National Tea Company financial analysis: six years of losses, negative equity and a BDT 2.77bn share placement (Oct 2026)

Investment considerations: six loss years, BDT 4.4bn of bank loans and negative equity, now being recapitalised

National Tea Company Limited grows, makes and sells black tea. It was formed in 1978 to take over nine tea estates from the government under a disinvestment scheme, and in 1982 it acquired four more estates [1 p.13]. One of those four, Patiya, was never handed over, so twelve estates operate: Patrakhola, Kurmah, Champarai, Madabpur, Madanmohanpur, Lackatoorah, Chundeecherra, Teliapara, Jagadishpur, Premnagar, Parkul and Bejoya [1 p.13] [1 p.28]. A local sales unit blends, packs and markets tea at home. The company also sells a small amount of rubber [1 p.13] [1 p.38]. The shares trade on both Bangladeshi exchanges and the company was listed in 1979 [5]. The state is still present: Investment Corporation of Bangladesh, Sadharan Bima Corporation and the government held 27.3%, 11.5% and 4.3% of the 6.6m pre-placement shares [1 p.34].

The investment picture is one of a business that has sold its tea for less than it costs to make it for several years, funded the gap with bank loans, and is now being recapitalised. Turnover fell from BDT 1,191m in FY2019 to BDT 715m in FY2025 [3 p.76] [1 p.10]. The last profit was in FY2019. The company has lost money in each year since, BDT 3,195m in total over FY2020-FY2025, and the FY2025 loss of BDT 1,046m was the largest of the six [3 p.76] [2 p.11] [1 p.10] [12]. Bank loans, almost all from Bangladesh Krishi Bank, rose to BDT 4,433m at June 2025 [1 p.35] [1 p.37]. Finance cost was BDT 498m in FY2025, 70% of turnover [1 p.10] [12].

Equity turned negative in FY2023 and stood at BDT -957m at June 2025, a NAV of BDT -144.97 a share on the 6.6m shares used in the accounts [1 p.9]. That figure already includes BDT 1,117m of share money deposit from a placement of 23.4m new shares at BDT 119.53 to existing shareholders, approved by the Bangladesh Securities and Exchange Commission on 13 April 2023 and extended several times [1 p.3] [6]. The auditor records BDT 2,767m received for 23.15m shares by the close of subscription, and the DSE notices show the shares credited in two lots, on 2 October 2024 and 30 September 2025 [1 p.3] [6]. The share count is now 29.75m [6] [5]. In arithmetic terms, the BDT 1,650m received after June 2025 is larger than the June 2025 deficit, but the FY2026 result is not yet published, so the current equity is not known [12].

For an investor, the filings raise three questions before any question of price. Can the estates cover their cash costs at the auction prices of the last four years? Will the new equity reduce the loan book, or fund further losses? And can the accounts be relied on? The auditor qualified the FY2025 opinion on five matters, added a material-uncertainty paragraph on going concern, and described weak governance, no internal audit department, unauthorised payments and missed regulatory filings [1 p.2] [1 p.3] [1 p.4]. The company has not published a quarterly report in our corpus since the nine months to March 2024, and its FY2025 accounts were approved eleven months after the year end [1 p.10] [6].

Business: twelve estates, 5.5m kg a year, and a cost per kg that passed BDT 297 against an average price of BDT 177

How the estates make money. Tea bushes are bearer plants: they are planted, take about three years in the nursery and field before they count as mature, and then yield green leaf [1 p.32] [1 p.2]. Workers pluck the leaf by hand, the estate factories wither, roll, ferment and dry it into made tea, and the made tea goes to the auction through brokers, who pay about 15 days after the sale [1 p.33]. In FY2025 auction sales were BDT 646m of BDT 715m of turnover; the local sales unit sold BDT 42.9m, exports were BDT 15.9m and rubber BDT 7.2m [1 p.38]. The company does not set the auction price. Its own note says that "pricing in independent auction sales is beyond the control of the Company" [1 p.38]. Its financial-risk note adds that the auction price depends on the country's own production and imports of tea [2 p.44].

