Techno Drugs financial analysis: EPS down to BDT 1.51, overdue loan interest and a bond plan (Oct 2026)

Investment considerations: revenue tied to government tenders, BDT 413.5m of finance expenses, and overdue interest disclosed in October 2026

Techno Drugs Ltd. (TDL) makes human and veterinary medicines at two plants, at Satirpara in Narsingdi and at B.K. Bari, Mirzapur in Gazipur [1 p.6]. It describes itself as the biggest supplier of injectable hormonal medicines to the government of Bangladesh, the fifth maker of contraceptive implants in the world and the first in Bangladesh, and an early local maker of anti-cancer drugs [1 p.20]. The company was incorporated in 2009, began commercial operation on 1 July 2010 and listed on the Dhaka and Chittagong exchanges on 9 July 2024 after a BDT 1,000m book-built IPO [1 p.6] [1 p.100]. Its fiscal year ends on 30 June.

The managing director's FY2025 message states that the company's revenue structure 'remains predominantly dependent on government tenders' [1 p.18]. That dependence shows in the numbers. Revenue was BDT 5,029m in FY2022, BDT 2,733m in FY2023, BDT 3,613m in FY2024 and BDT 3,376m in FY2025 [1 p.12]. In the nine months to March 2026 it was BDT 2,320m, 10.6% below the same period a year earlier [3 p.1]. After a board meeting scheduled for 28 October 2026 to consider the FY2026 audited accounts, DSE carried on 29 October EPS of BDT 1.51 against BDT 1.76, NAV per share of BDT 31.71 with revaluation and BDT 28.02 without, and operating cash flow per share of BDT 2.66 against BDT 1.43 [6]. The FY2026 annual report is not yet in our filings corpus, so the line-item analysis below runs to FY2025 and the nine months to March 2026, with the FY2026 per-share figures as announced.

The second thread is debt. Borrowings were BDT 2,545m at June 2025 and BDT 2,761m at March 2026 [1 p.70] [3 p.1]. After a 5 October 2026 online report headlined 'Techno Drugs' main factory up for auction, Tk. 203 crore in loan default' (DSE's translation), the company told DSE that tender sales had been halted, that this delayed its loan instalments, and that of a total interest amount of BDT 21.78 crore it had repaid BDT 8.80 crore, leaving BDT 12.98 crore overdue [6]. Earlier, in May 2026, the board approved a BDT 50 crore five-year bond, 75% convertible and 25% redeemable, 'to restructuring the company's loans', subject to shareholder and BSEC approval [6].

Business: two plants, government contraceptive tenders, and 43% utilisation in FY2025

Products and plants. The FY2025 product profile lists non-biological products, a long list of 'biological' products (hormonal, oral contraceptives, antibiotics, injectables and anti-cancer molecules such as cyclophosphamide) and veterinary products [1 p.52] [1 p.54] [1 p.60]. The government tender line is visible in the balance sheet: at June 2025 the company held BDT 129.3m of finished '3rd Generation Birth Control Oral Pill (Sukhi)' for a government tender [1 p.86], and tender receivables of BDT 152.9m were due from the Directorate General of Family Planning (BDT 43.1m) and, as sub-contracts, from Renata PLC (BDT 49.9m) and Popular Pharmaceuticals Ltd. (BDT 59.9m) [1 p.87]. The company has no subsidiary and no holding company [1 p.20].

Revenue labels. The revenue note splits sales into 'VAT able' and 'Non VAT able' items and export [1 p.94]. Non-VAT-able items were 48.7% of revenue in FY2023, 83.2% in FY2024 and 89.7% in FY2025 [2 p.92] [12]. The filings do not say which products sit in each group, so we report the split as labelled and do not map it to products or customers. Exports were BDT 12.2m in FY2025, 0.4% of revenue [1 p.94], although the directors list about 25 formulations sold to 13 countries including Nepal, Myanmar, Sri Lanka, the Philippines and Cambodia [1 p.21].

Capacity. Installed capacity across tablets, capsules, injections, powder and liquids was 574.5m units in FY2025 and production 247.1m, so utilisation was 43.0%, down from 47.1% in FY2024 [1 p.100] [2 p.20] [12]. By form, utilisation in FY2025 ranged from 39% for capsules to 58% for liquids and syrups [1 p.100]. Units sold fell from 250.9m to 236.0m, while revenue per unit sold was almost unchanged at BDT 14.31 against BDT 14.40 [1 p.98] [12]. Units sold fell 6.0% and revenue per unit 0.7%.

