Singer Bangladesh financial analysis: BDT 2.2bn loss, negative equity, BDT 2.5bn preference share plan (Oct 2026)

Investment considerations: growing sales, a new factory, and a balance sheet that finance costs have pushed below zero

Singer Bangladesh Limited sells refrigerators, freezers, televisions, air conditioners, washing machines, sewing machines and small appliances through 534 own retail outlets, 903 dealers and 17 service centres, and since 2025 makes most of its refrigerators, TVs and air conditioners at a new plant in the Bangladesh Special Economic Zone (BSEZ) at Araihazar, Narayanganj [1 p.103]. It is 57% owned by Beko Bangladesh BV of the Netherlands, part of Arcelik A.S., the Turkish white-goods maker controlled by Koc Holding [1 p.149] [1 p.103]. Arcelik bought the 57% stake from Retail Holdings in 2019 [12].

The plant changed the balance sheet before it changed the profit line. Property, plant and equipment rose from BDT 1,928m in 2022 to BDT 12,441m in 2025 and debt from BDT 5,837m to BDT 18,779m [1 p.143]. With interest rates and the euro both higher, finance costs reached BDT 3,221m in 2025, almost six times operating profit of BDT 550m, and the company lost BDT 2,249m, or BDT 22.56 a share [1 p.179]. Losses continued in 2026: BDT 4.24 a share in H1 and BDT 7.74 in Q3, leaving NAV per share at BDT (10.29) on 30-Sep-2026 [2 p.2] [7]. DSE moved the shares to the 'Z' category on 8-Jul-2026 because accumulated losses exceed paid-up capital [7] [11]. This note sets out the evidence; it carries no valuation and no view on the price.

Business: a 120-year-old retailer that became a manufacturer in 2025, with 42% of sales from the new plant

Singer has more than 120 years of heritage in Bangladesh and listed on the Dhaka Stock Exchange in 1983 [1 p.103] [2 p.5]. Over the last decade it became a multi-brand consumer-durables retailer: in 2025 home appliances (refrigerators, freezers, ACs, washing machines) were 74% of sales, consumer electronics (TVs, computers) 18%, sewing machines 4% and other appliances 4% [1 p.200] [18]. Products carry the Singer and Beko brands and other brands it distributes [1 p.103].

Two features set the model. First, Singer sells on credit: it makes cash, credit and instalment (hire) sales [1 p.174], earns carrying charges (BDT 39m in 2025) and hire agreement fees (BDT 140m, inside other income) [1 p.179] [1 p.203]. Second, it moved from importing finished goods to making them. Until 2024 production ran at the old Savar factory; in 2025 the BSEZ plant sold BDT 8,990m, 42% of sales, while Savar sold BDT 12,305m [1 p.200]. BEZA gave the plant commercial operation approval on 24-Feb-2025, and shareholders were asked to approve BDT 6,039m of asset additions, BDT 5,803m of them for the plant's machinery and construction [7].

Volume moved unevenly across categories in 2025: microwave ovens +25.3%, washing machines +23.0%, refrigerators +18.5%, freezers +15.8%, sewing machines +14.0%, TVs +4.3%, while ACs fell 0.5%, computers 39.5% and dishwashers 57.1% [1 p.145]. Refrigerators are the core: in 2025 they were BDT 7,022m of the BDT 12,568m of manufactured products on which royalty is charged [1 p.203].

The market context is hard to pin down from Singer's own filings: the company does not disclose market share. It describes 2025 as a year of 3.9% GDP growth, high inflation and tight money in which buyers moved to essentials and sellers spent more on promotion [1 p.103]. The dominant listed competitor, Walton Hi-Tech, had net turnover of BDT 69,950m in its year to June 2026, more than three times Singer's [6 p.54].

How the company got here. Between 2016 and 2019 Singer roughly doubled turnover, from BDT 9.0bn to BDT 15.5bn, mainly by selling imported and locally assembled appliances through its shops on credit, and it paid out most of what it earned [5 p.13]. After Arcelik took control in 2019 [12], the strategy shifted to manufacturing under the Beko brand: the board approved the BSEZ plant on 30-Mar-2022 [7], capex ran at BDT 6.6bn in 2024 alone [1 p.181], and the plant began commercial operation in early 2025 [7]. The logic the company gives is lower import dependence, cost control and, over time, exports within the Arcelik network; the managing director expects up to 4,000 jobs at full capacity [1 p.45]. The cost of that shift arrived first: depreciation went from BDT 186m in 2024 to BDT 886m in 2025 [1 p.143], and the borrowing that paid for the plant and for the inventory build now costs more than the business earns before interest.

