Mozaffar Hossain Spinning Mills financial analysis: 62% of sales to SIM Fabrics, borrowings 2.1x equity (Oct 2026)

Investment considerations: 62% of sales to SIM Fabrics, borrowings at 2.09x equity, interest cover of 1.29x

Mozaffar Hossain Spinning Mills Limited spins cotton yarn at Thakurbari Tec, Masumabad, Bhulta, Rupganj, in Narayanganj, and sells it to export-oriented fabric and garment makers as a deemed exporter [1 p.61]. It was incorporated in 2005 as Mozaffar Hossain Textile Mills Limited, took its present name and became a public company on 14 December 2011, and listed on the Dhaka and Chittagong exchanges in January 2014 [1 p.22]. The directors' report describes the product as "100% export oriented woven fabrics cotton yarns" and puts FY2025 yarn sales at 278.45 crore taka [1 p.22]. The managing director, Md. Mozaffar Hossain, is described as the founder of "SIM GROUP"; his wife, Mrs. Rahima Hossain, chairs the company and is chairman of SIM Fabrics Limited, SIM Apparels Limited and Authentic Color Limited [1 p.15]. SIM Fabrics Limited holds 32.97% of the shares [1 p.21].

The filings show the following. Customer: sales to SIM Fabrics Limited, listed in the related-party note with the relationship "Common Management", were BDT 1,732.5m in FY2025, 62.2% of turnover, and the SIM Fabrics balance was BDT 1,044.5m at 30 June 2025 [1 p.81] [22]. Borrowings: long-term, current-maturity and short-term borrowings added up to BDT 4,312.6m at June 2025, 2.09x shareholders' equity of BDT 2,061.3m [1 p.57] [22]. Cost of debt: financial expenses of BDT 404.8m took 78% of the BDT 521.9m profit from operation in FY2025 [1 p.58] [22]. Record: net profit after tax ranged from a BDT 119.8m loss (FY2020) to a BDT 193.9m profit (FY2022) over FY2016-FY2025, and ROE on average equity was above 5% in 2 of the 9 years we can compute (FY2017 9.9%, FY2022 10.1%) [6 p.7] [1 p.8] [22].

Business: a 13.3m-kg rotor and ring spinner that produced 67% of capacity in FY2025

How the company makes money. The mill imports cotton, pays for it in US dollars, spins it into yarn and delivers the yarn to export-oriented fabric and garment factories inside Bangladesh; the notes call this "deemed exporter" sales [1 p.61]. The FY2025 turnover of BDT 2,784.6m is printed as an export of USD 23,002,336 [1 p.80]. The company's own risk note says export and import are both settled in US dollars, and that "the loss or gain on currency fluctuation for export automatically sets off against the loss or gain on currency fluctuation for import" [1 p.61]. It reports a single product segment [1 p.23].

Capacity. The capacity note lists a rotor unit with 6,300,000 kg and a ring unit with 7,000,000 kg of annual installed capacity, and a single actual-production figure of 8,877,502 kg for FY2025 [1 p.80]. Actual production was 10,862,851 kg in FY2024 [3 p.77], 9,659,873 kg in FY2023 [4 p.77] and 8,986,757 kg in FY2022, when both units were listed at 6,600,000 kg [5 p.75]. On those printed figures production was 68.1%, 72.6%, 81.7% and 66.7% of installed capacity in FY2022-FY2025 [22]. The company employed 1,180 people for the full year in FY2025 [1 p.78].