IPO and expansion. The IPO raised BDT 1,000m: BDT 270m was earmarked for machinery and equipment, BDT 250m for balancing, modernisation, rehabilitation and expansion (BMRE) at Satirpara, Narsingdi, BDT 150m for building works at B.K. Bari, Gazipur, BDT 300m to repay bank loans and BDT 30m for issue costs [1 p.100]. By 30 June 2025 BDT 644.6m had been used: the full BDT 300m loan repayment (BDT 25.00 crore to ONE Bank PLC and smaller sums to LankaBangla, Alliance and IDLC), issue costs, and BDT 314.7m paid as advances for the three capital projects, which sit in advances rather than in fixed assets [1 p.100] [1 p.85]. BDT 355.4m was unused, and the IPO bank account held BDT 355.6m [1 p.88]. Capital work-in-progress at B.K. Bari was BDT 97.3m at June 2025 [1 p.85]. By March 2026 property, plant and equipment had risen to BDT 4,483m from BDT 3,690m and capital work-in-progress to BDT 243m, after BDT 322m of PPE and BDT 435m of work-in-progress payments in the nine months [3 p.1]. The interim statements do not say which project these payments relate to or give an updated IPO utilisation table.

Line items: units sold down 6.0% in FY2025, gross margin 42.3-43.6% in FY2023-FY2025, finance expenses BDT 413.5m

Revenue. The six-year record has three large moves: +90.7% in FY2021, -45.6% in FY2023 and +32.2% in FY2024 [1 p.12] [2 p.12] [12]. The directors explained FY2024 growth by 'uptrend of local demand of products, export earnings and increased Govt. tender' [2 p.22] and the FY2025 decline (the directors print 6.85% (6.58% on the reported figures)) by 'Government did not procure as much as they did in the last year. We mostly sell to contraceptive items to Government and Government is our large buyer of these items' [1 p.23]. The quarterly DSE notes repeat this: first-quarter FY2025 sales were BDT 102 crore against BDT 145 crore [6]. In 9M FY2026 revenue fell another 10.6%; Q3 FY2026 was BDT 611.9m against BDT 660.0m [3 p.1]. The company's October 2026 statement to DSE says 'over the last two years, sales through government tenders were temporarily halted' [6]. The filings do not give the tender share of revenue in any year. Units sold fell 6.0% in FY2025, from 250.9m to 236.0m [1 p.98], and gross margin stayed between 42.3% and 43.6% in FY2023-FY2025 [12].

Cost of goods sold. Raw materials are the largest cost: BDT 1,347m in FY2025, 39.9% of revenue, against 35.8% in FY2024 and 43.3% in FY2023 [1 p.94] [2 p.92] [12]. Packing materials rose to 8.4% of revenue and factory overhead to 14.5%, of which BDT 300.4m was depreciation [1 p.95]. The directors cite higher raw material, power and fuel cost [1 p.23] and the MD&A names gas shortages, diesel use and currency depreciation [1 p.49]. Even so, gross margin rose to 43.6% in FY2025 from 42.3%, because the cost of goods sold fell faster than revenue; the cost figure also reflects a BDT 129.3m closing stock of tender pills carried forward [1 p.94]. Gross margin was 42.0% in 9M FY2026 [12].

Operating expenses. Selling and distribution cost fell from BDT 621.5m to BDT 530.3m in FY2025 and administrative cost was BDT 227.4m [1 p.71]. Field-force pay is most of selling cost: 'Salary, Allowance & Others Benefits' in selling was BDT 380.4m, down from BDT 439.1m, and sales commission and incentives fell too [1 p.96]. Headcount fell from 1,694 to 1,438 [1 p.99]. Directors' remuneration was BDT 24.0m in both years: BDT 12.0m to the managing director and BDT 6.0m each to two directors [1 p.23]. Selling cost was 15.7% of FY2025 revenue and 15.1% in 9M FY2026 [12].