Cost is mostly people. Each estate runs a resident workforce under an industry wage agreement between the Bangladesh Tea Association and the Bangladesh Cha Sramik Union, with housing, food-grain subsidy, provident fund and a labour pension of BDT 310 a week for monthly-paid and BDT 250 for daily-paid retired workers [1 p.24]. The last agreement added BDT 50 per worker per day and arrears of BDT 11,000 per worker [3 p.132]. Labour-linked lines were 60% of the BDT 994m tea production cost in FY2025 [1 p.38] [12]. These costs are largely fixed for a season: the estate pays its workers whether the auction price is high or low.

Eight years in brief. FY2018 and FY2019 were profitable: turnover of BDT 1,144m and BDT 1,191m, gross margins of 30.5% and 31.7%, and net profit of BDT 106m and BDT 136m [3 p.76] [12]. In FY2020 the average price fell from BDT 248.29 to BDT 151.38 a kg while the cost per kg rose, and the company lost BDT 368m [3 p.76]. Prices recovered only partly, to BDT 179-185 in FY2021-FY2022, while cost per kg stayed near BDT 215 [3 p.76]. Then in FY2023 the cost per kg jumped to BDT 297.30 after the new wage agreement, with the price at BDT 176.98 [3 p.76] [3 p.132]. FY2024 turnover fell another 21.7% as the auction price fell by BDT 41.41 a kg [2 p.40] [12]. FY2025 turnover fell 4.8% more [1 p.10] [12].

Volume has been steady; price and cost have not. Production stayed between 5,184 and 5,725 thousand kg over FY2018-FY2023 [3 p.76]. Management set capacity at 7.5m kg "in view of the plantation area", so FY2023 output of 5.48m kg was 73.0% of that figure [3 p.136] [12]. New planting fell to 151.87 hectares in FY2023 from 263-284 hectares in FY2021-FY2022 [3 p.76]. The FY2024 and FY2025 statements give no production, price or cost per kilo: they are audited financial statements only, without the directors' report or the 'at a glance' table [2 p.2] [1 p.1]. The FY2023 schedule shows 5.41m kg sold, 1.29m kg in closing stock and 80,118 kg of tea waste written off in the year [3 p.136].

The local sales unit and exports. Local market sales fell from BDT 73.1m in FY2022 to BDT 42.9m in FY2025 [3 p.131] [1 p.38]. Management's stated plan for the negative equity is "increasing quality production, diversification of product and increasing sale in the local market" [1 p.37]. Export sales appeared in FY2024 at BDT 5.8m and rose to BDT 15.9m in FY2025, still 2.2% of turnover [2 p.40] [1 p.38] [12]. FY2025 also shows BDT 2.7m of green-leaf sales, a line that was not there before [1 p.38].

Land and legal title. The estates sit on land leased from the district commissioners. The auditor notes pending suits over land use at three estates in the district courts and the High Court, and says the company must protect the land from outsiders [1 p.6]. Patiya Tea Estate has been in dispute since 1982; a 1994 meeting at the Ministry of Commerce asked the Bangladesh Tea Board to settle the cases, and the matter is "still under process" [2 p.36]. The company still carries BDT 18.3m of pre-takeover liabilities to the government from the 1978 and 1982 transfers [1 p.36].

Line items: the auction price sets turnover, wages set cost, and finance cost reached 70% of FY2025 turnover

Turnover. Auction sales are about nine-tenths of turnover: 92.7% in FY2022 and 90.4% in FY2025 [12]. Auction sales fell 9.5% in FY2023, 23.8% in FY2024 and 5.3% in FY2025 [12]. The company's notes split the cause. In FY2023 both price (down BDT 8.73 a kg) and volume (down 2.70 lakh kg) fell [3 p.131]. In FY2024 price fell by BDT 41.41 a kg while volume rose by 0.045 lakh kg [2 p.40]. For a sense of scale: on the 5.41m kg sold in FY2023, each BDT 10 a kg of auction price moved turnover by about BDT 54m [3 p.136] [12]. That is more than the BDT 36m by which turnover fell in FY2025 [12].

