Mir Akhter Hossain secures new project, but delayed payments push company into trouble

Mir Akhter Hossain Limited has secured a fresh government project in Lalmonirhat at a time when the long-established construction firm is grappling with severe financial strain driven largely by delayed bill payments from ongoing public projects.

Awarded on 29 October, the project involves constructing a primary school, installing solar power facilities, developing connecting roads, building bridge-culverts, and undertaking tree plantation works at a cost of Tk174.62 crore. 

With a duration of 24 months, the project offers some operational relief, but company insiders said it remains far from enough to offset the growing financial pressure.

The impact of these payment bottlenecks was starkly visible in the company's performance for the July-September quarter of FY26. 

Mir Akhter reported a 75% drop in revenue, which plummeted to a mere Tk9 crore. This is a steep fall for a company of its stature and indicates a near-standstill in billable execution for its own construction units. 

Consequently, the company incurred a loss of Tk2.54 crore from its standalone construction business during this period. The only financial lifeline preventing a bottom-line disaster was its income from Joint Ventures (JV).

By factoring in the JV earnings, Mir Akhter managed to scrape together a net profit of Tk2 crore at the end of the first quarter, a figure that remains precariously low compared to its historical performance, according to the company's unaudited report.

The company's financial performance had already weakened in the previous fiscal year. In FY25, its revenue dropped by 50% to Tk133.95 crore, while net profit fell by 31% to Tk20 crore. 

Mir Akhter declared a 10.50% cash dividend for general shareholders, but analysts noted that this payout was modest compared to past years and reflected broader stress in the construction sector.

A senior officer of the company, speaking to The Business Standard on condition of anonymity, provided context to the dismal numbers. 

He explained that the country's infrastructure sector has slowed significantly under. While smaller projects like the one in Lalmonirhat are still being processed, they are insufficient to generate the significant profit margins required to sustain a company with Mir Akhter's overheads. 

The official added that until an elected government takes charge, the approval and commencement of large-scale, long-term projects have effectively been paused. 

More critically, he noted that while work on ongoing projects continues, the government has halted timely bill payments. This delay has caused a drastic erosion in revenue and profit, forcing the company into a struggle for survival where liquidity is the primary casualty.

According to Mir Akhter's latest operational report, the company is currently working on 21 projects with a combined value of Tk8,013 crore. 

These include major infrastructure developments, such as the SASEC Dhaka–Sylhet Corridor Road Investment Project. 

It is also partnering in several high-profile joint ventures, including works at Cox's Bazar Airport, the four-lane road from Dulla Mari Road to Tangail, construction of a 7.35km road in Cox's Bazar, improvement of the Jamuna Bridge-Hatikamrul highway, and strengthening of runways and taxiways at Osmani International Airport and Shah Amanat International Airport. 

These projects, although large in value, require steady capital investment – something difficult to maintain without timely payments, according to the company source.

Financially, the company has been attempting to diversify its funding sources but with limited success. In December 2024, Mir Akhter announced a plan to raise Tk250 crore through preference shares to repay outstanding loans and stabilise cash flow. 

Shareholders approved the proposal at the annual general meeting in February 2025. However, the Bangladesh Securities and Exchange Commission (BSEC) declined to grant the needed approval, halting the effort.

As of September 2025, Mir Akhter's total loans and borrowings stood at Tk1,583 crore, combining both current and long-term liabilities. This heavy debt burden underscores the urgency with which the company is seeking fresh funding options. 

Earlier, in April 2024, it had planned to raise Tk300 crore through a corporate bond but later withdrew the plan, reportedly due to unfavourable conditions and regulatory complications.

In March 2022, the company succeeded in issuing a Tk249.90 crore zero-coupon bond after approval from the securities regulator. 

In November 2020, it raised Tk125 crore through an initial public offering (IPO) under the book-building method, intending to expand its business, purchase equipment, and reduce bank loans. The cut-off price of the share was set at Tk60. But the stock has since depreciated sharply.

On Monday, shares of Mir Akhter closed 4.04% higher at Tk28.30 – still less than half its IPO reference price.