FY2016-FY2025. In FY2016-FY2017 the company was a rotor-yarn mill with turnover of BDT 1,061m-1,148m and net margins of 14.5% and 13.2% [6 p.7] [22]. Turnover then fell to BDT 283.5m in FY2020 and the company lost BDT 95.6m in FY2019 and BDT 119.8m in FY2020 [6 p.7]. The FY2020 notes explain that phase: the BMRE ring unit's "Construction, Machineries setup, erection, Utilities connection" was completed by 1 March 2020, trial runs were under way, the company "was going with 50% capacity utilization", and "the drastic effect of non-operation and limited operation as result of COVID-19 pandemic" produced gross and net losses [6 p.70]. Fixed assets went from BDT 1,028m at June 2018 to BDT 3,419m at June 2019 [6 p.7], and the FY2021 cash-flow statement prints acquisition of property, plant and equipment of (1,965,740,770) and payment for capital work in progress of 1,846,945,307, with net cash used in investing activities of (124,139,267) [5 p.54]. From FY2021 the ring unit was running: turnover reached BDT 2,897.7m in FY2022 and has stayed between BDT 2,785m and BDT 2,978m since [1 p.8].

Two other events appear in the notes. A fire at the factory on 26 February 2021 damaged premises and inventory; the insurance claim was finalised and Tk. 11.61 lac remained due at June 2025 [1 p.69]. In 2021 the land was revalued by ATA Khan & Co., adding a revaluation surplus of Tk. 510,760,689 (BDT 500.5m after deferred tax) to equity [1 p.71]. The company also holds 30% of Suntech Energy Limited, carried at BDT 6.98m [1 p.68].

Line items: kg sold down 5.0% in FY2025, gas BDT 200m, a year-end finished-yarn stock of 4.59m kg

Turnover = kilos sold x realised price. Kilos sold went from 8,428 thousand in FY2022 to 9,164 thousand in FY2023, 8,774 thousand in FY2024 and 8,337 thousand in FY2025 [5 p.70] [4 p.72] [3 p.72] [1 p.75]. The realised price in taka was BDT 344, 310, 339 and 334 a kg [22]. In dollars, export value per kg went from USD 4.00 to USD 3.19, 3.04 and 2.76 [5 p.75] [4 p.77] [3 p.77] [1 p.80] [22]. Taka turnover divided by the printed dollar value gives BDT 86 per dollar in FY2022 and BDT 121 in FY2025 [22]. The FY2025 count list shows 30s yarn as the largest line, 2,198,176 kg and BDT 818.5m, followed by 20s yarn at 1,145,097 kg [1 p.75].

The directors' explanation for FY2025 is printed in one sentence: "During the year, revenue has decreased. Hence, EPS has decreased due to a increase in the cost of goods sold and the price of raw materials compared to the previous year" [1 p.26]. The cost of goods sold in the statement fell from BDT 2,382.2m to BDT 2,194.8m [1 p.58]; the five-year table shows gross margin at 20.0% in FY2024 and 21.2% in FY2025 [1 p.8] [22].

Cost of goods sold. Raw materials consumed were BDT 1,892.4m in FY2025, compared with BDT 2,305.5m in FY2024; factory overhead was BDT 558.3m, accessories and stores BDT 23.6m and packing BDT 10.0m [1 p.75]. The overhead note itemises a gas bill of BDT 200.0m, salary and wages of BDT 134.3m, festival bonus of BDT 10.1m and depreciation of BDT 206.3m [1 p.76]. Cost of production was BDT 2,478.1m and cost of goods sold BDT 2,194.8m, the difference being stock: closing finished goods were BDT 1,425.6m, compared with BDT 1,143.0m at the start of the year [1 p.75].

Inventory. At June 2025 the company held 4,588,518 kg of finished yarn valued at BDT 1,425.6m, compared with 4,047,706 kg a year earlier, and 1,211,230 kg of raw material [1 p.80]. FY2025 production of 8,877,502 kg exceeded the 8,336,691 kg sold [1 p.75] [1 p.80]. The finished-yarn stock at June 2025 equalled 55% of the year's kilos sold [22]. The inventories note says the stock was counted by "a Inventory team comprised of management nominated staff" and was hypothecated to Islami Bank Bangladesh Ltd. [1 p.69].

