Orion Pharma financial analysis: power revenue down 88%, BDT 25.6bn debt and a qualified audit (Oct 2026)

Investment considerations: a pharma business carrying power-era debt, a qualified audit and BDT 8.8bn owed by Orion companies

Orion Pharma Limited is a listed generic-medicine maker that also owns two power plants and holds shares in other Orion group companies. It owns 95% of Orion Power Meghnaghat Limited and 67% of Dutch Bangla Power & Associates Limited, each a 100 MW heavy-fuel-oil quick rental plant near Narayanganj, and 21.76% of the listed Orion Infusion Limited [1 p.21]. The group reports three operating segments: pharmaceuticals, power and investments [1 p.196]. Its fiscal year ends on 30 June, so FY2025 is the year to 30-Jun-2025 [1 p.163].

For a decade the consolidated accounts were mostly a power business. Power made up 76% of revenue in FY2021 and 78% in FY2023 [16]. That ended when the two plants' contracts with the Bangladesh Power Development Board (BPDB) expired on 23 March 2024. The Ministry of Power instructed both to keep running on a "no electricity no payment" basis [1 p.80]. Power revenue fell from BDT 6,955m in FY2024 to BDT 818m in FY2025, and consolidated revenue fell 61.6% to BDT 4,082m [1 p.78].

What is left is a pharma company of BDT 3.3bn sales with a balance sheet built for something much larger. Consolidated borrowings were BDT 25,630m at June 2025 and BDT 26,993m at March 2026 [1 p.161] [2 p.2]. Almost all of it sits on the parent company: Orion Pharma's own long-term loans were BDT 25,137m against separate equity of BDT 13,470m [1 p.162]. Against that debt the balance sheet carries the Siddhirganj pharma expansion (the 2013 IPO raised BDT 2.40bn for it) [1 p.80], BDT 10.2bn of capital work-in-progress [1 p.161] and BDT 8.8bn of current accounts with other Orion companies [1 p.180]; the filings do not trace loan proceeds to these uses.

The result is a loss. Consolidated profit attributable to shareholders was a loss of BDT 415m in FY2025 (EPS BDT -1.77) after a profit of BDT 318m in FY2024 [1 p.163], and the loss widened to BDT 221m in the nine months to March 2026 against BDT 41m a year earlier [2 p.4]. The board declared no dividend for FY2025 [11].

Business: a pharma maker that consolidates two 100 MW oil-fired plants whose state contracts ended in March 2024

What is consolidated. The group statements combine Orion Pharma Limited (the parent, which makes medicines at Siddhirganj), Orion Power Meghnaghat Limited (95% owned) and Dutch Bangla Power & Associates Limited (67% owned) [1 p.178]. Orion Infusion Limited, a listed maker of intravenous fluids and injectables, is an associate at 21.76% [1 p.21]; Orion Pharma holds 4,430,000 of its shares at a cost of BDT 44.3m [1 p.196]. Separately, the parent holds BDT 2,117m of shares in Orion Infrastructure Limited and smaller stakes in Orion Power Khulna and Orion Power Dhaka; the consolidated accounts also carry BDT 3,802m of shares in Orion Power Unit-2 Dhaka Limited [1 p.179].

How pharma makes money. Orion Pharma describes itself as operating in a single segment, the pharmaceutical industry inside and outside Bangladesh [1 p.78]. Revenue is recognised when risks and rewards pass, usually on delivery [1 p.171]. Local sales were BDT 3,067m and exports BDT 197m in FY2025 [1 p.190]. The auditor's key-audit-matter work on revenue checked that pricing complied with DGDA directives [1 p.157]; the pages we read do not say what share of sales is under DGDA price control, or give a market share or rank.

How power made money. The plants are paid a reference energy price for variable operation and maintenance, and book as revenue the heavy fuel oil (HFO) they receive from Orion Oil & Shipping Ltd (OOSL) [1 p.190]. In FY2024 HFO pass-through was BDT 5,757m of the BDT 6,955m power revenue, and the matching HFO purchase from OOSL was BDT 6,153m [1 p.191]. That is why power revenue was large while its margin was thin: the power gross margin was 4.8% in FY2024 and -17.0% in FY2025 [16].