The FY2025 turnover note is a problem in itself. It again says auction sales fell "due to decreasing in auction price by Taka 41.41 per kg and despite of sale volume increased by 0.045 lac kgs", word for word the FY2024 explanation [1 p.38] [2 p.40]. The EPS note says EPS fell "by Taka 11.26" because sales fell by BDT 20.80 crore and finance cost rose by BDT 12.02 crore [1 p.42]. Those are FY2024 movements: FY2024 EPS fell by BDT 11.25 and turnover by BDT 208m against FY2023 [12]. In FY2025 EPS fell by BDT 51.04, turnover by BDT 36m and finance cost rose by BDT 194m [1 p.10] [12]. So the filed FY2025 accounts do not explain the FY2025 price and volume.

The work stoppage. The company told the DSE in December 2024 that workers had stopped work at all twelve gardens from 21 October 2024 over unpaid arrears, that it expected to lose about 15-16 lakh kg of made tea in 2024, and that it had received BDT 86 crore of a requested BDT 150 crore from Bangladesh Krishi Bank, plus BDT 7.50 crore of a further BDT 44 crore request to the Ministry of Commerce [6]. Work resumed on 10 December 2024 [6]. That stoppage fell inside FY2025. The FY2025 notes do not mention it. Crop plucking wages fell from BDT 198m to BDT 138m, while the note beside the figure still says they "increased this year because of increased production" [1 p.38] [1 p.39].

Cost of goods sold. Tea production cost was BDT 908m in FY2022, BDT 1,239m in FY2023, BDT 1,213m in FY2024 and BDT 994m in FY2025 [3 p.131] [2 p.40] [1 p.38]. The FY2023 rise of 36.5% came from the wage agreement: labour sundries, labour bonus, plucking wages, garden staff and provident fund all rose by a third or more [3 p.131] [3 p.132]. In FY2025 production cost fell 18.0%, but cost of goods sold still rose, from BDT 1,032m to BDT 1,176m, because BDT 388m of tea carried in stock at June 2024 was sold and closing stock fell to BDT 211m [1 p.38]. Stock built in a year of falling prices was released into a year of lower sales.

Power and fuel. Power and fuel for the factories cost BDT 120m in FY2024 and BDT 91m in FY2025, 9.9% and 9.1% of tea production cost [2 p.40] [1 p.38] [12]. The FY2024 note blames higher electricity and diesel prices and more generator use during power cuts [2 p.41]. This is the one cost line where national energy prices pass straight through.

Operating expenses. Administrative and general cost fell from BDT 190m in FY2023 to BDT 80m in FY2025, and selling cost from BDT 39m to BDT 29m [3 p.103] [1 p.10]. Salaries, senior establishment, legal, advertising and general charges all fell, and the FY2025 note lists head office items line by line where FY2024 grouped them [1 p.40] [2 p.41]. Selling cost is mostly broker charges (1% of auction proceeds), freight and packing [1 p.41] [3 p.136].

Other income. Other income was BDT 41.5m in FY2024, of which BDT 31.3m was compensation from the Ministry of Land for use of land at Lackatoorah, and BDT 28.8m in FY2025, when interest income of BDT 28.0m on the placement money held in bank accounts made up most of it [2 p.43] [1 p.41]. Neither is a trading income.

Finance cost. This is the line that turned an operating loss into a loss larger than turnover. Finance cost rose from BDT 106m in FY2021 to BDT 498m in FY2025 [3 p.76] [1 p.10]. Average bank loans rose, and so did the rate: finance cost divided by average loans was 6.2% in FY2021, 9.3% in FY2024 and 12.1% in FY2025 [12]. The company capitalises interest on its Bangladesh Krishi Bank development loan into plantation, so the expense understates the interest cost [1 p.27]. Interest paid in cash was BDT 460m in FY2025 [1 p.12]. On the June 2025 loan book, each 1pp of interest rate is about BDT 44m a year [12].

Tax. The company pays minimum tax on gross receipts because it has no taxable profit, and it does not recognise deferred tax on its tax losses [1 p.26] [1 p.27]. The FY2025 tax expense was BDT 7.5m [1 p.10]. The policy note gives the minimum-tax rate as 0.60% while the provision note says 1% and computes BDT 7.67m, against a BDT 7.44m charge on the face of the accounts [1 p.26] [1 p.36].