Gas. The gas bill was BDT 179.2m in FY2022, BDT 233.1m in FY2023, BDT 249.8m in FY2024 and BDT 200.0m in FY2025 [5 p.71] [4 p.73] [3 p.73] [1 p.76]. Per kg produced that is BDT 19.94, 24.13, 22.99 and 22.53 [22]. The balance sheet carries a Titas Gas security deposit of BDT 15.9m and BDT 55.0m of gas bills accrued at June 2025 [1 p.69] [1 p.74].

Other income, opex and tax. Other income was negative in both years: BDT -20.8m in FY2024 and BDT -1.1m in FY2025, mostly exchange-rate fluctuation losses of BDT 21.8m and BDT 2.0m, offset by bank interest and the share of profit from Suntech Energy [1 p.76]. Administrative expenses were BDT 65.8m, including salaries of BDT 50.8m, managing director remuneration of BDT 1.2m and directors' remuneration of BDT 2.4m [1 p.76]. Current tax for FY2025 was BDT 21.8m, the higher of the regular tax (BDT 7.3m), the minimum tax at 0.67% of turnover (BDT 18.5m) and advance income tax deducted at source (BDT 21.8m) [1 p.74]. With BDT 16.9m of deferred tax the effective tax rate was 34.7%, compared with 43.4% in FY2024 [1 p.58] [22].

FY2026: EPS BDT 0.74 on the DSE post, with an implied fourth quarter of BDT -0.07

FY2026 has been reported to the exchange and is not in the corpus at 1-Nov-2026 as an annual report. The board met on 26 October 2026 on the audited statements for the year to 30 June 2026 [14]. The DSE post of 27 October 2026 gives EPS of Tk. 0.74, NAV per share of Tk. 20.78 and NOCFPS of Tk. 4.20, compared with Tk. 0.72, Tk. 20.41 and Tk. 3.12 for FY2025 [14]. The three quarterly posts gave EPS of Tk. 0.20, 0.29 and 0.32, or Tk. 0.81 for July 2025 to March 2026 [14]. Full-year EPS less nine-month EPS leaves an implied fourth quarter of BDT -0.07, compared with BDT 0.02 for the same quarter of FY2025 [22]. That is a derived figure; the DSE posts print no fourth-quarter EPS, and the line items behind it are not in the corpus at 1-Nov-2026.

The nine months to March 2026. Turnover rose 5.4% to BDT 2,050.4m and gross profit to BDT 406.4m, a gross margin of 19.8% compared with 17.7% [2 p.3] [22]. Financial expenses rose 20.9% to BDT 244.9m [2 p.3]. Profit after tax was BDT 81.9m, up 15.8% [2 p.3] [22]. Sales to SIM Fabrics were BDT 1,407.8m, 68.7% of nine-month turnover [2 p.27] [22]. Operating cash flow was BDT 215.1m, compared with BDT 274.0m a year earlier [2 p.5].

Customers: SIM Fabrics took 62% of FY2025 turnover and owed BDT 1,045m at year end

SIM Fabrics. The directors' report says "the company has transactions with its mother company" disclosed in the related-party note [1 p.23]. That note lists one related entity, SIM Fabrics Limited, relationship "Common Management": an opening balance of BDT 617.5m, additions of BDT 1,732.5m, realisations of BDT 1,305.5m and a closing balance of BDT 1,044.5m for FY2025 [1 p.81]. SIM Fabrics' share of turnover was 72.4% in FY2022, 66.1% in FY2023, 61.4% in FY2024, 62.2% in FY2025 and 68.7% in the nine months to March 2026 [5 p.82] [4 p.79] [3 p.80] [1 p.81] [2 p.27] [22]. SIM Fabrics holds 33,300,736 shares and has two nominee directors on the board, A.S.M. Rakibul Hasan and Md. Sorwar Hossain [1 p.16] [1 p.25].

Other customers. The receivables annexure names the rest. ACS Textile Ltd. had additions of BDT 830.7m in FY2025, about 30% of turnover, and owed BDT 331.1m at June 2025; the other named customers each had additions below BDT 70m [1 p.83] [22]. On those printed additions, SIM Fabrics and ACS Textile together bought about 92% of FY2025 turnover [22].