What happened to the plants. The contracts of both plants with BPDB expired on 23 March 2024; under Ministry memos of 29 April 2024 they were told to resume and continue on a no-electricity-no-payment basis [1 p.80]. In FY2025 Orion Power Meghnaghat had revenue of BDT 427.04m and a net loss of BDT 79.79m; Dutch Bangla Power had revenue of BDT 390.53m and a net loss of BDT 203.11m [1 p.80]. The Q1 FY2026 DSE notice said EPS fell "mainly because no revenue was generated from two subsidiary companies during this period" [11], and 9M FY2026 cost of power generation was only BDT 109m [2 p.4].

History: profit fell every year from BDT 939m in FY2021 to a BDT 415m loss in FY2025

Revenue swung with power, not pharma. Consolidated revenue moved between BDT 7.6bn and BDT 13.9bn from FY2017 to FY2024, with the swings driven by fuel pass-through at the power plants [7 p.66] [1 p.151]. Pharma revenue grew steadily from BDT 2,612m in FY2021 to BDT 3,666m in FY2024 before falling to BDT 3,264m in FY2025 [16].

Profit fell for four years before the loss. Attributable profit peaked at BDT 939m in FY2021 and fell to BDT 846m, BDT 641m and BDT 318m in the next three years, then to a loss of BDT 415m [1 p.151]. ROE on average equity peaked at 5.2% in FY2018 and 5.1% in FY2021 and has fallen every year since; it was -2.0% in FY2025 [16]. The company's own ratio table shows a debt-equity ratio rising from 1.18 times in FY2021 to 1.65 times in FY2025 [1 p.151].

Gross margin jumped in FY2025 for a bad reason. The consolidated gross margin rose from 21.5% to 33.9% because low-margin power revenue almost disappeared, not because any business became more profitable [16]. The operating margin fell from 9.0% to 1.4%, and EBITDA fell from BDT 1,499m to BDT 758m [1 p.151].

Line items: pharma sales fell 10.9% while depreciation doubled, and pharma operating profit no longer covers interest

Pharma revenue. Orion Pharma's own sales fell 10.9% to BDT 3,264m in FY2025: local sales fell from BDT 3,523m to BDT 3,067m while exports rose from BDT 143m to BDT 197m [1 p.78]. The directors attribute the fall in EPS mainly to "a sharp decline in sales revenue caused by political instability, which disrupted market" activity in July and August 2024 [1 p.81]. The filings give no volume or price split. Export cash incentives fell from BDT 18.7m to BDT 6.5m even as exports grew [1 p.194].

Pharma cost of goods sold. Materials were stable as a share of sales: raw and packing materials were 28.9% of sales in FY2024 and 28.7% in FY2025 [16]. The margin fell because factory overhead rose from BDT 629m to BDT 834m, and within it depreciation doubled from BDT 225m to BDT 451m [1 p.191]. That follows the transfer of BDT 8,311m from capital work-in-progress into property, plant and equipment in FY2024 [1 p.178]: a larger plant began depreciating while sales fell. Pharma gross margin went from 53.4% to 46.7% [16].

Operating expenses. Selling and distribution expenses were BDT 844m, of which salaries, allowances and bonus were BDT 653m [1 p.193]; as a share of pharma sales they rose from 23.6% to 25.9% [16]. General and administrative expenses rose to BDT 428m [1 p.164]. Pharma profit from operation fell from BDT 695m to BDT 251m, a margin of 7.7% [16].

Finance cost. Consolidated financial expenses were BDT 456m, of which interest on long-term borrowing was BDT 366m [1 p.193]. The parent's share was BDT 368m [1 p.194]. These are expensed amounts only: a key audit matter covers the capitalisation of borrowing costs under IAS 23 [1 p.158], and the UCB-related part of capital work-in-progress includes accrued interest [1 p.178]. Interest actually paid in cash was BDT 155m in FY2025 against BDT 890m in FY2024 [1 p.167].

Tax. Even with a pre-tax loss of BDT 386m, the group booked BDT 108m of tax: BDT 20m current (minimum tax on gross receipts) and BDT 88m deferred on the gap between accounting and tax depreciation [1 p.163] [1 p.187] [1 p.194].