Ratios: gross margin from 32% (FY2019) to -65% (FY2025), loans at 99% of assets, cash burn every year since FY2020

Margins. Gross margin was 30.5% in FY2018 and 31.7% in FY2019, single digits or negative from FY2020 to FY2022, and -29.8%, -37.5% and -64.5% in FY2023-FY2025 [12]. Net margin moved from 11.5% in FY2019 to -146.4% in FY2025: the FY2025 loss was larger than turnover [12]. Operating expenses were 15.2% of turnover in FY2025, down from 23.9% in FY2023 [12].

Returns. Return on average total assets was 5.6% in FY2019 and between -26.0% and -6.8% over FY2020-FY2025 [12]. Return on equity is not meaningful from FY2023, when equity turned negative. The company's own table shows ROE of -32,094.80% for FY2023, the arithmetic result of dividing a loss by an equity close to zero [3 p.76].

Leverage and coverage. Bank loans rose from 50.2% of total assets in June 2020 to 106.3% in June 2024 and 98.6% in June 2025, and from 1.96x turnover in June 2021 to 6.20x in June 2025 [12]. Interest cover is negative: there has been a loss from operation, before finance cost, in each of FY2022-FY2025 [12]. The current ratio was 0.24x at June 2024 and 0.51x at June 2025, the latter lifted by placement cash [12].

Cash conversion. Operating cash flow was positive in FY2018 (BDT 218m) and FY2019 (BDT 14m) and negative in every year since: BDT -493m in FY2023, BDT -833m in FY2024 and BDT -613m in FY2025 [3 p.76] [2 p.13] [1 p.12]. The company presents interest paid inside operating cash flow; before interest and tax, cash used in operations was BDT 148m in FY2025 and BDT 527m in FY2024 [1 p.12]. Over FY2020-FY2025 the operating outflow totalled BDT 2,390m [12].

Payout. The company paid cash dividends of BDT 2.20 a share for FY2018 and FY2019, BDT 0.50 for FY2020, BDT 1.00 for FY2021 and BDT 0.75 for FY2022, all on 6.6m shares [3 p.76]. The FY2020-FY2022 dividends were paid in loss years, out of reserves, and the general and development reserves were later used to absorb accumulated losses [3 p.104]. No dividend was declared for FY2023, FY2024 or FY2025 [3 p.137] [6]. Declared dividends of BDT 22.8m, BDT 18.4m of them from FY2017 and earlier, remain payable on the balance sheet [1 p.37].

Balance sheet and audit: BDT 4,433m of BKB-led loans, an unfunded BDT 313m gratuity, and a five-point qualification

Assets. Property, plant and equipment was BDT 2,613m at June 2025, and plantation (bearer plants) was BDT 2,388m of it, 53.1% of total assets [1 p.9] [1 p.30] [12]. Inventories were BDT 281m, mostly made tea at the lower of cost and net realisable value; the realisable value is set from garden-wise auction prices for July-September after the year end [1 p.6] [1 p.32]. Receivables were only BDT 22m, because brokers pay within about 15 days [1 p.33]. Cash was BDT 1,151m, almost all of it in short-term deposit and current accounts after the placement money came in [1 p.33].

Debt. Bank loans were BDT 2,005m at June 2021 and BDT 4,433m at June 2025 [4 p.91] [1 p.9] [12]. The short-term part is crop hypothecation and stimulus-package loans from Bangladesh Krishi Bank, BDT 2,682m at June 2025 [1 p.37]. The long-term part, BDT 1,751m, is a BKB development loan, a small EEC revolving fund, a Pubali Bank loan of BDT 234m and a BKB term loan of BDT 1,120m [1 p.35]. In FY2025 the BKB term loan shows BDT 1,024m of additions and BDT 1,306m of payments and adjustments, while the cash flow statement shows BDT 827m of loans received and BDT 190m repaid, so most of the movement was non-cash [1 p.35] [1 p.12]. The auditor says the BDT 1,751m of long-term loans include BDT 1,344m of loans received and interest charged in the year [1 p.2]. The current portion of long-term loans is shown as nil, against BDT 510m a year earlier, which is one of the auditor's qualifications [1 p.9] [1 p.2]. The FY2024 audit report notes BDT 718m of short-term loan rescheduled to long term [2 p.4].

