Orion Infusion financial analysis: ten flat years, 20% FY2025 sales fall and a 131x P/E (Oct 2026)

Investment considerations: flat sales, a 12.9% bank line, and an internally funded expansion due in December 2026

Orion Infusion Limited (OIL) makes intravenous (IV) fluids and other injectable "parenteral" products at a single plant and sells them to hospitals, clinics and pharmacies across Bangladesh [1 p.36] [1 p.86]. It is a member of the Orion Group, listed on the Dhaka Stock Exchange in 1994, and has not raised equity since its IPO [1 p.42]. Its fiscal year ends on 30 June: the latest audited statements cover 1-Jul-2024 to 30-Jun-2025 [1 p.92], and the latest interim statements cover the nine months to 31-Mar-2026 [2 p.3]. The FY2026 audited results go to the board on 9-Nov-2026 [7].

The investment picture is a small, mature, single-product-family manufacturer. Revenue was BDT 730.1m in FY2016 and BDT 664.9m in FY2025 [3 p.83] [1 p.83], so the business is smaller in taka terms than a decade ago, before any inflation adjustment. Net profit after tax has been between BDT 27.9m and BDT 42.8m in every year since FY2017 [18]. FY2025 was the weakest year in the series for sales: revenue fell 19.6% as the July-August 2024 uprising disrupted trade and the dollar shortage delayed raw-material LCs [1 p.36] [1 p.42]. The nine months to March 2026 did not recover the loss: sales fell another 3.5% to BDT 477.8m, although net profit edged up 1.7% to BDT 28.9m because interest costs fell [2 p.3].

Market data, stated as facts. The market capitalisation is BDT 4.63bn, the trailing P/E 131x and the P/B 14.0x [17] [18]. The company's annual report prints the DSE P/E as 163.51x, 231.01x and 182.36x for FY2023-FY2025 [1 p.83]; the June P/E was 29-50x in FY2017-FY2022 [18]. Separately, in October 2022 the BSEC asked the DSE to investigate a 986% price rise over three months [10], and in December 2024 the BSEC fined six persons and three firms Tk 63.61 crore for manipulating the shares [14].

Business model: one plant, one product family, local sales only

How the company makes money. All revenue is local sales of IV fluids and injectable products; the interim revenue note lists one line, "Local Sales", BDT 477.8m for 9M FY2026 [2 p.13], and the annual note shows a single sales figure [1 p.108]. The auditor describes the business as manufacturing, marketing, selling and distributing parenteral drugs and other life-saving injectables through sales depots across Bangladesh [1 p.86]. The company's best-known products include Salpac 3% sodium chloride infusion, named in the 2019-20 performance highlights [3 p.82]. No product, customer or channel split (hospital tender versus pharmacy) is disclosed in the pages read; that is a gap.

Demand drivers. IV fluids are a hospital staple whose volumes rise with admissions and, in Bangladesh, with dengue seasons: the chairman singles out dengue outbreaks as periods when the company's products are in demand [1 p.36]. The wider market is growing: the directors quote IQVIA data showing the national pharmaceutical market at BDT 36,614 crore with 17.33% annual growth [1 p.40]. Orion Infusion's revenue moved in the opposite direction in FY2025, so its share of that market fell.

Inputs. IV fluids are mostly water, salts and dextrose in a plastic bottle, so packing materials matter more than active ingredients. In FY2025 packing materials consumed were BDT 174.9m against BDT 80.1m of raw materials [1 p.108], and packing materials were 45.4% of the cost of goods sold [1 p.41]. The directors say restrictions on raw-material imports, caused by the foreign-currency shortage, slowed production [1 p.42]; the company does not split imported and local inputs in the pages read.

Scale. Orion Infusion is small next to listed pharma peers. FY2025 revenue of BDT 664.9m compares with BDT 11,883.6m at IBN SINA, BDT 12,542.7m at Beacon and BDT 35,936.9m at ACME [4 p.204] [5 p.190] [6 p.167]. Its own annual report chose Square, Beacon and Renata as comparators because they have some medicines in the infusion category [1 p.39].