Power lines. Power revenue of BDT 818m was BDT 137m of reference energy price plus BDT 680m of HFO pass-through; the cost of power generation was BDT 956m [1 p.190] [1 p.191]. The power segment result was a loss of BDT 195m, and the segment carried BDT 88m of financial expenses [1 p.196]. Non-controlling interests absorbed BDT 71m of the loss [1 p.163].

Associate and other income. The share of profit from Orion Infusion was BDT 7.6m and interest and other income BDT 13.4m [1 p.163]. Orion Infusion is remeasured through other comprehensive income: a market-value loss of BDT 741m in FY2025 cut equity but not profit [1 p.178].

Related parties: BDT 8.8bn owed by Orion companies and BDT 5.9bn of unlisted Orion shares, 68% of equity

Group balances are the largest asset outside plant. At 30-Jun-2025 the consolidated statements carried BDT 8,773m of "current account with other related companies" inside trade and other receivables, owed by 21 Orion-named or related companies [1 p.180]. The largest were Orion Power Dhaka (BDT 2,370m), Digital Power & Associates (BDT 1,228m), Orion Power Khulna (BDT 1,077m), Orion Power Unit-2 Dhaka (BDT 952m), Energon Renewable (BD) (BDT 683m) and Orion Power Sonargaon (BDT 662m) [1 p.180]. The balance rose by BDT 297m in the year, mainly at Digital Power and Orion Power Sonargaon [16].

Add the unlisted shares. The group also holds BDT 5,920m of unlisted shares, mostly in Orion Infrastructure (BDT 2,117m) and Orion Power Unit-2 Dhaka (BDT 3,802m) [1 p.179]. Together, current accounts and unlisted Orion shares were BDT 14,693m, 68.0% of total equity [16]. The company states that related-party terms "do not significantly differ from those that could have been obtained from third parties" [1 p.196], but the notes we read show no interest income on these balances: interest and other income was BDT 13m in total [1 p.194].

Money also flows the other way. The power subsidiaries owed BDT 1,102m to Orion Oil & Shipping Ltd, their HFO supplier, at June 2025 [1 p.188]. The parent's separate statements show BDT 7,258m due from other related companies and BDT 347m from Dutch Bangla Power [1 p.181]. The board put related-party transactions to shareholders at an EGM on 23-Dec-2025, as it had in December 2024 [11].

Guarantees. The FY2025 notes we read do not list guarantees given for Orion companies; bank-guarantee items appear only as deposits and margins (BDT 58.5m) [1 p.182]. We could not confirm from the filings whether the parent guarantees any group company's borrowing, so this is a gap.

Balance sheet and audit: BDT 27.0bn of debt, BDT 11.9bn of unfinished capex and a qualified opinion over a UCB loan

Debt. Consolidated borrowings were BDT 22,961m at June 2023, BDT 23,735m at June 2024, BDT 25,630m at June 2025 and BDT 26,993m at March 2026 [16]. Long-term lenders at June 2025 were Agrani Bank (BMRE BDT 5,318m, SBLC term loan BDT 3,684m and a further BDT 2,412m), Janata Bank (BDT 5,262m), Rupali Bank (BDT 3,156m), Al-Arafah Islami Bank (BDT 2,392m), Social Islami Bank (BDT 1,507m) and United Commercial Bank (BDT 1,407m) [1 p.186]. Short-term loans were BDT 494m of Agrani cash credit, LTR and a loan against marketable securities [1 p.188]. No long-term loan was classed as current at June 2025 [1 p.161].

Loans grew without new cash. Long-term loans rose by BDT 1,958m in FY2025, yet the cash flow statement shows a net repayment of BDT 264m [1 p.186] [1 p.167]. Most lender balances rose (UCB from BDT 1,247m to BDT 1,407m; Janata from BDT 4,599m to BDT 5,262m), while Agrani's general term loan fell from BDT 2,520m to BDT 2,412m and the ODDO BHF and UPAS L/C loans were repaid. That pattern is consistent with interest being added to principal, but the notes we read do not reconcile the movement. In 9M FY2026 the group drew BDT 1,447m of long-term loans and spent BDT 1,703m on capital work-in-progress [2 p.8].