Finance expenses. Finance expenses were BDT 269.8m in FY2023, BDT 309.9m in FY2024 and BDT 413.5m in FY2025 [2 p.94] [1 p.96]. In FY2025 interest on long-term loans was BDT 297.3m (up from BDT 163.5m), interest on short-term loans BDT 105.7m, bank charges BDT 2.0m and lease interest BDT 8.5m [1 p.96]. Interest cover (profit from operation over finance expenses) was 2.00x, 2.21x and 1.72x in FY2023-FY2025 and 1.82x in 9M FY2026 [12]. The loan note gives the rates: ONE Bank term and working-capital loans at the SMART index plus 3.50%, an AB Bank rescheduled term loan at 15.50%, and an Alliance Finance loan at 15.00% [1 p.90] [1 p.91] [1 p.92]. History-based sensitivity: on FY2025 average borrowings of about BDT 2.59bn, each 1pp of interest moved finance expenses by about BDT 26m, 9% of FY2025 profit before tax [12].

Tax and WPPF. The workers' profit participation fund takes 5% of profit before tax (BDT 14.3m in FY2025) [1 p.93]. Income tax was BDT 54.8m, an effective rate of 19.1%, after a BDT 5.4m deferred tax credit; current tax was set at the 20% regular rate on BDT 301.0m of taxable profit, above the minimum tax of BDT 34.2m [1 p.92]. Cash tax paid was BDT 24.7m against BDT 60.2m charged, and the current tax provision rose to BDT 239.3m at June 2025 and BDT 263.0m at March 2026 [1 p.73] [3 p.1]. Other income is small (BDT 2.0m) [1 p.96].

FY2026 as announced. DSE carried the audited FY2026 EPS of BDT 1.51 [6]. With 9M EPS of BDT 1.18 [3 p.1], the fourth quarter (April-June 2026) contributed BDT 0.33, against BDT 0.35 in the same quarter of FY2025 (FY2025 EPS of 1.76 less 9M EPS of 1.41) [1 p.71] [12]. On 132.0m shares, BDT 1.51 is about BDT 199m of net profit (our arithmetic; the income statement is not yet in the corpus). Revenue, margins and finance expenses for the full year will be read from the FY2026 annual report.

Ratios: ROE 6.5% in FY2025, a 303-day cash cycle, and interest cover of 1.72x

Returns. ROE on average equity was 29.2% in FY2021 and 24.7% in FY2022, then 7.8%, 9.7% and 6.5% in FY2023-FY2025 [12]. Equity grew with retained profit, the IPO (BDT 378.4m of share capital and BDT 621.6m of premium, less issue costs) and a BDT 487.4m land revaluation surplus [1 p.88] [1 p.89]. Pre-tax ROCE on closing capital employed was 11.6% in FY2024 and 10.7% in FY2025 [12]. Asset turnover (revenue over PPE and work-in-progress) was 0.89x at June 2025 and 0.65x on annualised nine-month revenue at March 2026 [12].

Working capital. Receivable days were 105 at June 2023, 97 at June 2024, 123 at June 2025 and 137 at March 2026 (on annualised revenue) [12]. Inventory, including finished goods held for tenders, was 218, 150, 212 and 205 days of cost of goods sold, and payables only 31 days at June 2025, so the cash cycle was 303 days [12]. The company reports all receivables as under six months old and books a 2% expected-loss provision on general-sales receivables (BDT 19.8m at June 2025) [1 p.87] [1 p.93]. Cash collected from customers was 94.6% of revenue in FY2025 and 99.2% in 9M FY2026 [12].

Leverage. Net debt including leases was BDT 2,630m at June 2023 and BDT 2,182m at June 2025, when the IPO cash was still on hand; it was BDT 2,779m at March 2026, 67.1% of equity [12]. The mix changed in the nine months: long-term loans net of current maturity rose from BDT 1,560m to BDT 2,396m while short-term loans fell from BDT 608m to BDT 216m and the current maturity from BDT 377m to BDT 149m [3 p.1]. The interim statement does not explain the reclassification; the cash flow statement shows BDT 608.2m received against long-term borrowings and BDT 391.9m repaid against short-term borrowings [3 p.1].