Receivable ageing. Gross receivables were BDT 1,433.0m at June 2025, compared with BDT 851.3m a year earlier [1 p.69]. BDT 334.6m (23.4%) was due above six months, compared with BDT 475.3m (55.8%) [1 p.69] [22]. The note states that receivables are "unsecured, considered good" and that "No debts are considered as bad during the year" [1 p.69]. After an exchange gain of BDT 17.7m and a BDT 230.1m netting of bill-discounting liabilities with Woori Bank, Islami Bank and NCC Bank, the balance-sheet figure was BDT 1,220.6m [1 p.69].

Ratios: gross margin 21.2%, net margin 2.6%, ROE 3.6% in FY2025

Margins. Gross margin was between 16.2% and 21.2% in FY2021-FY2025 [22]. Net margin was lower in each of those years, 0.8% to 6.7%. Between gross profit and net profit the statement deducts operating expenses, financial expenses, WPPF and tax, and adds other income; in FY2025 financial expenses were BDT 404.8m on BDT 589.8m of gross profit [1 p.58]. Depreciation of BDT 206.3m sits inside cost of goods sold [1 p.76].

Returns. ROE on average equity was 3.2% in FY2021, 10.1% in FY2022, 1.1% in FY2023, 4.2% in FY2024 and 3.6% in FY2025 [22]. The company's own five-year table prints 2.86%, 9.65%, 1.16%, 3.83% and 3.53% on closing equity [1 p.8]. Turnover was 0.84x fixed assets in FY2025, compared with 1.44x in FY2016 before the ring unit [22].

Cash conversion. Operating cash flow was 4.3x net profit in FY2025 and 4.5x in FY2024 [22]. In the company's direct-method statement, financial expenses of BDT 404.8m are paid under financing activities, not operating activities [1 p.60]. Operating cash flow less net cash used in investing activities and less financial expenses paid was negative in each of FY2021-FY2025 [22].

Debt: BDT 4.41bn of borrowings at March 2026, 74% of FY2025 interest on long-term facilities

Borrowings. Gross borrowings went from BDT 3,434.6m at June 2021 to BDT 4,312.6m at June 2025 and BDT 4,409.1m at March 2026 [5 p.51] [1 p.57] [2 p.2] [22]. At June 2025 they were BDT 2,311.1m of long-term borrowings including the current maturity, mostly Islami Bank HPSM facilities (one account alone BDT 1,586.6m) and four Hajj Finance loans, and BDT 2,001.5m of short-term Islami Bank Murabaha, Bai Murabaha, MFCI and Agrani Bank EDF/PAD facilities [1 p.72] [1 p.73]. The long-term note gives the purpose as "To purchase/import of New Ring Spinning Machine, Utilities and Factory Shed building for the project", a rate of return of 15% a year, and collateral of project land and buildings plus the "Personal Guarantee of all Directors of the Project Companies & Mortgages of their individual properties" [1 p.72]. Cash and FDR were BDT 133.5m [1 p.57].

Cost of borrowing. HPSM interest rose 39.8% to BDT 275.6m in FY2025, and the long-term facilities (HPSM, Hajj Finance, IDLC) were 73.6% of financial expenses [1 p.77] [22]. Financial expenses over average gross borrowings were 6.8% in FY2022, 8.3% in FY2023, 8.8% in FY2024 and 9.7% in FY2025 [22]. In the nine months to March 2026 the HPSM balances rose from BDT 2,311.1m to BDT 2,477.7m and the cash-flow statement shows BDT 166.7m of long-term loan received; it shows no acquisition of property, plant and equipment [2 p.5] [2 p.19].

