Saiham Cotton Mills financial analysis: FY2026 EPS BDT 1.03, cash flow up, loans down to BDT 2.9bn (Oct 2026)

Investment considerations: steady profits on 11% gross margins, falling loans, and a 2.6% ROE

Saiham Cotton Mills Ltd. spins cotton and blended yarn at Noyapara, Saiham Nagar, Madhabpur, in Habiganj. It was incorporated as Saiham Spinning Mills Limited on 30 May 2002, took its present name on 16 April 2003, became a public company in March 2010, and its shares started trading on the Dhaka and Chittagong stock exchanges on 24 June 2012 [1 p.24]. The IPO sold 47.5m shares of BDT 10 at BDT 20 each [4 p.5], and the directors' report says the proceeds built a new 100% export-oriented spinning unit, reported to regulators in 2014 [1 p.25]. The company describes itself as 100% export oriented, making carded and combed yarn, and reports no segments [1 p.24]. It belongs to the Saiham group: its related-party note lists Faisal Spinning Mills, Saiham Knit Composite and Saiham Textile Mills as group companies [1 p.86].

Size and returns frame the picture. Turnover was BDT 5,980m in FY2025 and profit after tax BDT 146.9m, a net margin of 2.5% [1 p.69] [13]. Equity was BDT 5,692m, of which BDT 2,103m is a revaluation surplus from a 2019 revaluation [1 p.68] [1 p.81]. On that base, ROE on average equity ranged from -1.7% to 3.5% over FY2020-FY2025, and was 2.6% in FY2025 [13]. Excluding the revaluation surplus, FY2025 ROE was 4.2% [13].

The most recent numbers are the DSE announcement of 29 October 2026. For the year to 30 June 2026 the company reported EPS of BDT 1.03, NAV per share of BDT 38.67 and NOCFPS of BDT 11.16, against BDT 0.99, BDT 38.26 and BDT 2.40 a year earlier, and recommended a 7.5% cash dividend [6]. NOCFPS of BDT 11.16 equals about BDT 1,660m of operating cash flow on 148.775m shares [13]. The nine-month accounts already showed the direction: operating cash flow of BDT 911.6m to March 2026, against BDT 305.2m a year earlier, and loans down by BDT 793m from June 2025 [4 p.4] [13]. The FY2026 annual report itself is not in our corpus, so the line items behind those figures cannot yet be read.

Business: a 16.7m kg export spinner running at 82-87% of capacity

How the mill makes money. Saiham Cotton imports raw cotton, spins it into yarn and sells the yarn under export terms. In FY2025 all BDT 3,950m of raw cotton purchases were imports; packing materials were bought locally and spare parts mostly abroad [1 p.87]. Trade debtors arise mostly from export sales, which are usually received within the LC tenure [1 p.79]. The cotton is financed with short-term bank lines: 'L/C liabilities under EDF' were BDT 2,501m of BDT 3,431m of short-term loans at June 2025 [1 p.83]. Revenue follows the yarn price and the taka, cost of sales follows the cotton price and the taka, and profit is the spread less gas, wages, depreciation and interest. The company does not split turnover by count, customer or market [1 p.24].

Who buys. The directors' report says the company 'decided to arrange direct yarn exports to mitigate financial constraints' in FY2025 [1 p.24], and the auditor's key audit matter on turnover notes that revenue 'involves several types of contracts mainly based on export sales' [1 p.64]. The filings do not name customers or give a deemed-export versus direct-export split. The MD&A says the yarn market is influenced by the apparel business in the USA, the EU and the Far East [1 p.25].

Capacity and output. The capacity note gives one mill-wide figure: 16.685m kg a year. Production was 13.75m kg in FY2023, 14.54m kg in FY2024 and 13.70m kg in FY2025, utilisation of 82.4%, 87.1% and 82.1% [2 p.92] [1 p.87] [13]. The reports in our corpus do not give spindle counts, yarn counts or kilos sold, so this note uses kilos produced as the volume measure and says so wherever it matters. The company employed 1,562 people at June 2025: 1,247 workers, 293 factory officers and staff, and 22 at head office [1 p.87].