Line items: sales and gross profit grew; interest on BDT 20bn of debt took 11.6% of sales

Turnover. Sales rose 14.3% to BDT 21,334m in 2025 on volume growth in most categories, new SKUs and wider distribution [1 p.145]. In 2026 growth slowed to 3.4% in Q1, 3.3% in Q2 and 6.5% in Q3 [3 p.2] [2 p.2] [7]; the company blamed a stagnant consumer-electronics market, inflation, weather, the national election and long Eid holidays [7]. Exports were BDT 85m in 2025, the first year with any [1 p.200].

Cost of sales. Raw materials consumed rose to BDT 13,926m, 65.3% of turnover from 59.3%, because the company now buys components rather than finished goods; manufacturing overhead doubled to BDT 2,046m, of which BDT 785m was factory depreciation [1 p.201] [18]. Gross margin fell from 26.5% to 24.2%; the company says selling prices could not be raised to absorb higher average costs because discounts and promotions were needed to stay competitive [7]. Most components are imported, so the taka-dollar and taka-euro rates pass into cost of sales; the raw-material note lists imported parts for every category [1 p.201].

Operating expenses. Opex rose 14.5% to BDT 4,789m, in line with sales, so opex stayed at 22.4% of turnover. Inside it, salaries rose 41% to BDT 930m, warranty 56% to BDT 502m, bad debts doubled to BDT 136m and demurrage cost BDT 83m, while advertising and promotion rose only 3% to BDT 769m [1 p.202]. Royalty to Beko Bangladesh BV was BDT 237m: 3% of the invoice price of audio-video sets and ACs and 1% of refrigerators made by Singer [1 p.203].

Finance costs. This is the line that decides the result. Interest on borrowings rose from BDT 1,041m to BDT 2,480m in 2025: BDT 1,946m on overdrafts and short-term loans, BDT 297m on the Prime Bank-led syndicated term loan and BDT 222m on the Arcelik loan [1 p.204]. Part of the jump is accounting: until March 2025 interest on the plant loans was capitalised, and from then it went to the income statement [7]; in 2024 the company capitalised BDT 574m of interest and FX loss [1 p.199]. Foreign exchange losses were BDT 571m (BDT 510m unrealised) against gains of BDT 435m [1 p.204]. Each 1% of turnover in finance cost is about BDT 213m, so in 2025 interest on borrowings alone took 11.6% of every taka of sales against an operating margin of 2.6% [18].

Other income and tax. Other income was BDT 181m, mostly hire agreement fees and scrap sales, after a BDT 102m loss on sale of fixed assets [1 p.203]. Tax was BDT 16m despite the loss because minimum tax applies under section 163 of the Income Tax Act 2023; current tax of BDT 127m was offset by a deferred tax credit [1 p.204]. Advance income tax paid but not yet set off reached BDT 4,719m at December 2025 [1 p.199]. No WPPF was charged in a loss year [1 p.179].

2026 so far: one profitable quarter (Q2), a BDT 772m Q3 loss, and nine-month EPS of BDT (11.98)

Singer's year is seasonal. The second quarter, the summer peak for cooling products, carries most of the profit: Q2 2026 made an operating profit of BDT 762m and the only positive quarter of the last seven, BDT 136m after tax [2 p.2]. The other quarters lose money. Q1 2026 lost BDT 559m [3 p.2] and Q3 2026 lost Tk77.16 crore (BDT 772m) on revenue of Tk439 crore [9]; the company reported a Q3 loss before tax of BDT 709.5m and net finance costs of BDT 756.8m, up 58.9%, with operating profit flat [7]. The fourth quarter of 2025 was the worst: a BDT 1,110m loss, derived as the full year less nine months [1 p.179] [4 p.2] [18].

Gross margin improved in 2026: 23.3% in Q1 and 26.1% in Q2 against 23.5% and 24.7% a year earlier [18], and the company says the Q3 margin improved marginally [7]. Finance income in H1 2026 was BDT 290m against BDT 56m, mostly exchange gains [2 p.2], which is why H1 net finance costs fell even though borrowings rose. Nine-month EPS was BDT (11.98) against BDT (11.42) a year earlier [7].

Ratios: ROE went from 36-41% (2017-2019) to -164% (2025); interest cover from 4x to below 1x

Over ten years Singer went from a high-return retailer to a leveraged manufacturer. From 2017 to 2019 ROE was 36%-41% on a thin equity base, because the company paid out most of its profit and ran with little debt [5 p.13] [18]. Operating margin peaked at 12.6% in 2019 and has fallen almost every year since, to 2.6% in 2025 [1 p.143] [18]. Turnover kept growing: 10.1% a year from 2016 to 2025.