What changed in ten years. The business has shrunk in people and held steady in money. Employees fell from a peak of 928 in FY2018 to 563 in FY2025, and revenue per employee rose from BDT 0.81m to BDT 1.18m [18]. Shareholders rose from about 5,000 before 2020 to 7,805 in FY2025 [3 p.83] [1 p.83], a sign of the trading interest that arrived with the 2022 price rally rather than of any change in the company. Equity rose only from BDT 264.2m to BDT 326.1m over the decade because most profit was paid out [18].

Pricing. The filings read do not say how much of the range is under government price control, and the company does not discuss price changes. The near-constant gross margin of about 40% through the taka depreciation of FY2023-FY2025 [18] suggests the company was able to keep prices in line with its costs, but the accounts alone cannot separate price from mix. This is a gap an investor would want closed at the AGM.

Capacity: 75% utilisation and a BDT 205m internally funded expansion due Dec-2026

Capacity has not changed and use has fallen. Installed capacity for IV fluids and injections was 10.98m units in both FY2024 and FY2025; production fell from 10.37m units (94.4% utilisation) to 8.24m units (75.1%) [1 p.112]. The 20.5% fall in output [1 p.42] almost matches the 19.6% fall in revenue, so revenue per unit produced was flat at about BDT 81 [18]. That points to a volume problem (supply of inputs and demand disruption) rather than a price problem.

Capital spending has been minimal. Additions to fixed assets were BDT 5.8m in FY2025 and BDT 11.4m in FY2024 [1 p.42], against factory depreciation of BDT 11.0m and BDT 14.0m [1 p.109]; no assets were bought in 9M FY2026 [2 p.5]. The historical-cost plant is largely depreciated: BDT 467.2m of accumulated depreciation against BDT 665.4m of cost [1 p.103].

The approved expansion. On 10-Nov-2025 the company told the DSE that the board had approved an investment of about BDT 20.50 crore (BDT 205m), including working capital, to expand the existing IV-fluid production line. Construction is at the plant in Maikuli, Rupganj, Narayanganj and is expected to be completed by December 2026. The company expects capacity to rise by about 30% and annual sales by about BDT 25.50 crore (BDT 255m), and says the whole investment will be financed from internal sources [8]. The annual report repeats the 30% figure [1 p.39]; its notes, dated 9-Nov-2025, record no capital commitment at 30-Jun-2025, because the approval came after the balance-sheet date [1 p.113].

Scale of the plan against the accounts. BDT 205m is 31% of FY2025 revenue and 63% of June 2025 equity [18]. The expected BDT 255m of extra sales would be 38% of FY2025 revenue, more than the 30% capacity increase, so the company is also counting on higher use of the existing line. The interim accounts to 31-Mar-2026 show no acquisition of property, plant and equipment in the nine months [2 p.5], and the March 2026 PPE balance (BDT 337.0m) is below June 2025 (BDT 345.8m) [2 p.2]. On the filed numbers, therefore, little of the BDT 205m had been spent by March 2026, nine months before the target date.

Funding is the open question. Internal sources in practice mean operating cash flow, the cash balance and the existing bank line. Free cash flow was BDT 20.7m in FY2025 and BDT 55.5m in 9M FY2026, and cash was BDT 13.5m at March 2026 [18] [2 p.2]. The company tried to raise BDT 20.36 crore through a 1-for-2 rights issue at BDT 20 a share in November 2023 [12]; the BSEC declined consent in October 2024 [13]. Whether the cash-credit line, already above its BDT 200m limit at June 2025 [1 p.107], counts as an internal source is not stated.

