Dacca Dyeing posts Tk372cr loss in H1
Revenue fell 41% in H1 FY26, and interest adjustments drove heavy losses
The Dacca Dyeing and Manufacturing Company Limited posted a massive loss of Tk372.20 crore in the first half of the current fiscal year, highlighting a sharp deterioration in its financial position.
The plunge comes amid falling turnover and a major accounting adjustment related to bank interest.
According to the company's price-sensitive disclosure, turnover fell 41% year-on-year to just Tk8 crore in July–December FY26. During the same period, the company reported a loss of Tk372.20 crore, compared to Tk18.20 crore a year earlier. Loss per share ballooned to Tk42.71.
Keep updated, follow The Business Standard's Google news channel
The situation worsened in the second quarter alone. From October to December, revenue dropped 40% to Tk3.64 crore, while the company incurred a loss of Tk359 crore, indicating that the bulk of the half-yearly loss was recognised in this period.
Reflecting the sharp erosion of shareholder value, the company's net asset value (NAV) per share turned negative. At the end of the first half of FY26, NAV per share stood at minus Tk16.99, a stark reversal from a positive Tk25.71 in the same period last year.
Dacca Dyeing attributed the massive loss primarily to a reassessment of bank interest liabilities. The company said it had previously recognised bank interest based on estimated rates. However, following negotiations with the banks and instructions from the Bangladesh Bank policy support committee, the final interest payable was significantly higher than previously recorded.
The company explained that since the revised interest amount was uncertain over the past thirteen years, the shortfall represents a change in accounting. This led to the substantial one-time charge during the reporting period.
Shares of Dacca Dyeing fell 2.99% today (29 January) to close at Tk16.20 on the Dhaka Stock Exchange.
According to the company's annual report for FY25, it has outstanding loans from Sonali Bank, Agrani Bank, and Dutch-Bangla Bank.
Launched in 1963, the company is currently operated under the QC Group. Its board of directors includes Gias Uddin Quader Chowdhury, Samir Quader Chowdhury, Samiha Quader Chowdhury, and Sajia Quader Chowdhury, relatives of former BNP leader Salahuddin Quader Chowdhury, who was executed for crimes against humanity in 1971.
The company came under the current sponsors' ownership in 1996–97, after being managed under a state-owned bank. It also has a representative from Bangladesh Development Bank on its board, which holds a 12.44% stake in the company.