Seven years in brief. Turnover was BDT 3.2bn in FY2019 and BDT 3.0bn in the Covid year FY2020, then rose to BDT 5.5bn in FY2023, dipped to BDT 5.2bn in FY2024 and reached BDT 6.0bn in FY2025 [3 p.33] [1 p.30]. Profit did not track turnover. It was BDT 169m in FY2019, a loss of BDT 94m in FY2020, BDT 188m in FY2022 when gross margin peaked at 16.5%, and BDT 43.6m in FY2023, when the company booked an unrealised exchange loss of BDT 174.8m [3 p.33] [2 p.72] [13]. The directors attributed the FY2023 rise in cost of sales mainly to higher raw material prices [3 p.33], and the FY2025 rise in turnover to higher selling prices [1 p.30].

The 2019 revaluation. Land, factory buildings, office space and plant were revalued by Ata Khan & Co. on 28 April 2019, giving a surplus of BDT 2,562m, effective 1 May 2019 [1 p.81]. Land and office space were valued at recent transfer prices and buildings and machinery at current replacement cost [1 p.81]. The surplus stood at BDT 2,103m at June 2025, 37% of equity [1 p.68]. It is moved to retained earnings as the revalued assets are depreciated: BDT 83.5m in FY2025 and BDT 89.1m in FY2024 [1 p.81]. Without it, NAV per share was BDT 24.13 at June 2025 against the reported BDT 38.26 [13] [1 p.68].

Line items: cotton and the taka drive cost; gas rose 45% per cubic metre in two years; finance cost is 5% of sales

Turnover. FY2025 turnover rose 14.9% to BDT 5,980m while production fell 5.8% to 13.70m kg [1 p.69] [1 p.87]. The MD&A puts the rise down to higher selling prices [1 p.30]. Sales also ran ahead of production: finished-goods stock fell from 3.71m kg to 2.42m kg, and from BDT 1,518m to BDT 858m [1 p.79] [1 p.84]. Turnover per kilo produced rose from BDT 358 to BDT 437 [13], but because kilos sold are not disclosed and stock moved by 1.3m kg, that ratio overstates the change in price. In FY2024, by contrast, turnover fell 5.5% while production rose 5.7%, and finished-goods stock rose by BDT 594m [2 p.72] [2 p.89].

Raw cotton. Cotton is the largest cost. Consumption was BDT 4,445m in FY2023, BDT 4,195m in FY2024 and BDT 3,688m in FY2025 [2 p.89] [1 p.85]. The cotton note includes an exchange line, '(Gain)/Loss on dollar fluctuation', of BDT 288.9m, BDT 191.7m and BDT 68.6m in those years, and a short-weight claim of BDT 164.8m in FY2025 against BDT 48.8m in FY2024 [2 p.89] [1 p.85]. The MD&A says FY2025 cost of goods sold rose 'mainly due to increase foreign currency conversion in raw materials price' [1 p.31]. Raw cotton consumed per kilo produced fell from BDT 323 (FY2023) to BDT 269 (FY2025) [13]. Raw cotton stock at June 2025 was 19.24m lbs, carried at BDT 2,049m, plus BDT 373m in transit [1 p.79].

Gas. The mill runs on gas from Jalalabad Gas T&D System; bank guarantees to Jalalabad were BDT 96.5m at June 2025 [1 p.88]. The factory-overhead note gives volume and average price: 13.91m cubic metres at BDT 18.96 in FY2023, 14.34m at BDT 26.06 in FY2024 and 13.36m at BDT 27.53 in FY2025 [2 p.89] [1 p.85]. The bill rose from BDT 263.8m to BDT 373.8m in FY2024 on a 37% higher average price, and was BDT 367.7m in FY2025, 6.1% of turnover [13]. Gas per kilo produced went from BDT 19.2 to BDT 26.8 [13]. On FY2025 volume, each BDT 1 a cubic metre on the average price was about BDT 13.4m of cost [13].

Wages and overhead. Direct wages rose from BDT 150.2m in FY2023 to BDT 208.9m in FY2025, or from BDT 10.9 to BDT 15.3 per kilo produced [2 p.89] [1 p.84] [13]. Depreciation in factory overhead was BDT 259.1m in FY2025; total depreciation was BDT 268.9m on the diminishing-balance method, at 7.5% for plant and 5% for buildings [1 p.85] [1 p.78] [1 p.74]. Part of that charge is on the revalued amount, which is why BDT 83.5m a year moves from the revaluation surplus to retained earnings [1 p.81]. Conversion cost, meaning cost of production less raw cotton and packing, was BDT 61, BDT 61 and BDT 66 per kilo in FY2023-FY2025 [13].

