Navana Pharmaceuticals posted a 21 per cent year-on-year growth in profit to Tk 131 million in the third quarter of FY26, driven by strong sales growth, improved operational efficiency and lower finance expenses amid sustained demand for medicines.
Earnings per share (EPS) increased to Tk 1.22 for the quarter ended March this year from Tk 1.01 for the same quarter last year, according to a regulatory filing on Thursday.
The company said higher sales volumes, operational efficiency and continued demand across local and overseas markets contributed to the improved earnings performance.
Net sales rose 22 per cent year-on-year to Tk 2.73 billion during the quarter, while finance expenses declined 16 per cent to Tk 146 million, providing further support to profitability.
"We achieved strong revenue growth due to increased market penetration and product demand, while prudent cost management enhanced operational performance," Company Secretary Lorens Shamol Mollick told The Financial Express over the phone.
The company had also reduced its borrowing costs by repaying a portion of high-cost loans, which led to a notable decline in finance expenses, he added.
The company's nine-month performance showed even stronger momentum. Profit jumped nearly 32 per cent year-on-year to Tk 493 million in the July-March period of FY26, while revenue climbed 26 per cent to Tk 8.33 billion during the same period.
Meanwhile, Navana Pharma has approved a long-term foreign financing facility worth €26.61 million to expand its production capacity.
The board has decided to secure the 12-year loan from AKA Ausfuhrkredit-Gesellschaft mbH of Frankfurt, Germany, with KGMC Financial Service acting as the sole arranger in Bangladesh.
According to the company secretary, the funds will be used to expand manufacturing facilities and strengthen production capabilities to meet the growing market demand.
The proposed financing arrangement, however, remains subject to regulatory approvals and the completion of due diligence procedures.
Analysts view the planned investment as a strategic step that could position the company for long-term growth as Bangladesh's pharmaceutical sector continues to benefit from rising healthcare awareness, growing demand for generic medicines and expanding export opportunities.
Founded in 1986 and listed on the stock exchanges in 2022, Navana Pharmaceuticals produces both human and veterinary medicines. The company exports products to several international markets while also maintaining a strong domestic presence.
Investor confidence in the stock remained positive following the earnings announcement. The share price of Navana Pharma rose 1.75 per cent to Tk 75.40 on the Dhaka Stock Exchange on Thursday.
Record annual performance
Navana Pharma reported a record annual profit of Tk 488 million in FY25, marking a 20.5 per cent increase from the previous year.
Annual revenue also reached a record Tk 8.84 billion in FY25, up 28 per cent year-on-year. The company declared a 14 per cent cash dividend for general shareholders only for FY25.
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