The business downturn in Bangladesh’s listed textile sector has intensified, with 12 companies reporting losses and 13 of the 25 profitable companies recording declines in earnings per share (EPS). Several companies have also reduced their dividend payouts, while auditors have raised concerns over the going-concern status of 14 companies. Meanwhile, 18 companies have failed to publish financial statements for an extended period.
The picture emerged from an analysis of the financial statements and dividend declarations of textile companies listed on the Dhaka Stock Exchange (DSE) for the 2025-26 financial year.
A total of 58 textile companies are listed on the DSE. Of them, 37 have published their financial statements and declared dividends for FY2025-26, while three have yet to publish their financial statements or hold meetings on dividend declarations.
Among the 37 companies that declared dividends, seven did not offer any dividends. Another 12 companies reduced their dividend payouts compared with the previous financial year.
The earnings performance also showed a downward trend. Of the 25 companies that remained profitable, 13 recorded lower EPS than in the previous financial year, indicating weakening earnings despite remaining in the profit zone.
Company-wise data show that Square Textiles’ EPS declined to Tk 4.50 from Tk 7.24 in the previous financial year. Argon Denims’ EPS fell to Tk 1.16 from Tk 1.68, while that of Desh Garments dropped to Tk 0.48 from Tk 0.73.
Similarly, Saiham Textile’s EPS declined to Tk 0.29 from Tk 0.59, Shasha Denims’ to Tk 1.03 from Tk 1.57, and Tosrifa Industries’ to Tk 0.30 from Tk 0.75.
Dividend declarations also reflected the sector’s deteriorating performance. Desh Garments reduced its dividend to 2% from 3%, while Dulamia Cotton cut its payout to 1% from 3%. Saiham Textile lowered its dividend to 5% from 6%, and Tosrifa Industries reduced it to 1.5% from 4%.
Munnu Fabrics and VFS Thread also made significant cuts in their dividend payouts.
Twelve listed textile companies incurred losses in FY2025-26. They are Fareast Knitting, Esquire Knit, Alhaj Textile, ML Dyeing, Dragon Sweater, Stylecraft, Tallu Spinning, Zahin Spinning, Shepherd Industries, Sharp Industries, Safko Spinning and Anlima Yarn Dyeing.
Some of these companies recorded higher losses compared with the previous financial year, further highlighting the financial pressure on the sector.
Auditors have expressed concerns about the ability of 14 textile companies to continue their operations as going concerns.
The companies are Alltex Industries, Anlima Yarn Dyeing, Dulamia Cotton, Metro Spinning, Mithun Knitting, Pacific Denims, Prime Textile, Ring Shine Textiles, Safko Spinning, Sonargaon Textiles, Tallu Spinning, Dhaka Dyeing, Tung Hai Knitting and Zahin Spinning.
Meanwhile, 18 companies have not published financial statements for a prolonged period, depriving investors of updated information about their business operations, financial positions and profitability.
The companies are Zahint ex Industries, New Line Clothing, Nurani Dyeing, Pacific Denims, Prime Textile, Generation Next, Hamid Fabrics, HR Textile, Tung Hai Knitting, Regent Textile, Ring Shine Textiles, Mithun Knitting, Metro Spinning, Familytex, Maksons Spinning, C&A Textiles, Alif Industries and Alif Manufacturing.
The prolonged failure to disclose financial information has also raised questions about transparency and accountability in these companies.
Explaining the reasons behind the sector’s downturn, Monir Hossain, company secretary of Esquire Knit Composite, said the crisis stemmed from multiple factors, with gas and electricity shortages being among the major challenges.
He also cited rising raw material import costs, stagnant export prices, labour unrest, higher interest rates, the suspension of yarn imports from India and the impact of the global economic slowdown as factors contributing to the sector’s deteriorating performance.