Administrative and marketing expenses. These rose from BDT 101.3m in FY2023 to BDT 150.8m in FY2025, 2.5% of turnover [2 p.90] [1 p.85] [1 p.86]. The largest items in FY2025 were salaries and allowances of BDT 49.8m and carriage outward of BDT 40.0m, up from BDT 20.2m [1 p.85] [1 p.86]. Directors' remuneration in this note was BDT 3.3m in both years [1 p.85].

Finance cost. Financial expenses nearly doubled from BDT 163.3m in FY2023 to BDT 306.8m in FY2024 and were BDT 295.4m in FY2025, of which interest was BDT 288.2m [2 p.90] [1 p.86]. Measured on average loans, the cost rose from 4.3% in FY2023 to 8.2% in FY2025 [13]. The HSBC term loan is in dollars at SOFR plus 3.25% [1 p.82], and the EDF lines are dollar import finance [1 p.83]. The company classes interest paid as a financing cash flow [1 p.71].

Exchange, other income and tax. The unrealised exchange line was a loss in each of the last three years: BDT 174.8m, BDT 46.9m and BDT 29.0m [2 p.72] [1 p.69]. The directors list the FY2025 figure as the year's extraordinary item [1 p.25], and the significant-event note says EPS rose 'mainly' because this loss fell [1 p.77]. Other income, mostly FDR interest, was BDT 28.6m in FY2025 [1 p.86]. FY2023 non-operating income included a BDT 11.7m cash incentive; there was none in FY2024 [2 p.90]. Tax ran at 42.7%, 32.3% and 27.1% of pre-tax profit in FY2023-FY2025 [13]. Current tax is the higher of regular tax, tax deducted at source on exports and minimum tax on turnover; in FY2025 the source tax on exports, BDT 56.6m, was the binding figure [1 p.83].

FY2026: EPS of BDT 1.03 and NOCFPS of BDT 11.16 on lower nine-month turnover

Nine months to March 2026. Turnover fell 9.7% to BDT 4,318m, but gross margin held at 10.7% and the exchange loss shrank from BDT 38.1m to BDT 4.5m, so profit after tax was BDT 117.4m against BDT 129.6m [4 p.2] [13]. The third quarter alone had turnover down 22.5% but a gross margin of 14.6%, against 11.2% a year earlier, and EPS of BDT 0.31 against BDT 0.29 [4 p.2] [13]. The company told the DSE: 'During the period net profit after tax has been increased as compared to previous year same period due to decrease in Cost of goods Sold, for this reason EPS has been increased. Besides this, NOCFPS also increased due to decrease of payment for cost and expenses.' [6].

The full year. The DSE announcement of 29 October 2026 gives EPS of BDT 1.03, so the implied April-June 2026 quarter earned BDT 0.24 a share, against BDT 0.12 in the same quarter of FY2025 [6] [13]. Quarterly EPS in FY2026 ran BDT 0.28, 0.20, 0.31 and 0.24 [6] [13]. NOCFPS of BDT 11.16 was the highest in the period shown and compares with BDT 10.26 in FY2024 [2 p.74] [6]. The dividend of BDT 0.75 a share is 73% of EPS [13]. Turnover, margins and the balance sheet for the full year are not available until the FY2026 annual report is filed; the board met on 28 October 2026 to consider those accounts [6].

Ratios: 11% average gross margin, sub-4% ROE, inventory near 250-310 days

Growth. Turnover grew at a compound 11.2% a year from FY2019 to FY2025 [13]. Growth came in steps: 34.9% in FY2023, -5.5% in FY2024 and 14.9% in FY2025 [13]. Capacity was unchanged at 16.685m kg from FY2023 to FY2025 [1 p.87] [2 p.92]; the filings do not split the swings between price, volume and stock.

Margins. Gross margin ranged from 5.0% (FY2020) to 16.5% (FY2022) and averaged 11.2% over the seven years [13]. Net margin ranged from -3.1% to 5.3%. The gap between the two is mostly finance cost and exchange losses: in FY2025 those two lines took 5.4% of turnover against a gross margin of 11.0% [1 p.69] [13].