Peers. We compare FY2025 (year to 30 June 2025) standalone figures from each company's own annual report: Asiatic Laboratories and Orion Infusion, two listed generic makers with June year-ends [4 p.70] [5 p.92]. Techno Drugs' gross margin (43.6%) was close to Asiatic's (43.4%) and above Orion's (42.0%). Its finance cost was 12.2% of revenue, against 11.3% at Asiatic and 6.2% at Orion, the highest of the three. Net margin was 6.9%, against 14.5% and 5.3% [12].

Balance sheet: BDT 2.76bn of borrowings, BDT 31.3m of cash at March 2026, and BDT 12.98 crore of overdue interest

Cash flow. Operating cash flow was BDT 210m in FY2023, BDT 428m in FY2024 and BDT 189m in FY2025, after paying finance costs of BDT 246m, BDT 312m and BDT 393m [2 p.70] [1 p.73]. Spending on plant, work-in-progress and IPO project advances was BDT 631m, BDT 344m and BDT 670m, so free cash flow was BDT -421m, BDT 84m and BDT -481m [12]. In 9M FY2026 operating cash flow was BDT 214m and capital spending BDT 758m [3 p.1]. Cash and cash equivalents were BDT 434.3m at June 2025, BDT 355.6m of it in the IPO account [1 p.88], and BDT 31.3m at March 2026 [3 p.1].

Lenders and security. At June 2025 ONE Bank PLC held BDT 1,179.3m of long-term loans, BDT 299.7m of current maturities and BDT 568.8m of short-term loans, together BDT 2,047.9m or 80.5% of borrowings [1 p.89] [1 p.91] [12]. The ONE Bank term loan is secured on '967.50 decimal land & others', and the working-capital lines on a first charge over all present and future inventories, receivables and fixed assets under a pari-passu agreement [1 p.90] [1 p.91]. AB Bank held BDT 415.4m including a rescheduled loan, and a Community Bank work-order loan for injectable vials for the Director General of Family Planning was secured on third-party land [1 p.89] [1 p.91] [1 p.92].

The October 2026 disclosures. On 7 October 2026, answering a DSE query of 6 October about an online report of 5 October, the company said a significant portion of its products, 'specifically Contraceptive (Birth Control) products', had historically been sold through government tenders, that tender sales were halted in the previous year, that this caused 'a temporary delay in servicing our regular bank loan installments', that the bank issued a notice which was published in the Daily Samakal, that it was in 'advanced bilateral negotiations with the bank', and that production at its factories remained operational [6]. On 15 October 2026, after a further DSE query, it said it had not published a separate disclosure of the notice, calling this 'purely unintentional', and that of a total interest amount of BDT 21.78 crore it had repaid BDT 8.80 crore, leaving BDT 12.98 crore overdue; it added 'we were unaware that the bank had initiated the auction process at that stage' [6]. The disclosures do not name the bank. Separately, The Business Standard reported in May 2026 that ONE Bank had filed a case in the Money Loan Court against the company and its directors to recover about Tk150 crore, and that the company said it was negotiating with the bank [7]; we found no filing that confirms the case.

Audit. Islam Qazi Shafique & Co. gave an unmodified opinion on FY2025 with two emphasis-of-matter paragraphs [1 p.64]. The first says the company 'has not paid the full amount of the declared dividend for the year 2023–2024 ... The unpaid portion of the declared dividend as at 30 June 2025 amounts to Tk. 9,647,835/- out of the total declared dividend of Tk. 59,066,386/-'. The second refers to 'regulatory compliance areas that are in the process of being regularized, including Workers' Profit Participation Fund (WPPF) contributions and settlement of tax appeal' [1 p.64]; the WPPF liability was BDT 73.8m at June 2025, after BDT 9.6m paid in the year [1 p.93]. Among the key audit matters, the auditor wrote that 'A considerable portion of the inventory consists of products nearing expiry dates. However, management has not recognized any provision for inventory obsolescence or slow movement', and that 'the recoverability of certain bills remains subject to uncertainty' [1 p.66]. On borrowings it wrote: 'During the year, we observed a substantial increase in total borrowings and related interest expenses' [1 p.67]. The directors state there are 'no significant doubts upon the Company's ability to continue as a going concern' [1 p.23].

Contingent items. The company reports no claim against it acknowledged as debt at June 2025 [1 p.100]. The current tax provision includes assessment years under appeal [1 p.64] [1 p.92].

