Walton cuts finance costs 60% as home appliances, cables drive FY26 growth

Infographic: TBS

Walton Hi-Tech Industries PLC posted an 8% year-on-year increase in net profit to Tk1,124 crore for the financial year ended on 30 June 2026, driven by strong growth in non-core product segments and a sharp reduction in finance costs.

According to the company's audited financial report, the country's leading electronics manufacturer's net revenue rose 4.55% year-on-year to Tk7,404 crore in FY26, while gross revenue increased 9% to Tk8,329 crore.

The company's finance costs fell by Tk267.26 crore, or around 60%, to Tk181 crore in FY26 from Tk448.40 crore a year earlier. Finance costs therefore accounted for 2.45% of sales, down from 6.33% in FY25.

Walton also substantially reduced its long-term borrowing during the year, mainly by repaying foreign-currency loans. Total long-term loans fell 70% to Tk166.29 crore at the end of June 2026 from Tk562.55 crore a year earlier.

The lower borrowing and reduced foreign-currency exposure also helped improve the company's foreign-exchange position. Walton recorded a Tk9.98 crore foreign-exchange gain in FY26, compared with a Tk123 crore loss in FY25.

These improvements helped lift earnings per share to Tk33.75 from Tk31.11 a year earlier.

Home appliances and cables lead sales growth

Walton's segment-wise sales showed mixed performance during FY26, with several emerging and non-core categories growing faster than its traditional businesses.

Home appliances were among the fastest-growing segments, with sales rising 40% year-on-year to Tk644 crore.

Cable sales increased even more sharply, surging 85% to Tk247 crore, while television sales rose 23% to Tk503 crore.

Electrical appliances generated Tk1,142 crore in sales, up 12% from the previous year.

The company's largest segment, comprising freezers, refrigerators and compressors, continued to grow, with sales rising 6.45% to Tk5,000 crore. The segment remained Walton's dominant source of sales.

However, some product categories recorded significant declines. Air-conditioner sales fell 12% to Tk574 crore, while elevator sales plunged 49% to Tk82 crore.

Sales from other products rose 19% to Tk102 crore.

The stronger performance of home appliances, cables, televisions and electrical appliances more than offset the declines in air-conditioners and elevators, resulting in overall revenue growth, according to the financial report.

Exports jump 79%

Walton's export revenue increased 79% to Tk135 crore in FY26.

Gross revenue grew faster than net revenue during the year, while VAT payments increased 69% to Tk1,028 crore.

The company also strengthened its operating cash flow. Net operating cash flow per share rose to Tk63.72 from Tk52.91.

The improvement was supported by a Tk694.36 crore, or 8.84%, increase in collections from customers, while payments to suppliers declined 2.31%.

Foreign-currency loans largely repaid

Walton fully repaid its loans from HSBC, Oesterreichische Entwicklungsbank AG, State Bank of India, Prime Bank, City Bank and Eastern Bank during the year.

Its borrowing from Standard Chartered Bangladesh fell to Tk32.82 crore from Tk65.80 crore, while the loan from Deutsche Investitions- und Entwicklungsgesellschaft declined to Tk98.59 crore from Tk176.85 crore.

In contrast, Walton's borrowing from Infrastructure Development Company Ltd increased to Tk34.89 crore from Tk11.79 crore.

Walton recommends 180% cash dividend

Walton has recommended a 180% cash dividend, equivalent to Tk18 per share, along with a 10% stock dividend for FY26.

The stock dividend will be used to finance capacity expansion under its Green Energy project through Balancing, Modernisation, Rehabilitation and Expansion, aimed at ensuring uninterrupted power supply.

The company has set 20 September as the record date for the dividend.

Its annual general meeting is scheduled for 15 October at noon through a virtual platform.