Working capital. Receivable days on turnover went from 27 at June 2021 to 160 at June 2025 and 174 at March 2026 (nine-month turnover annualised); inventory days on cost of goods sold were 301 at June 2025 [22]. Inventories and receivables together were BDT 3,027.7m at June 2025, and short-term borrowings BDT 2,001.5m [1 p.57].

Cash flow. FY2021 operating cash flow was BDT -1,048.9m; the investing section prints acquisition of property, plant and equipment of (1,965,740,770) and payment for capital work in progress of 1,846,945,307, for net cash used in investing activities of (124,139,267) [5 p.54]. Net cash used in investing activities was BDT 46.9m in FY2022, BDT 174.0m in FY2023, BDT 194.7m in FY2024 and BDT 124.3m in FY2025, the last including BDT 115.0m placed in FDR [5 p.54] [4 p.57] [1 p.60] [22]. The 24 months of DSE news to 1 November 2026 carry no board approval of a capital project or expansion [14].

Audit and governance: an unmodified opinion with a WPPF emphasis of matter, and a two-member audit committee

The FY2025 audit. M. Z. Islam & Co., signed by Mohammad Fakhrul Alam Patwary FCA on 27 October 2025, wrote: "In our opinion, the accompanying financial statements of the Company give a true and fair view 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 Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs) and other applicable laws and regulations." [1 p.53] [1 p.56]. Under "Emphasis of Matter" it wrote: "We draw attention on the matters disclosed as below: We draw attention to note no. 4.25 of financial statements, which describes the matter." [1 p.53]. Note 4.25 is the Workers Profit Participation Fund policy and ends: "As per Financial Statement, Company Showing Net profit for the period for this reason company make provision against WPPF." [1 p.65]. The WPPF payable was BDT 74.4m at June 2025 [1 p.74]. The DSE posted the emphasis of matter on 18 November 2025, and a similar post for FY2024 on 6 November 2024 [14].

Key audit matters. Revenue: "The company has different procedure of revenue recognition. Move over inter-company sales makes it complex audit issue" [1 p.53]. Income tax: "The company has different items of income, assets and provisions which requires significant judgment for both in current tax and deferred tax calculation" [1 p.54]. Long term borrowings: "Long term loans were taken from Islami Bank Bangladesh Ltd., IDLC and Haj Finance company Ltd. Moreover, transfer of capital progress to PPE is also judgmental requires estimation." [1 p.54]. For each, the auditor reports its testing as satisfactory [1 p.53] [1 p.54].

The board. The FY2025 report lists eight directors: Mrs. Rahima Hossain (Chairman), Md. Mozaffar Hossain (Managing Director), Mr. A.S.M. Raisul Hasan Shoaib (Director), A.S.M. Rakibul Hasan (Nominee Director), Mr. Md. Sorwar Hossain (Nominee Director), and independent directors Mr. Anwarul Hoque, Mr. Md. Mijanur Rahman and Mrs. Dr. Nazmina Chowdhury [1 p.19]. Family ties as printed: Mrs. Rahima Hossain is the wife of the managing director; A.S.M. Raisul Hasan Shoaib and A.S.M. Rakibul Hasan are named as sons of Al-Haj Md. Mozzaffar Hossain and Mrs. Rahima Hossain; A.S.M. Rakibul Hasan is a director of SIM Fabrics Limited; Md. Sorwar Hossain is "the Nominee Director by SIM Fabrics Limited" [1 p.15] [1 p.16]. Eight board meetings were held in FY2025 [1 p.25].