Line items: volume drove the revenue fall; interest at 12.9% is the swing cost

Revenue. Ten-year growth swung between -8.6% (FY2020) and +14.0% (FY2022) with no trend [18]. The FY2025 fall of 19.6% is the largest; the company attributes it to the July-August 2024 unrest and to import restrictions on raw materials [1 p.42]. In the March 2026 quarter revenue was BDT 83.6m against BDT 101.5m a year earlier, down 17.6% [2 p.3], so the decline continued well after the political disruption.

Cost of goods sold. COGS fell to 58.0% of revenue from 59.6% [1 p.41], lifting the gross margin to 42.0% [18]. Materials (raw plus packing) were 38.4% of revenue against 40.5% a year earlier, while manufacturing overhead rose to 19.7% because wages (BDT 74.8m) are largely fixed [1 p.109] [18]. Utilities fell from BDT 36.1m to BDT 28.1m and repairs from BDT 7.9m to BDT 3.2m [1 p.109], consistent with lower output. In 9M FY2026 the gross margin eased to 41.0% [18].

Selling and distribution. This is the largest expense after COGS. It fell from BDT 210.7m to BDT 161.7m in FY2025 (-23.2%), with sales-force salaries down from BDT 177.8m to BDT 135.6m [1 p.110]. Salaries were 84% of the line, so this is a field-force cost, not an advertising one: promotion was BDT 2.1m and samples BDT 3.3m [1 p.110]. As a share of revenue S&D was 24.3%, below IBN SINA's 30.2% and Beacon's 26.9% [18]. In 9M FY2026 it rose back to 25.0% of revenue as sales fell faster than costs [18].

Administrative expenses fell from BDT 37.2m to BDT 31.3m, mostly salaries [1 p.109]. Notably, the CEO, CFO, head of internal audit and company secretary drew no pay from the company in FY2025 because they are group employees paid by other Orion concerns [1 p.112], so the reported admin cost does not carry the full cost of management.

Financial expenses. Interest rose from BDT 34.1m to BDT 41.2m in FY2025 although the loan balance was flat, because the cash-credit and post-import-finance rate reached 12.90% [1 p.107] [1 p.110]. Interest therefore absorbed 47.7% of operating profit and interest cover fell to 2.1x [18]. Each 1pp on the BDT 306m line moved interest by about BDT 3.1m in FY2025, about 7% of profit before tax [18]. In 9M FY2026 interest fell to BDT 21.7m, and the March 2026 quarter shows only BDT 0.2m against BDT 6.8m a year earlier [2 p.3]; the company says a major portion of financial expenses was reduced through cash management [2 p.15]. The quarterly figure is far below what a BDT 279m loan at the FY2025 rate would cost, and the notes do not explain the drop; the FY2026 audited accounts will show whether it holds.

Other income and tax. Non-operating income is small (BDT 1.1m in FY2025) but rose to BDT 6.4m in 9M FY2026, mainly BDT 5.6m of "other income" that the company links to wastage sales [2 p.13] [2 p.15]. The effective tax rate was 20.5% in FY2025 [18]; current tax is computed on taxable profit, and the 0.6% minimum tax on gross receipts is shown alongside [1 p.110] [2 p.14].

Ratios: 40% gross margin, 11% ROE, and a current ratio below 1x for ten years

Growth. Revenue fell at a compound rate of about 1% a year between FY2016 and FY2025 [18]. Excluding FY2016, whose profit included a non-operating gain, net profit grew from BDT 31.1m (FY2017) to BDT 35.0m (FY2025) [18].

Margins. The gross margin range was narrow, 39.5-42.0%, and the operating margin 10.0-13.3% [18]. With no growth, operating expenses have run at 26-30% of revenue throughout [18]. Net margin has been 3.8-5.3% since FY2017, roughly half the operating margin, because interest takes the rest [18].

Returns. ROE on average equity ranged from 10.6% to 15.6% in FY2017-FY2025 and was 10.9% in FY2025 [18]. The company's own ROE figure, on closing equity, was 10.74% [1 p.83]. ROA was 4-6% [18]. Peers on the same closing-equity basis: IBN SINA 16.1%, Beacon 14.2% and ACME 9.1% [18].