Capital work-in-progress. CWIP was BDT 10,247m at June 2025 and BDT 11,950m at March 2026 [2 p.2]. The company says the UCB loan was sanctioned mainly for its Balancing, Modernization, Rehabilitation and Expansion (BMRE) project, which "remains incomplete due to several factors, including political instability, adverse currency movements, and the impact of prevailing global economic conditions" [1 p.178]. The filings give no completion date.

Management's view. The company's note 12.1 says the BDT 651m was recognised retrospectively under C.R. Case No. 3926/2025 and that "Management considers the amount to be recoverable and, accordingly, no impairment has been recognized" [1 p.180].

Change of auditor and prior year. The FY2024 statements were audited by another auditor, who gave an unmodified opinion on 14 November 2024 [1 p.156]; DSE published that the FY2024 report carried emphasis-of-matter and other-matter paragraphs (DSE notice of 24-Nov-2024), and that the FY2025 report carries a qualified opinion, emphasis of matter and other matter (DSE notice of 22-Dec-2025) [11]. The FY2025 statements were signed on 11 November 2025 [1 p.161].

Receivables. Consolidated trade receivables were BDT 4,390m at June 2025, all aged below 180 days and described as "unsecured, considered good", with no provision [1 p.180]. The same note's schedule classes the full amount as "fully secured", which contradicts the narrative [1 p.180]. Only BDT 356m of that sits with the parent [1 p.181], so about BDT 4,034m is at the power subsidiaries [16], whose FY2025 revenue was BDT 818m. The auditor made receivable recoverability a key audit matter [1 p.157].

Cash and latest results: losses in each quarter since April 2025 and a 9M FY2026 loss of BDT 221m

Cash flow. Operating cash flow was BDT 1,104m in FY2025, down from BDT 1,587m, and cash spent on capital work-in-progress was BDT 767m [1 p.167]. Operating cash flow exceeded reported profit in every year we have: NOCF per share was 5.0x EPS in FY2024 [16]. Part of the reason is that most finance cost is not in operating cash flow, and in FY2025 interest paid (BDT 155m) was only 34% of the financial expenses booked [16].

Nine months to March 2026. Revenue fell 31.9% to BDT 2,281m; cost of power generation fell to BDT 109m from BDT 893m while pharma cost of goods sold was flat at BDT 1,212m [2 p.4]. Profit from operation was BDT 10m against BDT 209m, and the attributable loss was BDT 221m (EPS BDT -0.95) [2 p.4]. NAV per share including revaluation was BDT 85.46 [2 p.2].

A reporting inconsistency. The Q3 statement gives January-March 2026 revenue of BDT 1,487m and EPS of BDT -0.65 [2 p.4], and DSE published the same EPS [11]. But the six-month statement gives July-December 2025 revenue of BDT 1,543m and EPS of BDT -0.86 [3 p.4], which would leave only BDT 739m of revenue and EPS of BDT -0.09 for January-March 2026 when set against the nine-month totals. We use the nine-month and six-month figures and flag the quarterly column.

Loss quarters on DSE. DSE notices show consolidated losses per share of BDT 0.44 for October-December 2024, BDT 0.30 for July-September 2025, BDT 0.56 for October-December 2025 and BDT 0.65 for January-March 2026; January-March 2025 was a profit of BDT 0.02 [11]. The January-March 2026 figure does not reconcile with the six- and nine-month totals, which imply BDT -0.09. The April-June quarters are not published separately; derived from annual less nine-month EPS they were BDT -0.29 for FY2024 and BDT -1.59 for FY2025 [1 p.151] [11].

Ratios and peers: peer-level gross margin, but the only shrinking sales and the most debt per taka of equity

Own history. Over FY2017-FY2024 the consolidated operating margin ranged from 7.4% to 14.4%; FY2025's 1.4% is the lowest [16]. ROE has fallen from 5.2% in FY2018 to -2.0% [16]. Non-current liabilities rose from 18.4% of total assets in FY2017 to 46.1% in FY2025 [16].

Peers, like for like. Because Orion's consolidated figures mix pharma and power, the peer table uses Orion Pharma's separate statements, which contain the pharma business and almost all the debt [1 p.162] [1 p.164]. Peers are Navana, Beacon and ACME, all with June year-ends, each from its own FY2025 annual report. Labels differ: Orion reports "Financial expenses" and "Profit from operation"; Navana "Finance expenses" and "Operating profit" [8 p.283]; Beacon "Finance expenses" and "Operating profit" [9 p.190]; ACME "Financial Expenses" and no operating-profit line, so we take gross profit less selling, marketing and distribution and administrative expenses [10 p.167].

