Meghna Cement Company Limited, a listed firm on the stock exchange, is facing a deep financial crisis as mounting losses and loan default status have brought its production operations nearly to a standstill.
According to the company’s latest audited financial report for the 2024–25 fiscal year, Meghna Cement has been unable to open new letters of credit (LCs) due to defaulted loans, effectively halting the import of raw materials. This has severely disrupted its normal production activities, raising concerns about its future, as noted by auditors.
The report highlights a sharp decline in sales within a year. The company’s revenue dropped from Tk 186.90 crore in FY 2023–24 to just Tk 27.50 crore in FY 2024–25. The shortage of raw materials, caused by the inability to open LCs, led to an almost complete halt in production, although limited operations continued through contract manufacturing for other companies.
In FY 2024–25, the company incurred a loss of Tk 115.54 crore, with a loss per share of Tk 36.58. Due to these significant losses, the board of directors decided not to declare any dividend for shareholders.
The situation worsened further in the current fiscal year. During the first nine months of FY 2025–26 (July 2025 to March 2026), Meghna Cement reported a loss per share of Tk 48, amounting to a total loss of Tk 152.04 crore.
Previously, the company had posted a loss of Tk 22.61 crore in FY 2023–24, with a loss per share of Tk 7.16. Altogether, Meghna Cement has accumulated losses of Tk 290.19 crore over the past two years and nine months (July 2023 to March 2026).
The heavy losses have significantly eroded the company’s financial health, pushing its net asset value per share (NAVPS) into negative territory at Tk 51.33. Analysts warn that if the company were to be liquidated under current conditions, shareholders are unlikely to recover their investments.
The company attributed the downturn to its loan default status, which has restricted access to raw materials. As a result, it has had to rely on lower-margin conversion income instead of regular production and sales.
Meghna Cement was listed on the stock exchange in 1997 and currently has a paid-up capital of Tk 31.59 crore, with 58.10 percent of its shares held by general investors.