Efficiency and liquidity. Inventory turnover fell to 2.87x in FY2025 from 6.25x [1 p.83]. On our basis inventory was 122 days of COGS and receivables 84 days of sales in FY2025, up from 55; the cash cycle lengthened from 119 to 154 days [18]. The current ratio has been 0.75-0.95x for ten years [18], because the bank line is classified as a short-term loan.

Cash conversion and payout. NOCFPS exceeded EPS in six of the ten years; the FY2025 ratio was 0.76x [18]. The declared cash dividend absorbed 49-95% of EPS in most years and 116% on a face-value basis in FY2025 [18]; because sponsors waived their FY2025 dividend, the cash actually paid was BDT 24.2m, 69% of profit [2 p.4] [18].

Reading the ratios together. The pattern is a company that converts a stable 40% gross margin into an 11-16% ROE only because it pays out most of its profit and keeps equity small; the return on assets of 4-6% is the better measure of the underlying business [18]. Against peers, Orion Infusion's gross margin (42.0%) is in line with IBN SINA and ACME, its selling cost ratio is lower, but its financial-expense ratio (6.2%) is far above IBN SINA's (0.7%) and its revenue fell while all three peers grew 4.5-17.2% [18]. The differences come from scale and funding: the peers carry long-term loans for new plants, while Orion Infusion's debt funds day-to-day working capital.

Balance sheet: a 12.9% bank line equal to equity, negative retained earnings, and three audit emphases

Debt. The only bank borrowing is with Agrani Bank's WASA branch: a BDT 200m cash-credit (hypothecation) limit for working capital and a BDT 100m post-import-finance limit for LC payments, both one-year, at 12.90%, secured on land, sponsor shares and a corporate guarantee [1 p.107]. At June 2025 the two balances were BDT 206.6m and BDT 99.1m; the cash-credit balance was above its BDT 200m limit [1 p.107]. By March 2026 the total was down to BDT 279.4m [2 p.13]. Net debt including leases was BDT 282m, 0.85x equity [18].

Assets. Property, plant and equipment of BDT 345.8m at June 2025 includes BDT 147.6m of revaluation (land BDT 118.0m, buildings BDT 29.5m) [1 p.103] [1 p.107]. Advances of BDT 169.0m are mostly advance income tax (BDT 139.8m) [1 p.104], which sits against a BDT 72.5m tax provision [1 p.107]. Investments include BDT 16.8m of sponsor shares of ICB Islamic Bank, subject to a High Court appeal that the auditor highlights [1 p.86] [1 p.103].

Equity. Retained earnings were negative at every balance date read: BDT -48.4m at July 2023, BDT -24.0m at June 2024, BDT -11.9m at June 2025 and BDT -6.0m at March 2026 [1 p.93] [2 p.2]. Dividends of BDT 20.4m (FY2023) and BDT 24.4m (FY2024) were debited to retained earnings while the balance was negative [1 p.93]. Equity is held up by BDT 203.6m of share capital and BDT 132.5m of reserves [2 p.2].

Audit. Anil Salam Idris & Co. gave an unmodified opinion on FY2025 with three emphasis-of-matter paragraphs: the ICB Islamic Bank share case; BDT 5.97m of unclaimed dividends for FY2019-FY2021 not transferred to the Capital Market Stabilization Fund as BSEC requires; and BDT 5.25m of WPPF not paid within nine months under the Labour Act [1 p.86]. The key audit matter was revenue cut-off and occurrence [1 p.86]. No claims were unacknowledged as debt at June 2025 [1 p.113].