Compliance statements next to the committee report. The audit committee report states: "The Committee is composed of 2 (Two) members of the Board", Mr. Md. Mijanur Rahman and Mr. Anwarul Hoque, with the company secretary as secretary [1 p.38]. The corporate governance checklist marks condition 5(2)(a), "The Audit Committee shall be composed of at least 3 (three) members", as complied [1 p.47]. Condition 5(2)(d), refilling the committee within one month when membership falls below 3, is also marked complied [1 p.47]. Condition 6(2)(a), "The Committee shall comprise of at least three members including an independent director", is marked complied [1 p.50]; the NRC is listed as Mr. Anwarul Hoque (Chairman, independent director), Mr. Md. Mijanur Rahman (Member, independent director) and Mr. Haris Alam (Member Secretary, company secretary) [1 p.19]; the NRC report states "The committee consists of 3 members" [1 p.36]. Condition 1(5)(xxiii)(d), "Shareholders holding ten percent (10%) or more voting interest in the company (name-wise details)", is marked "N/A" [1 p.44]; the directors' report lists "Shareholders holding 10% or more. SIM Fabrics Limited 33,300,736 32.97%" [1 p.25]. The checklist states that the board "is comprised of 08 (Eight) Directors including 03 (Three) Independent Directors" and remarks under 1(2)(a): "01 (One) Female independent Director has appointed by BOD on 11.11.2025 is subject to the approval by BSEC and forthcoming AGM." [1 p.41]. We found no condition marked in the "Not Complied" column on pages 41 to 52 [1 p.41]. Mujibur Rahman & Co. certified on 20 November 2025 that "The Company has complied with the conditions of the Corporate Governance Code" [1 p.40]. Managing Director remuneration was BDT 1.2m, Director's remuneration BDT 2.4m and board meeting fees BDT 0.126m in FY2025 [1 p.77]; managerial remuneration is printed as Tk 3,600,000 [1 p.81].

Ownership. Sponsors and directors held 39.61% at June 2025, August 2026 and September 2026 [15]. Institutions went from 25.46% to 17.35% and the public from 34.89% to 42.96% over the same period [15]. The annual report prints the June 2025 split as 39.61% sponsor/director, 25.46% institute, 0.03% NRB/foreign and 34.90% general public [1 p.21]; the DSE page prints 0.04% foreign and 34.89% public [15]. The top-ten list at June 2025 includes ICB (7.61%), Md. Arsad Parvez (5.34%) and Investment Corp. of Bangladesh (3.11%) [1 p.21].

Peers: four standalone FY2025 filings, figures side by side

The peers are three DSE spinners with June year ends, each with a published AnalystBro note, whose FY2025 standalone statements we re-opened. Each business as printed: Mozaffar Hossain Spinning makes "100% export oriented woven fabrics cotton yarns" [1 p.22]; Saiham Cotton Mills writes "As an export-oriented entity, our yarn market is influenced by the apparel business" [16 p.25]; Saiham Textile Mills aims at "producing the best quality various counts of yarns" [17 p.11]; Matin Spinning Mills describes itself as a maker "of combed, carded cotton, mélange and synthetic yarn from raw cotton, polyester and viscose fiber" [18 p.14]. Finance cost is gross as printed (MHSML's includes BDT 3.2m of bank charges) and profit is after WPPF for all four. Audit opinion labels are taken from each company's filing and its published AnalystBro note [1 p.53] [16] [17] [18]. The table states figures; it does not rank the companies.

What the figures say, company by company. MHSML: gross margin 21.2%, finance cost 14.5% of turnover, borrowings 2.09x equity. Saiham Cotton: 11.0%, 4.9% and 0.66x. Saiham Textile: 9.8%, 4.1% and 0.42x. Matin Spinning: 15.0%, 4.4% and 0.84x [22]. The four make different yarns from different fibres, and the filings do not give a common cost basis for comparing their margins [1 p.22] [18 p.14].

Dividends: 2.5% cash for FY2026; two days in the Z category in February 2025 over the FY2024 payment

The dividend record. The DSE page lists stock dividends of 25% (2014), 15% (2015), 5% (2017), 5% (2018) and 2% (2019), and cash dividends of 5% (2016), 1% (2020), 3% (2021), 6% (2022), 2% (2023), 3% (2024) and 3% (2025) [15]. The FY2023 2% was paid to "all Public Shareholder without Directores" [1 p.71]. For FY2026 the board recommended 2.50% cash on 27 October 2026, record date 24 November 2026, subject to the AGM on 29 December 2026 [14]. At BDT 16.1 that is a cash yield of 1.6% and a payout of 34% of FY2026 EPS [21] [22].

