Asiatic Laboratories has posted an impressive 86 per cent year-on-year growth in profit to Tk 164 million in the second quarter of FY26, driven by higher sales amid a stable forex market.
With the latest quarterly earnings, its half-yearly profit-Tk 316 million-in July-December last year surpassed its annual profit of Tk 255 million in FY25.
The drug maker attributed the remarkable earnings growth to a combination of factors- increased net sales, improved gross profit margins, and a reduction in finance costs.
Accelerated sales in new markets entered to expand business and higher deferred tax contributed to the bottom-line growth, said the company in its earnings note.
The company also focused on maintaining operational efficiency, managing costs prudently, and strengthening its financial position amid evolving market conditions.
"Higher revenue generation, supported by better market demand and efficient production planning, played a key role in boosting profitability," company secretary Ishtiaq Ahmed told The Financial Express over the phone.
He said the company had emphasized increasing the production of high-end drugs, which helped boost sales. Moreover, the company received tax benefits because of stock market listings.
"While sales increased, overhead costs remained the same, which helped secure high profit growth," he explained.
Presently, listed companies that have offloaded more than 10 per cent of their outstanding shares are required to pay 20 per cent corporate tax, while non-listed firms have to pay 25 per cent tax.
Asiatic Laboratories is yet to disclose detailed financial statements for the second quarter. The company secretary also declined to disclose sales data.
The company joined the stock market in March 2024 by raising Tk 950 million through an initial public offering (IPO) under the book-building method.
Its half-yearly profit jumped 170 per cent year-on-year to Tk 316 million in July-December last year.
The company also recorded a substantial improvement in its operating cash flow position.
Net operating cash flow per share increased sharply to Tk 4.01 for July-December 2025, compared to Tk 0.87 for the same period last year.
The improvement in cash flow was primarily driven by higher cash receipts from customers during the period compared to the same period of the previous year, the company explained.
Meanwhile, following the earnings disclosure, the stock of Asiatic Laboratories surged 3.04 per cent to Tk 64.5 per share on Thursday on the Dhaka Stock Exchange, despite the overall market closing in the red.
Investors were keen to put their money into Asiatic shares with an expectation of good returns against the backdrop of increased profit growth.
Having started commercial operations in 1998, Asiatic Lab manufactures, sells, and distributes pharmaceutical products (human drugs). It distributes products through its 17 sales distribution centers and a store.
"The sales of lifesaving drugs increased due to strong local demand, while leading companies successfully kept operating costs lower," Salim Afzal Shawon, head of research at BRAC EPL Stockbrokerage, told The Financial Express last week.
The macroeconomic indicators, such as inflation and the forex market, improved in July-December 2025 compared to the same period a year earlier, to the benefit of top drug manufacturers, Shawon added.
The growing population, coupled with rising awareness of healthcare needs, has amplified demand for generic medicines in the local market, particularly for chronic diseases.
The aftermath of the Covid-19 pandemic has further accentuated the importance of healthcare, leading to heightened focus on medical preparedness and infrastructure, which in turn has positively impacted the pharmaceutical industry.
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