Leverage and coverage tell the same story. Debt to equity was 0.5x in 2020, 2.4x in 2023 and 6.9x in 2024; at the end of 2025, with equity of BDT 168m, the ratio was 112x and has no meaning after equity turned negative [1 p.143] [18]. EBIT covered interest 4.0x in 2020 and 0.17x in 2025 on our measure (interest including FX loss). Turnover per taka of PPE fell from 13.8x to 1.7x as the plant was built, and pre-tax return on capital fell from 30.8% to 2.9% [18].

Working capital has always been heavy. Inventory days on cost of sales were 128 in 2020 and 250 in 2024, when the company built stock for the plant ramp-up; they eased to 216 in 2025 [18]. The auditor named inventories (29% of total assets) a key audit matter [1 p.175].

Cash: operating cash flow was positive in 2025, but after BDT 2.6bn of interest paid the company borrowed to fund itself

Operating cash flow swings with the credit book and with supplier payments, not with profit. It was BDT 1,452m in 2025 against a BDT 2,249m loss, helped by collections of BDT 24,431m exceeding turnover, and negative BDT 794m in 2024 [1 p.181]. Operating cash flow per share was BDT (21.42) in Q1 2026, BDT 5.49 for H1 and BDT 15.14 for nine months [7]. The company itself points to hire purchase, dealer credit and seasonality [7].

The decisive point is that interest is paid in cash and shown under financing: BDT 2,638m in 2025 [1 p.181]. After capex and interest, free cash flow was BDT -4,141m in 2025 and BDT -1,523m in H1 2026 [18]; the gap was filled by more borrowing. Short-term loans received in H1 2026 were BDT 2,651m [2 p.4].

Earnings quality has two more items an investor would watch. The 2025 loss includes BDT 510m of unrealised FX loss on euro debt, which reverses if the taka strengthens and grows if it weakens [1 p.204]. And the deferred tax asset of BDT 211m and advance tax of BDT 4.7bn depend on future taxable profit or refunds [1 p.178] [1 p.199].

Balance sheet: debt of BDT 18.8bn at Dec-2025 on the company's definition (22.6bn gross at Jun-2026), mostly short-term, against negative equity

Debt definitions. The company's scorecard 'Debt (st + lt)' of BDT 18,779m at December 2025 is short-term borrowings plus non-current long-term debt and leaves out the BDT 1,674m current portion of long-term debt [1 p.143] [1 p.178]; it is the figure used in the ten-year ratios. Our 'gross debt' adds that current portion (BDT 20,453m at December 2025, BDT 22,628m at June 2026) and excludes leases; 'net debt' adds leases and deducts cash [18].

At 30-Jun-2026 Singer had total assets of BDT 38.8bn, gross borrowings of BDT 22.6bn plus BDT 1.7bn of leases, cash of BDT 1.3bn and total equity of BDT (254)m [2 p.1] [18]. Short-term borrowings from more than ten banks were BDT 13.9bn at December 2025, secured by hypothecation of inventories, receivables and machinery [1 p.198]. The long-term debt is the Arcelik euro loan (BDT 3.76bn including the current portion) and a BDT 2.5bn syndicated loan led by Prime Bank with Pubali Bank, at 12.5% subject to quarterly review [1 p.199].

Receivables. Gross trade receivables were BDT 5,130m at December 2025, of which BDT 4,660m were 0-30 days old and BDT 171m older than a year; the ageing table on p.209 assigns BDT 107.5m of impairment to these trade receivables, while the total allowance on the same page is BDT 185m (opening BDT 146m, plus BDT 136m charged, less BDT 96m written off); the BDT 77m difference is the part of the allowance the page does not allocate to the ageing buckets (trade receivables only), and the company does not reconcile the two [1 p.209]. Receivables nearly doubled to BDT 8.6bn by June 2026 [2 p.1]; the company attributes the Q1 rise of 38.5% to seasonal credit renewals and slower collections [7].

Related parties. Beko Bangladesh BV receives royalty (BDT 237m in 2025) and dividends; Arcelik A.S. is the lender of the EUR 27.5m loan taken in March 2024 for seven years with two years' grace [1 p.199] [1 p.203]. In 2025 the company remitted BDT 242m of interest on the Arcelik loan and BDT 33m of 2024 dividend [1 p.206].