Late payment and the Z category. On 9 February 2025 the DSE placed the shares in the Z category from B "regarding non-disbursement of the approved dividend within the stipulated time frame"; on 10 February it announced that the company had disbursed the FY2024 3% cash dividend and would return to B from 11 February 2025 [14]. The company's dividend policy commits to pay "within 30 (thirty) days from the date of approval by shareholders in AGM" [1 p.26]. The FY2025 dividend disbursement was posted on 8 February 2026, after the 30 December 2025 AGM [14].

Credit rating. Emerging Credit Rating Limited assigned an initial "BB+" long-term and "ST-4" short-term rating with a Stable outlook (DSE post 29 April 2025) and repeated the same rating on audited statements for FY2022-FY2025 (DSE post 19 April 2026) [14].

What's next: Q1 FY2027 in mid-November, the record date on 24 Nov and the AGM on 29 Dec

Results calendar precedents. The annual board meeting was 27 October 2025 for FY2025 and 26 October 2026 for FY2026; AGMs were held on 28 December 2023, 28 December 2024 and 30 December 2025 [14] [3 p.5] [1 p.6] [15]. The FY2025 financial calendar lists the Q1, Q2 and Q3 adoptions on 13 November 2024, 29 January 2025 and 29 April 2025 [1 p.5].

LDC graduation. The UN General Assembly adopted the move of Bangladesh's graduation from 24 November 2026 to 24 November 2029 on 29 October 2026 in New York, 30 October in Dhaka, as reported by The Daily Star and The Business Standard [19] [20]. The company's filings do not link its sales to LDC status; its yarn goes to export-oriented fabric and garment makers [1 p.61].

Capital projects. We swept the DSE news archive for 31 October 2024 to 1 November 2026: it carries results, dividends, category changes, credit ratings and board-meeting notices, and no board approval of a capital project, expansion or BMRE [14]. The nine-month cash-flow statement to March 2026 shows BDT 9.2m of advances for property, plant and equipment and no acquisitions [2 p.5]. The FY2025 risk note says the management "has decided to pay off the outstanding Bank Loan gradually"; it gives no amount or date [1 p.61].

Risks: the SIM Fabrics account, the interest bill and the yarn stock

The company's own risk note lists interest-rate, exchange-rate, market-demand, competition, raw-material, technology and political risks [1 p.61] [1 p.62].

SIM Fabrics bought BDT 1,733m of yarn in FY2025 [1 p.81], and financial expenses of BDT 405m were 3.6x profit before tax [1 p.58] [22].

Key questions: the fourth quarter, the SIM Fabrics account and the borrowings

Summary of the record: FY2025 net profit after tax of BDT 72.8m, BDT 404.8m of financial expenses, BDT 4,312.6m of borrowings and 62.2% of turnover from SIM Fabrics [1 p.58] [1 p.57] [1 p.81] [22]; FY2026 EPS of BDT 0.74 on the DSE post [14].

FAQ

When does Mozaffar Hossain Spinning Mills' financial year end?

On 30 June [1 p.57].

What was MHSML's EPS for FY2026?

BDT 0.74 on the DSE post of 27-Oct-2026, compared with BDT 0.72 for FY2025 [14]. The FY2026 annual report is not in the corpus at 1-Nov-2026.

What dividend did MHSML declare for FY2026?

2.5% cash (BDT 0.25 a share); record date 24-Nov-2026, AGM 29-Dec-2026 [14].

Who is MHSML's largest customer?

SIM Fabrics Limited, listed as "Common Management", which bought BDT 1,732.5m of yarn in FY2025, 62.2% of turnover [1 p.81] [22].

Who owns MHSML?

Sponsors and directors held 39.61% at September 2026, including SIM Fabrics Limited's 32.97% [15] [1 p.21].

