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Square Pharma posts over 15pc profit growth on higher sales
The country's leading drug maker Square Pharmaceuticals has reported a 15.54 per cent year-on-year growth in profit to Tk 27.70 billion in FY26, driven by a significant rise in revenue. Company officials said their efforts to keep manufacturing unaffected even during the power shortage played a si
Square Pharma posts over 15pc profit growth on higher sales
The country's leading drug maker Square Pharmaceuticals has reported a 15.54 per cent year-on-year growth in profit to Tk 27.70 billion in FY26, driven by a significant rise in revenue.
Company officials said their efforts to keep manufacturing unaffected even during the power shortage played a significant role in ensuring higher revenue. The achievement was possible through a combination of energy sources: the national grid and power generated from diesel and solar.
"We faced no power outage and continued production uninterrupted," said Muhammad Zahangir Alam, chief financial officer (CFO) of Square Pharmaceuticals.
Square Pharma's supply chain is also broad, delivering products to people across the country, which supported a 12.81 per cent year-on-year growth in revenue to Tk 86.06 billion in FY26.
The CFO said their products could be delivered to the remotest corners of the country on orders placed through a mobile application. The app, named SHC100, is used by owners of drug stores and chemist shops to place orders. Previously, products were supplied to remote areas on a rationing basis because it was not possible to receive orders regularly.
In the near future, Square products will also be available for home delivery. For the trial run, the company has rolled out home delivery to its employees through the same app. As the next step, the app will be made accessible to general customers.
Such innovative schemes are helping the drug maker secure revenue growth above the industry's growth rate, which currently stands at 9 per cent.
Meanwhile, the company's selling and distribution expenses rose 12.89 per cent, while administrative expenses advanced 11.27 per cent in FY26. Higher revenue helped offset the increase in expenses.
The CFO said a 13 per cent growth in revenue is a huge success for a large company like Square Pharmaceuticals, but it could be even higher if some factors, such as power supply from the national grid, were favourable.
"We are satisfied as our supply of products remained unaffected even during the crisis periods when people suffered from unexpected diseases, including dengue fever," said Mr Alam.
Of the annual revenue in FY26, $27 million came from exports, up from $18 million earned in FY25.
Among other factors, a 17.36 per cent rise in income from investments and a 55.29 per cent decline in finance cost supported the profit growth.
Meanwhile, the company's board of directors has recommended a record 130 per cent cash dividend for FY26. Previously, Square Pharmaceuticals distributed a 120 per cent cash dividend for FY25, 110 per cent for FY24 and 105 per cent for FY23.
The company's net asset value (NAV) per share rose to Tk 178.99 in FY26 from Tk 157.88 in the previous year.
Further expansion
Apart from recommending the cash dividend and approving financial statements for FY26, the company's board has approved a new investment plan worth Tk 7.25 billion to establish dedicated facilities for oncology, biologics, hormones and steroids.
Currently, the company offers a limited range of oncology and biologic products, some of which are available only on a small scale in the absence of dedicated manufacturing facilities.
Oncology products, including monoclonal antibodies, are important for cancer treatment, while biologics, such as blood- and serum-based products, are used to treat complex diseases.
To address these gaps, Square Pharmaceuticals seeks to build dedicated oncology and biologics facilities to introduce specialised products and strengthen its presence in these therapeutic segments.
The initiatives are expected to secure long-term growth by enabling the company to enter more complex therapeutic areas and meet evolving healthcare needs, the CFO said.
The country's leading drug maker Square Pharmaceuticals has reported a 15.54 per cent year-on-year growth in profit to Tk 27.70 billion in FY26, driven by a significant rise in revenue.
Company officials said their efforts to keep manufacturing unaffected even during the power shortage played a significant role in ensuring higher revenue. The achievement was possible through a combination of energy sources: the national grid and power generated from diesel and solar.
"We faced no power outage and continued production uninterrupted," said Muhammad Zahangir Alam, chief financial officer (CFO) of Square Pharmaceuticals.
Square Pharma's supply chain is also broad, delivering products to people across the country, which supported a 12.81 per cent year-on-year growth in revenue to Tk 86.06 billion in FY26.
The CFO said their products could be delivered to the remotest corners of the country on orders placed through a mobile application. The app, named SHC100, is used by owners of drug stores and chemist shops to place orders. Previously, products were supplied to remote areas on a rationing basis because it was not possible to receive orders regularly.
In the near future, Square products will also be available for home delivery. For the trial run, the company has rolled out home delivery to its employees through the same app. As the next step, the app will be made accessible to general customers.
Such innovative schemes are helping the drug maker secure revenue growth above the industry's growth rate, which currently stands at 9 per cent.
Meanwhile, the company's selling and distribution expenses rose 12.89 per cent, while administrative expenses advanced 11.27 per cent in FY26. Higher revenue helped offset the increase in expenses.
The CFO said a 13 per cent growth in revenue is a huge success for a large company like Square Pharmaceuticals, but it could be even higher if some factors, such as power supply from the national grid, were favourable.
"We are satisfied as our supply of products remained unaffected even during the crisis periods when people suffered from unexpected diseases, including dengue fever," said Mr Alam.
Of the annual revenue in FY26, $27 million came from exports, up from $18 million earned in FY25.
Among other factors, a 17.36 per cent rise in income from investments and a 55.29 per cent decline in finance cost supported the profit growth.
Meanwhile, the company's board of directors has recommended a record 130 per cent cash dividend for FY26. Previously, Square Pharmaceuticals distributed a 120 per cent cash dividend for FY25, 110 per cent for FY24 and 105 per cent for FY23.
The company's net asset value (NAV) per share rose to Tk 178.99 in FY26 from Tk 157.88 in the previous year.
Further expansion
Apart from recommending the cash dividend and approving financial statements for FY26, the company's board has approved a new investment plan worth Tk 7.25 billion to establish dedicated facilities for oncology, biologics, hormones and steroids.
Currently, the company offers a limited range of oncology and biologic products, some of which are available only on a small scale in the absence of dedicated manufacturing facilities.
Oncology products, including monoclonal antibodies, are important for cancer treatment, while biologics, such as blood- and serum-based products, are used to treat complex diseases.
To address these gaps, Square Pharmaceuticals seeks to build dedicated oncology and biologics facilities to introduce specialised products and strengthen its presence in these therapeutic segments.
The initiatives are expected to secure long-term growth by enabling the company to enter more complex therapeutic areas and meet evolving healthcare needs, the CFO said.
