BBS Cables PLC, once hailed as one of the most promising industrial firms on the Dhaka Stock Exchange (DSE), is now battling a severe financial collapse that has shaken investor confidence and raised doubts about the company’s future. Once capable of generating over Tk100 crore in annual profits and backed by strong government contracts, the company has suffered a dramatic reversal of fortune due to declining state orders, alleged political fallout, and a challenging economic climate. Market analysts describe the situation as a complete operational “short circuit,” turning a once-thriving blue-chip manufacturer into a heavy loss-making entity.

The company’s latest financial statements reveal the depth of the crisis. In the 2024–25 fiscal year, BBS Cables posted a staggering net loss of Tk86 crore a 561% increase from the previous year’s loss of Tk13 crore. This collapse is even more striking when compared to its peak performance in FY19, when it recorded its highest-ever net profit of Tk145 crore. The company’s financial foundation has eroded within just six years.

This downturn directly correlates with an alarming drop in revenue. The firm’s earnings plunged 46% year-on-year to Tk210 crore in FY25, a steep fall from its peak revenue of around Tk900 crore in FY19. Revenues have consistently declined over the years, except for a brief rise in FY23, before crashing to Tk386 crore in FY24 and dropping again in half the following year. The decline worsened in the first quarter of FY26, where revenues fell another 48% while losses widened by 331% year-on-year.

As its financial troubles deepen, BBS Cables failed to declare any dividend for FY25, following a token 1% cash dividend in the previous year. Its last significant shareholder payout dates back to FY18, signaling the long-term decline of the company’s profitability. Mounting debt is another burden, with Tk60 crore in long-term loans and Tk258 crore in short-term loans as of September 2025, carrying interest rates between 12% and 16%. Analysts warn that in the current high-interest economic environment, such debt severely restricts the company’s operational flexibility.

The company’s auditors have raised serious concerns. T Hussain & Co flagged BBS Cables’ ability to continue as a going concern after turnover plunged sharply from Tk386 crore in FY24 to Tk210 crore in FY25. The audit team questioned management on issues such as cancelled orders, market conditions, rising input costs, and dollar volatility, but the company’s top executives did not respond to media queries.

Insiders point to political dynamics as a critical cause of the company’s downfall. A former employee said that the chairman previously benefited from strong ties with a powerful Awami League leader who helped secure large government contracts, particularly for electricity transmission lines. Once those political relationships shifted, government orders dried up rapidly, cutting off the company’s main revenue stream.

BBS Cables’ stock market journey has been equally turbulent. After its listing in 2017, the company’s shares skyrocketed from Tk10 to Tk150 within a month, drawing regulatory attention. In 2020, the Bangladesh Securities and Exchange Commission (BSEC) found the chairman, managing director, and their family members guilty of manipulating the share price and imposed fines of around Tk6 crore. Since then, the company’s stock price has steadily declined, closing most recently at Tk14.60 less than one-tenth of its peak value.

From a high-performing cable manufacturer with soaring revenues to a debt-ridden company struggling for survival, BBS Cables’ downfall has become one of the most dramatic declines in the recent history of Bangladesh’s capital market. Whether the company can recover from this prolonged crisis remains uncertain, as its financial losses deepen and its core business continues to shrink.