Governance: sponsors hold 62.71% and take no dividend; FY2024 dividend partly unpaid, a 'Z' category spell in February 2026, and a BDT 50 crore bond plan

Ownership. Directors and sponsors held 82,776,200 shares, 62.71% of the company, at June 2025; institutions held 6.29% and the general public 31.00% [1 p.88]. The managing director, Shah Jalal Uddin Ahmed, held 45.04%; the chairman, Khaleda Akhter Khan, 5.66%; directors Md. Mamunur Rashid 5.21%, Mehreen Ahmed 3.40% and Arefeen Raafi Ahmed 3.40% [1 p.31]. The annual report describes Arefeen Raafi Ahmed as the son of Khaleda Akhter Khan [1 p.14]. The two independent directors, Sk. Motiur Rahman and Uttam Kumar Saha, FCA, hold no shares; Mr Saha chairs the audit committee [1 p.31] [1 p.9].

Related parties. The related-party note lists office rent of BDT 7.56m paid to the chairman and BDT 7.56m to the managing director, remuneration of BDT 12.0m to the managing director and BDT 6.0m each to Mehreen Ahmed and Arefeen Raafi Ahmed, and BDT 4.77m of packing-material purchases from G C Box Limited, described as having a 'Common Board Member' [1 p.98]. The company also holds 2,700 shares of G C Box Limited at a cost of BDT 270,000 [1 p.84].

Dividends. For FY2024 the company declared a 12% cash dividend; DSE moved it from 'N' to 'A' category on 4 February 2025 after it reported paying [6], but the auditor recorded BDT 9.65m of the BDT 59.07m declared as unpaid at June 2025 [1 p.64]. For FY2025 and FY2026 the board recommended 10% cash for general shareholders only, excluding the 82,776,200 sponsor and director shares, a payment of BDT 49,221,988 each year [6]. On 3 February 2026 DSE announced a move to 'Z' category from 5 February 2026 under a BSEC directive on 'non-disbursement of the approved dividend within the stipulated time frame', and asked brokers and merchant bankers not to lend against the share; on 10 February 2026 the company reported the FY2025 dividend paid and DSE returned it to 'A' from 15 February 2026 [6]. Paid to all shareholders, BDT 1.00 a share would be 66% of FY2026 EPS; paid only to general shareholders it costs BDT 49.2m, about a quarter of FY2026 profit [12].

Board and officers. The FY2025 annual report names Debasish Das Gupta as company secretary and Pijush Kumar Chakroborty, FCA as chief financial officer [1 p.31]. On 25 March 2026 the company announced S. M. Abu Talha Siddik as company secretary from 15 March 2026 [6], and the March 2026 interim statements are signed by a 'Chief Financial Officer (Acting)' [3 p.1]. Islam Qazi Shafique & Co. was recommended for reappointment as statutory auditor for FY2026 [1 p.25].

Credit rating. The FY2025 directors' report states that Emerging Credit Rating Limited 'has affirmed A- long term credit rating' [1 p.25]. The DSE notices of 1 December 2025 and 27 July 2026 give the ECRL rating as 'BBB' long term and 'ST-3' short term with a stable outlook [6]. We report both as printed; the filings do not reconcile them.

Bond. On 14 May 2026 the board approved a BDT 50 crore, five-year bond, 25% redeemable and 75% convertible, to restructure loans, with MTB Capital as issue manager and arranger and an EGM set for 24 June 2026 [6]. The Daily Star, drawing on the arranger's release, reported a floating coupon tied to the five-year treasury bond rate plus a margin [8]. The EGM date has passed; we found no DSE notice of the vote or of BSEC approval, so the outcome is unknown. Conversion of 75% of BDT 500m would add shares; the conversion price is not disclosed.

Price: BDT 34.5 on 29-Oct-2026, against a 52-week range of BDT 25.2-52.0

Price history (facts only). Eligible investors bought IPO shares at BDT 34.00 (BDT 261.5m for 7,692,307 shares) [1 p.88] [1 p.96]. Our price feed starts on 14 July 2024, when the share closed at BDT 35.0; it reached a weekly high of BDT 69.7 in August 2024 [11]. Over the 52 weeks to 29 October 2026 the range was BDT 25.2 (16 November 2025) to BDT 52.0 (20 July 2026), and the close on 29 October 2026 was BDT 34.5 [11]. The share closed at BDT 40.7 on 4 October 2026 and BDT 36.7 on 5 October 2026 [11].