What the table shows. Orion's pharma gross margin of 46.7% is in the peer range (42.3% at ACME to 52.0% at Beacon), and its selling and distribution ratio of 25.9% is close to Navana's 24.9%. The differences are scale, direction and debt: Orion's sales fell 10.9% while the peers grew 12.5% to 28.2%; its operating margin was 7.7% against 16.7%-19.1%; and borrowings were 1.90x equity against 0.92x-1.51x [16]. Interest cover was 0.68x at Orion and 1.8x-2.1x at the three peers.

Multiples as facts. At BDT 28.3 on 29-Oct-2026 [12], the shares trade at 0.33x the March 2026 NAV per share including revaluation and 0.36x excluding it [2 p.2]. The year-end price-to-NAV ratio was 0.72x in FY2017, 1.07x in FY2022 and 0.35x in FY2025 [16]. With a loss in FY2025 and in 9M FY2026 there is no meaningful P/E; DSE shows the trailing P/E as n/a [12]. There is no current dividend yield.

Governance: Z category since 5-Feb-2025 over an unpaid dividend, a rating cut to A1 and no FY2025 dividend

Ownership and board. At 30-Jun-2025 the chairman, Mr. Mohammad Obaidul Karim, held 15.18%; directors Mr. Salman Obaidul Karim 4.15% and Mrs. Arzuda Karim 3.76%; and the managing director, Mrs. Zareen Karim, 2.74% [1 p.105]. The two independent directors, Mr. A.N.M. Abul Kashem and Ms. Farzana Khan, own no shares [1 p.105]. DSE shows sponsors and directors at 31.98%, institutions at 20.87% and the general public at 47.01% at 30-Sep-2026 [12].

Z category. DSE moved the shares from 'A' to 'Z' with effect from 5-Feb-2025 "regarding non-disbursement of the approved dividend within the stipulated time frame", and on the same day asked brokers and merchant bankers to stop margin lending on the shares [11]. DSE still listed the market category as Z at the end of October 2026 [12]. The filings fit that story: the FY2024 dividend of BDT 234m was taken out of retained earnings in FY2025 [1 p.186], but only BDT 8.2m of dividend was paid in cash in that year [1 p.167], and unclaimed or unpaid dividend rose from BDT 58.7m to BDT 284.5m [1 p.161].

Dividend record. DSE lists cash dividends of 15% for 2014 and 2016-2019, 10% for 2020, 12% for 2021 and 10% for 2022-2024, plus a 20% bonus share issue in 2012 [12]. The board recommended no dividend for FY2025 [11], saying the decision "aims to protect the company's liquidity" [1 p.32]. Measured against EPS, the 10% cash dividend was 74% of FY2024 EPS [16].

Other dated events. CRAB rated the company AA3 long-term and ST-3 short-term (DSE 26-Dec-2024) and then A1 and ST-4 (surveillance entity rating, stable outlook, based on FY2023-FY2025 audited accounts; DSE 1-Jan-2026) [11]. On 12-Nov-2025 the board called an EGM to approve FY2025 related-party transactions and a change of name from Orion Pharma Limited to Orion Pharma PLC; the AGM and EGM were held on 23-Dec-2025 [11] [12]. The company was listed in 2013, with first trading on 20-Mar-2013 [12].

What's next: FY2026 audited accounts on 9-Nov-2026 and LDC graduation now in 2029

FY2026 accounts. The board meets on 9-Nov-2026 to consider the audited accounts for the year to 30-Jun-2026 [11]. Those accounts will show whether the qualification over the UCB loan and the BDT 651m claim is carried forward, whether the unpaid FY2024 dividend has been paid, and the first full year with almost no power revenue. They move every line: power revenue and cost, finance expenses, and equity.

LDC graduation. The UN General Assembly adopted the move of Bangladesh's graduation from 24-Nov-2026 to 24-Nov-2029 on 29-Oct-2026 in New York (30-Oct-2026 in Dhaka) [13] [14]. For a generic maker, graduation affects patent-related flexibilities; the filings we read do not say what share of Orion's sales comes from patented molecules. The later date pushes any effect on pharma revenue and gross margin back by three years.

