BSRM's two listed firms see 33% revenue growth to Tk10,732cr in H1

Infographic: TBS

Two listed companies of BSRM Group, the country's largest steel manufacturer, posted a combined 33% growth in revenue to Tk10,732 crore during the July-December period of the 2025-26 fiscal year, driven mainly by higher sales price amid volatile market conditions. 

The growth in revenue, however, was not matched by a similar rise in profitability as elevated business costs continued to weigh on earnings.

According to their half-yearly financial statements, both BSRM Limited and BSRM Steels Limited recorded higher topline performance in the first half of the fiscal year, but net profit growth remained modest due to rising raw material prices, higher financing costs and overall inflationary pressures.

BSRM Limited, which is primarily engaged in the production of mild steel products through its melting, rolling and re-rolling mills, reported an 18% year-on-year increase in consolidated revenue to Tk4,756 crore in the first half of FY26. 

During the same period, the company's consolidated net profit edged up to Tk200 crore, while earnings per share stood at Tk6.79.

Despite the improvement over the six months, the company's second-quarter results reflected pressure on profitability. In the October-December quarter, consolidated revenue rose 14% to Tk2,411 crore, but consolidated net profit declined by 11% year-on-year to Tk78.70 crore, with earnings per share falling to Tk2.64. 

The company said the weaker quarterly profit was mainly due to higher operating and input costs.

On the stock market, shares of BSRM Limited closed 1.67% lower at Tk81.80, while its market capitalisation fell by Tk53.74 crore to Tk2,442 crore.

BSRM Limited has an annual production capacity of 1.75 lakh tonnes of MS rod and 11.25 lakh tonnes of billet, making it a major supplier to the country's construction and infrastructure sectors.

According to the company, it continued to operate in a challenging environment marked by domestic economic pressures and global uncertainty.

Meanwhile, BSRM Steels Limited posted a stronger revenue growth compared to its sister concern. It reported a 47% jump in revenue to Tk5,976 crore in the first half of FY26, while net profit rose by 10% to Tk193 crore. Earnings per share for the period stood at Tk5.14.

In the second quarter alone, the company recorded a 31% increase in revenue to Tk3,338 crore, supported by higher sales volume and price adjustments. Net profit during the quarter increased by 6% to Tk95.50 crore, with earnings per share reaching Tk2.54.

Despite the improved financial performance, the company's share price also declined, closing 2% lower at Tk68.60. Its market capitalisation dropped by Tk52.66 crore to Tk2,579 crore.

BSRM Steels manufactures MS billets, which are the basic raw material for rods, using scrap and sponge iron, and subsequently produces MS products through re-rolling mills. The company has an annual production capacity of 12.50 lakh tonnes of billets, 5 lakh tonnes of MS products and 1 lakh tonnes of wire rods.

The Bangladesh steel industry, estimated to be worth around Tk75,000 crore, plays a crucial role in national infrastructure development and industrial employment. 

As the market leader, BSRM has continued to supply steel to major national projects, including bridges, railways and power infrastructure, according to the company's annual report for FY25.

However, the operating environment remained highly volatile during the period. At home, political uncertainty and macroeconomic challenges such as foreign exchange volatility, tight liquidity conditions due to higher interest rates and persistent inflation put pressure on operating costs and consumer demand. 

Internationally, ongoing geopolitical conflicts disrupted global supply chains and added to uncertainty in commodity markets.

BSRM also reported a decline in sales volume of MS rods during the first half of the fiscal year, mainly due to weaker domestic consumption and slower implementation of large infrastructure and private development projects. 

These factors limited the group's ability to turn higher revenue into stronger profit growth.

Despite the headwinds, BSRM said it continued to focus on operational discipline, cost optimisation and quality assurance to maintain consistent product standards and plant reliability. 

The group also pursued strategic initiatives to improve process efficiency and strengthen supply chain resilience in order to mitigate rising input costs and market volatility.