Mixed fortunes for New Asia group’s listed textiles in H1 FY26
Malek Spinning struggles with costs, while Rahim Textile posts a strong turnaround
Two listed textile companies under New Asia Group reported contrasting financial performances in the first half of FY26, highlighting the uneven impact of domestic and global challenges on Bangladesh's textile and apparel sector.
Malek Spinning Mills posts profit decline
Malek Spinning Mills PLC saw its earnings weaken during July–December FY26, weighed down by rising costs and macroeconomic pressures. The company's consolidated net profit fell 19% year-on-year to Tk68.57 crore, while consolidated earnings per share (EPS) stood at Tk3.54.
Keep updated, follow The Business Standard's Google news channel
The pressure intensified in the October–December quarter, when net profit dropped 37% to Tk31.85 crore and EPS fell to Tk1.65. Company officials attributed the weaker performance to external and internal headwinds, including the continuation of an additional 20% US trade tariff, banking sector instability, a widening financial account deficit, currency volatility, and declining foreign exchange reserves.
Rising commodity prices and persistent inflation further eroded margins. The textile and readymade garment sectors are also grappling with stricter compliance requirements, higher labour costs, and disruptions in power and gas supply all of which have directly increased production costs and affected export revenues.
Rahim Textile delivers strong turnaround
In contrast, Rahim Textile Mills PLC reported a robust performance over the same period. Net profit surged 271% year-on-year to Tk1.71 crore for July–December FY26, with EPS rising to Tk1.81. The October–December quarter also remained positive, with net profit climbing 92% to Tk0.50 crore and EPS at Tk0.54.
Rahim Textile noted that while the global economy remains under strain and the Bangladeshi textile industry faces challenges such as soaring energy prices, higher transportation costs, and reduced government incentives, its turnaround was driven by strategic shifts in operations.
The company invested Tk35 crore to transition from woven grey fabric dyeing, printing and washing to knit garments, seamless dyeing, washing, and accessories production. This move helped increase profit margins by lowering the cost of goods sold and aligning production with market demand.
As part of the strategy, Rahim Textile also shut down technologically obsolete woven dyeing, printing, and finishing units due to high energy costs, lower demand, falling selling prices, and rising raw material expenses.