At BDT 34.5 the share trades at 22.8x FY2026 EPS and 1.09x June 2026 NAV per share, or 1.23x NAV excluding the land revaluation [11] [6]. These are statements of fact about the multiples.

What's next: dividend record date on 19-Nov-2026, Q1 FY2027 results, and the AGM on 24-Dec-2026

Passed events with outcomes not yet known: the 24 June 2026 bond EGM (passed, outcome unknown) and BSEC's decision on the bond (no notice found) [6]. Already announced and covered above: FY2026 EPS, NAV and dividend (29-Oct-2026) [6].

Risks: tender timing, overdue interest, borrowing cost and inventory near expiry

Each risk is tied to the line it moves; sizes are from FY2025 or the latest filing.

Key questions: overdue interest, tender share, bond terms, IPO capacity, and inventory provisions

Reading the record as a whole: the plants run at well under half of installed capacity, gross margin has stayed in the low 40s, and the gap between operating profit and net profit is mostly interest. The October 2026 disclosures, the bond plan and the two dividend-payment lapses are documented in DSE notices and the auditor's report [6] [1 p.64].

FAQ

What does Techno Drugs make?

Human and veterinary medicines at plants in Narsingdi and Gazipur; it describes itself as the largest supplier of injectable hormonal medicines to the government and a maker of contraceptive implants [1 p.6] [1 p.20].

What were Techno Drugs' FY2026 results?

EPS BDT 1.51 against 1.76, NAV per share BDT 31.71 (28.02 without revaluation) and NOCFPS BDT 2.66 against 1.43, as carried by DSE on 29-Oct-2026 [6].

Why did revenue fall?

The directors say the government bought fewer contraceptives; revenue fell in FY2025; the directors print 6.85% (6.58% on the reported figures) [1 p.23] and 10.6% in the nine months to March 2026 [3 p.1].

Is Techno Drugs in default on a loan?

On 15-Oct-2026 the company told DSE that BDT 12.98 crore of a BDT 21.78 crore interest amount was overdue and that it was negotiating with the bank [6]. The bank is not named in the disclosure.

Who gets the dividend?

For FY2025 and FY2026 the 10% cash dividend goes only to general shareholders; the 82,776,200 sponsor and director shares are excluded [6].

Which results does this report use?

Annual reports for FY2024 and FY2025 (five-year data from FY2020), the unaudited nine months to March 2026, and the FY2026 per-share figures announced on DSE. The FY2026 annual report is not yet in our corpus.

Sources

1. Techno Drugs Ltd. Annual Report 2024-2025 (year to 30-Jun-2025) · link · accessed 2026-11-01
2. Techno Drugs Ltd. Annual Report 2023-2024 (year to 30-Jun-2024; five-year data from FY2020) · link · accessed 2026-11-01
3. Techno Drugs Ltd. unaudited third-quarter financial statements, 1-Jul-2025 to 31-Mar-2026 · link · accessed 2026-11-01
4. Asiatic Laboratories Limited Annual Report 2024-25 (peer) · link · accessed 2026-11-01
5. Orion Infusion Limited Integrated Annual Report 2024-25 (peer) · link · accessed 2026-11-01
6. DSE news archive for TECHNODRUG, 31-Oct-2024 to 1-Nov-2026 (company disclosures, results, dividend, category and rating notices) · link · accessed 2026-11-01
7. The Business Standard, 'Techno Drugs to issue Tk50cr bond to restructure high-cost debt' (16-May-2026) · link · accessed 2026-11-01
8. The Daily Star, 'MTB Capital to arrange Tk 50cr convertible bond for Techno Drugs' (18-May-2026; based on a company/MTB press release) · link · accessed 2026-11-01
9. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
10. The Business Standard, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
11. AnalystBro price data (TradingView feed): DSE:TECHNODRUG daily and weekly bars, 14-Jul-2024 to 1-Nov-2026 · link · accessed 2026-11-01
12. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-11-01