Returns. ROE on average equity was between -1.7% and 3.5% over FY2020-FY2025, and excluding the revaluation surplus between 1.3% and 4.2% over FY2023-FY2025 [13]. Asset turnover was 0.58x in FY2025 [13], which with a net margin of 2.5% gives the low return on a large asset base, most of it plant and inventory.

Efficiency. Inventory is the dominant working-capital item. It was 200 days of cost of sales at June 2022, 316 at June 2024, 243 at June 2025 and 311 at March 2026 (nine months annualised) [13]. Receivable days moved between 46 and 110; at June 2023 receivables were BDT 1,654m, 110 days [2 p.71] [13]. Creditor days were usually small but rose to 125 at March 2026, when trade creditors were BDT 1,756m against BDT 259m in June 2025 [4 p.1] [13]. The cash cycle ran at 261-324 days [13].

Cash conversion. Operating cash flow was 9.2x profit in FY2021, 3.7x in FY2022, negative in FY2023, 12.1x in FY2024 and 2.4x in FY2025 [13]. The swings follow working capital: in FY2023 inventories and receivables rose and operating cash flow was BDT -781m [2 p.71] [2 p.74]; in FY2024 receivables fell by BDT 1,002m and operating cash flow was BDT 1,527m [1 p.88]. Over FY2021-FY2025 cumulative operating cash flow was BDT 2,282m against cumulative profit of BDT 557m [13].

Payout. Cash dividends were 10% for FY2019, none for FY2020, 10% for FY2021, 11% for FY2022, none for FY2023, 5% for FY2024 and 7% for FY2025 [5], plus 7.5% recommended for FY2026 [6]. As a share of EPS, payout was 59% in FY2024, 71% in FY2025 and 73% in FY2026 [13]. The board has a dividend distribution policy under the BSEC directive of 14 January 2021 that lists profits, liquidity and future cash needs among its parameters [1 p.41].

Balance sheet: loans cut to BDT 2.9bn, EDF-heavy funding, liened FDRs and large group flows

Debt. Total loans, meaning long-term loans with their current portion, short-term loans and machinery import loans, were BDT 3,211m at June 2022, peaked at BDT 4,358m at June 2023 and were BDT 3,738m at June 2025 and BDT 2,945m at March 2026 [2 p.71] [1 p.68] [4 p.1] [13]. At June 2025 the short-term loans of BDT 3,431m comprised EDF L/C liabilities of BDT 2,501m, cash credit and overdrafts of BDT 471m, IDBP of BDT 209m and short-term loans of BDT 250m [1 p.83]. The long-term loan was BDT 232.9m, mainly an HSBC foreign-currency term loan at SOFR plus 3.25%, repayable by 8 February 2027 and guaranteed by the directors, Faisal Spinning Mills and Saiham Textile Mills [1 p.82]. By March 2026 the non-current part was nil and the current maturity BDT 99.4m [4 p.1].

Cash and investments. Cash was only BDT 31.5m at June 2025, mostly in dollar margin, retention-quota and back-to-back accounts [1 p.80]. The company also held BDT 489.4m of FDRs and BDT 96.2m of 91-day treasury bills [1 p.78] [1 p.79]. Of the FDRs, BDT 441.8m were lien-marked with HSBC against the term loan and BDT 27.6m against bank guarantees [1 p.79]. By March 2026 total investments had fallen to BDT 389.2m after BDT 253.2m of FDRs were cashed [4 p.1] [4 p.4]. The company also holds BDT 60.5m of unquoted shares in Faisal Spinning Mills and BDT 3.2m of listed shares [1 p.78].

Receivables. Trade receivables were BDT 944.5m at June 2025. The ageing table puts BDT 177.0m at up to 90 days and BDT 767.5m at up to 180 days, against BDT 565.8m and BDT 86.5m a year earlier [1 p.79]. BDT 822.6m was 'considered good' and fully secured, and BDT 121.9m was 'Receivable due by common management' [1 p.79], matching the Saiham Knit Composite balance in the related-party note [1 p.86]. No expected credit loss was booked [1 p.79].