Audit. A. Qasem & Co. gave an unqualified opinion on the 2025 statements, signed 29-Jan-2026, with revenue recognition and inventories as key audit matters [1 p.174] [1 p.175]. The opinion pages we read carry no emphasis of matter on going concern. The directors state there is no significant doubt about going concern [1 p.106], and the H1 2026 notes say management sees no material uncertainty [2 p.5]. The red flag in the sector checklist, finance costs above operating profit, applies directly.

Peers: Walton's gross margin is 13.6pp higher; on one definition its EBIT covers net finance costs 16.7x against Singer's 0.20x

The only listed consumer-durables manufacturer of comparable scope is Walton Hi-Tech Industries, which reports a June fiscal year. Its figures below are from its own 2025-26 annual report, converted from crore [6 p.54] [6 p.55]. The fiscal years differ by six months, so the comparison is indicative.

Interest cover needs care because each company prints its own measure. Singer's printed 'Interest Cover' of 0.3 sits next to an 'Interest exp.' of BDT 3,221.4m, which is total finance costs including the BDT 571m foreign exchange loss [1 p.143] [1 p.204]; EBIT of BDT 550.3m divided by that figure is 0.17x, which is the measure used in the ratio section [18]. The company does not state how it reaches 0.3. On one stated definition for both companies, EBIT divided by net finance costs (finance costs less finance income, including FX), Singer covered its net finance costs 0.20x in 2025 and Walton 16.7x in FY2026 [1 p.143] [6 p.54] [18].

The gap is wide on every line. Walton's gross margin was 37.8% against Singer's 24.2%, a difference of 13.6pp; its EBIT margin 27.7% against 2.6%. Walton makes its own compressors at scale and is funded mostly by equity (equity 81% of assets); Singer buys more of its components, pays a royalty to its parent and funds itself mostly with bank debt [1 p.203] [18].

Governance: Arcelik controls 57% and the board; a BDT 2.5bn preference issue to the sponsor goes to an EGM on 15-Dec-2026

Ownership. Beko Bangladesh BV holds 56,819,337 shares (57%), of which 20% are non-remittable shares; institutions hold 29.8%, the general public 13.2% [1 p.149] [1 p.193]. Directors and the managing director hold no shares [1 p.149].

Capital actions in the last 24 months (DSE disclosures) [7]: a 10% cash dividend for 2024 (January 2025); shareholder approval sought in April 2025 for BDT 6,039m of plant assets; BEZA commercial operation approval (February 2025); first export approval (July 2025); no dividend for 2025 (February 2026); ECRL rating affirmed at A+ / ST-3, stable (April 2026); move to 'Z' category (8-Jul-2026) followed by a prohibition on margin loans for the share; and on 27-Oct-2026 a proposal to double authorised capital to BDT 5,000m and to issue up to BDT 2,500m of preference shares [10].

The preference shares, as disclosed: perpetual, non-cumulative, non-convertible and non-voting; Tk 10 each at par; up to 250m shares; placed privately with the sponsor shareholder; proceeds to refinance debt, ease the debt burden and fund working capital; dividends only if the board declares them; redeemable at the company's option at face value. The EGM is on 15-Dec-2026 with a record date of 17-Nov-2026, and the issue also needs BSEC consent [7]. If issued in full, BDT 2.5bn equals about 11% of June 2026 gross debt and, depending on its classification, would lift total equity above zero [18]. Ordinary shareholders keep their votes; the instrument dilutes neither EPS nor control, but any preference dividend the board declares would come ahead of ordinary dividends.

Dividend policy. The directors said no dividend for 2025 was proposed 'due to the net loss... and the increased leverage resulting from capital expenditures' and that they aim to re-establish shareholder returns as earnings recover [1 p.106]. Payout was high before the plant: dividends exceeded profit in 2016, 2017, 2021 and 2022 [18].

Market facts. On the DSE company page the share's 52-week range is BDT 65.30-100.90 and the free-float market capitalisation is about BDT 2.9bn, against a total of about BDT 6.7bn [8]. Trading volume is thin: most sessions in October 2026 traded under 15,000 shares [17]. Since 8-Jul-2026 stock brokers and merchant bankers have been asked not to provide loan facilities for the company's securities [7]. For an investor this matters because the share price can move sharply on small volumes around the EGM and the annual results.

What's next: the 15-Dec-2026 EGM, FY2026 accounts in January 2027, and VAT on local production

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

Passed events, outcome unknown from the filings: the 2025 AGM on 20-Apr-2026 (no dividend proposed) [7]; the Q3 2026 statements were approved on 26-Oct-2026 but are not yet in our filings corpus (passed), so Q3 line items beyond the DSE and press figures are unknown.

