EPS for FY2026?

BDT 6.93 consolidated, as announced on the DSE on 27-Oct-2026, against BDT 7.41 in FY2025 [7] [1 p.43]. The FY2026 annual report is not yet in our corpus.

What dividend did Malek Spinning declare for FY2026?

10% cash (BDT 1.00 a share) for general shareholders only; sponsors and directors forgo it. Record date 17-Nov-2026, AGM 21-Dec-2026 [7].

How many spindles does Malek Spinning have?

59,964 spindles with capacity of 12,425,000 kg of yarn a year at the parent mill in FY2025 [1 p.12].

Where does Malek Spinning's profit come from?

Mostly from J.M. Fabrics, its knit-garment subsidiary, which earned BDT 1,140m of the BDT 1,439m consolidated profit in FY2025 [1 p.15] [1 p.43].

How much debt does Malek Spinning have?

Bank debt of BDT 8,635m plus BDT 4,314m of acceptance liabilities, and cash of BDT 961m, at 31-Mar-2026 [2 p.1].

Does LDC graduation affect Malek Spinning?

Mainly through J.M. Fabrics' garment exports. Graduation was moved to 24-Nov-2029 by the UN General Assembly on 29-Oct-2026 [11] [12].

Sources

1. Malek Spinning Mills PLC Annual Report 2024-25 (year to 30-Jun-2025), consolidated and standalone · link · accessed 2026-10-31
2. Malek Spinning Mills PLC unaudited consolidated statements, nine months to 31-Mar-2026 · link · accessed 2026-10-31
3. Malek Spinning Mills Limited Annual Report 2022-23 (year to 30-Jun-2023) · link · accessed 2026-10-31
4. Malek Spinning Mills Limited Annual Report 2020-21 (year to 30-Jun-2021) · link · accessed 2026-10-31
5. Malek Spinning Mills Limited Annual Report 2019-20 (five-year data FY2016-FY2020) · link · accessed 2026-10-31
6. Dhaka Stock Exchange, Malek Spinning Mills PLC company page (price, FY2026 quarterly and annual EPS, shareholding, dividend history), accessed 31-Oct-2026 · link · accessed 2026-10-31
7. Dhaka Stock Exchange news archive for MALEKSPIN, Oct-2024 to Oct-2026 (results, dividend, chairman, subsidiary and rating announcements), accessed 31-Oct-2026 · link · accessed 2026-10-31
8. Square Textiles PLC Annual Report 2024-25 (consolidated) · link · accessed 2026-10-31
9. Matin Spinning Mills PLC Annual Report 2024-25 · link · accessed 2026-10-31
10. The Business Standard, gas tariff for captive power and industry raised from 1-Feb-2023 (18-Jan-2023) · link · accessed 2026-10-31
11. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-10-31
12. The Business Standard, 'Bangladesh gets 3 more years before LDC graduation' (30-Oct-2026) · link · accessed 2026-10-31
13. AnalystBro price data (TradingView feed): DSE:MALEKSPIN, DSE:SQUARETEXT, DSE:MATINSPINN bars to 29-Oct-2026 · link · accessed 2026-10-31
14. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-10-31