Ownership and market: 40.6% sponsors, BSEC fines, and a 131x trailing P/E

Ownership and board. Sponsors and directors held 40.61% at 30-Sep-2026, institutions 13.26%, foreign investors 0.07% and the general public 46.06% [7]; the June 2025 split was 40.61% / 13.10% / 0.05% / 46.24% [1 p.64]. The chairman is Mohammad Obaidul Karim [1 p.36] and the managing director Salman Obaidul Karim [1 p.39]. The only related-party balance disclosed is a BDT 1.0m trade payable to Kohinoor Chemical Co. (BD) Ltd., a company with a common director or shareholder [1 p.112].

Dividends. Cash dividends were 14% from FY2016 to FY2019, 10% in FY2020-FY2021, 20% for FY2022, 10% for FY2023, 12% for FY2024 and 20% for FY2025 [7]. The FY2022 20% replaced a board recommendation of 10% stock plus 10% cash [11]. For FY2025 the board recommended 20% cash for general shareholders, excluding sponsors [1 p.36]; the amount booked was BDT 24.2m [2 p.4].

The share price and the regulator. The price was BDT 87.6 on 3-Jul-2022 and BDT 951.6 by 13-Oct-2022, a 986% rise, with the company telling the DSE each time that it had no undisclosed price-sensitive information; the BSEC asked the DSE to investigate [10]. On 9-Dec-2024 the BSEC fined six persons and three firms Tk 63.61 crore for manipulating Orion Infusion's shares; those fined included the chairman and a director of Beacon Pharma, Beacon Medicare and Beacon Pharmaceuticals [14]. In September 2026 the stock rose more than 70% in eight sessions to Tk 273, the DSE sent a show-cause notice, and the company again said it had no undisclosed information [9]. Earlier, on 17-Aug-2025, the company had answered a similar DSE query about an unusual price rise and volume in the same way [8]. The 52-week range is BDT 159.0-511.0 [7].

Multiples as facts. At June year-ends the P/E was 13.7-50.0x in FY2016-FY2022 and 163-231x in FY2023-FY2025; the P/B moved from 4.5-6.1x to 19.6-31.1x [18]. At BDT 227.2 on 30-Oct-2026 the trailing P/E is 130.6x and P/B 14.0x [17] [18]. Peers' own filings show EPS of BDT 20.27 at IBN SINA, BDT 4.10 at Beacon and BDT 11.48 at ACME for FY2025 [4 p.204] [5 p.190] [6 p.167]. These are stated without a view on the price.

Earnings quality: simple accounts, but 9M FY2026 profit leans on wastage sales and a partly explained interest drop

Earnings quality. FY2025 profit is operating profit less interest, with little else: other income was BDT 1.1m and the tax charge 20.5% [18]. Two items in 9M FY2026 deserve attention: BDT 5.6m of other income from wastage sales, which is 19% of nine-month net profit, and the near-zero March-quarter interest charge [2 p.13] [2 p.3]. Without them, nine-month profit would have been lower than a year earlier.

What drives returns to shareholders. Three things: whether volumes return to the 10m-plus units of FY2024; whether the bank line can be cut or repriced, since each 1pp of rate is roughly 7% of FY2025 pre-tax profit; and whether the BDT 205m expansion finishes on time and adds the sales the company expects [8]. FY2025 free cash flow was BDT 20.7m and dividends paid BDT 23.8m [18], so the question is whether BDT 205m can be paid for from free cash flow of that size plus the bank line, without a rights issue, which the BSEC rejected in 2024 [13], and without cutting the dividend.

Cash quality. Operating cash flow was BDT 26.5m in FY2025 against net profit of BDT 35.0m (0.76x) and BDT 55.5m in 9M FY2026 (1.92x) [18]. Inventory fell BDT 15.3m in the nine months [2 p.15], so part of the improvement is working capital released by lower activity rather than higher earnings.

What's next: the 9-Nov-2026 board meeting shows whether FY2026 volumes and interest costs improved

Items already disclosed or scheduled that move the lines (direction only, no forecast):

Passed events: the FY2025 AGM was held on 23-Dec-2025 [7], together with an EGM called to change the name from Orion Infusion Limited to Orion Infusion PLC [8]; the outcome is not confirmed in the sources read, and the March 2026 interim statements still use "Orion Infusion Limited" [2 p.2]; the Q3 FY2026 results were released in late April 2026 [2 p.3]. The FY2026 AGM date and record date have not been announced in the sources read.

