Titas Gas posts Tk249cr loss despite revenue rise as system loss jumps

Despite a 17% year-on-year rise in revenue, Titas Gas Transmission and Distribution PLC reported a net loss of Tk249.25 crore — with a per share loss of Tk2.52 — in the first quarter of the current fiscal year.

The loss during the July–September of 2025-26 fiscal widened compared to the same period of the previous fiscal year. The state-owned gas distributor attributed the losses primarily to escalating system loss and higher tax deducted at source (TDS).

According to its unaudited July–September financials, revenue climbed to Tk9,655 crore.

However, after deducting cost of sales, the company registered a negative gross profit of Tk170 crore. Operating loss also deepened to Tk326.82 crore, compared to Tk162.80 crore in the same period last fiscal.

The company reported a system loss of 10.13% in the quarter, far exceeding the allowable 2%, forcing it to bear substantial purchase liabilities without corresponding revenue. In the same quarter last year, system loss stood at 8.63%.

Beside the increasing system loss, it said as per the finance ordinance of 2025, the corporate tax rate applicable to Titas Gas is 20% on taxable income. In FY26, the company incurred a loss before tax of Tk189.39 crore resulting actual current tax liability was zero.

However, the total tax deducted at source for the period of July-2025 to September-2025 was Tk. 62.11 crore.

According to Section 163 of the Tax Law 2023 and the Finance Ordinance 2025, if tax deducted at source is higher than actual tax liability, the tax deducted at source will be treated as minimum tax.

As a result, the full TDS amount was recognised as current tax expense, pushing the company's net loss to Tk249.25 crore.

Considering these leading to a significant decrease in the company's earnings per share (EPS), it said on its financial statement.