Risks: rates, the euro and the preference vote matter most

The risks below are tied to the line each one moves. Their size is set against an operating profit of BDT 550m in 2025 [1 p.179].

A history-based sensitivity: in 2025 each 1pp of turnover in gross margin was worth BDT 213m, about 39% of that year's operating profit; and each BDT 1bn of borrowings at the 12.5% syndicated-loan rate costs about BDT 125m a year in interest [1 p.199] [18].

Key questions: the EGM, plant utilisation and finance costs decide what reaches shareholders

SINGERBD closed at BDT 67.1 on 29-Oct-2026, a market value of BDT 6.69bn [17]. Over the last four reported quarters EPS was BDT (23.12) and NAV per share is negative, so P/E and P/B are not meaningful. Market value was 0.30x the last four quarters' turnover of about BDT 22.0bn, and market value plus June 2026 net debt was 1.35x [9] [18]. At year-end the company-reported P/E was 21.8x (2020), 32.7x (2021), 207.2x (2022) and 29.0x (2023) [1 p.143]. These are facts about the price, not a view on it.

FAQ

Why did Singer Bangladesh make a loss in 2025?

Operating profit was BDT 550m but net finance costs were BDT 2,783m, including BDT 2,480m of interest on borrowings and BDT 571m of FX losses [1 p.179] [1 p.204].

Is Singer Bangladesh's equity negative?

Yes. Total equity was BDT (254)m at 30-Jun-2026 and NAV per share BDT (10.29) at 30-Sep-2026 [2 p.1] [7].

Why is SINGERBD in the Z category?

DSE moved it to 'Z' on 8-Jul-2026 because accumulated losses exceed paid-up capital [7].

What are the proposed preference shares?

Up to BDT 2.5bn of perpetual, non-cumulative, non-convertible, non-voting preference shares at Tk 10, placed with the sponsor to refinance debt; EGM 15-Dec-2026 [7].

Who owns Singer Bangladesh?

Beko Bangladesh BV (Arcelik group) owns 57%, institutions 29.8% and the public 13.2% [1 p.149].

Did Singer pay a dividend for 2025?

No. The 2024 dividend was BDT 1 a share [1 p.143] [1 p.106].

Which results does this note use?

Annual reports 2016-2025, the Q1, H1 2026 and 9M 2025 statements; Q3 2026 figures are from the DSE disclosure and press, as the Q3 statements are not yet in our corpus.

Sources

1. Singer Bangladesh Limited Annual Report 2025 (year to 31-Dec-2025) · link · accessed 2026-10-31
2. Singer Bangladesh Limited unaudited financial statements, six months to 30-Jun-2026 · link · accessed 2026-10-31
3. Singer Bangladesh Limited unaudited financial statements, three months to 31-Mar-2026 · link · accessed 2026-10-31
4. Singer Bangladesh Limited unaudited financial statements, nine months to 30-Sep-2025 · link · accessed 2026-10-31
5. Singer Bangladesh Limited Annual Report 2020 (financial highlights 2015-2020) · link · accessed 2026-10-31
6. Walton Hi-Tech Industries PLC Annual Report 2025-2026 (year to 30-Jun-2026) · link · accessed 2026-10-31
7. Dhaka Stock Exchange news archive, SINGERBD, Oct-2024 to Oct-2026 (company disclosures) · link · accessed 2026-10-31
8. Dhaka Stock Exchange company page, SINGERBD · link · accessed 2026-10-31
9. The Business Standard, 'Singer Bangladesh Q3 loss widens 61% to Tk77cr on soaring finance costs' (26-Oct-2026) · link · accessed 2026-10-31
10. The Business Standard, 'Singer Bangladesh to issue Tk250cr preference shares to repay debt' (27-Oct-2026), reporting the company's DSE disclosure · link · accessed 2026-10-31
11. The Daily Star, 'Singer Bangladesh pushed into junk category' (10-Jul-2026) · link · accessed 2026-10-31
12. The Daily Star, 'Singer Bangladesh's majority stakes change hands' (23-Mar-2019) · link · accessed 2026-10-31
13. Prothom Alo English, 'VAT on ACs, refrigerators likely to be halved to 7.5pc, will prices drop?' (10-Jun-2026) · link · accessed 2026-10-31
14. The Financial Express, 'Refrigerator, AC getting cheaper with tax cutbacks' (9-Jun-2026) · link · accessed 2026-10-31
15. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-10-31
16. The Business Standard, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-10-31
17. AnalystBro price data (TradingView feed): DSE:SINGERBD daily bars to 29-Oct-2026 · link · accessed 2026-10-31
18. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-10-31