Cash flow pattern. Investing outflows were modest: plant purchases of BDT 245.5m in FY2024 and BDT 144.1m in FY2025, and BDT 20.6m in the nine months to March 2026 [1 p.71] [4 p.4]. Capital work in progress was BDT 2.5m at June 2025 and BDT 5.7m at March 2026 [4 p.1]. Interest paid was BDT 306.8m in FY2024 and BDT 295.4m in FY2025, and dividends BDT 74.4m in FY2025 and BDT 104.1m in the nine months to March 2026 [1 p.71] [4 p.4].

Related parties. The related-party note lists three group companies with balances described as 'Trade and Other Creditors/Receivables' [1 p.86]. The FY2025 movement schedule shows additions of BDT 1,850.5m with Faisal Spinning Mills, BDT 287.7m with Saiham Knit Composite and BDT 1,161.0m with Saiham Textile Mills, and closing balances printed as (46.2m), 121.9m and (184.9m) [1 p.87]. The note does not say whether the additions are sales, purchases or funding. The shareholders approved, at the 23rd AGM on 19 December 2024, supply of goods and materials of 1% or more of revenue with related parties [1 p.86]. Director's remuneration (MD/Director) was BDT 3.3m in the related-party note, while the Schedule XI table shows BDT 2.1m for the managing director [1 p.87], and five senior managers received BDT 1.4m-2.5m each [1 p.86].

Audit. The FY2025 auditor, Khan Wahab Shafique Rahman & Co., wrote: 'In our opinion, except for the effects of the matter described in the Basis for Opinion section of our report, the accompanying financial statements present fairly, in all material respects...' [1 p.63]. The 'Basis for Opinion' section that follows describes no such matter, and the paragraph is headed 'Opinion' [1 p.63]. The report carries one emphasis of matter: 'We draw attention to the fact that the Trust Deed of the Gratuity Fund was formalized and the trust was initiated on (1st February, 2025), which occurred subsequent to the period under audit. Our opinion is not modified in respect of this matter.' [1 p.63]. The company posted the same emphasis of matter to the DSE on 18 June 2026 [6]. Key audit matters were turnover, property, plant and equipment, and inventory [1 p.63] [1 p.64]. The FY2024 accounts were audited by Rahman Mostafa Alam & Co. with an unmodified opinion [1 p.63].

Contingencies. Contingent liabilities were bank guarantees of BDT 96.5m, all of them in favour of Jalalabad Gas T&D System; the company reports no claims against it that are not acknowledged as debt [1 p.88].

Governance: sponsors and directors hold 42.4%, B category, CRAB A1

Ownership. Sponsors and directors held 42.40% at June 2025 and still did at September 2026; institutions held 13.55%, 17.55% in August 2026 and 15.61% in September 2026, and the public 41.99% [5] [1 p.81]. Named holdings at June 2025 include Syed Shafqat Ahmed 12.74%, Yasmin Faisal 9.00%, Engr. Syed Ishtiaq Ahmed 8.71%, Nazeefa Raeesah Ahmed 5.04%, Natasha Ahmed 4.40% and S. M. Faisal 4.29% [1 p.27]. The same page states that no shareholder held 10% or more [1 p.27], although the director table on it shows Syed Shafqat Ahmed at 12.74%.

Board. The chairman is S. M. Faisal and the managing director Syed Ishtiaq Ahmed; the other directors in FY2025 were Yasmin Faisal and Syed Shafqat Ahmed, with independent directors Mohammed Nazmul Hossain FCA and Tariquzzaman Khan FCA, FCS [1 p.87]. Tasnuva Ahmed FCA is also listed as an independent director in the shareholding table [1 p.27]. The board met five times in FY2025 [1 p.87]. The same names appear on Saiham Textile Mills' accounts: S. M. Faisal signs its accounts as managing director and Syed Ishtiaq Ahmed as a director [7 p.65].

Credit rating. CRAB rated the company A1 long term and ST-3 short term with a stable outlook in March 2025 on FY2022-FY2024 accounts, and kept A1 (Lr) and ST-3 with a stable outlook in April 2026 on FY2023-FY2025 accounts [6].

DSE announcements over the past 24 months [6]. The sweep of the DSE news archive from October 2024 to 1 November 2026 found no board approval for new capacity, BMRE or a capital raise; the announcements were results, dividends, ratings, record dates and one EGM [6].

