Lower raw material costs boost Walton's half-year profit to Tk363.34cr

Walton Hi-Tech Industries posted a 19.34% year-on-year rise in profit in the first half of FY26, driven by lower raw material costs, a stable exchange rate, tighter control over production expenses and strong management strategies.

According to the company's latest quarterly financial statements, the leading local electronics manufacturer reported a net profit of Tk363.34 crore for the July-December period, up from Tk304 crore in the same period a year earlier.

Revenue during the six months rose by 8.48% year-on-year to Tk2,762.34 crore, up from Tk2,546 crore in the corresponding period of the previous year. As a result, earnings per share (EPS) climbed to Tk10.90, compared with Tk9.14 a year earlier. 

However, in the October-December quarter of 2025, its earnings per share stood at Tk4.27, down from Tk4.66 in the same period of the previous year.

Today, the company's shares edged up by 0.08% to close at Tk384.20 on the Dhaka Stock Exchange.

In a press statement yesterday following a board meeting, the company said the improvement was driven by a stable foreign exchange rate, cautious and timely procurement of raw materials, and effective control over production costs. 

It also credited strong management direction, efficient cost management and strategic planning for the gains across key financial indicators, including sales, profit, EPS and operating cash flow.

Walton said it expects the growth momentum in sales, profit, cash flow and other financial indicators to continue in the coming quarters.

The company's net asset value (NAV) per share rose to Tk257.24 excluding revaluation and Tk358.41 including revaluation, reflecting its strong financial foundation.

Its operating cash flow also showed significant improvement. In the first half of the current financial year, net operating cash flow per share increased to Tk19.41, from Tk6.30 in the same period last year. 

The company said this was mainly due to an 8.07% increase in collections from customers and an 18.97% reduction in payments to raw material and other suppliers.

Notably, Walton said its operating cash flow and overall financial stability remained unaffected despite the value-added tax on refrigerators and air conditioners being raised from 7.5% to 15% in the 2025-26 financial year.

Meanwhile, at the company's board meeting, the proposed merger scheme between Walton Digi-Tech Industries Ltd (WDIL), the acquiree, and Walton Hi-Tech Industries PLC (WHIPLC), the acquirer, was approved. 

However, the merger will be finalised and implemented only after securing approvals from the Bangladesh Securities and Exchange Commission (BSEC), the High Court Division of the Supreme Court of Bangladesh, other relevant regulatory authorities, as well as the consent of general shareholders and creditors.

As of 31 December 2025, the company's sponsors and directors jointly held 61.09% of its shares, while institutional investors owned 0.75% and general investors 38.16%.

Founded in 2008, Walton entered the electronics and home appliance market at a time when the sector was largely dependent on imports. 

The company now leads the domestic refrigerator market with more than 72% market share and has a strong presence in televisions, air conditioners, ceiling fans, LED lights and other home appliances.

Walton began exporting refrigerators in 2011 and currently ships a range of products – including refrigerators, mobile phones, compressors and televisions – to markets in Europe, Asia and Africa.