Other liabilities. The gratuity provision of BDT 313m is unfunded: the board decided in 2018 to fund it monthly, but no money was transferred in FY2025 and the fund balance is nil [1 p.24] [1 p.3]. Trade payables and others doubled to BDT 536m, with creditors for expenses up from BDT 105m to BDT 309m [1 p.36]. A year earlier the company said it could not pay provident fund subscriptions and contributions for lack of working capital [2 p.37].

The audit opinion. ARTISAN, Chartered Accountants, qualified the FY2025 opinion on five matters [1 p.2] [1 p.3]. First, bearer plants of BDT 2,388m have no defined useful life or depreciation policy; the company booked a lump-sum BDT 31.6m and capitalised immature plants directly, which in the auditor's words overstates PPE, profit and retained earnings. Second, long-term loans of BDT 1,751m have no current portion and are presented inconsistently with the prior year. Third, the BDT 313m gratuity is not measured under IAS 19. Fourth, garden and head-office accounts show unreconciled differences that net to BDT 9.5m. Fifth, the placement process: 4,446,624 shares were allotted on 2 October 2024 without board approval and before subscription closed, about BDT 29 crore of proceeds was used to repay bank loans before regulatory conditions were met, quarterly utilisation reports were not filed, and several government agencies including the BSEC are investigating [1 p.3]. A sixth paragraph lists missed statutory filings, a late AGM, no internal audit department, unauthorised payments and frequent management changes [1 p.3] [1 p.4]. The going-concern paragraph cites the accumulated loss of BDT 2,391m, loans of BDT 4,433m and negative equity [1 p.4]. The same auditor had qualified FY2024 on bearer plants and going concern [2 p.3] [2 p.4].

Capital and governance: 23.15m new shares at BDT 119.53, a qualified share process, and no quarterly reports since March 2024

The placement. The BSEC consent of 13 April 2023 allowed the company to raise BDT 2,797m by issuing 23.4m ordinary shares at BDT 119.53 to shareholders on the record date of 15 May 2023, in cash [6] [1 p.3]. The subscription window was extended repeatedly: to 31 March 2025, 30 June 2025 and 31 August 2025, with subscription periods in March 2025 and from 31 July to 13 August 2025 [6]. The May and July 2025 extensions restated the BSEC condition that government shareholding, including ICB and Sadharan Bima Corporation, stay at least 51% at all times [6]. On 28 August 2025 the chairman, Mr. Mamun Rashid, an independent director, declared that he intended to buy 250,000 shares from the unsubscribed portion [6]. The auditor calls it a "rights issue"; the company's DSE correction of 30 January 2025 says it is a placement share issue [1 p.3] [6]. The company credited 4,446,624 shares on 2 October 2024 and 18,703,376 on 30 September 2025, bringing paid-up shares to 29,750,000 [6]. That leaves 250,000 of the approved shares unissued [12].

What the placement does to per-share numbers. The FY2025 accounts compute EPS of BDT -158.53 and NAV of BDT -144.97 on a weighted 6.6m shares, and say the share issue "is still in process and does not affect the EPS" [1 p.42]. The share-capital note also lists the shareholding at 30 June 2025 on 6.6m shares [1 p.34]. Yet 4.45m new shares had been credited to investors on 2 October 2024, inside FY2025 [6]. On the 29.75m shares now outstanding, the FY2025 loss equals BDT -35.17 a share and June 2025 equity BDT -32.16 a share [12]. Future EPS will be spread over 4.5 times as many shares.

Ownership. The DSE page shows sponsors and directors at 45.26%, government 4.33%, institutions 14.75% and the public 35.66% at June 2024, and sponsors and directors at 39.43%, government 5.22%, institutions 31.49% and the public 23.86% at August and September 2026 [5]. The 'sponsor/director' group in the filings is led by ICB and Sadharan Bima Corporation, with smaller holdings by two individuals and two companies [1 p.34]. The filings do not show whether the 51% government condition is met on the enlarged capital.

Board and management. A new managing director, Mr. H. S. M. Ziaul Ahsan, and company secretary, Mr. A. K. Azad Chowdhury, were appointed from 3 February 2025 [6]. The FY2024 accounts were signed by a managing director in-charge and a chief financial officer in-charge, and the FY2023 accounts by a different managing director-in-charge [2 p.10] [3 p.102]. The auditor refers to frequent changes in management and a finance department without adequate competent staff [1 p.4].