Dividends and category. The DSE lists cash dividends of 5% (2015), 10% (2016), 12% (2017), 10% (2018), 10% (2019), 10% (2021), 11% (2022), 5% (2024) and 7% (2025), and a 10% stock dividend in 2015 [5]. The 5% dividend for FY2024 moved the shares from A to B category from 22 December 2024 [6], and the company page still shows category B [5]. The EGM of 29 December 2025 on the change of name to Saiham Cotton Mills PLC has passed; its outcome is not shown in the DSE announcements read, and the DSE company page still lists the name as Saiham Cotton Mills Limited [6] [5].

The share price. The stock's monthly range in FY2025 was BDT 12.0-20.8 [12]. It closed at BDT 13.6 at the end of June 2025 and BDT 20.0 at the end of June 2026, reached BDT 26.8 in September 2026 and closed at BDT 21.3 on 29 October 2026 [12] [5]. At that close it traded at 20.7x FY2026 EPS and 0.55x the June-2026 NAV of BDT 38.67 [13]. June-end P/B ranged from 0.36x to 0.67x over FY2019-FY2025 [13].

Peers: mid-table gross margin, the highest finance-cost ratio, and the lowest P/B of four spinners

The peers are three listed spinners with June year ends whose FY2025 statements we re-opened: Saiham Textile Mills (standalone), Matin Spinning Mills (standalone) and Malek Spinning Mills (consolidated) [7 p.65] [8 p.151] [9 p.42]. They label lines differently: Saiham Cotton and Saiham Textile print 'Turnover' and 'Financial expenses', Matin 'Revenue' and 'Finance cost', and Malek 'Sales' and 'Financial Expenses' [1 p.69] [7 p.66] [8 p.152] [9 p.43]. All four show finance cost gross, and all four charge WPPF above profit before tax. The table uses one loan definition: long- and short-term loans with current portions, machinery import loans and director loans, excluding acceptance liabilities and leases. For Saiham Textile the figure is the printed 'Short Term Loan' line [7 p.65]; for Malek it includes a BDT 140m director loan and excludes BDT 3,955m of acceptance liabilities [9 p.42]. ROE is profit to owners over closing equity to owners.

Among these four, Saiham Cotton's FY2025 gross margin of 11.0% sat between Saiham Textile's 9.8% and Matin's 15.0%, and its net margin of 2.5% was second lowest [13]. Its finance cost was the highest share of revenue in the set, 4.9% against 3.5%-4.4%, and its interest cover of 1.72x was second lowest, above Saiham Textile's 1.61x [13]. ROE of 2.6% compared with 1.3% at Saiham Textile, 6.7% at Matin and 12.2% at Malek [13]. On loans to equity Saiham Cotton was at 0.66x, below Matin and Malek and above Saiham Textile [13].

On market multiples at 29 October 2026, Saiham Cotton traded at 21.5x FY2025 EPS and 0.56x June 2025 book, against 5.9x-75.4x and 0.72x-1.19x for the three peers [12] [13]. It had the lowest P/B of the four. These are facts about the multiples, not a view on the price.

What's next: record date 18 November, AGM 12 December, HSBC loan ends February 2027

The FY2026 annual report. The board met on 28 October 2026 to consider the FY2026 audited accounts [6]. That report will show the turnover, gross margin, gas cost and loan balances behind the BDT 1.03 EPS and BDT 11.16 NOCFPS, and the related-party note for FY2026. Until it is filed, the most recent full statements are the nine months to March 2026 [4 p.1].

The term loan. With the HSBC loan's last instalment due on 8 February 2027 [1 p.82], the BDT 99.4m current maturity at March 2026 [4 p.1] runs off, and BDT 441.8m of FDRs were lien-marked against it at June 2025 [1 p.79]. Repayment moves the long-term loan line to nil; whether the liened FDRs are then freed is not stated in the filings.

LDC graduation. The UN General Assembly adopted Bangladesh's move from 24 November 2026 to 24 November 2029 on 29 October 2026 in New York, which was 30 October in Dhaka, as reported by The Daily Star and The Business Standard [10] [11]. The FY2025 report does not discuss graduation.

Rates, the taka and gas. History gives the scale of each. Each 1pp on the BDT 2,945m of loans at March 2026 is about BDT 29m a year of interest [13]. The taka moved through three lines in FY2025: BDT 68.6m in raw cotton, BDT 29.0m in the unrealised FX line and the dollar-denominated term loan [1 p.85] [1 p.69] [1 p.82]. Each BDT 1 a cubic metre on gas was about BDT 13.4m of cost on FY2025 volume [13].