Risks: power without a contract, debt above pharma earning power, and BDT 8.8bn owed by group companies

Each risk below is tied to the line it moves and to the filing that shows it. None of them is a forecast.

Key questions: the plants' future, the group balances, the qualified items and the unpaid dividend

The pharma margin is in line with peers; the filings show the larger moving parts are the power plants, the group balances and the debt. Interest is partly capitalised, cash interest paid was 34% of the expense in FY2025, operating cash flow excludes most finance cost, and since FY2024 cash has gone to the BMRE project and group companies rather than dividends [16].

FAQ

Why did Orion Pharma's revenue fall 62% in FY2025?

Power revenue fell from BDT 6,955m to BDT 818m after both plants' BPDB contracts expired on 23-Mar-2024; pharma sales fell 10.9% to BDT 3,264m [1 p.78] [1 p.80].

Why is Orion Pharma in the Z category?

DSE moved it from A to Z on 5-Feb-2025 for not disbursing the approved FY2024 dividend within the set time [11].

Is the FY2025 audit opinion qualified?

Yes. S. F. Ahmed & Co. qualified it over a BDT 1,407m UCB loan recognised retrospectively, of which BDT 651m is a receivable from Mr. Saifuzzaman Chowdhury Javed under a court claim with no order yet [1 p.156]. Management considers the amount recoverable and has recognised no impairment [1 p.180].

How much debt does Orion Pharma have?

Consolidated borrowings were BDT 25,630m at June 2025 and BDT 26,993m at March 2026, almost all long-term bank loans [1 p.161] [2 p.2].

What are the Orion group related-party balances?

BDT 8,773m of current accounts due from 21 related companies at June 2025, plus BDT 5,920m of unlisted Orion shares [1 p.179] [1 p.180].

Did Orion Pharma pay a dividend for FY2025?

No. The board recommended no dividend for the year to 30-Jun-2025 [11].

Which results does this note use?

Audited consolidated five-year tables for FY2017-FY2025, the FY2025 consolidated and separate statements, and the unaudited six- and nine-month statements to 31-Mar-2026. The FY2026 annual report is not yet filed.

Sources

1. Orion Pharma Limited Integrated Annual Report 2024-25 (year to 30-Jun-2025; consolidated and separate statements) · link · accessed 2026-11-01
2. Orion Pharma Limited condensed consolidated financial statements (un-audited), third quarter to 31-Mar-2026 · link · accessed 2026-11-01
3. Orion Pharma Limited condensed consolidated financial statements (un-audited), six months to 31-Dec-2025 · link · accessed 2026-11-01
4. Orion Pharma Limited Integrated Annual Report 2022-23 (sector-wise sales) · link · accessed 2026-11-01
5. Orion Pharma Limited Annual Report 2021-22 (segment note) · link · accessed 2026-11-01
6. Orion Pharma Limited Annual Report 2020-21 (segment note) · link · accessed 2026-11-01
7. Orion Pharma Limited Integrated Annual Report 2019-20 (five-year highlights, FY2016-FY2020) · link · accessed 2026-11-01
8. Navana Pharmaceuticals PLC Annual Report 2024-25 · link · accessed 2026-11-01
9. Beacon Pharmaceuticals PLC Annual Report 2024-25 · link · accessed 2026-11-01
10. The ACME Laboratories Ltd. Annual Report 2024-25 · link · accessed 2026-11-01
11. Dhaka Stock Exchange news archive for ORIONPHARM, Nov-2024 to Oct-2026 (results, dividend, category change, auditor-opinion, rating and board notices) · link · accessed 2026-11-01
12. Dhaka Stock Exchange company page for ORIONPHARM (market category, shareholding at 30-Sep-2026, dividend list, market data of 29-Oct-2026) · link · accessed 2026-11-01
13. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026, UN decision of 29-Oct-2026) · link · accessed 2026-11-01
14. The Business Standard, 'Bangladesh gets 3 more years before LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
15. AnalystBro price data (TradingView feed): DSE:ORIONPHARM monthly bars to 29-Oct-2026 · link · accessed 2026-11-01
16. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-11-01