Reporting timetable. The FY2024 accounts were approved by the board on 23 January 2025 and the FY2025 accounts on 20 May 2026 [6]. The 46th AGM, covering FY2024, was held on 16 July 2026 [6] [5]; its outcome is not in our sources. The 47th AGM, for FY2025, will be "announced later" [6]. The DSE news archive for the last 24 months contains no quarterly results for NTC, and the auditor states that quarterly financial statements were not submitted or evidence was not available [6] [1 p.4]. The share trades in the Z category [5].

Board decisions on capital spending. We swept 24 months of DSE news (criteria 3) for board approvals of capex, expansion or new plants. There are none: the board decisions posted are the two sets of annual accounts, the placement timetable and share credits, the dividend decisions and the management appointments [6]. In the accounts, capital work-in-progress is nursery plants (BDT 74m at June 2025) and PPE additions were BDT 52m in FY2025 [1 p.32] [1 p.30]. Investing cash outflow was BDT 40m in FY2025 against BDT 132m in FY2024 [1 p.12].

Peers: of three June-year-end agro-processors, NTC has the lowest gross margin and Zeal Bangla the heaviest debt

There is no other listed tea grower on the DSE, so the peer set is two June-year-end agro-processors in the Food & Allied sector, read from their own FY2025 standalone statements on the same lines. Zeal Bangla Sugar Mills is a sugar mill whose balance sheet carries current accounts with BSFIC and negative equity; Apex Foods processes and exports shrimp and white fish [7 p.40] [7 p.41] [8 p.28] [8 p.45] [8 p.46]. Each company prints its lines differently, so the table quotes the labels: NTC's 'Turnover', 'Gross profit/(loss)' and 'Finance cost'; Zeal Bangla's 'Sales', 'Gross Profit / Loss for the Year' and 'Interest on Loan'; Apex's 'REVENUE', 'GROSS PROFIT' and 'Financial expenses'. Borrowings are every loan line on each balance sheet. Zeal Bangla's BDT 2,440.5m 'Current Account with BSFIC', a balance with its state parent corporation, is left out of its borrowings [7 p.40].

What the comparison shows. Of the three, NTC has the lowest gross margin (-64.5%, against -26.8% at Zeal Bangla and 10.5% at Apex) [12]. Interest took 69.6% of revenue at NTC, 111.5% at Zeal Bangla and 1.2% at Apex [12]. Zeal Bangla is more indebted by every measure: borrowings were 16.2x its revenue and its negative equity was BDT 6,835m [7 p.40] [12]. Apex, the only profitable one of the three, earned a 1.7% net margin with borrowings of 16.7% of assets [8 p.45] [8 p.46] [12]. On prices of 29 October 2026, Apex trades at 46.0x FY2025 EPS; P/E and P/B are not meaningful for NTC and Zeal Bangla [11] [12].

What's next: FY2026 accounts undated; the past two years came 7 and 11 months after year-end

Already announced. The FY2025 result (EPS BDT -158.53, NAV BDT -144.97, NOCFPS BDT -92.89, no dividend) was posted on 21 May 2026, and the 46th AGM was held on 16 July 2026 [6] [5]. CRISL affirmed BBB- long term and ST-5 short term, with the outlook moved from developing to stable, on 1 June 2026 [6]. These are facts already in the record, not future signposts.

Not yet dated. The 47th AGM for FY2025 has no date [6]. The FY2026 accounts (year to 30 June 2026) have not been announced and there is no board-meeting notice for them in the DSE archive [6]. The outcome of the investigations into the placement named by the auditor has no date [1 p.3]. The use of the remaining placement cash is not set out in any filing we hold.

How each signpost moves the lines. The FY2026 accounts will be the first to show the full placement money on the balance sheet. Three lines matter: whether short-term BKB loans fall from BDT 2,682m, whether finance cost falls from BDT 498m, and whether operating cash flow is still negative [1 p.9] [1 p.10] [1 p.12]. The accounts will also show whether the auditor's qualifications on bearer plants and gratuity have been dealt with, and whether EPS is reported on the enlarged share count. The rating review affects loan pricing at the margin. LDC graduation in 2029 affects export tariffs; NTC's exports were 2.2% of FY2025 turnover, so the direct effect on its accounts is small [9] [10] [12].