How much does MHSML borrow?

BDT 4,409.1m at 31-Mar-2026: BDT 2,477.7m long-term and BDT 1,931.3m short-term [2 p.2] [22].

Did the auditor qualify the FY2025 accounts?

No. The opinion is unmodified, with an emphasis of matter on note 4.25 (WPPF) [1 p.53].

What is MHSML's production capacity?

13.3m kg a year (rotor 6.3m kg, ring 7.0m kg); FY2025 production was 8.88m kg [1 p.80].

Sources

1. Mozaffar Hossain Spinning Mills Limited Annual Report 2025 (year to 30-Jun-2025; auditor M. Z. Islam & Co.) · link · accessed 2026-11-01
2. Mozaffar Hossain Spinning Mills Limited un-audited interim financial statements, nine months to 31-Mar-2026 · link · accessed 2026-11-01
3. Mozaffar Hossain Spinning Mills Limited Annual Report, year to 30-Jun-2024 · link · accessed 2026-11-01
4. Mozaffar Hossain Spinning Mills Limited Annual Report, year to 30-Jun-2023 · link · accessed 2026-11-01
5. Mozaffar Hossain Spinning Mills Limited Annual Report, year to 30-Jun-2022 (with Jun-2021 comparatives) · link · accessed 2026-11-01
6. Mozaffar Hossain Spinning Mills Limited Annual Report, year to 30-Jun-2020 (five-year summary FY2016-FY2020) · link · accessed 2026-11-01
7. Mozaffar Hossain Spinning Mills Limited un-audited first-quarter statements to 30-Sep-2023 (dated 14 November 2023) · link · accessed 2026-11-01
8. Mozaffar Hossain Spinning Mills Limited un-audited first-quarter statements to 30-Sep-2022 (dated 14 November 2022) · link · accessed 2026-11-01
9. Mozaffar Hossain Spinning Mills Limited un-audited first-quarter statements to 30-Sep-2021 (dated 14 November 2021) · link · accessed 2026-11-01
10. Mozaffar Hossain Spinning Mills Limited un-audited first-quarter statements to 30-Sep-2020 (dated 11 November 2020) · link · accessed 2026-11-01
11. Mozaffar Hossain Spinning Mills Limited un-audited half-year statements to 31-Dec-2021 (dated 18 January 2022) · link · accessed 2026-11-01
12. Mozaffar Hossain Spinning Mills Limited un-audited half-year statements to 31-Dec-2022 (dated 30 January 2023) · link · accessed 2026-11-01
13. Mozaffar Hossain Spinning Mills Limited un-audited half-year statements to 31-Dec-2023 (date printed '30 January 2023') · link · accessed 2026-11-01
14. Dhaka Stock Exchange news archive for MHSML, posts 6-Nov-2024 to 27-Oct-2026 (results, dividends, board-meeting notices, category changes, credit ratings) · link · accessed 2026-11-01
15. Dhaka Stock Exchange, Mozaffar Hossain Spinning Mills Ltd. company page (dividend history, shareholding Jun-2025/Aug-2026/Sep-2026, paid-up capital), accessed 1-Nov-2026 · link · accessed 2026-11-01
16. Saiham Cotton Mills Ltd. Annual Report 2024-2025 (standalone statements) · link · accessed 2026-11-01
17. Saiham Textile Mills Ltd. Annual Report 2024-2025 (standalone statements) · link · accessed 2026-11-01
18. Matin Spinning Mills PLC Annual Report 2024-2025 (standalone statements) · link · accessed 2026-11-01
19. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
20. The Business Standard, 'Bangladesh gets 3 more years before LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
21. AnalystBro price data (TradingView feed): DSE:MHSML daily closes 30-Oct-2025 to 29-Oct-2026; DSE:SAIHAMCOT, DSE:SAIHAMTEX, DSE:MATINSPINN closes 29-Oct-2026 · link · accessed 2026-11-01
22. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-11-01