Risks: the yarn-cotton spread and the taka have moved profit most

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

Two risks have the largest effect in the history. The first is the spread between yarn and cotton: gross margin moved from 16.5% in FY2022 to 8.9% in FY2023 with capacity unchanged, and profit fell from BDT 188m to BDT 43.6m [1 p.30] [2 p.72] [13]. The second is the taka: the FY2023 unrealised exchange loss of BDT 174.8m was larger than that year's profit before tax of BDT 76.1m [2 p.72].

Key questions: what drove FY2026 cash flow, and what the group flows are

In one line: Saiham Cotton earned 1-5% net margins on a 16.7m kg export spinning mill over seven years, cut its loans by a third from the June-2023 peak, and reported its highest NOCFPS in the period for FY2026 [1 p.30] [13] [6]. The FY2026 annual report is the next full set of evidence.

FAQ

When does Saiham Cotton Mills' financial year end?

On 30 June [1 p.68] [5].

What was Saiham Cotton's EPS for FY2026?

BDT 1.03 as announced on the DSE on 29-Oct-2026, against BDT 0.99 in FY2025 [6]. The FY2026 annual report is not yet in our corpus.

What dividend did Saiham Cotton declare for FY2026?

7.5% cash (BDT 0.75 a share); record date 18-Nov-2026, AGM 12-Dec-2026 [6].

How big is the mill?

Installed capacity is 16.685m kg of yarn a year; it produced 13.70m kg in FY2025 [1 p.87].

Does Saiham Cotton export?

The company describes itself as 100% export oriented and all its raw cotton is imported [1 p.24] [1 p.87].

How much debt does Saiham Cotton have?

Loans of BDT 2,945m and cash of BDT 71.8m at 31-Mar-2026 [4 p.1] [13].

What is Saiham Cotton's credit rating?

A1 (Lr) long term and ST-3 short term with a stable outlook from CRAB, announced on 1-Apr-2026 [6].

Did the auditor modify its opinion?

The FY2025 opinion paragraph uses 'except for' wording but no qualifying matter is described; it carries one emphasis of matter on the gratuity trust deed [1 p.63].

Does LDC graduation affect Saiham Cotton?

Graduation was moved to 24-Nov-2029 on 29-Oct-2026 [10] [11].

Sources

1. Saiham Cotton Mills Ltd. Annual Report 2024-2025 (year to 30-Jun-2025) · link · accessed 2026-11-01
2. Saiham Cotton Mills Ltd. Annual Report 2023-2024 (year to 30-Jun-2024; FY2023 restated) · link · accessed 2026-11-01
3. Saiham Cotton Mills Ltd. Annual Report 2022-2023 (five-year table FY2019-FY2023) · link · accessed 2026-11-01
4. Saiham Cotton Mills Ltd. un-audited financial statements, nine months to 31-Mar-2026 · link · accessed 2026-11-01
5. Dhaka Stock Exchange, Saiham Cotton Mills company page (dividend history, category, shareholding Jun-2025, Aug-2026, Sep-2026, 52-week range), accessed 1-Nov-2026 · link · accessed 2026-11-01
6. Dhaka Stock Exchange news archive for SAIHAMCOT, 1-Oct-2024 to 1-Nov-2026 (results, dividends, AGM/EGM, ratings, board meetings), accessed 1-Nov-2026 · link · accessed 2026-11-01
7. Saiham Textile Mills Ltd. Annual Report 2024-2025 (standalone statements) · link · accessed 2026-11-01
8. Matin Spinning Mills PLC Annual Report 2024-25 (standalone statements) · link · accessed 2026-11-01
9. Malek Spinning Mills PLC annual report, year to 30-Jun-2025 (consolidated statements) · link · accessed 2026-11-01
10. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
11. The Business Standard, 'Bangladesh gets 3 more years before LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
12. AnalystBro price data (TradingView feed): DSE:SAIHAMCOT, DSE:SAIHAMTEX, DSE:MATINSPINN, DSE:MALEKSPIN bars to 29-Oct-2026 · link · accessed 2026-11-01
13. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-11-01