Risks: input supply and interest cost on the accounts; manipulation on the share price

Each risk below is tied to the line it moves; scale them against FY2025 profit before tax of BDT 44.1m [1 p.92].

Key questions: volumes, interest cost, expansion funding and compliance

FAQ

What does Orion Infusion make?

IV fluids and other parenteral (injectable) products from one plant with capacity of 10.98m units a year [1 p.112] [1 p.86].

When does Orion Infusion's fiscal year end?

30 June. FY2025 ran from 1-Jul-2024 to 30-Jun-2025 [1 p.92].

Why did FY2025 sales fall?

The company cites the July-August 2024 uprising and limits on importing raw materials due to the foreign-currency shortage [1 p.42].

How much debt does Orion Infusion have?

BDT 279.4m of Agrani Bank short-term loans at 31-Mar-2026, down from BDT 305.7m at June 2025 [2 p.13].

Who owns Orion Infusion?

Sponsors and directors held 40.61%, institutions 13.26% and the public 46.06% at 30-Sep-2026 [7].

Which results does this note use?

Annual reports to FY2025 and the unaudited nine months to 31-Mar-2026. The FY2026 annual results go to the board on 9-Nov-2026 and were not available.

Sources

1. Orion Infusion Limited Integrated Annual Report 2024-25 (year to 30-Jun-2025) · link · accessed 2026-11-01
2. Orion Infusion Limited condensed interim financial statements (unaudited), nine months to 31-Mar-2026 · link · accessed 2026-11-01
3. Orion Infusion Limited Annual Report 2019-20 (five years' performance 2015-16 to 2019-20) · link · accessed 2026-11-01
4. The IBN SINA Pharmaceutical Industry PLC Annual Report 2024-25 · link · accessed 2026-11-01
5. Beacon Pharmaceuticals PLC Annual Report 2024-25 · link · accessed 2026-11-01
6. The ACME Laboratories Ltd. Annual Report 2024-25 · link · accessed 2026-11-01
7. Dhaka Stock Exchange company page and announcements for ORIONINFU (shareholding to 30-Sep-2026, dividend history, last AGM 23-Dec-2025, closing price 227.20 on 30-Oct-2026, 52-week range 159.00-511.00; LR19 board meeting on 9-Nov-2026 announced by DSE) · link · accessed 2026-11-01
8. Dhaka Stock Exchange news archive for ORIONINFU: 'Board Approval of Investment for Expansion of IV Fluids Production' and dividend/AGM/EGM declaration (both posted 10-Nov-2025); query response (17-Aug-2025) · link · accessed 2026-11-01
9. The Financial Express, 'Orion Infusion's unusual rally raises manipulation concerns' (24-Sep-2026) · link · accessed 2026-11-01
10. The Financial Express, 'BSEC asks DSE to look into Orion Infusion price hike' (14-Oct-2022) · link · accessed 2026-11-01
11. The Daily Star, 'Orion Infusion retracts previous plan, will give 20% cash dividend' (27-Dec-2022) · link · accessed 2026-11-01
12. The Business Standard, 'Orion Infusion to issue right shares' (5-Nov-2023) · link · accessed 2026-11-01
13. The Business Standard, 'BSEC rejects rights share application of Orion Infusion' (6-Oct-2024) · link · accessed 2026-11-01
14. The Daily Star, 'BSEC makes more major moves' (10-Dec-2024) · link · accessed 2026-11-01
15. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
16. The Business Standard, 'Bangladesh gets 3 more years before LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
17. AnalystBro price data (TradingView feed): DSE:ORIONINFU monthly bars to 30-Oct-2026 · link · accessed 2026-11-01
18. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-11-01