Risks: the price-cost gap per kilo and the loan book matter most, then the reliability of the accounts

Each risk below is tied to the line it moves, with history for scale.

Two risks stand out. The first is the spread between the auction price and the cost per kilo. In FY2023, the last year with per-kilo data, the estates spent BDT 297.30 to make a kilo that sold on average for BDT 176.98 [3 p.76]. Wages are set by industry agreement and paid through the season, so the cost side does not adjust when the price falls. The second is the balance sheet. Even with BDT 2.77bn of new equity, the company had BDT 4,433m of bank loans at June 2025 and a finance cost of BDT 498m, larger than its turnover of BDT 715m [1 p.3] [1 p.9] [1 p.10]. Unless the new cash reduces loans, interest alone keeps the result negative.

A third, quieter risk is the quality of the numbers. The auditor could not quantify the bearer-plant depreciation shortfall, the gratuity is measured on a simple rule rather than an actuarial basis, and several FY2025 explanatory notes repeat the prior year [1 p.2] [1 p.3] [1 p.38] [1 p.42]. The reported equity is therefore subject to adjustments of unknown size, in both directions.

Key questions: kilos and prices since FY2023, the use of BDT 2.77bn, and the restated share count

In one line: National Tea's twelve estates have produced about 5.5m kg a year at a cost above the auction price, the gap has been borrowed from Bangladesh Krishi Bank, and BDT 2.77bn of new shares now sits against BDT 4.4bn of loans [3 p.76] [1 p.3] [1 p.9]. The FY2026 accounts are the next hard evidence of which way that balance tips.

FAQ

When does National Tea Company's financial year end?

On 30 June [1 p.9] [5].

What was National Tea Company's EPS for FY2025?

BDT -158.53 on 6.6m weighted shares, against BDT -107.49 in FY2024; the net loss was BDT 1,046m [1 p.10] [6].

Did National Tea Company pay a dividend?

No dividend for FY2023, FY2024 or FY2025; the last was BDT 0.75 a share for FY2022 [3 p.76] [6].

How many shares does National Tea Company have now?

29,750,000, after 23,150,000 placement shares at BDT 119.53 were credited on 2-Oct-2024 and 30-Sep-2025 [6].

Why is National Tea Company's equity negative?

Accumulated losses reached BDT 2,391m by June 2025 after losses in every year from FY2020; equity was BDT -957m even after a BDT 1,117m share money deposit [1 p.4] [1 p.9].

What did the auditor say about the FY2025 accounts?

ARTISAN gave a qualified opinion on five matters, including bearer-plant depreciation, gratuity and the share issue, and reported a material uncertainty on going concern [1 p.2] [1 p.4].

How much debt does National Tea Company have?

Bank loans of BDT 4,433m at 30-Jun-2025, mostly from Bangladesh Krishi Bank, with cash of BDT 1,151m [1 p.9] [1 p.35].

What is National Tea Company's credit rating?

CRISL BBB- long term and ST-5 short term with a stable outlook, on FY2025 accounts (DSE, 1-Jun-2026) [6].

Sources

1. National Tea Company Limited, auditor's report and audited financial statements for the year ended 30-Jun-2025 (signed 20-May-2026) · link · accessed 2026-11-01
2. National Tea Company Limited, auditor's report and audited financial statements for the year ended 30-Jun-2024 (signed 23-Jan-2025) · link · accessed 2026-11-01
3. National Tea Company Limited Annual Report 2022-2023 ('Information at a glance' FY2018-FY2023; FY2022-FY2023 statements) · link · accessed 2026-11-01
4. National Tea Company Limited Annual Report 2020-2021 (balance sheets at 30-Jun-2021 and 30-Jun-2020) · link · accessed 2026-11-01
5. Dhaka Stock Exchange, National Tea Company company page (shareholding Jun-2024, Aug-2026, Sep-2026; category; last AGM; 52-week range), accessed 1-Nov-2026 · link · accessed 2026-11-01
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